Full text of Commercial and Financial Chronicle : May 30, 1957, Vol. 185, No. 5642

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A

ESTABLISHED 1S39
"
A

*

-%
*4

.

1

.

^# ••/•

■

•«

-t

Y-

2

BUSINESS

ADMlNfsMTI

LIBRARY

JUN 3
o

ia;
1957

Chronicle

Reg. U. 8. Pat. Office

Volume

185

Number

5642

New York

7, N. Y., Thursday, May 30, 1957

Price 40

Cents

Copy

a

EDITORIAL

Stock Market Outlook Until

As We See It
„

>

And After

/-The President has decided not to ask Congress
for

legislation providing

i authority to regulate
I done

I

of the Federal

Chairman of the Board
United States Steel Corporation

Co., San Francisco, Calif.

The

business is

*•

] visors:- There^is
f-

Terence

with

counteract

no

health in, government inter-

natural

errors

forces

in*

an'

endeavor,* to

by public; authorities: We

'

:".

may

in

as

1953-1954—though

current

peak

may

steel, he foresees metals becoming
existing ones, capable of resisting
extremely high temperatures, and made by equally revolutionary processes as those that made possible the
steel industry a century ago. /
I

1

If

be passed.'
1957 the

the

YreH , however, if, meanwhile both ?
7e"tricfi\%
government officials and the general . public,, did
credit
policy; , and
(2)
The -lows
not cease for/this reason to
try. to gain a better - probably somewhat above the lows
understanding ofrthis vexed subject of consumer.
?f last February, which were marked
rrpdit and thp fnrpps which nnHprlip jfo
by.-the emotional selling' py • those
.ait ana tne iorces wnicn unaeriio its expan
fearful of a nearby "hair
curling"
sion
during recent years. To begin with, consumer / depression. f - ^:
/ ■
credit is not something
wholly different from
There are eight: reasons for exother types of credit in
respect of its general
peeling the market to remain within
r
•

point of-fact*

.

,,

i

j

We

steels

substantial part of it is not
consumer credit at
all in any real sense of the
term. It is supposed to be' credit" extended to
a very

The four sustaining factors

be

.Y

.Continued

/

on page

32

SECURITIES

securities

DEALERS

of

talk

the

NOW

by

Mr1.'

Financial

IN

afforded

are

effect

than

were

on

our

n

f;

way.

And if

based

look

we

Philip J. FitzGerald

FitzGerald

before

the

ity for growth.

For America, too, is going places!

10th

Continued
on

Annual

Analysts Societies, Cleveland, Ohio,

page
22,

Municipal 1

and

♦An

address

American

1957.

Iron

dealers and investors in corporate
registered with the SEC and poten¬
"Securities in Registration" Section, starting on page 36.

complete picture of issues
our

STATE

DEALERS

INDUSTRIAL

CHEMICAL

PUBLIC
&

•

BONDS

and

DEPARTMENT

30 BROAD ST., N.Y.

MCM3ERS NEW

YORK

and
AND

ARE NOW AVAILABLE
ON

Company

AMERICAN

CABLE:

COBUPNHAM

STOCK

N.Y.

Dl 4-1400

TELETYPE NY

1-22«2

Bond Dept.

New York Stock Exchange
Stock

Active

BOND DEPARTMENT

120

New

York

Stock

Exchange

Chase Manhattan

Banks

BROADWAY, NEW YORK 5
offices

from

coast

to

BANK

coast

Maintained

and

Brokers

for California

The
BANK OF

SECURITIES

MONTREAL

Commission

Orders

Executed

On

All

CANADIAN

Municipals

Rights

Canadian Exchanges At Regular Rates

Exchange

STREET

NEW YORK 4, N. Y.

DEPARTMENT

Markets Maintained

DIRECT

WIRES TO

MONTREAL AND TORONTO

Goodbody

&

Dombuox Securities

Co.

Grporatioii

MEMBERS NEW YORK STOCK EXCHANGE

Bridgeport

DALLAS




;

Teletype NY 1-2270

25 BROAD

£atfhu>€6t COMPANY

Markets

Dealers,

District Bonds

FIRST

Members

Teletype: NY 1-708

canadian

1832

Members

American

*•

THE

34

T. L.Watson &Co.

County and

/

REQUEST

Harris, Upham &

OF NEW YORK

Net

established

•

EXCHANGES

•

To

State, Municipal.

'

Bonds and Notes

THE FIRST NATIONAL CITY BANK

Burnham

'

Public Housing Agency

UTILITY

SECURITIES

15 BROAD STREET, NEW YORK 5,

J

'.

"3

"MARKET REVIEW"

FOREIGN

BANK
BOND

State, Municipal
...

m

MUNICIPAL

and

RAILROAD

CORN EXCHANGE

22

now

-fi

-

4

HAnover 2-3700

page

by Mr. Blough before the Centennial Meeting of the
and Steel Institute, New York City, May 23, 1957.

COPIES OF OUR
telephone:

on

26

Convention

May

But if

*

Stew

BROKERS

Roger M. Blough,

industries around us, and survey all
other branches of our national

REGISTRATION—Underwriters,

a

tial undertakings in

:

.

economy, we find again the infinite promise that lies in
their vigor, their ingenuity, and their boundless capac¬

UNDERWRITERS

Securities

',

the

,Xf. S. Government,

v;v

inven¬

at other American

in

Stale and

the

Kelly and Bessemer a cen¬
tury ago. So on every front we have
places to go; and definitely, we are

Continued
♦A

ever

of

'

•

'/

foresee

can

will resist—to

even
see
the possibility of
steelmaking processes that may
less revolutionary in their ul¬

tions

responsibility of committing approx¬
imately $5 million a day in the equities of the blue chip
investment leaders. They can be
expected to continue

purchase of goods or services (usually,
although not always, durable goods) destined for
personal rather than business use. But in actual

We

-

than

now ex¬

no

timate

essentially on the thinking of the
institutional investors who have the

finance the

•

are

that

more

that

any

can

new

this broad trading range—four limitingi and four, sustaining factors,

t

the economic; world. In

metal

a

as

steel industry itself—at its
and its drive—then clearly,
Already we can see before us

pheric friction at supersonic speeds.

pvnan-

in

the

greater degree—the terrific temper¬
atures that are generated by atmos¬

.

its function

strong

as

commercially.

new

be

or

within

of

prospect

ists

nature

look

we

vitality, its inventiveness,
the promise is unlimited.

It seemi most likely that for the balance of

•

perth amboy

115 BROADWAY
NEW

\

YORK

1 NORTH LA SALLE ST.

CHICAGO

•

40

:

second century of
twice as strong as

twice

11

The U. S. Steel chief officer dis¬

sible resulting consequences to the economy and the
government's fiscal responsibilities. Looking ahead to a

.

spiraling private debt structure and growing Oliquidity;
weighs the impact of international problems on invest¬
ment decisions; land; doubts interest rates will
collapse

decision and the opinions- of; the President's* ad-

a

several fallacies of H. R. Seven and charts
pos-

cusses

,

I

a graduated corporate
"widely-expounded doctrine that big
menacing evil which must be atomized in

the national interest."

*ee*jk

^

America's future" Mr. Blough

to

income tax, and the

.^C. fuccee^n? dynamic 1960's.
broad public interest is better-served if
potenr
"1,nf ^ jr°r* m
PPP/"r•/>
Jhe economy, Mr. FitzGerald compares the outperforming
tidily hhstabihzmg credit
*developnentsatereprices of blue chip equiReserve.System>that "the

"major hazard

declares is the proposal to impose

■

two

phases, investment banking analyst' suggests criteria for investment selections during the economic plateau of the fore-

so

ernors

&

Dividing the stock Market outlook into

in; reliance dpori: advice by Tiis economic ^
j counsellors and an opinion by fthe Board of Gov-

j

Dynamic 1960's

Partner, Dean Witter

has

White Horses

on

By ROGER M. BLOUGH*

.

V By PHILIP J. FITZGERALD *

himvwithv "stand-by":-

consunie^ c^dit:>He

A Tax

Exckange Place, New

Teletype NY 1-702-3

York 5, N. Y.

WHitehall 4-8161

MUNICIPAL BOND

DEPARTMENT

Hank of Awtmra
NATIONAL

JAV\NO& ASSOCIATION

300 MONTGOMERY
cam

cDAKirisro

STREET
CALIF.

(

and Financial Chr&nicle

The Commercial
2

t

.

Thursday, May 30, 1957

.

(2506)
A

Brokers, Dealers

For Hanks,

I like Best

The Security

only

participate and give their reasons

BECAUSE:
1.

(The articles contained in

nationwide private wire

Our

provides you with more

system

department assures you

trading

of maximum

depend¬

service and

Intermountain Express
as
it is usually

Pacific
Co.

able executions.

ir. I.E.
P. 1. Jtv.

or

called, has grown in 1956 to be
the largest motor carrier of prop¬

both

of

Associate

Exchange

WOrth 4-2300

•

SAN

to

Wires

Private

CHICAGO

•

BOSTON

PHILADELPHIA

0r

ac¬

to

ings

reported

more

i

operations

than 50%.

a

Specialists in

E.

Charles

Jank

transcends some of our

"growth" compan¬
the top of the
accomplished
by

RIGHTS

SCRIP

&

Since 1917

McDonnell &fo.

and

Members

York

New

American

Navigation Co., operating steam¬
ship freight and passenger service
from San Francisco and Los An¬

strong

geles

Hawaiian

the

to

Zealand
.

5

of

com¬

from

and

continued

westward
profit potential.
Coast
northward from the Los An- '
KILIAEN V.

to the Northwest.,* In
addition to being the largest com¬
mon
carrier trucking system in
geles

Trading Interest In

area

American
Bassett

Life

Industries

Furniture

Insurance Co. of

Va.

Commonwealth Natural Gas

STRAOER and COMPANY, Inc.
Lynchburg, Va.
TWX LY 77

LD 39

line

tank

Furniture

British Industries
Eastern
Common

Industries
& Preferred

International

Business

Machines Rights

Alegre

Punta

Sugar

Radiation, Inc.

ESTABLISHED

1930

Tel. HAnover 2-4853

37 Wall St., N. Y.

in

an

Sulphur

Pecos Exploration

P.l.E.'s

West

subsidiary's average haul is over
600 miles. Long haul'.operations
are
conceded to be almost -in¬
shorter

profitable

more

Land & Cattle
•

•

•

•

CAPPER & CO.
I

Exchange PL, Jersey City, N. J.

HEnderson

2-8570—Teletype JCY 119

Ofroct Wire

Olgby 9-3424




■

e'f

alone,

Western

of

sational

Colorado.

-

k;

And

.

has drilled 13 successful
wells to date in this area, some
are a good many miles

Equity
gas

apart,

With Equity holding;iover

*

ment

completed

the

housed

are

gen¬

moved from Denver,
combining the Los An¬

shops

besides

lower

operation costs.

revenues every year

op¬

from

$5,949,000 in 1946 to $52,289,000 in
Net

1956.

in

earnings

a

Reported

$1.27

decline

have gained

!?45 JSJ1'883'-

1956.

ings of

per

14

of

1956 earn¬

share revealed
cents per share

earnings figures reported for
1955.
However, in 1956 realized

from

capital gains, net after taxes, con¬
tributed about 20 -cents per share
less
1955

to

1956

to

earnings than to the

earnings per adjusted share.

Earnings
show

this
a

year

are

expected

considerable improve¬

first
quarter results for 1957 showed a

ment.

pro-

come

remote.

For

example,

the

provides sufficient each flow
exploration and

ket, appears to

finally passes some sort of
gas bill, a much more favorable
contract can be made with one of
the
several .Interstate
pipelines

be

now

Counter

an

Townsend

Mar¬

excep¬

each share

virtually, to

acreage

count for its

are

ac-

present market price,

And, quite apart from the oil, its
recently discovered gas field may
be worth considerably more all

But, considering only its
oil and gas reserves,
it certainly can be argued that
Equity is worth more than the

by itself.

actual proven

shares

are

traded at.

now

Completely ignored in the cur¬
market appraisal is Equity's
vast holdings
of shale oil land,
amounting to no less than 1,300
barrels of oil per share. In view

of recent developments and other

ta^'to1 come°abouf^in^^hpr
la
about
the
about

come
e

future,
5

or

10

and

COMPANY

LIMITED

Toronto;

;?3Kin£ St yes*

Canada

EMpire 3-8204

Trading

even

cents

a
a

Burns Bros. & Denton
'

INC.
37 Wall Street,

in
ln

tne

New York 5, N. Y.

Under tor iters—Distributors
Dealers

serving that area. Or, as an
intrastate sale of the

Investment Securities

Canadian and Domestic

alternative,

enough proven
and promising unex-

reserves

pared

*$.

gress

Behind

tion.

oil

W1SENER

development program. When Con-

the Over-the-

V. R.

J

Limited

r

for t^e comnanv's

Oil
Co., traded in

rent

Management has increased
erating

is

company's long experienced
managementdecides the
time is opoortune. The income is
not required now
as the oil in-

portionately

than

K.

:'y

—-

PIPE LINES

\

the

ever

Equity

was

Here

eral

more

a

type of invest-

in Au¬
gust 1956 and is the largest built
to date for use by any one truck
line.

most

market

of

Securities

the

of which

conservative

daries, 225 new line-haul semi¬
trailers, 125 new pickup and de¬
livery units, terminals in the Los
Angeles area and at
Missoula,
Montana
and Elko, Nevada
and
a maintenance base at Monticello,
Utah. The new Los Angeles area

AH

TRANS-CANADA

to be almost a*
the San Juan Basin.

as

in

r

_

it may prove

■

with

Capital expenditures last year
totaled $6,098,000.
This included
the purchase of 20 new Drome¬

000

Leon

prospects

,

....

,

Markets Maintained

attractive speculative

runs.

Wyoming Uranium
American Tidelands

i.C

miles. ^Moreover,,
Coast Fast Freight

-1,500

nearly

terminal operations, which
previously were in three sepa¬
rate
locations.
The
result
has
been faster freight handling and

Swan-Finch Oil

and

reserves

Fasin

R. TOWNSEND

uncertain

this

stocks with

geles

Standard

..4vss.y/sss/,yss>

80,000 acres in this Basin, it is entirely possible that its gas reserves,
possibilities can go down probably dependent of course on proving up
sition.
The
natural average of as far as they might go up. And extensive acreage between comthe chance of pleted wells, may amount to as
common carriers as a group aver¬
substantial much as $40 or more a share,
age hauls of approximately 300
miles.
P.l.E.'s
average
haul ; is
appreciation - This gas can be marketed whenIn

P.l.E. is
exceptionally favorable po¬

"average haul" criterion,

terminal

SreeweoMGompam^

-

it;-?

■>

N.Y. 6 GOrtlandt 7-5680

Trading

Firm

.

Security Analyst
.
Electric Heat

Equity Oil„

•'

70 Branches

—

Investment Bankers

<fc

111 Broadway,

emniove^s

Tokyo

anrj

T

Corporation, Atlanta, Ga.

operating throughout 11 western
states.
From
the standpoint of

variably
Trading Markets

ojl

Dixie Raydiant

P.l.E. has the largest
system in the U. S.,

the country,

Brokers

In addition, however, Equity ao^
it;patently has run ,nto a major gas
discovery in the Piceance Creek

'

Office

Ltd.'

1897

Established
Home

promising Rocky Mountain
a successful exploration
.the present price
31 could be justified on Equity's

0f

good income plus
long-term growth and

Indiana to the Pacific

Securities Co.,

record' to- date,

for

attractive

"

very
<area

80 cents cash to yield 5 Vo
plus 5% in stock, the shares seem

extend

which

states

2-7815

TEL. REctor

its

and

write

ning just $255,000 in 1956. With
large unexnlored acreage in the

paying

operate over 17,600 miles
general freight routes in 14

position.

minimum,

a

or

totaling only 30 01" *o and adminis¬
trative and general exnenses run¬

.

which has

company

a

■

dynamic growth. It is the
largest unit in its industry.
Its
management has been able and
aggressive. Selling around $16 in
the
Over-the-Counter
Market,

-v;y 1

~
subsidiary

is

P.l.E.

.

financial

sales will run over $3,-

to

Call

;

Yamaichi

enjoys a

management keens over¬

minded
head

>

1

or

and Equity

liquid
oil

'

appear to be stirring due
improved Japanese economy.

For current information

000,000 this. year. And its economy

shown

panies

BROADWAY, NEW YORK

120

revenues

to

.

debt

no

common,

Crude

Islands,

New

Pacific,
and Australia.
South

the

is

practically

at

now

$20 a share

or

remaining

stationary levels for three years

preferred
stock ahead of the 1,500,000 shares

V There

of

branch offices

our

STOCKS
after

$1 per barrel.

and

higher

even

profits.

P.l.E.

Exchange
Exchange

Stock
Stock

of

terms

barrels

million

30

wires to

JAPANESE

at the conservative valuation of a

.

intelli¬
gent future planning.
This year
is
expected to be a penod in
which
the
company's forwardlooking
policies
bear
fruit in
management

sound

Direct

With increased

of years.

payable 20 cents quarterly.
particular interest is the fact
that approximately 10% of P.l.E.
shares are owned by the Matson

n

been

has

Furthermore, the

Of

Such growth to

list

producer since 1923,
vin Colorado and

Marketing outlets for oil in that
region, net income from oil ran
$1,170,000 or 78 cents in 1956 and
should reach $1 a share this year.
Proven oil reserves run close to

dividend.
Present
cents per an-

stock

5%

Mobile, Ala.

holdings

number

by

NY 1-1557

HAnover 2-0700

r

New Orleans, La. - Birmingham, Ala.

•

Utah, Equity Oil Co. has shown a
profit consistently and paid afor a
small
-dividend uninterruptedly
~

num,

known

better
ies.

was

'

„

cash dividend is 80

has
at a

grown

.

share earn¬

higher

.

A small oil

with

quarter is usually seasonally
the poorest of the year. Each year
since 1952 the company has paid

1937, the com-

rate which

of the stock.

first

Commencing

p a n y

net income
were

Members American Stock Exchange

virtually unreflected in the price

increasing from $99,-

$402,559;

to

70% greater while per

a

Association.

FRANCISCO

Principal Cities

last year,

253

York Stock Exchange

Members New

-

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

adjusted for 3-for-l split but not
for 5% stock dividend). Operat¬

as

Steiner, Rouse & Co.

,

Corp., Atlanta, Ga. (Page 2)

17 cents per share on 1,-

34!'T2^a-v^rat%fA>
rnf
outstanding number ofquarter of
the first shares is
1956
(1956

Dept. of Re¬
search, Amer¬
ican Trucking

Broadway, New York 5
Teletype NY 1-40

120

341

report com¬
piled and pub¬
lished by the

Member

Stock

American

cording

1920

period compared with $226,-

rev¬

income

Corporation

during

of shares outstanding

and net

enues

Oil Company—Kiliaen V.
R. Townsend, Security Analyst,
Dixie
Radiant
Electric - Heat

Equity

ing net income during the quarter
was more than four times as great

U. S. in terms

New York Hanseatic
Established,

the

in

erty

Bought—Sold—Quoted

land, Calif. (Page 2)

ber

Intermountain Express Company

Pacific

Jank,

E.

Knowlton. &

Frank

the

Oakland, Calif.

and large

long experience

2. Our

—Charles

gain to $386,630 or 26 cents per
share on 1,479,233 average num¬

Knowlton & Co.

President, Frank

markets, faster.

Co.
President,
Co., Oak¬

Pacific Intermountain Express

discussed.)

offer to sell the securities

E. JANK

CHARLES

Louisiana Securities

for favoring a particular security.

this forum are not intended to he, nor

they to be regarded, as an

are

Alabama &

Participants and

Their Selections

which, each week, a different group of experts
the investment and advisory field -from all sections of the country

in

"HANSEATIC"

-

Week's

This

Forum

A continuous forum in

Try

*

near

nominal value of
barrel applied to

this shale oil will make it readily

gas

at an atPacific Northwest

arranged

be

may

price.

tractive

Pipelines' gas line is already com¬
pleted into the General Petroleum
field just north of Enui+v's <*as
field. In either event.

will

ron,e

be

Wo**

Equity's insubstan-

increased

tially.
As

promising as the gas appears

to be, an even more

exciting fea¬
9

extensive
land. Through
its
wholly
owned subsidiary,
Weber Oil Co., it is one of the
in

lies

ture

Equity's

/>>

'saving^

holdings of shale oil

largest owners of proven shale oil
in
the
country,
ranking behind
only such giants as Union
cific
Western,
Standard

Oil. Pa¬
Oil

of

raHfornTr^nd the" IT* "s ^Navv
Weber, jointly with which in turn
Socony MobiL
23.000 acres,
owns

contain

oil,

4

billion

1.300 barrels for each

or some

share

of

barrels of shale

Eouity oil.

apparent that Equity's stock at its

its

present price of 31 is grossly un¬

Over-the-Counter

Quotation Services
for 43 Years

Incidentally,

the most desirable of

dervalued

on

its shale oil holdings

shale

closeness

oil
to

holdings
the

alone.

shale makes the more

Hindsighted investors may well
wonder a year or two from now

strio

the excellent gas prospects
particularly the established
shale oil holdings are at present

Why
and

T.

;n

are

among

all, since the
surface of the

National Qootation Bureau

economical

Incorporated
Established 1913

mining method feasible,
+v,o+

.

k'

ncxt

de^de k t

in the next decade oil
Continued

u be pro:
will be pro
on
page

25

46 Front Street
CHICAGO

New York4, N.Y.
8AN FRANCISCO

Volume

185

Number 5642

.

.

.

The Commercial and Financial Chronicle

(2507)

Free Climate of Initiative ior

INDEX

llCHTfllSTflfl

B. S.

Atomic Eneigy

Development

Articles and News

AND COM?ANY

By LEWIS L. STRAUSS*

Stock Market Outlook Until and After
Dynamic 1969's

Chairman, U. S. Atomic Energy Commission

—Philip

Rejecting either completely private or government atomic oper¬
ation and control, or return to pre-1954 government
monopoly
and

without cost-cutting

private operation

Page

incentives,

J.

FitzGerald

Thrift Goes to

______!

College—Ira U* Cobleigh

AEC

develop¬

What's Ahead for Business and the

in

ment

partnership with government. The latter, Admiral
Strauss suggests, should undertake risks rejected by industry,

—Arthur

The former banker reviews unprecedented nuclear
growth since removal of government monopoly in 1954; re¬
views history of government aid to industry; warns
against

..Meeting the

on Big Government;
repeats estimates of
being competitive with conventional fuels in
20-25 years, producing then as much as all electric
output today

of

true,

that

course,

ceived

the

was

new

per¬

long as 2,500 years ago
the
Greek
philosopher

contracts

as

;when

D

o'C

e m

wrote

i t

r

of

u s

ment

invisible

ef them
and

con¬

stituting

had

thing,

1

testing.

1

forward

gave us

"atom."
true

It

also

is

that

Henri Bec-

querel

en¬

countered

the

phenomenon
L.

Strauss

of

natural

radioactivity
four

before

years

this

Twentieth

was

only

years

that

that

ago

arrival

Century.

little

a

this

the

of

Yet

it

than

more

14

discovered

man

phenomenon

could

be

brought under control and put to
practical use. Even that brief span
of

14

exaggerates the

years

time

have

we

been
using
nuclear
for peaceful purposes be¬

energy
cause,

.that,

for some years following
fateful
discovery,
man's

knowledge of atomic fission
to

remain

after

wartime

a

secret.

had
Even

the

types

In

loosened
years

time

until

ago

less

a

—

three

splinter

mere

with

compared

iron and

than

the

of

of

age

steel.

for

Growth

research

'

work

1954.

No

other

has

major
ever

discovery
made

that

has

been

went

so

quickly

to

so

many

uses.

At

least 21

American

either presently
orders to build,
for

firms

Free Climate

—Lewis

■

-

,V-" i'-

the

fuel-elements,

called critical

plants

to

produce

beryllium.

'

propulsion or for research.
During the last calendar year, the
♦An

address by Mr.

Centennial
and

Steel

22,

Strauss before the

Meeting of the American Iron
Institute, New York City, May

Iron and Steel

at

seven

L.

metals

civilian

well

million

on

milling,
strument

—Hon.

F.

Fairless

Richard

M. Nixon

—Hon. Arthur E. Summerfield

As We

and.
in¬

Bank

See

and

Business

and ^ per¬

It

(Editorial)

Insurance

Cover

Stocks

_,,48

Coming Events in the Investment Field

for the infant industry is in1
dollars.

Government

Loans"

plants for the production
power will come into,
operation this year—two of them,

From

in

Mutual

civilian

already

generating
kilowatts
and by the
mid-1960's, the plans of Govern¬
ment
and
Industry call for at

All

—

since

of

this

the

has

been'

Funds
—

—

Act-

Chicago

—

45

Registration

in




•

Universal Transistor*

29

—

Security

1

United Western Minerals

36

Offerings

40

Dividends Paid Out'

Salesman's

Security

Many
solved

problems
before

remain

atomic

to

power

The Market

can

its own way in the sense of,
being
competitive
with
power
produced from our conventional

fuels. But

as

The

on

page

.

.

.

Chicago

Schenectady

TELETYPE N. Y. 1-5

-

•

•

Glens Falla

Worcester

Ebsco Incorporated

Security I Like Best______

Vitro

2

,_

Industry

Corp. of America

5

You

and

Washington

16

___

48

Federal Uranium

28
Weekly

1

Drapers'

B.

DANA

COMPANY,

Reentered

Publishers

New York 7,

Place,

REctor 2-9570

Gardens,

Edwards

ary

25,

second-class

as

1942,

to 9576

SEIBERT, President

the

at

post

matter

Possessions,

in

office

United

Territories

Pan-American

Other

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

Thursday

(general

and city news,

Other

Chicago

Offices:

3,

111.

Union,

Smith

La

Sslle

Radorock Resources
*

at

States,

and

$60,000

Other

St.,"

(Telephone STafce 2-0613);

Bank

and

$40,000 per
Note—On

U.

of

Members

in

year;

year.

made in

New York funds.

39

BROADWAY, NEW YORK 6
WHitehall

3-3960

Teletype NY 1-4040 & 4041
—

Monthly,

fluctuations

Direct

PHILADELPHIA

wires

to

DENVER

in

the rate of exchange, remittances for for¬
eign *ubscrh*+.tons e"d *^vertisements must
be

INCORPORATED

of

per

Record

the

Request

W* V. FRANKEL & CO.

S.

(Foreign postage extra.)

account

on

New

Publications

Quotation
year.

Prospectus

Febru¬

of
Canada,
$63,000
per
Countries, $67,000 per year.

news

etc.).

135

Eng¬

Rates

Dominion

Thursday, May 30, 1957
Every

C.

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

Subscription

SEIBERT, Editor & Publisher

WILLIAM DANA

E.

N. Y.
Subscriptions

HERBERT D.

London,
Smith.

&

Copyright 1957 by William B. Dana
Company

Reg. U. S. Patent Office

Park

c/o

~

FINANCIAL CHRONICLE

ST., NEW YORK 4, N. Y.
•

31

___—

and You—By Wallace Streete

The State of Trade and

it is, we are already

Continued

Corner.—

be

pay

Members New York Stock Exchange

Nashville

43

—

Railroad Securities

Prospective

Dallas

19

Reporter's Report___;

Securities Now

Los Angeles

5

Public Utility Securities

August of 1954

to

Philadelphia

20

—

Our Reporter on Governments,-

encourage the development of'
atomic energy in the free climaie
of American industrial initiative.

Exchange PI., N.Y.

Direct Wires

8

—

40

inc.

Teletype NY 1-1825 & 1-4844

44

Observations—A.. Wilfred Mayj—

Our

Mack ie,

HA 2-0270

46

News About Banks and Bankers

■

&

16

—

NSTA Notes

realized'

Cole-Hickenlooper

went into effect in

Washington Ahead of the News—Carlisle Bargeron

Indications of Current Business Activityi_____

are

Spencer Trask & Co.
•

23

Meanwhile, five and perhaps six!

25

Boston

Singer, Bean

1.—

—

"

•

8

8

—

Einzig: "Dogma of Pure Laissez-Faire Weakens British

*

nuclear

fact,

Sprague Engineering

18

Man's Bookshelf

Dealer-Broker Investment Recommendations

WILLIAM

Albany

Pacific Uranium

re¬

on

Corp.

16

Permutit Co.

PREFERRED STOCKS

TELEPHONE HAnover 24300

High

Regular Features

land,

BROAD

.

Vitro

$200.

mining

half-billion

JCY 215

the

military

million

HEnderson 4-8504

Teletype:

19
^

research. The total, outlay for this'

of

Exchange PL, Jersey City

DIgby 4-4970

Honoring the Steel Industry With Commemorative Stamp Issue

Published Twice

25

>

10

haps, $25 million on nuclear re¬
search, aside from power reactor

a

Lake City Stock Exch.
Spokane Stock Exchange

1

Requires Ail-Out Research

—Charles M. White

The COMMERCIAL and

have specialized in

Members Salt

7

-.

Steel Industry's Dividend Recipients at Record

manufacture

of

J.F.Reilly&Co.,Inc.

6

Lack of Economic Knowledge

so- h

of

another

as

$33

3

_

industry ex-V

uranium

some

FERRY

Cover

Energy Development

zirconium and

as

and

power
as

Blough__

Strauss__

pects to spend about $270 million
this year on the construction of,

actors,

TMT TRAILER

'

Victory in the World Struggle Depends Upon Budget's Passage

'

The atomic energy

1957.

For many years we

NORTHWEST

Industry Meeting

facilities, arid three

nuclear age such

building,

for

HIGGINS, INC.

18

'

Vigorous and Free

a

of Initiative for Atomic

—Benjamin

building of reactors is not
only
activity
in
the
new.
nuclear industry. During the
past
year, American firms signed con¬
tracts
or
announced
plans
to
build eight uranium
ore-process¬
ing mills, a feed materials plant,,
five plants for the production of
nuclear

'

*

14

Attaining Future Growth for America and Steel

are

or have
nuclear reactors
production of electricity,

i

!____

*_

White Horses—Roger M.

on

had

to

applied

Funston____

Addresses

A Tax

The

growth of this infant art and

science

Keith

PRODUCTIONS
-

Nonetheless, in the three years least two score nuclear
power
removing
the
swaddling plants to be
serving homes and
clothes of Government monopoly,
industries across the nation.
1

industry has been unprecedented.

GETCHELL MINE

.

Economy—Paul W;. McCracken

since

the

HA1LE MINES

14

and

\ contracts

electrical

Unprecedented

.

12

Twenty-nine-

addition,
which

WHitehall 4-6551

-

the

excess

smother¬

new

been awarded prior to 1956. None
this business existed prior to

year

the

59

of

tinued to be held in

ing embrace of Government
monopoly.
That
grip
was
not

of

-

Mosley

Opportunity and Responsibility in

17 reactors of various,'

on

for

wrappings of secrecy
removed, the peacetime de¬
velopment of atomic energy con¬

were

—G.

for power production

others

The

every¬

r

negotiation of -'

total

a

export.

are

30

iron
who

word

a

for

Lewis

for

or

particles

Greeks,

for

■

i

_.

nuclear reactors for private buyers >
in this country, for the Govern-'

the

and sand.

the

or

STREET, NEW YORK

;

^

Challenge for Management: The Cost of Venture Capital

industry reported the start of:

construction

Challenge of Labor Racketeering

Meritorious—R: Victor

WALL

Telephone:
i:

Over-the-Counter Markets: Misnamed,
Maligned, and

nuclear power

Obsolete Securities Dept.
99

9

11

—Hon. James P. Mitchell____L

growing reliance

is

Burr

—Hans A. Widenmann

markets.

It

4

6

Economics, of Growth, Credit and Inflation

cool cash for

you

and dogs I

cats

v

•

Upgren

Tax-Exempt Bond Fund—Edward B.

The

help provide technical training and research. Believes that
by 1975 89 private capital will be able to assume full respon¬
sibility and can eliminate supports, guarantees and controlled

atomic nature of matter

R.

your

!____

__

Banking Industry

The

and

And offers

4

Canadian Stocks for Investors and Market
Criteria to Employ
—Arthur A. McLaughlin
.

head advocates, instead, continued maximum private

THE NICE MAN COMETH

___;.__^_____Cover

SALT LAKE CITY

3

The Commercial and Financial Chronicle

.

.

.

(2508)

4

most American college
The College Club at¬
highly
desirable customers and builas up

living

Thrift Goes to College
By

tracts to the bank new and

IRA U. COBLEIGII

topical appraisal of a plan to
The

time deposits

and

the annual tab might run to about

young

the

and

men

graduating
next

Holyoke $2,000.

costs.

youngsters

them

by

of

grants

(but

scholarships

or

of these do not begin
sophomore
year). The

about 65%

college educa¬

till

and, in
particular, the
money
it
tion,

the

that

accounts

may

life of between 8
Then, too, subscrib¬

10 years.

of

Partner, Baker, Weeks & Co., Montreal, Canada

can

and

Civic

education.

Canadian security dealer delves into

com¬

may

suggestions

be sponsored by banks

even

the program

expands.

,

means

be viewed

minor

adjunct to interest-account r

i

i_

...'

/.

/<

.1

•

McLaughlin

yardsticks must be employed for most Canadian securi-

ties; <3) there is

*

-

of

'set

_

t

examnle

for

Consider

bnnkinf?

Mr.

areas.

explains why; (1) Canadian stock market averages are even "
less useful than comparable U. S. indexes; (2) a different

^
by

Club ; should
no
casually or as a

College

several investment

in

the basic differences be¬

U. S. markets, and presents specific stock

tween Canada and

munity College Club scholarships
as

Employ

By ARTHUR A. McLAUGIILIN *

;

;

average

gain stature in their
community by their advancement

True, thou¬

offset

by working part of their way; or

the

discussion

of

the

are

sands

a

for

time

at Mount

These

most
propriate

surely

costs $1,500.

$2,550;

weeks, now is

an

ing banks

three

during

versities

p

finance higher education-

College Club.

American colleges and uni¬

from

a

have

And Market Criteria to

best possible

of the

sort—interest

At some of the well
endowed institutions, the per an¬
num cost is
$2,000. At Princeton,

225,000

With

122,000 young women

Canadian Stocks for Investors

campuses.

Enterprise Economist
A

on

Thursday, May 30, 1957

built-in tendency for better grade Canadian

a

a^l^b wh^Sdrta^y^rsgirrstocks
earlier—Christmas

Club. This too

to sell at a lower yield and higher price-to-earnings •>
ratio than their U. S. counterparts; and (4) Canadian investor /
experience has/not Jbeen^incr 1951/asisuperior as one might

£*

was
a
special thrift target idea.
minimum "cash available"
It began quite modestly in 1910.,
u,.:.
"
target for the freshman year is t«
suppose
on
more rapid growth rate. Suggests
v.*~\-t1 o qoo ooo
a
...»
suppose merely on basis of moi
In 1956, however, 12,800,000 Amer- 7
$1,200; and $6,000 is a reasonable
takes. Where¬
painstaking stock selection, .and. Use of. Canadian-stocks for
icans saved $1,187,000,000 in the /
estimate for the four year course.
• > long-term capital gain rather than current income,
as, today, with
Christmas
v i
Club, in some 6,800
This is, indeed, important mon¬
our
strato¬
banks and thrift institutions//' v-V
^ U':
, - :. ;■*"&
-"v, ••,
ey, and having it at hand, when
spheric na¬
throughout the country. This, of
an,/environment of buoyant product of the inflow of capital,
needed, has taxed the ingenuity
tional, local,
course, is primarily' sftdrt f-Mgf
jthfe. national; ecohomy ,The- extraordinary, capital spendand resources of countless fami¬
and personal
savings
(although
in
practice1 ^ a £whole were the only ,re- Jng„ program which has/been the
lies.
Recently, however, a new
debt; with
about one-third of the accounts quirement for the success of an most dynamic factor in the Canathrift technique has been devel¬
ira
U. Cobleigh
60% of our
move
into
permanent savings). investment program, Canada would dian boom in recent years would
oped which should assure smooth¬
motor cars
The accounts either pay no, or.*ncleed be the answer to the in- have been a
-more modest
er financial sailing.
IPs called the
bought on time payments; and
little
interest, and* require con- vestor's prayer. Throughout most affair if it had depended entirely
with the largest peacetime budget College Club (copyrighted) and is
siderable paper wqrk; inr opening of the postwar period, economic on financing from Canadian savin history getting kicked around sponsored by College Club Pro¬
and closing the accounts.
activity in Canada has been grow- ings. Last year, for example,'the
whereas
all these flora and gram Inc. of Brookline, Mass. The
Viewing the quite phenomenal inS at an appreciably faster rate net influx of capital from abroad
fauna of debt have come to be the plan is simple and effective; and
success
of Christmas Club
(also than in the United States, and in was measured at $1.4-billion (of
seems
to be gaining a wide ac¬
accepted financial decor of life
copyrighted) one can easily see the opinion of most authorities which the most important conall over the country.
on
the cuff, college education is1 ceptance
how College Club may grow rap- there is good reason to expect our tribution came from the
still mainly on a cash basis.
It Briefly, it works like this.
idly. It teaches thrift (an under- country to continue to expand States) as against total private
A father and son open a joint
should be. Although some have to
stressed virtue) to the young and more rapidly than yours during and
public investment of $7.9
Club
savings
account.
borrow to go through college, and College
shows them the tangible results the next two or three decades.
billion.
a
number of loan plans have re¬ (This can be done at any com¬
of saving plus compound interest.
Looking at the first postwar
While touching on this subject,
mercial
bank, savings bank, or
cently been advanced, most parents
It
promotes family
cooperation decade, the increase ih Gross Na- it may be pertinent to observe
and most students would prefer savings and loan association which
and solidarity. It brings new and tional Product in constant dollars that the importance of capital imannual fee, to
to leave the halls of ivy, unbur¬ subscribes, at an
choice accounts to the banks and was 54% in Canada against 41% ports—especially the kind of vendened
by
debt/, With military the plan.) The passbook is spe¬ can add prestige to, and enhance in the United States and in the ture capital required in large
service, a career- and marriage cially designed, carrying the em¬ the
public relations, of thrift in- last three years from 1953 to 1956 amounts for the initiation of mablem of College Club on its face
ahead, starting out in life, free
stitutions.
the 14% rate of gain in Canada jor developments—is well recogand clear, is a pretty important —a circle featuring within it, a
College
Club
potentially can was nearly double the 8% rise nized by the majority of thinking
mortar
board cap and diploma.
objective.
^
also develop king-size deposit vol- in the United States.
Last year people in Canada, despite occaThe child gets a membership card
ume.
For example, 347,000 will the faster rate of our growth was sional protests to the effect that
Further, this business of going
and a College Club lapel button—?
to college is becomings increasing¬
become college
grads' this June particularly marked.
The per- Canadians are allowing outside
all of which makes the youngster
ly important in our whole scheme
feel very important. The program (not counting those being awarded centage increase in total physical investors to reap too large a share
of things.
Apart ;from cultural,
advanced degrees).
Multiply this output in Canada was about 7% of the rewards of equity investis
based
on
systematic thrift—
philosophical^ and social
gains, so
figure by six (to allow for those or roughly three times that of the ment in our heritage of natural
mV(ch a month, or so much a who
and perhaps enough knowledge to
drop out along the way due United States, and we seem to resources. Such talk is most unweek, to accumulate the target
try out for thev$64,000 Question,
maladies or have carried into the current year likely, in my
to
a
figure by the time the potential mainly^to marks,
there is a real dollar and cent
matrimony) and you find roughly a little more upward momentum political and business climate that
collegian becomes 18.
*
advantage in going through life
two
million undergrads
at four than is apparent in your economy, has been traditionally favorable
This plan comes pretty close to
cum
sheepskin. A reliable set of
year schools.
Now multiply this
The year 1956, of course, was to f°reign as wel1 as to domestic
statistics shows that the average being a sacred obligation of the two million
by $6,000, the current an exceptional one and a eontinu- investors. / ;
;
.
He
and his son
(or
lad who has been through college parent.
price of sheepskin, and you arrive ation of that rate of growth—inAs our nation matures economidaughter) become partners in a
will earn, in his lifetime, $100,000
at an amazing $12,000,000,000 total, volving as it did severe inflation- cally and financially, it should be
Dad will set out
more
than his less educated major project.
That's the market College Club ary pressures under conditions of possible for us Canadians to play
to make regular deposits and puts
brethren who end their
"bookis shooting at.
Finally note that, full employment — would be im- a more prominent and profitable
in most of the money, but the
larnin'" with high school.
by 1967, this college undergrad possible.
However,
the funda- role in the development of our
youngster is expected to make
After granting all these docu¬
population
should - increase
by mental durability of the expan- own country, by directing more
regular deposits, too—out of sparemented advantages of being col¬
65%.
From such 'rough calcula- sive forces operating in Canada of our people's savings into intime earnings and perhaps an oc¬
tions as these, you may conclude has been generally accepted and clustrial, mining and oil equities,
lege bred, we are brought swiftly casional
birthday check from dot¬
that College Club is a boon- -and was
given national recognition and I am confident that Ameriup to a major and almost epidemic
ing
relatives.
Both
child and
it may well boom!
a few months ago in the prelimiproblem in the average American
can, British and foreign investors
parent are going to eagerly watch
home—how to pay for it.
The this account
nary
report of the Royal Com- who are in a controlling position
grow, at compound
answer in most cases, is found in
mission
on
Canada's
Economic in so many Canadian enterprises
interest. Even under the greatest
a
Prospects which, on the assump- will not be blind to the mutual
single, very old fashioned and financial stress, the parent would,
somewhat
neglected
word —
tion that there will be neither a advantages of cooperating in that
presumably, borrow almost any¬
direction.
That, however, must
thrift. Most youngsters get to col¬
where, rather than tap this dedi¬
global war nor a major depres- be a
gradual process, and I am
lege because somebody saved for cated educational fund which
may
G. A. Saxton & Co., -Inc. an¬
sion, forecast a Canadian popula- sure that none present will live
it. In many instances this saving
.

very

♦

much

—

United

alter

opinion,

G. A. Saxton & Go.

In New Location

well

is

unplanned, spotty, intermittent,

and

by the time the lad or young

mean

college,

the difference between

or

no

college,

for

his

child.

Here, then, is an intensely logi¬
Pater is viewing
cal, well thought out, and practical
apprehension
family thrift package which, be¬
account,
earmarked

exams,

thrift

removal

of

its office

tion

of

remains

number

changed.

cause

it is

beamed

toward

a

■a

un-

....

M

.

....

,

,

$68

Let's

.

At

see.

a

state uni¬

the average college year

Since 1932

Specialists

in

period,

3%

at

interest

(com¬

pounded quarterly)
assures
the
$6,()00 objective. Parents, children
and educators alike
can
swiftly
perceive

the

benefits

College

of

defi't^ manager1 ^assisted GbyRobert, the size of the Canadian

H. Hood. Both were

Southern
Ml,

VIRGINIA—WEST VIRGINIA

offer

NORTH and SOUTH
CAROLINA

the

about the banks

W.

CRAIGIEAcOO
RICHMOND,
Bell

VIRGINIA

System Teletype:

RH 83

Telephone 3-9137




& 84

-

_

the

Winkler,

"Chronicle's"

_■ ,

a

member

Quotation

of

De-/

Club?
It's a
partment, "got the message" and
profitable idea for will
shortly be a member of the
them as well. Right now over 300
Nation's
Armed
Forces.,
Allan
banks are subscribers.
They get,
College

a

service contract,

passbooks,

leave

takes

imprinted

supply
of buttons and membership cards,
posters,
promotional
literature,
plus effective proven copy for ad¬
vertising programs. Further, the
Club
supplies
extensive
infor¬
mation
on
tuition
charges, en¬
trance requirements and costs of

College Club

■F

who

the

of

with the

entire

best

U.

S.

1975

National

Gross

of

Product

SAN

staff

317

FRANCISCO,
Romanov

of Francis

has

about

this

Obviously

tive

is

double that

I. du Pont & Co.,

Montgomery street.

to

outside

and

it

is

to

main

reasons

so

attrac-

investors.

also,
a

growth

strong

of the

one

dentally,
the

countries, and
ha Canada,

naturally

quite

so

existence as a politi-

at

major

the

United

States.

protests

you

dian

of

industry

steam

may

hear

of Canablowing-off

has

as

a

by a

business partner

been

operating

who

'An addre,. by Mr McLaughlin b.May 'ToTz
",s °' ph,ladd-

part of the

against U. S. domination

high pressure but

a

us

Consider any po¬

Inci-

degree,

long ago

which otherwise

would have made

same

—————
,

sures

litical

would be

Calif.— time

joined

in

1950.

why Canada is proving

Joins du Pont Staff

nationalist sen-

most

in

timent

economy whose very

Report in 1952 estimated that the

trend

(Special to The Financial Chronicle)

Election speeches have a way

of giving voice to

for the United States for the same that from the beginning has deyears but I recall that the Paley fied the powerful economic pres-

wishes

staff.

a

Vasili

nl.eo +Vl_

.

in the 25-year period from 1955. cal unit is living testimony to the
I do not have comparable figures strength of a will to nationhood

functional and

under

MUNICIPAL BONDS

J-

Allan

But what

formerly with

Investment Co.

Winkler Answers U3ll

Club.

^

Lap.mr,

uuqiuu

LU

and

-

versity,

when Canada will

.

be able to» aff°rd to I make door
this
to outsicte capnai.
point so that you wiu not be mis.

a Gross

Opens

"college," which due to his spo¬ sirable
goal and because it cements
pi
| ■.
Q
1 v r
radic spurts of saving through the
a long range partnership of parent
uharlOlte ttrOHCll : and a current rate of about $30
years now totals a paltry $800—
and child, should do much to solve
far less than enough for a single
CHARLOTTE, N. C.—Morrison billion (or about $29 billion at
the problem of college financing.
& Company has opened a branch 1955 prices).
The forecast would
college year, much less four!
The average program would run
Office in the Liberty Life Build- thus
Well
imply a virtual tripling of
just how far does this for about 10 years. $10 a week,
sample $800 fall short
of the regularly deposited during that
mark?

to see the day

National Product between fjecj by anything said during our
$85 billion (at 1955 forthcoming Federal election camprices), against $27 billion in 1955, paigm

n -

og%

25 %

and 27% million by 1980 as compared with
rmrnj it.uu todays 16 million, and
ic

*

.

Morrison & uOi

de¬

between

somewhere

Street, New York City.
.

considerable

with

his

to 52 Wall

Telephone

lady is ready to cope with College
Board

the

nounces

.

,

under

who has no in-

tention of breaking up a success«
. ..—rroniyatinn
Count on beins

ful organization. Count on oeing
'

Continued on page 30

Volume

185

Number 5642

.

.

.

The Commercial and Financial Chronicle

(2509)

end

discount

since

1942

5

has

*

ranged' from
'

Steel

The

Production

:

illogically,

Electric Output
Retail

prices

Trade

i

.

Auto

Industry

;

*

'

the

output.

In the latter cdse the loss

was

By A. WILFRED MAY

i "/?:
Following

.■?.:*>//';/

r,f

J//*//c

•\ Midst. the public's devotion of
attention to experimentation with

investment; companies of the

a

:

'

a

year

*tion

.

.?'>■:

/.

■
-

passenger cars, rose to

;'; ' tSomer early predictions that-capital-"spending for new

To the

*

,

\

plants?

'iqiiarter corporate'-

turns

.

outtobe

true

or
-

not,
17th

ESTMENT

h" SSPf*ly "Sr!

i

■

1

iwf

'

-STIES^
Sefcu rity.
I f SV vw?

? IS-

v-L ^bas been

f JSi

#

manifested

edi-

>

n

-

tw

OM

16%

discount is shown to have
declined further to 12%; but with
individual portfolios still of-

some

fering

mark-downs

more,-? i?;::
One

discounts

•

i

novel

of

24%- and

,'/.'■■■v-j- • v."
feature

accompany¬

the

contrived to afford easy compari¬
son
with the publication's actual
performance record of each indi¬

the

closing-up
g h

r o u

management

of

of

vidual

elimination of the ef¬

or

is

cost

fests

im¬

book

data

contained

in

Its

inclusion mani¬

of

proclivity

the

public's

ehgage in
quantitative and qualitative portfolio management comparisons.

the

otherwise, supplied

and

fund.

recognition

growing

The following table, combining

various

-

by

:

the Wiesenberger firm, shows the

.

-

to

-

Renominate Orrick

1956 ratio of expenses to gross inand the respective discounts

quan-

As Member of

come

SEC;

at the year-end and at May 24, for
--Andrew D. Orrick has been re¬
representative companies.
"
•,t"
*
"
nominated
by President Eisen¬
Ratio of

J"

'

"

to

average

average

mediate and real.

200

,

the

fect

his

Insured, unemployment .went-down-;54v600 to ^ total of 1,37J,every three and one-half years;
during the week ended May 11','the agency, reported, one
WA1/1
a
steady rise in. holders and strikthe largest drops this year.
The total for the 1956 weeK was
-.^i^g increases in' individual port1,260,700.
•/. V
-folio-size^and, in the non-statistical' area;; in ' the
broadening of
-Steel mills note a slishfly ljctu-r. turivin the market this week
ttehiiprrstructive functions."
with some users other than automotive/and
appliances stepping: i
^
'
•
up their orders.
Others have settled; down to a. firme'r-' pkt'teriio f--t'
>
0;r 11 a t i-v ereference
of buying and there are fewer.'..cancellations and setbacks ih
'deC-Vi^^°^Pletely-f rewritten
lie'hIron vAge;"-/ national metalworking i,
livery ; requirements,
"The
Iron 'Age;"- -national
-

to

15%

open-ending,

COM- >

both

an

of

liquidation
or
other
causes
is
problematical, the benefit to the
buyer through the resultant re¬

^atively and qualitatively. There
is sbowh a doubling of total assets

■r>

ex¬

decline

market rise of 70%.;

a

ing this year's Wiesenberger vol¬
ume is a
gadget in the shape of a
plastic
overlay
containing
the
course of the Dow-Jones
Average
1947-1956 which is mechanically

although

strikingly shows the industiy's.eiwrimous expansion that
betn. actually achieved.; This

"off
•

as

duction

^to

of

net- assets /of

are

discount t h

PANIES
1

ratio

discount

use.

available, • that is, the
percentage of-the. company's stock
price below the asset value. For,

today's $10
billion invest-

published

Jx

and

related

as

which

berger's pre¬
diction that

amounted

the

average

company

cant

!4*>thur .WiesenT

'profits and business expenditures; most'economists and businessmen now exneet outlavs for the resf'of the-vear to remain at
nros-

shows

to

general

of all companies; as well as the
ratio of expenses to gross income.
These figures are highly signifi¬

fund

technique.
Whether Ar-

•

_

table

each

of exist-

in g

logical investor the data

V As of the end of last week the

A

of the prog-

ress

the

of

midst

penses

to hand

comes

Expense

vs.

for both practical and

of tax

new
evidence

•*:

and equipment in the last half of-1957^
might drop have recently
revised;
Encouraged by reports on first

been

by the DowAverage
was
rising by 300%, the average dis¬
count
is shown; to
have fallen
from
23
to
16%, and
in
the
interval 1952 to date, the cornparative performance'showed a
Industrial

relating to the discounts and expense
items .of the closed-end
companies are most interesting

exempt bonds,

-

the. similar 1956 period.; In recent weeks
volume in
major .appliances improved, but year-to-year declines continued
% to prevails Retail stocks of most, appliances were below those of'"
:
a year ago.' *
■?■#"eH
-':Vi*/■ *.< >.*■ ' • o-

r

mu-

striking

;

/

less than- in

:

words,

measured

as

Jones

Closed-Ends

popularizing
the distribu-

r'-Vv-

monthly decline in.: April, dealer
almost-,800,t)00^ units in mid-May, A
year/ago-inventories-stood at 900,000? an? all-time'-high;; Sales
picked up somewhat.in the first-10 days of May, but were-slightly
new

Discount

tualt, fund-type-for

> 1
inventories of
>■. —

market

TODAY'S EXPERT INVESTING

1.5% under

preceding period, but 16% higher than the like week

•

up;,in other

move

the
higher prices go the more
confidence does the public
display.
From
1948
to
1956
while
the

Production

Business Failures

/Gains in steel and electric kilowatt,
output and stocks of crude
oil in the latest week were offset:
hy mild declines in carloadings

and automotive

30%.
Quite
record has per¬

,

Commodity Price Index

..^JFood Price Index

and

the

to

sisted of the discount declihing as

Carloadings

State of Trade

15

""

/
*

-A'

:

1

hower

Discount*''

Exps. to

,

V

for

new

a

'

.;//

■

Gross Inc. Yr.-End

i

Adams Express.

American

A

Int'l,_-_

.

11,3%.
14.8,

five-year term

May 24

20'/<?-

-

15',y.

7

23

13.

.

Carriers it: General

1P.2

23

,18

.

.

,

.

-

and,.0hlarged^to ?_
416-page

.

•

weekly, states.
;

Close

'r-f: tains;,much that
^OI?m-hf detailed

•;/

market

observers

r

ing for actual

fhie

inrlinntAc

.

sfpfVa'-hiis- ^

thnf

c?.n"

useful in the
portfolio, hold-

"

until

Labor

Day.

.

motive

and

United States and Canada. ©,ut of
even^greater value than this basic
information is its coverage, to a

any strong upsurge inK
Still? .the slight improvement//

greater

extent

pf the varied

Iron Age"

^hdiViauai
^

)rinnc

Vi^rro.

firmin'tf

qpmps

from the steel

ii.^nncricfpnfin

of

-

as

moderate

.

.

Evolution"

^.

13

Shares:

11.8

25

24

Niagara

Share___

18.G

29

19

40

24

Tri-Contincntal

In

these

'

Srran

aiiy that scrap people are

thinking' in terms

of

a

late

-

.-,

the volume's chapter

The

where

the
by

average

fall upturn in steel demand, concludes this trade weekly;
;

:

'

'

Currently reporting on living costs, Bureau "of Labor Statistics
Commissioner Ewan Clague states that, consumers can look for¬
ward to a summer of rising living costs and possibly dwindling
power of the weekly paycheck.1 :
* /:
//
Forecasting a continued rise in? the consumer price index
through at least July, his comments came as the agency reported
.

page

33

..

mechanics

of

continuous
most

Wiesenberger

fluctuations

which

rent

in

announces

the

removal of its office to

the

discount

(Special to The Financial Chronicle)

the

LOS ANGELES, Calif.—Donald

re-

unpredictable

E., Corzine has become connected

with

Lynch, Pierce, Fenner & Beane* !

holding in fiduci¬

a

are

the

diversification

and

Wc

which

arc

pleased

to announce that

accounts

not

lack, ; and
easily obtainable.

premise

that

the

"fiduciary evolution"
steady increase in the

Ernest A. Mayer

cur¬

pro¬

of

trust

accounts

and

will

placed

form
of
commingled
Wiesenberger predicts that
this requirement will
be taken
care
of partly by trust
institu¬
tions
themselves,
and
for
the
balance, by the investment com¬
panies. The latter simplify invest¬

Willis

some

fund,

I

in

states,

with Paine, Webber, Jackson &
price-earnings and Curtis, 626 South Spring Street,
price-dividend ratios. A master He was formerly with Merrill

supervision

trust

portion

Co., Inc.

With Paine, Webber

The Illogical Discount Fluctuation
As

...

ary investment, nearly all of them
permitting use of investment com¬
panies. ? The latter provide the

see

G. A. Saxton &

t-V

expenses

chart shows that the average yearstock

common

On
on

of

psychological
changes in investor attitude as are

*rvPv^S QUI luSt.

-

Continued

—

ratio

to average net assets at 0.44% in
A. D. Orrick, Jr.
the case of the. diversified closed...
end
companies
is
considerably as a member or the Securities and
less than that on the open-end Exchange Commission. Mr. Orrick
funds. Related to the market's dis- was also appointed Acting Chaircount price of the former's shares, man of the Commission, succeedtheir advantage would
be evbn ing
Sinclair Armstrong. ,
greater.

fleet

or

summer

'

.

7.4

situations,

ag^mbnt ds actually sfecuifd eptirely fre^ o1' cost to the buyer.'/

habitual

?

__

15

,

.

Manifesting the recent broaden¬
ing in the use of the investment

trade. *;d

scrap

wppks

com-

Support of the "Fiduciary

v

company- is

coiifi^ence

before,

.

wans..

observes.

Another vote of

ever

of these

IPf^^^hpal investors as well

impact on steel when sales of these two industries improve.
»;
Despite the Memorial Day holiday, steel production this week
Even though holiday wage' premiums must be-■

r

4.4

National

t

.

.

production?is holding up. farrly. well without large ^
these big users. They point Ouitliat the farther autoappliance inventories are cut, the sooner will be thev

paid, the mills have not scheduled any .appreciable cutbacks. This
in itself is a sign of producer; confidence in the market
outlook,

than
uses

panies of benefit to corporate and

will hold steady.

"The

28

:. v

..

that steel

orders from
.'

after

particularly in sheets and strip, is encouraging, declares this tfade
journal.
/'
•? /.;/ .-.■■■/
/-;:■'•/
/
Demand from automotive and. appliances continues to lag.
But even here the mills are drawing^some'comfort.- They point ;
out

; 19

and

use

inventory cutbacks have jpst
; However, the mills do ^ not look for
business

Invest'mt

Consol.

''-13.4;./;/

current expenses are exceeded

..

'

Sec;A

is

.

cellaneous customers

;

feel

Central-Ill.

eliminating

as

General Partners

and

.

Marjorie O. Stephens

problems, afford continuous
professional and objective deci¬
thus

:

"

ment

sions,

-

•

J. Meehan

have been admitted
'

'"

as

"intra¬

a

Limited Partner

*

mural"

52

Wall

Street

trustee controversy, all at
reduced cost of administration. It
is

New York

5,N.Y.

also
pointed
out
that
here
uniquely investment policies are
clearly stated; with their invest¬

ments

Our telephone

number remains

and

performance

records,

under the statute, being matters of
public record.

Cruttenden, Podesta
Members Meiu D'ork Stock

May. 27, 1957




4-4970

constantly increasing num¬
profit-sharing and pension
funds cumulatively intensify the
importance
of
the
fiduciary's

Co.

'

1

v

209 South La Salle Street

•

The

WHitehall

&

Exchange and Other principal Exchanges

Chicago 4, Illinois

ber of

proper use

pany/* -1 -

of the investment
-

com¬
...

NEW YORK

MILWAUKEE

DENVER
"

LINCOLN

GRAND RAPIDS

ST. LOUIS

MADISON

INDIANAPOLIS
CEDAR RAPIDS

OMAHA

ST- PAUL

The Commercial and

Financial Chronicle

.

.

Thursday, May 30, 1957

.

(2510)

6

Thus

What's Ahead for Business

the

ARTHUR R. UPGREN*

By DR.

N. H.

Director, Dartmouth National Bank of Hanover,
Director, Green Giant Company

total

our

tion

declares; (1) interest rate level
will not decline; (2) GNP growth is practically 100% ahead
of 1954 projections; and (3) inflationary forces should
slacken by midyear 1957. Dr. Upgren believes that "ay soon
as the threat of inflation subsides, we can expect substantial
easing in the entire field of capital and short-term financing in
order to facilitate long ran economic growth/' The former
Minneapolis Federal Reserve Vice-President expect* pace of
invention, innovation, and development and research,, to keep
demand for investment funds high for the coming decade,
requiring enlarged savings stream to assure a bright future

Noted Business School Dean

„

■

,

,,

„

..

.

.

up by $b6
billion
$a58 billion figure for

the

19o4.

This is an increase

<

gain

$150 billion in GNP predicted
the
President in 1965.
Thus

by

the

the year

'

-

in

have
made 40% of the gain expected by
the President in 11 years. Deal¬
less

three

than

we

years

de¬
tail, we could have expected a
gain in GNP of about $36 billion

,

gain has been $66 billion.

In fact, surveying

„

whereas the

1956,

of

end

the

actual

fall

this progress
F

Arthur

Dr

Burns

rean-induced .11% increase in the then chairman 0f the President s
personal, in c o m e tax, and the E onomi
Advisory'.Committee,
1957-58 and, surprisingly dropping of some and reduction of suggested that in 1966 our gross
enough, we other excise taxes, plus sombre*
production could attain
are able to do
duced taxation as a result of "the a level of $600 billion.
the same for tax reform bill" of the Republic
Thus you will readily observe
1967.
From Administration passed early in the
that the
predictions are indeed
these
great n*e oi tne new administration. \good and give promise of gen¬
are

to

deduce
the

for

tions

GNP, or from $370 billion in

of

future

business,

in making
makinS

port

kT -■■■•v.-mt
mi&mmkmmm

■*-

longer
longer

run
run

for

into

outlook

It

the

national

the

for

business
President

in

back

economy

firmly

was

which

-

estimate

Arthur R. Upgren

taken

and
by

Dwight D. Eisenhower
In response to the

base,

tax

30.'

''.v'fv

Then he likewise

'

Praises 1954 Policies

pointed out the immense economic
Thus the policies for economic
growth which the American peo¬ growth and financial expansion
ple could expect from their econ¬ adopted early in 1954 had con¬
omy after this modest recession,
verted a $6.1 billion deficit in the
had passed.
Not only that, but cash consolidated budget in cal¬
the President, Secretary
of the endar 1953 to a deficit of only
Treasury George Humphrey and $0.7 billion in calendar 1955, eveh
the Republican Administration as
after
the tax reduction of $7.4
a
team adopted extremely w-ise billion effective Jan.
1, 1954. Con.

,

a

surnlus

in

rash

the

Z"

consolidated budget of $5.5 billion
calendar 1956.

in

Thus under the

benign influence of these policies
effective

s0

for

large

scale

eco-

growth was a substantial
strongly emphasized and impor- budget deficit converted into a
tant
$7.4
billion tax reduction substantial surplus.
These

wise

policies included the

second

Accomplishing Growth

is

nomie

the

'

growth

mination

63rd

the

of

"~*An" address
Annual

bv

Mr

pba

Profits

Excess
Uneren

before the

Atlantic

Convention,

'

City, New Jersey, May 9, 1957.

h

-

TRADING MARKETS

of

measures

well
our

factually

FLORIDA

complished.

you

Have
stopped

steel industry as Exhibit A.

to

think

and

see

Benjamin F. Fairless

how

•Everywhere,

SECURITIES

it yourself?
in individual

as

the current threat of

see

below

based

under such

lively discussion today.

Bank, Insurance Companies,

In

making estimates for the fu-

ture about which

Industrials

he

was

so

con¬

the
President in * 1954
pointed out that by 1965 our total

fident,

Invest in

\V Florida's

Golden

Triangle

This

he

termed

increase

an

of

$150 billiorrfrom, levels prevailing
mid-1954.

in

paring

TELETYPE MM51

Joint

ALFRED D. LAURENCE
&

The

these

|

'

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

Phone: Miami, FRanklin




3-7716

Two

and

a

pre-

has been

dramatic and so consistent over

the

was

ceremony

Office Depart-'

the Post

by

On the stamp—of
120

words:

will

million

the

which at least
printed—are

be

"America and

Steel—

Growing Together."
This

Steel

and

America

year,

beginning the Second Century
of Growing Together. And as we
look back on the remarkable First

are

Century, we see 100 years of tre¬

enterprise and in¬

mendous effort,

In

vention.
could

this

of steel

other way, indeed,

no

the

given
foundation

have

industry

nation

the

great

which it is built.

on

decade that it has been
concept to take
And indeed this is a care¬

past

*

I
on

If

growth

pressible, then it cannot be
by shortsighted
♦An

address

Centennial

stopped

by

Meeting

Institute, New York

Mr. Fairless at the
of the Iron and Steel

1957 to June

may
on

decide

But while the one was

pioneers.

knighted by the Queen, the
died
almost
unknown.
In

other
that

episode, history was giving this
industry its first lesson in leader¬
ship. To have the great idea was
not enough: behind it must be the
ability to

is irre¬

industrial or labor

of the

William

hold.

and demonstrate
potential and its

assess

.value,

its

promise.

Constant invention by

pioneer
and

steelmen

better

ways

more
to process more

and better kinds of

steel. Constant

Continued

City, May 23, 1957.

America's

brought

on

page

seems

Are Your

banking, for the year from July 1,

Records Incomplete?

30, 1958. Finally we

upon

certain increases

the expenditure side.

"FOR SALE"

II

Inflation's

Causes

A Number of

The American Economy has had
twin jet-propellents in its recent

crease

inpersonal

disposable
Projections

one-half

years

.

un¬

of steel. Henry Bessemer and
Kelly both were great

age

human

thought.

was

derscored at the very start

its

free

of enterprise

The role

natural for such a

Annual

Bound

Sets of

Beautiful

"CHRONICLES" of

incomes

Various Dates From 10 to 50

r

have

widely publicized by the press.

income

income.

left

after

Years

which
Available in New York

a somewhat
lesser rate of increase in personal

passed since these estimates were
so

That

so

growth. The first of these propelthe jents has been the persistent in-

INVESTMENT SECURITIES

Interim Check

held

The

steel.

of

tion

.

-

Our economic progress

billion for GNP js translated into

in

company

for

indicated

^1S*i Q«^Ure
1965.

commemorating the 100th
produc¬

Anniversary of the mass

economist pre-

estimates

Committee

the
.

had the pleasure of
the industry at the

have just

stamp

en¬

,

....

likely too if we next turn to the
short-run outlook of business and

production

,

TRADING DEPARTMENT-

shall be disposed of.

could
conservatively
be
expected
to
rise to a level above $500 billion.
national

gross

ac¬

you

public introduction of the special

—

1957 and 1958, a

one

give

for

for the ride.

fiscal and budget

the

I

And

representing
-how

terprises, in industries, in our to¬
tal economy, we find all America

requirement is that the current
surplus has been obtained threat of inflation or rise in prices

tive budget,"

own

I

hear

this word every day

often you use

billion

is forecast for the "administra-

or

been

growth.

a

.plus of $5.5 billion in the cash that the needs for defense expenconsolidated budget in calendar ditures will not increase and at
1956 is a sum of considerable size, present the need for an increase
Moreover, in each of the three seems most unlikely. The second
modest

has

its

Performance to point out these re- be planned. First, it must be clear
markable achievements. A sur- from the international situation

fiscal years 1956,

It

accord.

economic

and

taken place of

has

never

that

is

truth

business

word

the

within the next 8 years,
Two requirements are essential
before such 10-year reduction can

It is well in these days of not

Treasury's acceptance of ter-* always .too

the

course,

America's

indeed

is

dominant

of

Of

word

.

stemming from the President and

in

government. ;

or

^

tinued economic recovery in 1955
m-oduced

labor

future.
•?
/.
:h•
subsidies,
I believe this great conscious¬
we
can
expect substantial meas¬ ness/of, growtn is a fine thing.
ures for easing in the entire field
It gives all our people a dynamic
of capital and short-term financ-^ sense
of idirection.
It generates
ing in order
to facilitate con¬ confidence in our economy and in
tinued long-run economic growth. our future.
Because of the sharpness of the
But I wonder if there is not the
current debate over today's budgr
possibility that it also may gen¬
et, this optimistic, note can be erate over-confidence.
I saw a
added. A rise of $150 million in
headline the other day referring
total
gross
national production to the
"irrepressible growth" of
very
substantially increases the our economy — and that phrase
tax base for Federal personal and
seemed to me to reflect a frame
corporate income taxes as well as of mind that is spreading too rap¬
%hT "take" on
l0*exeis.e taxes, ine take on idly over America.
This frame of mind is the bland
such and increase in total producan incomes by the Federal
^on
assumption that our general pros¬
Treasury would be of the order of
perity has found the secret of
25%, thus providing a basis for
perpetual motion—that the mo¬
expectation of tax reduction, given
mentum is set, and all the Ameri¬
continuation of current levels of
can people have to do is go along
Fpdpral
budget
exnenditures

1956, the year ending June

•

business,

one

no

the talking a^out growth. We are a ment to coincide with the open¬
nation growing in population, in ing of our General Meeting, an
better living for more people, in honor we acknowledge with warm
Requirements
~
4
strength, and in promise for the appreciation.

provide

to

Two Essential
.

—

fiscal

economic,
fiscal,
and
financial
+unQu I1fian.ciaA
policies to assure the beginnings
of this pronounced and forecast
rate of economic growth for "The
prediction period" which was for
11 years or from 1954 to 1965.

system

might

that

growing

place.

increased

of

economy

for

our

result

leadership

and

otherwise be required to keep our

a-

candidate-

often you

natural

cash
consolidated
i.
As soon
budget
virtual balance' in
inflation
calendar 1955 and to a surplus in
the
to a

brought

the

truce in Korea.

income

Federal

the

ing

f l

my

has
as

n

needs of industry.

income which makes up

national

de¬

was

the

corresponding

reduced

cause

and, of course, a
large increase in

tional production

1954.

"i

tion" would be

capital financing and of increased
abilities on the part of the bank¬

in gross na¬

increase

remarkable

dom

potential for
growth is quickening and that is

recalling that this

worth

is

to

is ."inflation."

,

Clearly

1956.

expenditures following

ural

schedule."

1955 turned

as

are,

;

or

seeing that we stay on a sound
solid path. No one will need
exert the farsighted effort, wis¬

that this word

B ut

the

national economy, "well ahead

the

public's concern about the imme¬
diate, extremely mild, and easily
explainable recession of that year,
the President pointed out its nat¬
fense

reached

was

progress

and that we

been made

vanced by no less than $40 bil-

a

excellent

that

!

and

decide

and

Eisen-

by

1953

-

for

think about it,

that

lion to the $400 billion level

a

In

-

mismanagement
of
Everywhere these days, when
the American economy is under Federal affairs, or public uncon¬
It will go
right on as a,
discussion, we see one word being cern.
applied more than any other. Now matter ;of course. -No one ,will
need feel any real, responsibility
you
might
...

The

Leadership
in

|V^

(

growth.-

economic

erous

to $358 billion in 1954, within the
next year and one-half, GNP ad-

banking and
lor

decline in

a

ttna\0prodVu^eonlGNP)grounnt:
previous^an-Ume° record^evel for

implica¬

some

having

after

Thus

able

we

r

"vast and vital

a

policies,

,

expectations

steel industry with

industry's growth in terms of profits; counsels labor; leadership; and believes a fully informed people will react properly
to permit growth opportunities to be realized.

:f

ing with the figures in more

to

American Iron and Steel Institute

charges

.

of

one-half

almost

of

Fairless

responsibility" to continue production capacity expansion and,
in apprising the industry with the increasingly critical prob¬
lems of paying for such growth, discusses the problems of "in¬
cessant cost-price inflation .... coupled with highly inadequate
provisions for .. depreciation." The Institute's president cautions against the tendency for Americans to assume growth
is automatic; suggests the real nature of phantom profits be
made clear to the public to remove false impressions of the

national produc¬
annual rate of

make

to

Mr.

billion,

GNP in

President,

.

the

from

the No—

Tax, the termination of

remarkable fact that we

By BENJAMIN F. FAIRLESS*

is

progress

good estimates
what is ahead for business for
able

are

of

a

its

gross
at

was

$424

without inflation.
It is

in

economy

practically 100% ahead of the
great expectation whicn did flow
irom
tne President s
19o4 esti¬
mate.
in the final quarter of 19o6

Business Administration,
Hanover, N. H.

Dean, Amos Tuck School of
Dartmouth College,

Attaining Future Growth
S|^::4/Foi America and Steel

tne progress we

toward tne realization
of a gross national production of
$535 pillion in 196a. Analyzing
tne figures in detail, we find that
making

are

Industry

And the Banking

able to make an in¬

are

we

terim cnecK upon

is

our

or

the

applying

City—Write

This

-Prevailing progressive taxes tothe
rlse fln P181*5011
incomes. This
Continued on page 21

Phone

REctor

2-9570

Edwin L. Beck

c/o Chronicle, 25

Park PL N. Y. 7

26

Volume

185

Number

5642

.

.

The Commercial and Financial Chronicle

.

(2511)

actual expenditures below the es¬

in the World

Struggle

I

timated

tion's fundamental position with
regard to Federal Government ex¬

That

amounts.
is

why the President has

instructed

all agency heads; not
only to keep within their budget
estimates but to effect any addi¬
tional economies they can.
...
-

By HON. RICHARD M. NIXON*

t

..

Vice-President

of

United

the

States

That is

why he not only did not

in the world

fight for

enactment of

unpopularity this
•contains

our

our

by the Congress" despite
Mr. Nixon denies the budget

program

entail.

may

so-called New Deal

new

intent "to

announces

terest.

spending; doubts Congress

-

'

ill discontinue

v

previously approved domestic programs; and
contends, therefore, sizable cuts can only he made at the
expense of national defense—comprising 75% of the budget—

Vt "line of

plenty" unless

no

budget

the

at

outset

that

I

think of

number

other

of

welfare

billion.
*

business
We

for

to

me

I

am

many are

We

We

for

are

have
con¬

by anything

make

on the
budget, parthey relate to our nadefense, are so important
the nation, and because there

as

misunderstand-

to the Administration's po-

sition, I would like to help set the
record straight.

to begin by

On

j

the

holding

groups

com-

out

of

^

activities

many

laws

the

charged in Washington
ago

that

this

*

.

We have

was

which

those

have

trust,
Deal,

been

a

few days

poorer.

On the other hand, certain business groups have
charged recently
that this is a New Deal-Fair Deal

which

bent

into

on

bank¬
V

obviously

that neither is

toward

is

nation

both

of

be true.

can not

true.

business

is

these

I submit

because

we

Our attitude

prosperity today

have

based

our

nomic and political policies

eco-

on

the

sound principle that the most
pro¬
ductive source of national wealth

business

practiced in

Let

basic

our

New

Deal-Fair

Deal attitude of

baiting and penal¬
izing business and using it as the
scapegoat for all the economic sins
of

whatever

pens

ment

administration

we

believe that govern--

should encourage free

petitive enterprise.
mote

private

rather

tions,

hap¬

to be in power.

Instead

than

com-

It should pro¬

economic

penalize

controls,■, and

activity

it.

Regula¬
government

activity should be reduced to the
minimum

the*

demanded

by the

address

gen-

by Mr. Nixon before the
Centennial Meeting of the American Iron
and Sfee! Institute, New York
City, May
23,

we

of

those

who

,
.

a

are

to

to

government
never

too

Continued

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

.=y

-

Due

}v; A

June 1, 1987

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

The

-

y

HALSEY, STUART & CO. Inc.?

of

came

we

■'"1-V

:

i

the

"v>T

•

-

: ''''

'

INCORPORATED

•

,THOMAS & COMPANY

philosophy
Federal
May 29. 1957.

'».■•> -V * A
into power we

'

STROUD &. COMPANY

SHEARSON, HAMMILL &. CO.

■J I

!

■

■

i-.

;*•

wfi,

that in the preceding 20
there had been only three
Deficit financ-

found
years

balanced budgets.

ing had
as

a

come

necessary

to be accepted not
evil but as sound
1

policy.
1

1957.




■

$2,465,000

'

We Have Balanced Budgets and
Lower Taxes
rejected

We

this

(Second and final installment of

philosophy

Our first budget with

completely.

carryovers

showed

a

Our next three

budgets, including the one for this
were balanced budgets.; .In

year,

Equipment Trust, Series Z

addition, the Federal Government
has taken $25 billion less in taxes

from

the

people during the past
three years as a result of the tax
cut we passed in 1954.
We have
the

reduced

billion.

national

*

debt

by

have

confidence

434%

helped
which

(Philadelphia Plan)
To

to

mature

the

resulted

To be

guaranteed unconditionally

in

ontiy

history

the

us

fact

is

past

the

balanced budget. It

the
our

„

.

MATURITIES AND YIELDS
(Accrued dividends

a

of principal and dividends by

by Reading Company

1958

the

remains

still

budget in
I

the

examine

now

budget of four

the
it

during

years.

Let

as to payment

endorsement

in

ronuoence
e greatest expansion of our econfour

$85,000 semiannually January 1, 1958 to 1972, inclusive

pol¬

create

has

Equipment Trust Certificates

$5

y

.

We believe that these fiscal

icies

total issue of $7,7151000)

a

than

economy

But

years ago.

that

in

highest

4.00%

Jan. 1959 and July 1959

4.25

•

be added)

Jan. 1960

July 1960 to Jan. 1972

4.375%
4.50

dollars

peacetime

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.

Issuance and sale of these

history.

want to make

Jan. 1958 and July 1958

to

thing clear
beyond question at this point. The
one

The

such

as originally submitted by
the Presldent to the Congress rep-

resented the Administration's best

estimate
to

to

as

spend for

and

to

how much

our

carry

we

HALSEY, STUART & CO.

had

INC.

national security

out the

laws

which

DICK &.

R. W. PRESSPRICH

MERLE-SMITH

& CO.

the Congress had enacted.
But. consistent with the attitude

into

have

adopted

office

in

have pledged

since

we

that

we

tinue to make every

FREEMAN

came

January,

1953, we
would con¬

effort to keep

May 24. 1957

&. COMPANY

'

McMASTER

expendi¬

HUTCHINSON &. CO.

to

long at

on page

an

y; $3,000,000

the

Commu¬

allowed

be

remain

is
national

defeat

International

to

But in

the

should

economy

strong

Price 101,875% and accrued interest

have applied

we

problems

When

we

*An

philosophy

phony

June 1, 1957

industry

an

economic

budget. It is

the

Dated

*

how

see

us

takes less from

reject

passed

fected by them.

enterprise.
We

fiscal

the

as

Mortgage Bonds, Series E, 5H% due 1987

and not merely impose them from

is private rather than government

.

completely reject

much

able to spend.

above without consulting those af~

simply stated.

We believe that America
enjoys

unprecedented

First

do not believe in penal-

we

$9 billion deficit.

charges

I

moment digress to

'

food and drugs.

its inherited

Now,

if

of

are

izing the good with the bad.- We
try to adjust regulations to sound

pro-business

a

getting

the

defense

or

V',

we

essential

as

must

.

We

American

sound

A

reach

\ /V .''i'

as

government only what
this may

be less than

tures

'V.

sheer

need to spend even if

we

Our

■.

stand.

can

nism.

\

always take

relating to securities, anti¬

pure

the poor are

Administration

economy

tions.'

:

is

out of the national economy as

faithfully administered

Administration under whose
policies the rich are getting richer and

spending
ruptcy.

ment should

prevent abuses by businesses such
as

fiscal

hand, the Advisory
opposition party

one

of

,

constantly fight

it

But

suggest that govern¬

bargaining.
There have
no
government-imposed la-

ieen

ex-

_

pletelv opposing points of view.
Council

must

to

•

-

find ourselves in the
incongruous
p'ositzoh of being subjected to atfrom

We

increase.

Community Public Service Company

getting the Federal Gov¬

are

budget.'%

amining the basic economic philosop.iy of this Administration. We

tacks

sarily

nonsense

spend for

it increases

as

proportion.- It is true

forces

;

We have left labor-management
relations to the field of free col¬

to

Both Charges Can't Be True
:

y

good

tration.

tional

1

the

services

in

the

waste, inefficiency, and
duplication in government opera¬

The

contrast to the New Deal and Fair

necessary

*

properly belong to private
enterprise.

of you

But because I believe the deci-

...

or

against

bor contracts under this Adminis-

contribute.

It is

the

cient and wasteful

This announcement is not

And

will not be changed

as

render

not

can

in¬

extent that a larger
population requires larger ex¬
penditures the budget will neces¬

tendency to become ineffi¬

in size.

:

r

a

a

budget

individuals

the

may

ing

those

to

lective

reached

much

his

indicate my own as well as what

■/: f:f!, :

losophy.
ernment

clusions which

so

there¬

to

private enterprise

government

not

reduced by $1.8

be

which

some

has been

can
,

May I for

budget.

to

believes

has

4

about

we

:

he

Personal Philosophy

probably tired
of
hearing

ticularly

activity,

limited

Second, big government just like
big business, and even more so,

opportunity for .all.
acted upon this phi¬

have

pleas¬

sure

sions

local

or

be

in which

areas

and

would

discuss.

>

should

national

maximum contri¬

little, business.

subjects

more

ant

that I

ini¬

own

indicated

the

We do not favor big business or

be

Nixon

Government

the

as

bution to the nation's productivity. '

which

M.

his

already

;v'''vA
that

so

their

make

can

a

can

profer help.

we

eral

1958.il will

for

admit

Richard

on

the basis of additional in¬

on

has

that

increases the expenditures of
Federal
Government should

today, the widely traveled Senate
they will be forced to listen to Moscow's

warns

question today as to
what issue is uppermost in -the
public mind. It is the Adminis¬
tration's

why

he.

suggest
come

in the world

resources

it

And that is

estimates

Personally acquainted with
of these countries which possess the greatest undeveloped y

There is

.

formation

cial aid to uncommitted countries.

President

eral

damaging the national in¬ people want and need.:
;-V •/'?'
- •'•••
- <>
.

that

$4 billion foreign aid program—which includes a de-r
fense portion of $3 billion—leaving merely $1 billion for cru¬

natural

reduced

or

tiative

and of

many

'

eliminated

Administra¬

that

will

be

the

First, I believe that government
enterprise is by nature less effi¬
cient than private enterprise. Fed¬

fore,

without

be

increase

could

chance for survival and victory

struggle, the Vice-President

to

penditures.

actually invited the co¬
operation of the Congress in find¬
ing any items in the budget which

oppose but

Correlating foreign aid with

believe

7

a

34

8

J.,,

(2512)

,t

-

.

Financial Chronicle

The Commercial and

-

Budd

Carrier
*

City

^^t^Yum^Walston

of Olathe,

lar—Ranson

Recommendations & Literature
send interested parties

to

Company, Inc., Beacon Building, Wichita 2, 7

&

.

Cliffs

Cleveland

industry

—

Investment

Good

Funds A

Mutual

Analysis of mutual

—

Ltd., El Paso Natural Gas Co., and

,

y

fuels,

Eastern
42

Washington 7, D. C.
Burnham View
Monthly investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬
Copper—Bulletin—Bache & Co., 36 Wall Street, New York 5,
N. Y. Also available are bulletins on General Cable, ACF

rent

I^ire

Life

available is

j.

Securities

5

available'fs ^an

V McCabe

y

Qlo||c|%yfwW|ftJ|.
Mosle & Co.,

,

'l'.

up-to-date com-

Chemical

F. Hutton &

Corp.— Analysis-r E.

York 6, N. Y; *■*';;

and Granberry &

Richardson

Winnipeg,' and Royal Bank '-f;'

Corp.

Sugar

Alegre

Bulletin

—

—

New York

Warrants—Facts

issue

current

Fiction—In

vs.

r

] Earl_E.

5, N. Y.

Tennessee

1

Securities,

Winston &
Texas.

Drilling Company, Inc.

■

American

British

Bros. &

V

Bulletin

—

v.7>

;

Oil

Limited

Company

Oil

of

Company

-

—

EVENTS

—

■

v 1

Company,

-

June 7,

: .r'

City

of

Company Limited, 44 King Street, West, Toronto

wood
June

'

The

Banks, Brokers, Dealers—

"Union

Electronic

;

-

'

:

■

paper.

•

Suit Journal,"

N. S.T.A.

NATIONAL

,

\

Electronic

Advance Ind.

Corp.

Aerovox

Airborne

and trade

position

,

Federal

Instr.

Four

Amp, Inc.

-

Mid Western Instr.

Uranium

Corners

Controls

Metals &

Ind.

Orradio

■

\

,

..

Perkin-Elmer

Uran.

Golden Crown Mining

J.',

Ampex Corp*

—.

Pyramid Elec.

High Voltage Eng.

Radiation, Inc.

Astron

Hycon Mfg.

Radorock

Baird

Jerrcld

Assoc.

Tisch,

Fitzgerald

Company,

Si

New

York

City,

Electronics

Rare

■/',

Metals

Basic Atomics

Johnson Service
Leeds

Seattle

Security

Traders

&

Northrup

Ling

With

the

appointment of these

two

Advertising Committee is complete..

new

••

chairmen the, 1957

J.

.

Bond"
annual; spring.
party at Sheraton Gibson and
Municipal

Group

<

York City)

,

14, 1957 (Philadelphia, Pa.)
Investment Association of Phila-V

delphia annual outing at

Phila-

Machlett

Labs.

Trinity Place




-

New

Western Gold

White

Mallory

Canyon

June

Big Piney Oil & Gas

York

Security Dealers
•

New

York

NY

6,

of

One

N. Y.

DEMPSET-TEGELER & CO,

,

.

-

Request

Exchange Place, Jersey City, N. J.
Telephone HEnderson 2-1000

Open-end

phone to N". Y.C. HA 2-0185

Dealers

Detroit

&

Michigan summer

outing at Western Golf & Coun¬
try Club.
June 19-20, 1957 (MinneapolisSt.

Paul)

City

Bond

Club

annual

outing and picnic with cocktail

Western Securities Com.

1-376-377-378

of Security

(Detroit, Mich.)
,
Association

18, 1957

Twin

Association

Teletypes

on

Society

Securities

& Uran.

Mining

York

Analysts, Inc. annual outing at'
Westchester Country Club.

Delhi-Taylor Oil

Vocaline

Special Reports

HAnover 2-2400

-

Three States Natural Gas

Instr.

Mailinckrodt Chem.

New

1

delphia Cricket Club.
June 18, 1957 (New York, N. Y.)

Northwest Production

Troster, Singer & Co.
74

(Cincinnati,-

^

June

--

Vitro Corp.

P. R.

Ind.

Corp.

DEPENDABLE MARKETS

Uran.

Victoreen

Uran.

Lithium Corp.

Dynamic Corp. Amer. Pfd.

Members

Jasper-

Alberta, Canada.

Country Club and Beach
Club, Rye, N. Y.
' ; '
;

Tracerlab

Lisbon

Controls

Standard

Liquidometer Corp.

Radio

Eastern

Club.

Chester

,•
v

Uran.

Stancan

Electronics

Ling Industries

Craig Systems

Elco

f

the Maketewah Country Club.^V

Association:, Homer J.; Batemari,
Building, Seattle 4, Wash;

t

Beryllium

Cramer

annual

-

Burndy Corp.
Collins

Detroit

June 14,1957 (New

Sprague Elec.

Brush

,

Arizona Association of Securities Dealers: William M. Bethel, ?;
f~Munrciifial Bond Club'of New
Hemphill, Noyes & Co., P.jO. Box 4187, Tucson, ArizYork annual field day at West-:

Sabre Pinon

Beryllium Corp.

.

i,

1957

Cincinnati

Dealers

the appointment of * the

i'S ■■ysf v

Country

13-14,
Ohio) ^

-

Pacific Northwest-Company, Exchange

v

Apex Minerals

Corp.

F.

Security Traders Association announces
following local advertising .chairman:

W. L. Maxson Corp.
..

Foote Minerals

Aircraft Radio

Alfred

of

June

National Chairman of the Advertising Committee of the National

.

Assoc.

Epsco, Inc.

,

.

.

outing at the Orchard ;

of Canada Convention at

•

We

..

Park Lodge,

is Edward L. Kirk-

;

Bel-,

(Canada)
v;;
Investment Dealers' Association

the Association's annual humorous news¬

ADVERTISING COMMITTEE

the

11-14, 1957

June

Security Traders Association is publishing its

Head of the Publication Committee

Lake

at

(Detroit, Mich.)

Club

summer

patrick, Jr., Clark, Landstreet & Kirkpatrick. (Subscription $1.00).

Stocks

Atomic

Nashville

dance

Plaza.

11,-3957

Bond

r

NASHVILLE SECURITY TRADERS ASSOCIATION

(New York, N. Y.)

dinner

nual

June

V.

■

7, 1957

Security Traders Association of
New York Glee Club third an¬

135 South La

.

''

•

the

at

Day

v

New

NSTA Notes

an-

Knoll-Club, Lake Forest, 111.

Field

mual

1,

Ont., Canada.

(Chicago, 111.)
of Chicago 44th

1957
Club

Bond

Burns

—

Investment Field

Milwaukee

Company, 240

the

in

Company

Insurance

I11

,

v, '

' '

Report

Street, Plainfield, N. J.
Life

COMING

mont

Analysis

\\J'

.

-

—

Smith & ,Remick,
nominated to,;
Cuba by Presi-;

dent Eisenhower.

Gannon,

&

.

Company—Report—Berry &

York—Analysis—William Blair &
Salle Street,
Chicago 3, 111. ' "

—

fT^Smith,- member of . the *

be Ambassador to

' t:

America—Report—May

Transmission

Gas

&

States

United

Rowles,
Co., Bank of the Southwest Building, Houston 2,

Bartle

Gas

West Front

Exchange Place, Jersey City 2, N. J.

Brewster

V,';-

Company, 207 East Michigan Street, Milwaukee 2, Wis.- Also
available is a memorandum on Colorado Oil & Gas Co.
Texas

Big Piney Oil & Gas Company—Analysis—Western

;•

Inc., 140 Federal Street, Boston 10, Mass.

*

*

w

5, N. Y.

Corporation

Sheraton

cussion of the Food Industry.

5'

New York City, was

Incorporated—Analysis—Parrish & Co., 40 Wall Street,

New York

Magazine—The Exchange,"Tl Wall Street, New York 5, N. Y.
10c per copy, $1 per year.
Also in the same issue is a dis¬

-

Aircraft

Schick

-

/

v

.

partner in Page,

CoTporation—Report—Stanley Heller & Co.,* 30 - Pine Street, New Yofk 5, N. Y. Also available is an analysis /V
of Twentieth' Centurf Fox Film Corporation.
; f

"Exchange"

of

Sftlilh N0111111
Aft
• 7": }
AffllbiltfiAllflf tfl fillhA

'■ Tf?"

New York Stock Exchange, and a

Broadway,

Stoker—Data—Hecker & Co., Broad and Arch Streets,
Philadelphia 7, Pa. •...•• ;
"r-l

Rohr

Co.

''Kdj'ii&ftenl

Security

Itayonier, Inc.—Report—Harris, Upham & Co., 120

Roadbuilders—Analysis oi Canadian highway industry—Ross, .
Knowles & Co., Ltd., 25 Adelaide Street, West, Toronto, Ont.,A.¬
,

5

'

Corporation, 16 Court Street, Brooklyn 1, N. Y.. ;

favored by institutional

Canada.

'

v

.

>

■ -

Limited—Review—James

Tubes,

Hersey

Punta

Co., 120 Broadway, New York

Vick Chemical Company,.

The Texas Company, and

-f''fi0CIDbO'''£'iBo'^''

& Mckinrion,1^—r"';

Building, Toronto, • Canada.

|dso available are reports orv Stone & Webster, Inc.,

5r N. Yv

.^

.

2>-;Texa&-'.i'A';->;.','4^"'. l

Riley

...

William McCabe

and

past

Mathieson

Page

and

investors—Harris, Upham &

Vice-

President

-

~

Sons, 173 Portage Avenue, East,

Pocket Guide—Discusses 20 stocks most

V

.

Yorik'5^.N.:Y:

Street, New

Company, 61 Broadway, New

market/performance over a 13-year period —
National Quotation Bureau, Inc., 46 Front Street, New York

7-

E.;>

V 7

icieiit*

cott
Olin

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

are

am

Niagara

•/r'.*"-,

Over-the-Counter Index—Folder showing an

Officers
-Willi

/V:^g

West

New York 5,- N. Y. ..
V '
; ;
Major Stock Quotations by industries for Tokyo Stock Ex¬
change— Nomura Securities Co., Ltd., 61 Broadway, New
■

\

-

Gas Cow—'Memorandum—Rotan,

Nationwide

...

Street,

\\ York 6, N. Y.

Corp. '

Southwest Bpilding, Houston

Bank of.the

11 Wall

panies—Ralph B. Leonard & Co., 25 Broad Street, New
York 4, N. Y.
■ *7*.' ,; if;
Life Insurance Stocks—Bulletin—Kidder, Peabody & Co., 17
Wall

securities.

Co., 52 Wall :

&

Stern

E.

Kimberly Clark Corporation-—Report—Thomson

Companies—Comparative analysis of 50 com¬

Insurance

.

analysis of Borax "(Holdings)-

an

Gulf Interstate

Y.

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

funds, specializing in local

Co.,

N.; Y.'^;v.:J/^'I:;^«^^G^with^whi<m'''Miss BUrge -i
Western Financial Corn. —r Analysis<—vHill Richards^
^ was. also . associated ms Cashier!
• ;
7 ; Co., 621 South Spring 'Street, Los Angeles 4, Calif, i Also
i

Stocks—iBnlletin—Laird, Bissell & Meeds, 120.

& Casualty

Broadway,' New York 5, N. Y.
Japanese Stocks—. Current information r—Yamaichi

issues
mutual

5,

I/••••..■

*

trial

I Great ,

Also in the same issue is a
list of stocks which may benefit from increased advertising,
discount stocks, stocks with small £hare capitalization, and
tax free bonds.

mu¬

for Puerto Rico r-1- Quarterly
Gladys Burge,
»•
r
■;
/
to investors—Government Development Bank ^ior .
Secretary. Mr. \McCabe was. forRico, New York ;agency, 37 Wall Street, New York: ^merlv a partner in McCabe, Hani- *

Puerto

Street, New York 5, N. Y.

1 Wall

-

.

utility,
r

Corporation—Analysis—First Securities Corporation,!

report

'

Norwich Pharmacal and Gardner Denver.

i

-

nicipal, public
indus-

' V*

Government Development B?nk

Averaging—Review, with a list of candidates—In cur¬
issue of "Market Pointers"—Francis I. du Pont & Co.,

-

-

.

and

dealers in

&

':.

the
to

dis-,

g

tributors

Also available are data on Inter-

Chemical

Minerals &

partici-

as

and

McDermott

in

offices

with

formed

.pat i n

Nashville 3, Tenn.

111 Corcoran Street, Durham, N. G.
Also
analysis of. River Brand Rice Mills, Inc.

able is current Foreign Letter.

'

Inc.—Memorandum—Mid-South Securities Co.,

P.

Incorporated,.; has

Company,
been

act

1

Witter

.

Corporation—Data—Herbert

Frigikar

—

Industries,

The First Boston
> -

.DENVER, Colo.—W. E.

First National Bank Building,

Shields & Co., 44 Wall

—

Corporation—Analysis—Peter

national

N. W.,

Dollar

Memorandum

•Street, New York 5, N. Y.

1033 30th Street,

.

Broadway, New York 4, N. Y.

Filtrol

Daystrom, Inc.—Atomic

Development Mutual Fund, Inc., Dept. C,

—

American Trust Building,

for atomic power, United Western
Company, Vaal Reefs Exploration & Mining Co.,

Minerals

—

Corp.—Analysis—Dean

Electrodynamics

Dobbs Houses,

requirements

Euratom

Report

—

\

\/ * -TTvi

Street, New York 5, N. Y.

Foresight Investment Advisory Service, 70

Wall Street, New York 5, N. Y.—Paper—$1 per copy.
Atomic Letter
(No. 27)—Comments on high energy

'V,V

..

fOiwi^iivesliiibBlMcCabe
Firm

;

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

&

fund

Company

Iron

Cyprus Mines Corp.
Are

'"'"■/■■'I

Corporation, 15 Broad Street, New York 5, N. Y.
Consolidated

the following literature:

:

Revenue Bonds—Circu¬

System

Sewer

Kans.

Kansas.

will he pleased

It is understood that the firms mentioned

Thursday*: May 30,'1937 :

.

William McCabe forms

.Street

-way

.

.

;

party at Hotel Nicollet June 19,
and an all day sports program
at the White Bear Yacht Club,White Bear

Lake, Minn. June 20.

Volume

Number

185

***

5642

.

.

..

The Commercial and

.

Financial Chronicle

j

"

■

.

'

■

i

larly vigorous study,, A .commis¬
of
outstanding citizens

The Tax-Exempt Bond Fund

worked

Companies

Eurich,

tential
In

invest-

.

ment

companies investing largely
tax-exempts. The tax-exempt
bond fund doesn't actually exist;
in

1it

is

only

"

idea,

*

an

To

now.

advance

,

bonds.

several
to

po¬

the

„

officials

A

few

ing its

.

shareholders.

Thus,
offers

an

the

■

v

investor,

:

,

investment

the amount of his

has

of

demonstrat-r offers

wide

shares

been

will

not

existing

concerned.

funds

have

are

far

as

most

It

the

effect of removing
partially this defect in the conduit

of

de-

introduced
so

will

theory of taxation
late

of

companies

special

in¬

managed

so

to

as

>

and will stimu¬

establishment

vestment

It

convenient

conduit

change this attitude

investment, the

in

the

resulted

has

,

diversification.

of

in investment com¬
being in a frenzy of un¬
concern,
in
years
past,
about
municipals. The legislation which

company

regardless

failure

,

panies

benefits of full-time
management

with the growing

concern

problems

This

ment

and

ago,

on

theory to apply to the tax-exempt
of interest on
municipals

objectives and policies as
stated in its prospectus. After de¬
duction of
operating costs, it dis¬
tributes its income
pro-rata to its

-

weeks

interest

nature

securities, selected to
conform to the company's invest¬

in

of such funds.

of

company shareholder in the
of dividends.

form

of corporate

municipal financing.
months
since
then, Mr.

the

ment

the
professional
investment personnel, invests the
proceeds in a diversified portfolio

legislation
which was introduced
again this
year following M*. Eisenhower's
third request, in his 1957 Eco¬
nomic \ Report,
for
legislation
necessary to permit establishment

To
make
the
companies attrac-

such

of

solutions

nature

municipal securities when the in¬
public; the value' terest flows through to the invest*

company,
employing
services of full-time

of

nicipal

ize in the securities of state and
local governments, including their
of

one

theory does not apply to the tax*
exempt

ment

has generated a substan¬
tial interest among state and mu¬

broadened
by
encouraging
the
establishment of a type of investment trust which would special-

revenue

try

9

companies offer their

share averaged for the indus¬
is about $10.00. The invest¬

per

Levitt

liquidity problems.

be-.shares

as

partial

that make people con¬
possible solution in this

stock to the

own

Bell, Alvin
Kramer, Alicia
Beardsley Ruml.

and

a

Such

area.

Elliott

Donald

problems

specialized appraisal advice. Maintains bond funds
may use retail sales force of 50,000 men and women repre¬
senting security dealer firms which have ignored municipals

been

sider it

study.

this Governor's Com¬

bond funds

and

never

the

on

They developed a real interest in
the
possibilities
of
tax-exempt

Now looks for large potential market to be tapped by
fund technique. As suitable to new
municipal buyers, points
to high-income low-capital individuals
welcoming diversifica¬

because of inventory and

him

were

Patterson

ings.

have

on

mittee

Fund expert traces history of tax-exempt bond fund
concept,
rooted in inadequacy of available demand for fresh borrow¬

There

with

Serving

Executive Director, National Association of Investment

possesses

sion

By EDWARD B. BURR*

tion

(2513)

qualify under the law. To
qualify, such investment compa¬

nominations. The open-end invest-*
nies must have the bulk of their

•

of

financing, state and ment company also offers the
yond the idea, tive to individual investors, the. local projects, the Legislature oft
investor a right to turn in his:
stage, legisla-; Congress should revise the tax the State of New Jersey passed a
holdings-at any time for payment
ration amending 'laws so as to permit a regulated ..-resolution urging the Congress of of their then
proportionate value
the Revenue
investment company,
holding the the United States to enact legis-. of ther total fund. Fund
shares,
.Code of
1954, bulk of its assets in the form of lation of the type recommended ?
then, are liquid holdings. These
is
required.: tax-exempt securities, to pass by the.President in his
Economic; basic; characteristics of* mutual
The concept is through to
its shareholders the 5eP°.rt- -Other state and local of- funds would
extend to tax-exempt
embodied
i n: tax-exempt statqs of the income, ficials have.- manifested
interest bond
funds, we believe, if the re¬
bills before.- received on such securities. Such a' in this legislation as a
possible quired legislation is enacted.
t h e •' U
S
'pass-through' would be a useful partial solution to theiffinancing;

assets—by

"bulk"

—invested in
must

we

mean

90%

municipals, and they

derive 95%

of their income

"

.

.

House

of

Representatives
at
tnis.
Edward

B. Burr

moment.

extension

of

principle

a

-

After

the

President's

mendation

individual

recom-

investment

undertook

studies

presented

in

A

crop

don't
can

in the practical adminis¬

up

tration

of

such

know"

funds.

no

there has

of the

one

stand

it.

a

I

as

fund

methods,

amounts,

costs

Let

of

the

In

value of all marketed

issues

maturing had
lion.

The

credits

tomers,

I

*

the

about

by

memory

Old issues

value of $1.2 bil¬

a

rate

average

was

and

for

2.50%; the
large, were

top
cus¬

the

decreasing numbers of wealthy
individuals, the big institutional
buyers.

And,

,

had

as

been

true

the. years,

over

the buyers, gen¬
erally, had' been holders of mu¬
nicipals Which had matured dur-

ing

the

able

A

year.

rather

remark-

correlation

between

existed/ in fact,
issues of municipals

new

'

and

maturities

almost

every

of

old

issues

from

year

President's

By the end of 1955,

re¬

one

or

sound business

a

for

the

basis.

National

Coun¬

Association

the President's proposal and

1940, total
tax-exempt

$1.5 billion.

was

concept

[•

problems

your

figures.

some

the

the

you

municipal financing.

refresh

me

.with

of

of Investment Companies undertook study of the technical
prob¬
lems of legislation to
implement

^.

betterthan

on

sel

under¬

'•

much

announced,- some
companies

two investment
company sponsors
questions had concluded that a
tax-exempt
knows be-^ bond fund
might well be operated

municipal bond people,

know

port.

"I

briefly the his-

tory of this concept

and

the

been

never

review

me

As

So

type the bills envision.

Let

•"

.

was

to

answer

that

mean

cause

-

•

1937

this

:; v' "v.'

■

moment

a

have

variety

The

•

of

is

"

Broadly

provided

comment

take

memos

regarding the
form which such
legislation might
im

Treasury

filed

Department

with

the

behalf

on

of the Association.

Legislation
President's
acted

in

nomic

1955.

his

to

implement

proposal
In

Report,

newed

bills

to

;

In

a

1954,:

rowed
erage

rate

$6.9

for

and

were

issues

new

municipalities

about

2.37%,

of

case

wealthy

institutions.

credits

the

big

people

and

Maturities

-

re¬

" bor¬

billion; the

top

still

was

buyers
large

in

that

though, totalled only $1.9
billion; $5 billion of new money
year,

.

brought

was

into

municipal

in¬
Still, it was obvious in
1954 that the peak needs for mu¬
nicipal
financing were yet to
vestment.

come.

.

President
These

mise,
;

Eisenhower's

which

Proposal

the

factors, I sur¬
prompted President

were

Eisenhower to include among the

proposals

in

his

January, 1955,
Economic Report one which read
follows:

as

"It

is

not

was

his

the

1956

en¬

tax-free interest

special

a

for

bond

issues

ments,
smaller
state
to

desirable
of

to

explore

the

broadening

market

local

particularly
localities.

has

govern¬

those

of

least

one

At

established

an

agency

law

market
known

for small

issues of

municipalities

little-

re¬

it

out

were

and

intro¬

Representative Cooper, the Com¬
mittee's Chairman. The bills went
into the hopper toward the close
of the 1956 session of
Congress,
and died with the

Congress.
You

adjournment of
*

*

know

a

•,'•!,<

Will

There

■•

it

work?

ipal
May

talk

could

be

by Mr. Burr before the Munic¬

Forum of New York,
24,

New York City,

1957.




a

are

those

who've,,, made

and

'■■■a .'

-

-

I

in

don't

know.

business

our

most

extensive

of the bond fund; problem

who've

concluded, for them¬

and

study.

'

as

So

much

the

about

word

for
the

chances

history.
of

legislation^ then I'll get to
explanation

the

of

a

A

soon

as

one

sponsors are.

tion—passes it along

the

as a

to

a second person—the
tion's stockholder.
1

brief

•

••

probable

"
...

Since

mechanics of such funds. We have

,

1936

investment

becomes taxable

owner—a

■

u

"

,

.

:

corpora¬

dividend
corpora¬

':

•

i»

investment

(.

-

*

!;;
■*i

company

seriously considering

establishment of tax-exempt bond
funds if the necessary bills are

passed. From these people I have
learned the following generalities;

compa¬

nies have been taxed according to
pipe lines 'into the Federal
a
conduit
theory
of
taxation.
Congress.. We don't know what
Under this theory a regulated in¬
will happen. For what they are
vestment
company,
paying
out
worth, the rumors we hear in¬

i—some

no

will convert

existing

cor¬

porate bond funds into munic-

dicate
that

that, there's
a

fair

a

90%

chance
,

bond

fund

bill

will

Benefits of the

I

end

outline

the

open-

type of investment company

Not

a

creased

fact,

that

issues
after

the

pays no

tax

distributed;

solicitation

investment

underlying

portfolio

company's
assets.

An

additional layer of tax is thereby

equitably

of an offer to buy

no

—

some

will

liminary

have

happened

avoided., This

ing

houses; others will offer
their shares through dealers on
best efforts basis.
<

the

sales

about

charge will be at
l/z the charge for equity

Continued

conduit

on

New Issue

V

!.

191,660 Shares

..

some

the

on

grounds

tax-exempt
still

taxes-

interest,
most

that

'•New York Shipbuilding Corporation
{«

the"

on

the

.

even

Common Stock

yields

attractive.

($1 Par Value) "•''•:

And,

adding to the problem of munici¬
pal financing, while the costs of

financing

increasing due to
tightness of money,
had,
in
November,
the polls and approved
were

the

general

the

voters

gone

to

issue

of

new

total of $2.5

Price $37 per

funds, in short, was increased
sharply at the same time that the
supply of such funds was dimin¬
ishing. Some issuers learned that
their

than

would

cost

the

and

withdrawn;
no

much

the

Copies of the Prospectus may be obtainedfrom the undersigned only in those States in which the under¬
signed may legally offer these securities in compliance with the securities laws of the respective States.

more

voters

had

A. C.

issues were
issuers found

many

other

market at all.

pals

be

amount

approved

share

tax-exempts in the
billion. The demand

for

Allyn and Company
Incorporated

I have been told

million of

new

Bear, Stearns & Co.

munici¬

offered in the last quar¬
and, for lack of buyers,
withdrawn from offer.
It was, I

Ladenburg, Thalmann & Co.

was

ter of 1956

understand,

a

Bache & Co.

Central

exasperating
period for those in the municipal
business.

Republic Company

Dempsey-Tegeler & Co.

(Incorporated)

most

Johnston, Lemon & Co.

-

Comptroller Levitt's Study

Against
ous

this

responsible

cials

were

Lee

Higginson Corporation

,

Straus, Blosser & McDowell

J. C. Bradford & Co.

Goodbody & Co. j

H. Hentz&Co.

background, vari¬
government

offi¬

undertaking studies
solving their problems.
Arthur
Levitt,
Comptroller
of
New York, instituted a
particu-

E. F. Hutton & Company

Kalman & Company, Inc.

at

Westheimer and Company

*

May 29, 1957.

page

to be construed as an
offering of these securities for sale
of such securities.-The offering is made onfy by the Prospectus, j.

in

•

I

large pre¬
public
offering
a

circumstances

any

—

payment- of

were

income

in-

a

Interest rates in¬

sharply

shareholders,

annual

through established underwrit¬

v

or a

its

will

the
investor is taxed at his o\Vn rates,
as if he owned
directly his portion

This advertisement is not and is under
>•

of

ipal; bond funds; others
start entirely new funds.

of

point

briefly what elements

more

the

on

'

Investment

this

at

to

come

be

Company

May

or

,

■

what

the fall of 1956.

aimed

*A

if

will

tax-exempt nature of municipal
interest
through - to
its
share- '•
holders.

examine and approve

all of its
new local government issues
prior
to their sale to the public.
The

Only

met

are

company be permitted to pass the

Why, I've been frequently asked,;
studies

tention

Eco¬

President

recommendation,

carry

that $191

also

of

ways

standards

selves, that it will work. To my
municipal bond funds.
Possibly
knowledge, three bond funds will
others will be introduced before' ipal security can penetrate only bequickly offered if necessary
layer of - ownership under.,
any action is taken.
H. R. 1222, one
legislation is enacted. These funds
introducedby Representative existing law. It can enure only to are
ready to go-tomorrow. At least
Reed, is receiving most of the at¬ the direct owner of the bond. This
five other -

the

duced
by Representative
Reed,
ranking Republican on the House
Ways and Means Committee and

av¬
was

f

necessary? * The
reason
is
simple. The tax-free!
nature of. interest from a munic¬

.......

' passed before
Congress adjourns.

so sharply,
in
municipals were
matured
issues ih
the "purchased by -investors not norportfolios of the same investors. mally interested in tax-exempt

simply
placing

speaking, it

Aspects

bills in the Congressional
hopper
relate in one form or another to

.

1947.

Legal

such;, investments.

these

.

in

to

At

:

'}/

w

If

"
Vf
legislation ; is,
enacted, we may assume, I suppose, that technical problems will

"

problems.

already

in use."

from

~

1

V' V

'

!'

,

35

Knowledge
Reqniies All-Oat Research

'■

By C. M.
•

-■

Corporation

happy people.

In

labor

i s has
little

agement
sues;
he
very

t

of
that

d ing

a n

fact

the
h i

:

under-

real

security,

s

his

job,

p r o s p e r

-

you7.

; in which we have offered tne pro¬

for

pass

his
ity

questions on the basis of ex¬
knowledge? "
*

these

there

factual

act

that astonished us,

objectives.

our

j

of
Cwarieii

progress.

our

understanding of the

even

in

profits

role of

;

improved

has

situation

eral debt, or
I have

both? r

in

the
is rising;
in industry

general education level

because
our

we
ourselves

exerted

clear

was

Research

Cor¬

poration.

*

Appeads to Company. Heads

•

There

:

The

is

about it.

question

no-

opportunity to break through
communications

; ' the

is

barrier
,

teachers had firsthand

economics

knowledge of business and

feufc when*;

:v;'
approach them from the stand-, try.
The situation
point of exact knowledge, even

I

to

even

make

objectives, and partly
impact of in-

because of the sheer

OUr

of

the- aid

with

some

of the best

?

to

cooperating with the * University
of! Chicago.
Other universities
could be enticed into doing the

and that very few

social studies,

,• *

^

emotional answer for

an-

each of these questions,
.

dealings with the
public, and with the agencies of
local, state and Federal Governments. I have deliberately linked
the two, because I want to underline an omission that I believe is
at the base of our trouble in these
areas.
We have forgotten, too
often, that we in these United
States are a democracy,

greater in

because

partly

years,

been

has

failure

Our

eco-

our

nomic system.

have

interest'

.

•

partly

-

Fellowships.

50

of

* there if we will grasp
I know^that every

.

have stemmed from this

failure.

less

recent

/

What is the danger point

to communicate the
employees, and many
labor troubles in the past

few years

*» it.t<:

tit,

has

The

,

the

Opinion

by

vey

and broadened.-

^

and
sixth

confirmed by an independent sur¬

program
economics to our 7,000
a

for

indication

This

decided to
to teach basic

too high; that incentive
supervis¬
endangered; that-the ac¬ ors. It seemed like a simple proj¬
cumulation of investment capital. ect when we started* but in doing
is being hindered. Yet how many; background research on the probof us could answer even one of ■ lem
we
came
upon
some facts

facts to our

He

and

cations

Several years ago we
up

economics

of

have received 164 appli¬

gram, we

worth.

failed

have

directly

capital

them

teachers

lege

social science.' This year, the

is being
_

to

and

set

taxes are

at

Technology,

along

to

want

;

of

our

give another example, we- offer
50 all-expense Fellowships to col¬

things

many

what they are

this subject.
would agree .that

Institute

in

program

„

dependent
upon
indus¬
trial

think

I

received.

have learned some lessons,

we

painful thinking on

warmly

Economics-In-Action

in a boastful
companies have
similar steps, and some have
farther than we have. But

gone

lot of

a

,

.

-

and his future
are

have done

us

am

to

it.
V j
TsTow this will be hard to bein the '
steel com¬
lieve if you have never investi-ratio between taxes and- the na¬
tional income?
- gated it,- but we found
that there pany is already doing something
about the problems I have? out¬
was no - textbook,, no high- school
What. is. the optimum revenue
lined.
By the same token there
or college course in business eco¬
Unfortunately, this understand-- balance between the corporate in-:
isn't a company — and I include
nomics that could be adapted to
ing is not shared by many union' come tax, the individual income
our
needs.
The language was. Republic —that cannot easily do
members;
How
many
men
In tax, and excise taxes?
"
|
wrong,
and
the
material was much more- than it is doing.
your plants understand the rela-*
What is the long-range' effect
overlook
the
fact that
either too abstract, or downright V Don't
tionship of profits to jobs and job of the
corporate tax on the flow'
misleading in its content or treat¬ small companies as well as big
security? Of productivity to wage of
equity capital?
ones
can
develop effective 'pro-'
ment.
'
increases?
To. prices?
To
the
Have government spending pro¬
Equally, disturbing was the dis¬ grams.' Two or more companies
standard
of
living? How many
grams
speeded
or - slowed .. the
covery
that only a few public- participating in the same program
understand the relationship of di¬
schools
. "
' *
taught
economics; ' that and sharing in its cost could do a
vidends to your ability to raise growth of our economy?
economics "courses" were basic economics job with one of
•Should we apply our surpluses most
equity capital?
In this area we
to tax cuts, reduction of the Fed¬
merely short sections in general, the regional universities that are

man¬

-

of

Most

Case

tnese

taken

I

not talking

for

way,

?■ V-' y"'A.. ■/v

been

Republic. I

have made

we

move

the understanding of eco¬

nomics and business problems has

of the

about

For example,
let's look at taxes and government

'T rC:;,'

Every
promote

be,. I want to tell you
experiences we have

can

had in

their true nature

spending,

,

how: tough this prob¬

show

some

theory.

to are still areas of disagreement,
tell its story, the typical man on But with each new contract I bethe
street
is
suspicious of big lieve that leaders on both sides
come
closer to an understanding
business;,
he
of mutual problems and goals.
is confused by
made

has

industry

lem

in the frontiers of

hidden

still

economic

)

In spite of this progress,

that

effort

the

of

-spite

we

We talk and write a lot

about them, but

Leading steel executive proposes

but

about some of
dynamics of our

basic

'

Republic's Experience
To

:

of

,

ours.

v.

facts and
the people.

idea,

startling

a

vocabulary, is union contract, and problems
:.'v
V.- persofiftbl'andfsupervision^

his,,

identical with
■

very" little

most

the

is

American

is

It

know

economy.

all-out research to penetrate the working of our economy^ and the development of a pro¬
gram to promote public understanding of economics and business problems.
Asserting conflicts arise out of ignorance and
misunderstanding, and that there's no basic conflict between
labor and management, business and the public, Mr.^ White
maintains his proposals" to get the facts and to acquaint the *public with them will achieve a truly united, prosperous and

the

getting them across to

WHITE*

Republic Steel

Chairman,

<»

we

money

that

assume

the

getting

in

spend

time

of

amount

Lack of Economic

drastically,
and

increase,

to

s

Thursday, May 30;* 1957

' The Commercial and Financial Chronicle

.>* :

«

(2514)

10

develop

a

.

indus¬

>■
-; : ,X same thing that Case Institute is
doing for Republic on our Ecowas so bad we had
nomics-in-Action
. program. ~
A
program from the
■

joint enterprise by a few com¬
panies could expand this great
work tremendously and I can as¬

country, t am- ground up. We asked the Indus¬
forced to admit that I do
not trial Relations Center of the Uni¬
versity of Chicago to work with
know.
us
in
researching, writing and
It is small consolation, but t am
field-testing a set of materials.
not alone in this. '
No one else
We had allowed six months for
knows either.
Economists, legis- '
the job when we began.
It took
lators, labor leaders, teachers—we
us two

fiscal experts in the

sure

?

in the

all

are

same

to complete

years

boat.

would

Case

that

you

co¬

operate wholeheartedly.
But we must never forget that

such as these are only

programs

beginning. We need more facts^
and a simpler business language.
We also need a broader philos¬

it—two

a

years to determine the principal
It is hard to say "I don't know"
But there
areas
of *j misunderstanding,
to
misunderBehind every agency, every bu- on vital issues. But it is the be¬
translate ideas into simple langophy of communications.
standing
between
management reaUj every office are the unseen ginning of wisdom. It leaves us guage, to develop visual aids when
In the most literal sense, a com¬
and organized labor, between in-r and 0ften unremembered people,
no
alternative. We've got to get ;
language proved ineffective, and pany's communications program
dustry, and the public, ana bevoters
stripped of all senti- the facts.
/
'
should be designed to strengthen
to teach the teachers how to teach
tween
industry and government, mentality, the bare fact is that
I think we should do everything
even
this simplified set of facts the' bonds of mutual interest that
I think this is the? most serious they control the destinies of this
It
we
can
to encourage research in
and formulas.
•
"• hold our society together.
challenge confronting us today.
should
relate
the
employee —
country from the ballot box.
.But when we finished we had
economics and economic sociol¬
whether he be company president
If the three great segments of
Pressure
groups and1 political ogy. We need precise knowledge
something of value.
We found
our economy can understand each
tactics can influence the outcome in these fields just as we do in.' that when a supervisor took the or trainee—to his job, to his com¬
pany, to his community,
and to
course
his ability to understand
or
electronics.,. We
other, there is no domestic prob- 0f the vote for short periods of metallurgy
lem that cannot be solved, no reatime.
But in the long run the
need to remove the, guesswork,
and
interpret
economic
data the important issues of the day.
sonable
goal
that
cannot
be opinion of the majority prevails, and reduce economics to a work¬ jumped an average of 40%. In¬ It should, relate the company tothe community,
to the industry
achieved. •
v
•
and will prevail as long as our
terest in this supposedly dull sub¬
ing science.
of which it is a part, to the in¬
I
do
not
make
this proposal ject jumped still more. Men came
Labor Relations' Progress
systei" o£. government endures.
to
class
early and stayed late. dustries it serves, and to the econ¬
lightly. Our economy has grown
It is encouraging that so much
Wlth thls jn mlnd'1418 clear
They came even if vacation sched¬ omy as a whole.
so rapidly that many of our meth¬
I believe it is our responsibility
urosrew
has
been made m the we are continuously accountable
in tne tQ
progiess
has been made
the
public._ and
if we are ods and policies are out-dated. It ules conflicted with classes. They
to promote prosperity as well as
field of labor relations.
Manage¬
carried their new knowledge and
judged, accurately
on • motive,
generates such tremendous power
ment
has accepted
unions as a
,
,
,
products; good citizenship as well
interest not only into their job,
its weaknesses seem unimportant
as
good business; good govern¬
but into their home and commun¬
permanent part of our economic (5®?! T'
^
in times of prosperity, but even
cfriir-fiiro
unH
manv
lahnr
I have no fear of the outment as well as free enterprise
structure, and many labor lpad- P
lead
It was an expensive under¬
come.
As a group, the men of a rumor can set it cracking. When ity.
ers have come to respect managetaking, but the improved perform¬ and the advantages of creative

dustry's achievements.
is still a wide gulf of

.

that

^

J

sincerity

„

'
Industry

_

.

,

,

the

l-

.

,

,

voter

working
conditions,
productivity by

improving

controversies

investing in better tools and procFurthermore,

esses.

the benefits in the form
hours

and

higher

pay.

\foe

I

believe

well

highest

that most labor lead-

I believe they are

know this.
aware

high

today's

that

be paid only because
management
planned
well, inwages

can

heavily

vested

natural

resources,
sums

and

for expansion and

*An

address

Centennial

23,

Steel

1957.

individual is the common de-

When we can speak of
and economic problems
language the average man

nominator.
business

in

a

understand;
demonstrate the
can

when

we can
oneness of his

strikes, inflationary pressures, and
unwise

development.

and

by

Mr

Meeting ol

White before the
the American Iron




City, May

only

standpoint of com¬

is
Information

step.

j

think

„_„i_

K

.

these

are

alone is of
ore
■

I

than iron

in

and
we

And

there,

have failed worst of
those areas of tech¬

we

Even

where

audience.

the

to

nology
we

use

It must be reand shaped into forms use¬

think,

all.

more

facts

in the ground.

fined
ful

no

simple

economics

know whereof we speak,

have failed to develop a lang-

guage

that

has

meaning for the

talk,

we

broadcast

write,
across

we

the

sow
na¬

tion, but we do not spend enough
time listening
to what we say.

reasonable
^

Sp3lS, but let S make 110, mistake
about it. To succeed, we will have

We

do

students and
without ex¬
interest has been

school
clubs,

women's

ception

union

their

and

high.

spread
to other companies, and the Uni¬
versity of Chicago found that it
was
unable to keep up with the
job of training conference leaders.
The aid of eight other colleges
and universities has been enlisted,
and 12 more will be active by the
the program

in

Evansville
College, for example, the program

end

is

of

the

year.

companies

being offered to 30

in the area on a

Other

continuing basis.

companies

parts of the

are

adapting

material to their own

not

hear

and meanings are

how our words
twisted or mis¬

interpreted by the receiver.

We

The

University

working

also

with

of
us

Chicago
on

a

is

pro¬

aimed at building manage¬
ment cooperation^ at every level.
Members of the management team
gram

are

given a thorough study course
the annual report, the

covering

interest

and

between or¬

management,,

busi¬
is
only the conflict growing out of
and the public,

business

or

There

government.

and

ness

ignorance and misunderstanding.
M!y proposal is equally simple:
Let's

develop the

facts,

the

get

language, and utilize all of the
tools of communication
to pro¬
mote

understanding

and

the

co¬

operative spirit.
If we do, the age-old dream of
a

truly united people, going

the road of
ness

down

prosperity and happi¬

together, can be a reality at

last.

Form

At

needs.

layman.
We

high

ers,

Interest

getting the

first

the

words

government interference,

Economics Breakthrough

Institute, New York

But from the

munications,

r

and
,

enormous

physical sciences; I say let's

public will do its share.

and

oroblems and ours, we will have
raised ^ken a giant step toward ending

research

in

understandable
field-tested the
groups, teach¬

spend what it takes to understand
the workings of our economy. Re¬

anywhere on earth.

ers

and
have

with

management, it is easier for

hours, the
greatest security and the highest
standard of living to
be found

the

shortest

the

wages,

tools,

best

the

has

jts"

hungry for economic
presented in an

are

information if it is
We

in the

"productivity."
jn working to establish a cornm0n
meeting ground with the
general public, as well as our empioyees, we must remember that

suit,

labor

course

"wages" and "working hours" are
m0re familiar to him than "prof-

re-

ganized

form.

labor

of shorter
a

of

something else, too.

We learned

interesting

view than management's, because

laboring man

the American

When

shared

As

conflict

cheap and easy way out of it.
We spend billions of dollars and
millions of man-hours for research

him to understand labor's point of

have

dangerous sit¬

any

productiv-

as

they

increased,

ity

and

problems.
arise between

a

My credo, reduced to its simp¬
this: There is no basic

lest form is

Information

Public Wants

uation, and I don't think there is

about
business

httle

about

or

and

methods

raising

for

and

knows

today

economics,

think this is

I

believe the facts. Yet the average

,

accepted

leaders have

and

caoitalism.

justified the cost.

People

the facts'' understand the facts,

responsibility for training, for

supervisors, alone, more

of

ance

than

tinker with it.

fvfe t0
3nd
tv.o4e "'®U,gen'ly' hey ™st ^n0,w

gppn

cvpr

we

reinforce it with new
laws
there, but since we don't
know exactly how the thing works
we
pray a little every time we

Getting the Facts to the Public

and management has built the greatest proauction machine the world has

down

break

to

threatens

here,

nation,

•

'

prime it with spending programs

„

labor

American

of

__+.

,,

01

partnersihp-in-fact

know that the

it

™nai!m,?,nt economic conscience
j" ^fican industry are the

as
well as perThoughtful
men
on
both sides of the bargaining table

ment's

formance.

Amer.

BEVERLY
American

Programmin
Calif.

HILLS,

Programming Corpora¬
office

tion has been formed with
at

430

engage

Officers

North

in
are

a

Drive

Camden

securities

t

b jsiness

CecU E. Abbett, pres

ident; Karl C. Vesper, vice presi
dent, secretary and treasurer; an
Virginia Foley assistant secretar
and
assistant
treasurer.
Mr
Abbett

was

formerly

with

Merritt & Co. and Douglass
Mr.
cer

Vesper

was

Kin
& Co

formerly an offi
Corporation

of Axe Securities

Volume

Number 5642..; The Commercial and Financial Chronicle

185

(2515)

—

Point

three

two—

here

Credit and Inflation
By HANS A. WIDENMANN*

is

the

Patman

the

Town

needs

existing -schools

~

retained in
The

golden

modernizing

Pericles
his¬
torical perspective our form
of
government — our Republic — has
already out- .»
: /
v

lasted

of

age

hundred

a

years—in

lived its usual

If

span.
are

nomic

clothes of

a

trying

operate

to

Point

a

size.

that

We're

for

eagerness

things in life and the

im¬

an

that

eco¬

fabulous

our

the

good
things

new

technology

>

is

it is important
that the vot¬

inventing — as a people ► ,we're
raring to go —- but if we in¬
sist on doing it in our tried and

ing

trusted

system

public

whence

aware

its

be

jalopy

we

bust.

a

•

.

the

structure

within which

mittee

it

of the Joint Economic Committee

operates
Hans A. Widenmann

'and lives may
•be
accommodated

rapidly

to

changing

times

the

meet

needs

of

tne

without

sacrificing
the
priceless ingredient of individual
liberty.
To foster and maintain
public

to

what

of

awareness

sential

is

the

preserve

es¬

oppor¬

tunity

for life, liberty and .the
pursuit of happiness is most diffi¬

held

in

ber.

I

Decem¬
basic

four

among
others
these proceedings.

from

you're

last

discuss

to

which

evolved
batim

Stabilization

Washington

want

points
If

Economic

on

in

interested

four

is

ac-;

the

ver¬

Board

by

suitable

Town

of

bonds

Hempstead

at

what

the

for

to

the

sell

its

Congressman

would regard as reasonable
—or
in a broader sense to

prices

that

Board

the

Federal

make up

insist

Reserve

with bank credit

any

de¬

ficiency in the amount of avail¬
able savings relative to demand—
Would

be

inflationary — where¬
Patman replies that there is

upon

.

confusion in many people's minds
between inflation and progress—
that on the record an increase in
the

price level of
seemed to

year

few per cent

a

be working out

are

but

us

a

political economy. Let

consider the four

points

one

by

cult in the field of

things

have

lifetime that

our

economics, fi¬

and fiscal affairs—such fab¬

ulous

happened in
rarely stop to

we

consider how this all

Progress

has

been

about.

came

follows:

t

William

//

,

McChesney

Chairman

;

means

Martin,

of the Federal

Reserve

rapid that Board, is in the witness chair —
we
don't realize that-many de¬
and Representative Patman is the
vices which are commonplace to
examiner, if you will. »
us
are
often things that our pa-<
Mr. Patman opens the proceed¬
rents didn't ever* dream of.
We
ings by calling Mr. Martin's at¬
assume without thinking
that all
so

thils miraculous unfolding

tention to the fact that the power

of

new

products—unheard of today, but a
reality tomorrow—will go on for¬
We take it for granted

ever.

long

as

as

have

we

sound

that

fiscal

management and perserve the in¬

tegrity

of

will take

ter of fact

there and
in

the

the

care

growth

currency,

of itself—as

some

moderate increase

price level

isn't regarded

and again

now

too bad.

as

«

time, for nothing could be further
from the truth—growth will not
take care of itself, for this growth
business
is
nothing like we've
before—the

is*

Patman

this

question

reflecting

the

demands

(a)
Board

can

anywhere

Federal

put the
it wants

fork

Reserve

interest
with

im¬

to

take

interest rates

tain

level,

beyond a
the Federal

and

refuses

act, the govern¬

the

from
reaping
unwarranted
profits, but also because of the
popular belief that too high in¬

apt to precipitate

a

ments

who

now

that

discount

automatically

impunity;

(b)

that

not

inconsistent

are

growth

high

shall

is

states

it

hadn't

maybe

it

done

a
good job,
Congress' respon¬
sibility to review the situation
and perhaps reassume the power
over money—this is point number
one—the
question of the power
over
money
and
what criteria

should

was

direct

its

Reserve

Mr.

its

own

problems and pressures. Cer¬
tainly, we'll never achieve the

new

tremendous potential of our mod¬

As

initial

his

how

job

Martin

management.

how

19th

quantities

ideas—it's true that the

two

without
of

which

government

and
are

the

altogether
other

tinue

sound currency

ingredients
unique form

cannot

too

survive

this is

—

people

many

so.

On

hand,

we'll probably
liberties, if we con¬

our

to

our

that

unaware

also lose

a

essential

attempt

to

force

our

dynamic economic into the straitjacket of

our

outgrown

mechan¬

ism—which is already bursting at
the searasr—for it is like
200

pound

'An
fore

address

the

9th

six-footer
by

Annual

Mr.

forcing
into

Widenmann

Business

a

the
be¬

Conference

of

Rutgers University School of Business
Administration, May 16, 1957.




question

to

de¬

satisfactorily
Board

Patman

the

has

done

asked

Mr.

he was going to
bonds decline. We,
the Congress, gave you, Mr. Mar¬

tin,

capitalism with orthodox
century
laissez - Jarre
eco¬

.

far

let government

ern mass

are

pur¬

hearings is to have
Mr. Martin once again give an ac¬
count of his stewardship—the in¬
ference being that if the hearings

its

free market and

the

the

of

pose

Federal

or

that

the' power

of

make money

money

tight—you

easy—you

control

Bureau

over

of

ing behind
it.

buy unlimited
bonds — you
can
to

can

have

it —you

complete
the

have

Printing and

Engrav¬

in

to back

you

up

more are

you

going

you

How much

make

to

despoil the people who in good
faith
bought these government
bonds at

par?
When are you go¬
ing to start buying? Every time
you
put these bonds down you
penalize the saver and every time
you put the rediscount rate up by
1% you impose an additional bur¬
den of $7 billion on the American
people. You've raised the redis¬
count rate six times, Mr. Martin—
.

when

you going to stop? This
point two — the bogey of the
high interest rate.
•
are

is

,

.

gov¬

ment Act of

Federal

1946—and that if the

Reserve

Board

is

stub¬

he

bond

the

is

1%

that

in

quality available in
(d) that an in¬

and

the

rediscount

increase

doesn't

the

born about using its powers its
hand must perhaps be forced and
its powers in effect reassumed by

carrying

the

ternal indebtedness of

Congress in whole

to

political
full

be

in part

terms 1 this

cost

of the

avail¬

The only alternative

the government

let

the

interest

which

of
risk

two
—

ment agency

is not going
rate

the

of

better

and

lender

borrowers

then

the

decide

some

is

the

govern¬

would have to make

the

choice, for the lender obvi¬
ously can't lend the same money

twice—that

is

to

put

the

alloca-

'

tion

of

the

available

the hands of
•

funds

capital issues

a

into
com-

mittee whose decision would per¬
force be determined by relative

political
sition

doned
•

by

1

mean

and

embarked

state

socialism.

of

$700 billion

pressures—the interpo¬
such a political agency
that you have aban¬
the free enterprise system

of

would

the * estimated total of
public and private in¬

American

way than the free¬
marketplace to deter¬

on

All of this is in

fact

,/*

that
+

any

the

road

to

addition to the

qualm

Continued

a

legislator

on page

32

means

employment is believed

regarded

public

or

rate

rate

up

allocation

judgment

bought it this obviously
the best yield on a

of

Just

interest

the

governmental control.
If

to

has

market;

rise

better

no

mine the

represented

crease

go

able funds.

with

time

spending as a tool to
unemployment in compli¬
the Congressional di¬
rective embodied in the Employ¬
with

that

not

dom of the

money

avoid

ance

that

then

Patman

this

nomics

its.

addition' to

in

per¬

of the bor¬

/or capital outruns savings, there

bougnt a govern¬
ment bond at par, which is now
selling at 90, hasn't lost a cent
wno

some

doesn't produce
any additional-savings—in fact it
prevents it.
And if the demand

employment and
they don't generate downturns in
general business as the critics of
tight money would have us be¬

•man

the

defer their demands.

deciding

full

or

accommodate

to

borrowers,
without
the interest rate to

rowers

in¬

rates

arbitrary maxi¬

some

in order to make

re¬

rate

,,

funds

mitting

selling at 90 has

advance of the

an

the

rate blithely assumes he has

other
govern¬

government

;

money;

(c)

of

bought

bonds'at 100
lost

holder

of

that

Moreover, it doesn't do
anything to equate the supply and
demand —it's King Canute over
again—it just says that the bor¬
rower
ought; to get his money,
irrespective /of
the number of

ers

a

,

borrower.

only to prevent mysterious bank¬

are

volume

insist

to

ought to accommodate the

borrower at

Re¬

the

over

and

lender

cer¬

ment'should and must step in not

recession;
1(b) that

control

no

savings

mum

to

terest rates

over.

The Federal Reserve Board has

rate

punity; that if the market -forces

serve

should step in and make them

one

the

that

unless he's sold it and that at the

to the Federal Reserve Board. Mr.

termine

creating

in

be used

in¬
has

iteer—and the government or the
Federal Reserve Board or some¬

"•Mr.

widely

ernment

—in

creating tor goods, raw mate¬
rials, machinery, labor, for credit,
for capital, are so prodigious, that
we're just beginning to sense that
is

Con¬

inflation; its adher¬

believe that monetary policy

must

wisdom had delegated that power

is

growth

the

in

Congress

that

and

gress

vested

Board

-

This is the great illusion of our

had

Constitution

disclosed that the Federal Reserve

Outgrown Mechanism

ever

regulate the value of money is
I—Section VIII of the

mat¬

a

little deficit here and

a

to

by Article

ents

little

a

the
rate

r

' asking

In

.

nance

after

rediscount

going to let them go into the 80s more than, shall we say 6%.
If
before ypu start using the power, it isn't, then someone is
holding
gave you. to buy them?
: 1 out—someone is trying to prof¬

you'll find it in a one..
government pamphlet (85560) re¬ /, First—the
power
over
money.
porting these hearings ■- entitled Mr. Patman in his
questioning was
Monetary Policy 1955-56.
I am
reflecting a widely held view that lieve; rather, such downturns stem
taking
some
editorial
liberties the full employment philosophy from a previous unbalanced overhere and there to underscore the
ought to be the decisive consid¬ expansion which could not be
argument, but the gist is about as eration of public policy even if it maintained in any case; (c) that a
story

incurred
the

in

we

.

ber that this is not only an econ^-

in¬

effect; and finally, (e) the
should
be
aware
that
there's obviously something wrong

now

creases
the burden by the exact
just fine—you have to have some
amount of the rise applied to the
expansion
or
you • are
against
•whole public and private debt.
progress, said Mr. Patman.
Now the public should .be aware
>
Those are the four points—they
(a)
the
Federal
Reserve
illustrate some of the basic idea .that:
cannot
put
the
interest
problems of our political economy Board
rate any place it wants to with
—and we should always remem¬

omy

the

3s of 1995 originally issued at. public

held-views:

open

because

relatively small amount of

debt

new

an¬

situa¬

a

—

in the rate will apply only

the

to

selling 'in the1 low
90s, says Mr. Patman (they were- about the notion that any money
in December).—how far are .you desired
by the Town of Hemp¬
going' to let them drop, Mr. Mar¬ stead- or anybody else for that
tin, asks; Mr. - Patman—are you matter, should be available at not

race-

Martin's

Mr.

market operations create
tion making it. possible

a

Let me illustrate, using the case
history method. Let me take the
Patman hearings of the Sub-Com¬

that

so

be headed for

may

blessings

flow

outmoded

but

Mr. Martin, lett

high interest

a

ury

to

Reserve

we're

—

its

sell

reasonable

question three to the ef¬
fect that to insist that the Federal
:

six-year-old

cant

any

you,

that

view

swer

$450 billion
economy with a banking, credit,
money market and tax structure
designed, to accommodate one a

tionwide

our

unique politi¬
cal-social

•

economic structure.

our

now

hallsr 100

denies- legitimate borrowers
cess to the market.

patient lot—as my friend Dr. Roy
L. Reierson puts it—there is a na¬

pre¬

serve

held

be

integrity

currency

fraction

we

to

-

and

are

/ That's point three—The widely

^

shifting local government and private financing to the Government, and resorting to direct controls to allocate . available
market

at

billion

crease

.

level of government securities and
crease
over-^ the interest rate; The U. S. Treas^. taken

the interest rate go up so high.'
Are you opposed to the education
of children, Mr. Martin?"
;

expanding bank credit to make-up deficit in savings,

free

bonds

price because

Patman Committee hearings to answer misconceptions
regarding tight credit and economic growth. Mr. Widenmann
points out that unsatisfied growth demands cannot be cured
by: artificially low interest rates, letting the money printing

recent

Advocates

Hempstead

school

/

♦

.

school—

crowded —many . children
have classes in tne

"

funds.

new

a

--but

Wall Street investment banker and economic observer utilizes

press run,

Hempstead/ questions and discussions.

$7

by

-"Now

says:

of

have to

* V

Partner, Carl M. Loeb, Rhoades & Co., New York

Mr.

school—it

r: f.-i',.

-

follows from

point- things the public should be aware
of—fop the purpose of- evoking
/
Long Island, that Wants to; build a
Now as to point two—the price

The Economics oi

11

*

•r

the

by

general

important

more

as

avoiding inflation.

This advertisement is neither

than

an

The

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

any

of these securities..

.

NEW ISSUE

May 29, 1957

Answers Fallacies

However, the things that the
public should bear in mind with
respect to

(a)

point

one

the

very

that

successful

/

secret

of

Federal Reserve

is that it

is

$15,000,000

/

are:

National Fuel Gas

a

Board

independent Con¬
gressional agency not subject to
Congressional control;
(b) that the attempt to make

5lA%

Sinking Fund Debentures Due 1982

Dated

its decision subject to political de¬
bate or decision would be fatal;

(c) that Congress, realizing this,
deliberately divorced itself from
any control over the day to day
policy decision of the Federal Re¬
Board

serve

of

for

avoiding

put

on

(d)
is not

as

Reserve

employment, ad¬
objective it may be,
important than infla¬

on

currency

indispensable

contrary the
the integrity of
in the long run is
for

prosperity

printing
I

a

*

good

money

The

Francis I. duPont & Co.

Robinson-Hnmphrey Company, Inc.

Central Republic Company
(Incorporated)

Baker, Weeks & Co.
Van Alstyne,

Noel & Co.

Fahnestock & Co.

Goodbody & Co.

McDonnell & Co.

Kean, Taylor & Co.

1

might say parenthetically at
point that I'm deliberately
being very dogmatic about the

this

Corporation

Merrill Lynch, Pierce, Fenner & Beane

Salomon Bros. & Hutzler

couple of

presses.

Kidder, Peabody & Coi

and

that
neither
government spending nor infla¬
tionary credit expansion will cure
unemployment or a recession—if
it were as simple as that all we'd
is

The First Boston

the

of

growth; and
(e)
conversely,

need

Copies of the Prospectus may be obtained from any of the several underonly in States in which such underwriters are qualified to act as
Prospectus may legally be distributed.

writers

dealers in securities and in which the

Board;

full

preservation
the

purpose

an

more

tion—that

June 1, 1982

pressure

be

Federal

that

mirable

Due

June 1, 1957

Price 101.363% and accrued interest

that
continually
Congress to try to influ¬

the

ence

the very

the

otherwise

would

Company

an

Schwabacher & Co.

Joseph Walker & Sons

Financial Chronicle

The Commercial and

.

.

Thursday, May 30,1957

institution of collective berships as to , make reform a
responsibilities, bargaining.,;^ f'. . ■
remote possibility.'*
"'Vl;;
r'.-/-v ;■ >:*
The President pointed out that
Furthermore, in those unions
Parties to Crime
"corruption on the part of a few lead by good and true leaders, a
I have expressed fears on many should not obscure the fact that constitution that is capable of disoccasions throughout last year and the vast majority of those con- tortion or manipulation may bethe year before about this kind of nected with organized labor are come a source of temptation for
blindness resulting from this kind decent and honest Americans and future leaders. A union constitution
of bigness.
I asked the question that responsible labor leadership should be unequivocal. It should
on those
occasions whether some is moving speedily toward pro- be insulated against attempts to
of
our
labor
leaders were not tecting their members from any change or distort , it, and in that
shirking from the full duties of such abuses, as far as their means way it serves as the constant
their office.
I say now that a permit."
r
'
/ shield * for therank and file
leader who has lost his sense of
These warnings by the Presi- throughout the years,
vocation is not fit to serve the dent indicate areas where gov- ; Even
though present corrupt
best
interest
of his
office, his ernmental action seems appropri- leaders are expelled, the same
union, or his country.
ate. Our legislation should be opportunities for self-enrichment
Such a leader has a counterpart directed toward helping good labor through misuse of union adminisin the dishonest employer, whose leaders help themselves—to take tration should also be eliminated,
urge for
profit is unfortunately up where their own individual
jn one union constitution there
greater than his urge for ethical means leave off. In line with this js^ trial procedure that empowers
behavior.
Collusion
between a policy, it seems clear now that the executive board of the Inter'

MITCHELL*

By JAMES P.

Secretary of Labor

u. S. Labor Secretary

reform of tome

calls for "an immediate

constitutions" to strengthen democracy within the labor
movement and curb corrupt leaders. Secretary Mitchell refers
to rank and file apathy about the affairs of their corrupt
unions as the real betrayer; warns, however, against "head¬
union

plunge"; and suggests speedy passage of two
which would not interfere with nnioiiorganLang or bargaining, nor prevent good labor leaders from help¬
ing themselves. Avers default on part of union members and
leaders invites legislative interference to protect the individual.

rwWmtinn

J
have?Mbeen

measures

in

Fisenhower
f

nnito

i

comp

some

.quite
time

fo^e

labor leader and a weak employer

is a case of the blind leading the
in everv struggle for right and blind and can only lead eventucharitv
ally to a grand fall.
Because the trade union moveThere is also a third party
ment
has
made
such splendid wnich
has contributed to the
mem
iids
jiwuc
such
A

intense

most

the

of

,on^Jf?o President
to P^sident

concern

social jus-

continue to seek

will

union* and abuses

■

,

long legislative
remedial

forget his basic American

it easy for him to
obligations and his

Meeting the Challenge
Of Labor Racketeering

•

.

(2516)

12

Federal action is needed to protect
the principal objects of corruptleaders—union funds on one hand
and union welfare and pensions
treasuries on the other. I have
proposed, therefore, that govern*

national to take over any trial of

any officer or body subordinate to

it. From the decision of this board
there is no appeal except, in certain cases, to the convention,
which is dominated by. delegates

the
when

-------

-

J1-u

-

/1X

'

A"

A

a

provision such as that,

union

-

his

aborted

that

warnpd

l e

labor

of trust

greatest

notonWofhis^own

ic

tions

Mitcnell

P.

James

that

labor

in

are

faith

Lt

in

his

blindness

national For trade unionism is a vocation,
and institutions. Laborer- not just a job that buys the grocewith

keeping

our

men that make that step. They
are handy with a blackjack or a

dynamite. .Their very
standing ominously in

that stick -of
people presence,

working

stature among his

instituin

of

to his
fellow men,
y
Corruption begins when a labor
leader loses his sense of vocation.

Pathetic

aemo

ree

era tic

millions

if

snefpin

in

.

.

has

personal gain is a tragic and paresponsibility thetic figure
Tragic in his denial

'the

..

_

.

corrupt labor leader is one step tailed reporting and public dis-i
for from extortion; There are some closure of labor-management

^d e^wlio

position

..........

.

ww

um

The

Washington

own

the shadows,* promises physical
punishment and pain to_any who
resist then demands. They give
^b.°f/J*1? blackest name of all.

health, welfare and pension funds,
A specific bill to accomplish this
was sent to Congress last year
and has been resubmitted this
year, but so far there has been no
all unions
action taken on it
*
(2)
believe that
should I be required to file complete

and meaningful

tneir auaenmen
a i
rackets is as tenuous at base as of 1their

can

be seized and

. ^without any recourse except
to the man who seized it.

^in contrast there are^many
unions who pride themselves on
and treasure their, democratic
processes.: In such unions one is
not surprised to see the rank and

file taking an active of the affairs
role in the conduct and vigorous
of the union.
-— —
.

Truly democratic processes are

statements the best safeguard against labor
or,rJ
,
.
.
. ..
,

financial situation and racketeering. If individual unions
ganizations," he said, "must serve ries. A responsible labor leader their attachment to any racket that these statements should be are determined to prevent hoodindividual and not seek to does more than act as an aiient to once their bosses are apprehended available to the press and to the
urnism or to stamp it out where
dominate him."
increase the material well-being they drift away to some other en- public at large^
n it exists there is no better place
the President spoke those of his fellow members.
By the terpnse equally deserving of their . Swilt^ Congressionaln action on to start than with their constituhill
before
nalure of his position he is talents.
:
these proposals will provide effec- tions. Where power is not fairly
Congress that would have pro- a man with a mission-to' bring
And finally, beyond the leader tive help ^safeguarding
distributed; where one man holds
tected the beneficiaries of union wider justice to society, to create
the employer and the crura--of union
a11, the Cai'ds o£
and
welfare and pensions funds by
opportunities for education and "aL stand the rank and file of der the cio est public and govern- salary and seizure and decision;
quiring public disclosure, of the self-development for his members, ^union members themselves. They mental scrutiny those
where trials and appeals aremost
Iministrator
financial operations of such funds. He is not only administrator, dip- might well wonder-if tfyeir own union linUpci^l afiairsjmast sus- rigorously democratic, and i
We sent tf at bill to Congress last lomat, and organizer; he is also apathy_about the affairs if their ceptible to —•cOt-rupt practices. :
1 J.'
f
important where men . can attain
and the President suggested the guardian of a trust bestowed
hasnot been the rial be- . Other legislative measures may to great "power through constitu: it
early
1954. No action has upon his office by working men trayer. They might well wonder be necessary.
President Eisen- tional weaknesses, there, it would
yet been taken. It is
truism in a and women who look to him for whether
their insistence upon hower has suggested this course seem, changes are in order
democracy that the greatest force inspiration, guidance, advice and moral leadership should not have of action.
Each situation he ln brief the restoration of demo.'examnle
av'-''"
;V'"'
been stronger, more urgent, more said, must be studied carefully to cratic realities as well as demo'sin<S toeSenateSitoUM to'
undeniable. They might wondef if determine what remedies are nec- cratic ideals is* the best way
performed its vital and valuable
Leadership Dimensions
their own vision has not been essary and whether they best lie forward for all trade unions. v
Final Responsibility
service, I have every confidence
To maintain this dual role of short, stopping too often at the in voluntary action, better law enThis
matter
rests
ultimately
appropriate Federal or state
|this bill, along with the rest- organizer and administrator and good contract and the increased
ideals

the

As

there

words

was

verv

a

not

re-

DCill

C

TT

li

at

IU

UI11

Idol'

L/Ullglcoo

IUI lid I.

dliU.

UlgdlllLCI

,

lie

dlou

IS

•

7

-'fill

,

.

*

x-xal

1

^ -

J

year,
as

as

a

nnhlir nnininn

a roused

for eood i<?

Fixes

that
of

■

legislative program in this-

our

—

*

welfare

So much, then, for the nature
problem.
f '

the

zations with more than a million

What

can

be done

of legislation, or in a combination of with union members

about it?

Over-Correction

Danger of

pension

the President's

bill,

special Labor Message in 1954, our
program designed to help eliminate corruption—all were and are
based upon the firm conviction

instrument

fective

for

the

vancement of social justice

helped elevate the wage
a

of property.

man

make

ad-

It has

earner

to

It has helped

possible today's America in
employment is Vup -to a
high of over 64 minion

which

record

and

-

52

and

persons

million

unattached

families

individuals

re-

ceive average personal incomes of

$5,000 or over. It has helped make
possible the widespread material
welfare reflected

of

73%

families

in the fact that

American

automobiles,
America's

living

families

60%

and

himes

of

own

all

of

owned by the

are

in

helped to create

them.

It

has

and

million

45

refrigerators;

but

it has

done much

more

It has

insisted

equality of 'op-

portumty.

on

It
^

than this.

has lifted many

members of minority groups over
the

high walls of prejudice that

confronted them. It has sought and
♦An

the

address

by

Mr.

Mitchell

before

Catholic Press Association, St. Louis,

Mo., May

16, 1957.




these means."
/
This is sound advice against any
headlong legislative plunge that
might effect a temporary cure to
the lasting detriment of the whole
nation.
Right here I would like to say
that it is unfortunate that there
is such an obvious necessity for
^

legislation to protect the interests
of union members. It should be
a clear indication to union members and their leaders that as they
^ded
default on their own responsible
sions. Modern labor is big because present hearings an excuse to do ties, the public througa its legisour economy- is big
A leader real damage to organized labor in latures will move in to protect the
whose sense of moral 'position and this country. It would be forever individual. The more legislation
moral values is not strong who to our shame and detriment if regulating union affairs, the
does not realize the full dimen- such drastic anti-union bias were weaker unions will become; be:
sions of his office may become allowed to influence our course of cause it is a certainty that as
overwhelmed by this bigness and action.
.
unions depend on government for
succumb to greed and corruption.
The President is especially con- help, so their reason for being
The leader who loses his sense cerned that some people will seek diminishes. Therefore, it behooves
of mission and sees himself as lit- a cure that would kill the patient, .labor unions to take every postie more than a bargaining agent He stated his conviction as fol- sible action themselves to rid the
whose j05 en(js with securing a l°ws: "The American labor move- labor movement of corruption and
gangsterism.
3se

wage

hike

sooner

or

for his members

later
*

u-

begin

to

-T-

will ment must be free to pursue ef-

divide forts to achieve-

,

^

•

•

u-

My members are happy, so
I

do

after

that

ness"—he goes

is

my

own

what whole."

•

x,

progressive program that

would neither endanger the exisshady deal. What tence of unions themselves nor

slightly shady deal becomes sooner
or

later the very

permit corruption to continue.
It is my position that legislation
tations. The very size of his oper- that harms the ability of unions
ations, elevated as he is from the to organize and bargain would
everyday bread and butter aspira- make a chaos of trade unionism
tions of the rank and file,, makes and
seriously impair the basic

he would call «outside" interests
lead him to

some

staggering temp- '

can

unions themselves do?

What Can Unions Do?
I believe that an

immediate re-

themselves,

with the working men and women

of America.
Labor has faced challenges in
the past. It fought to be recognized.
It fought for social ad-

vancement and the improvement
of the human lot. It fought against
those who would cripple or destroy
it. It fought against the Communist

menace and successfully cast those
leeches away from its body. Now

it faces yet another and significant
battle—the battle for its own self
respect and its standing in the
eyes of all our people. I have
faith that it will succeed. I have
stated this faith time and again
and I am more convinced of it
now than ever before. There are
too many men of good will in this
country, like you journalists here
tonight, who realize the good that
the labor movement *. ad brought
to our democracy, ready to support and aid in the cleaning job.
In the unionism lies in only
last analysis, the success
of trade

one

place—its firm adherence to the
goals and ideals that lead to the
advancement

nity.

of

individual

dig-

The test and trial of these

times—when assaults upon unions
will be many and heavy, when all
corruption has taken hold, the union members must face the
constitution often serves as the realization of their - obligations,
convenient and legal excuse. By when every labor leader is called
removing this blind, by changing • upon for the utmost in statesmanit so that democratic light shines ship and conviction — may well
through, a first step will have prove the temper to strengthen
been made. '
. .
and refine American organized
For it is a fact that some union labor,
constitutions so stifle their memThe alternative is decay.

In defining the govern- form of some union constitutions
urged a carer is in order. In those unions where

busi- ment's role, then, he

morally blind. The fui and

What

social and

hls Personal activities from his economic gams which in the past
Public activities. If he thinks — have benefited the nation as a

society in which

a

there are 38 million television sets
«

oenefits

members in hundreds of cities and
The course of action I am about
towns across America. Many mil- to suggest must be prefaced by
lions of dollars a year pump
pointing up the real danger of
through the modern labor organi- over-correction. Labor racketeerzation, which employs not only
ing brings from some quarters of
tnat American trade unionism is organizers
but economists, lawa
keystone in the foundation of yers, statisticians, business
ad- society a demand for dangerously
our democratic society. It has been
visors, public relations experts, strong reprisals that would have
a great force in the advancement
accountants, secretaries, a whole the effect of impairing trade
of our standard of living
Tt hac staff of oxnprts and! socialists di- unionism's ability to organize and
been an important and highly efinto divisions and subdivi- bargain. Some people see in the

and
\

Administration's

e

and'

complex

a

exacting job. Modern labor unions
are often
vast, sprawling organi-

■

Praises Unionism
T h

what might be called Keeper of

Values is today

will see passage this year.

area,

.

or

Volume

185;

Number 5642

.

,

„

The Commercial and Financial Chronicle

•

<2517)

13

fcl0su0&
illliilli:
MttHHHtt

MH
II
ill
nil
>■;;-i

iiiii
-

Iflil

tflriMttp

Ipi

It took
These

jthem

are

were

30,000 of these to tunnel the Hudson River

tunnel segments.

Some 30,000 of

used in the walls of the

new

tube

of the Lincoln Tunnel. Most of the segments
'were

made of cast

iron, suitable for portions

of the tunnel that go
,silt

of the

^ steel, and

through the mud and

river bed.
were

Some

bricks in

a

;

go

calked with
!

'

*

This

cylinder,

and carries
New York
west.

a

or

curved

watertight.

tube, is 31 ft in diameter

dual-lane

roadway connecting

City with New Jersey and points

It will increase the Lincoln Tunnel's

annual

capacity by 50 pet,

muters and the

a

boon to

com¬

motoring public.

Bethlehem Steel

.

wall, except that they

Company cast and

machined the segments for this

big project

it made those for the earlier tubes of

just

as

are

the

Lincoln, Holland, Brooklyn-Battery,

lead, and the inside is coated

and

Queens-Midtown tunnels of New York.

iand bolted to form
•

4

of

These segments fit together something like

r

«

made

used in the sections that

through solid rock.

:

were

with concrete to make the tube

a

are

cylinder; The joints

'




•

-

•

I

-

J

t

V '

-

■

'

.

''///////s///y//////////A

bethiIehem
steel
'///'////////.'/Y///////SS.

The
tube
wilt

New

Jersey portal of the Lincoln Tunnet, with the

shown
carry

owned

and

at

an

the

right. This tube is

estimated

operated

new

1 Vi miles long, and

10 million vehicles.'

a

year.

If is.

by The fort of-New York Authority*

The Commercial and Financial Chronicle

14

,

.

Thursday; May 30, 1957

.

(2518)

to

the

Over-the-Counter Markets:

Suplee, Yeatman, Mosley

I

and favorable
known

well

MOSLEY*

Philadelphia, Pa.

Co., Inc.,

Over-the-Counter Market
with the Listed Market, hot too

opportunities of The

The excellent

f

comparison

in showing why
place its^ securi¬
ties
the exchange. (1) Today's excellent communications
providing accurate and rapid quotations, which are getting
better newspaper space j (2) comparable investor protection
in both listed and unlisted securities; (3) favorable perform¬
of National Quotation Bureau's industrial Average with
Dow Jones; and (4) instrumental role of the National Bureau
in improving trading and transactions, are detailed by Mr*
Mosley. Suggests substituting National Securities Market in

By G. KEITII FUNSTON*

President, New York Stock Exchange

The

ago.

reminds

of

much

very

me

two

the midst of

of

gested by

third companion that
brought to school.

a

produced

boy

little

first

a

new

a

gangling daddy—all of
and 150 pounds.
At the Stock Exchange wg are
Over the past few years while
opponent's idea of size was,
American business has been writ¬ absolutely convinced that if com¬
apparently, not the same as his
ing its remarkable record, the panies are to reach their antici¬
father was a combination of 5 feet
gas industry has gone a step fur¬ pated goals, they will have to rely
2
inches
and 250 pounds.
The
on
the mass of American people
ther. In a na¬
argument still goes on as to which
for
much
of
their
investment
tion
and

long

ance

6

inches

3

feet

His

Over-the-Counter Market

singularly

father was the largest.
And this
devoted to
knowledge, there is no short years the old name would be
could well be the case in so far
actual
record as to the earliest a thing of the past.
raising its liv¬
My recommendation for a name as the Listed and Unlisted mar¬ ing standards,
beginnings of the so-called "Overkets are concerned.
We are all
the-Counter
Business." But se¬ to be applied to the general Overyou
have de¬
the-Counter or Unlisted business familiar with the fact that the
curities trans¬
veloped the
York ; Stock
Exchange has
is:, THE NATIONAL SECURITIES New
actions of one
knack of mak¬
MARKET. I feel this name i« ™pst approximately' 1,500 stocks listed
kind or an¬
ing the im¬
suitable for a combination of rea¬ thereon and that in recent weeks
other
which
possible fre¬
sons.
In the first place, there can an average day's transactions were
could properly
quently seem
be no question but that the Over- about 2,000,000 shares and the to¬
fall
into
the
commonplace.
the-Counter Market is national in tal transactions for any given day
Indeed your
general class
its scope.
Securities falling into or year are a'matter of record. record is such
of "Over-thethis category are of interest and Also, one must recognize that the
that it poses a
To

can

be traced back

and practically every com¬
munity in the nation. Most cer¬
tainly, from the viewpoint of dis¬
city

cen¬

many

old

turies and

American

ample*
probably
will have
to
triple
the
amount
of common
stock financing over the levels of
the

Exchange, as

the New York Stock

well

as

some

lem

of the regional ex¬

for

such

the

tribution

experience

Keith Funston

G.

outsider like

well

like to

em¬

has

what

been

We
in

advantages.

all of these

include

repeat

might

to

in effect, what is

say,

But I

name?

am sure

we

are

a

large extent, the bond face-to-face with
of
an
institutional lenges that are

very

is

business

series of chal¬

a

difficult,

more

orig¬ complex and awkward than any
of the profession inally bond salesmen, bond trad¬ they have faced in the past. Per¬
name
"Over-the-Counter" is an
in which we are engaged and it is
ers, or worked with bonds in one haps one of the stiffest yet least
unfortunate one; it is misleading
entitled
to
have
a
descriptive form or another. Today, the over¬ talked-about problems they face
in its meaning and has dubious
name that
fits its importance.
It
How
whelming majority of those in the is money—growth money.
connotations. This applies equally
is
not
uncommon
for not only securities
business
are
in
the much of it will be needed in the

said

on

occasions—that the

many

other

well

to

used

from

descriptive

time

"Unlisted"

or

to

time,

terms

such

as

"Off Board." Frank¬

ly, I think in so far as a title is
concerned, the Over-the-Counter
Market

today is in

a

These original

ago.

undoubtedly, served their purpose
as to the place of origin or
the

to

but

nature

the

for

the

caused

same

New

re!alize

that

such

name

a

the

sentimental
terested

the

way

idea

for

name

one

have

I

as

ten

take

and

years

that

replacement
*An

to

in¬

a

similar

or

was

if

along with
this
The

more.

today

a

any

has

and

I

no

satisfactory

chosen, in

a

few

by Mr. Mosley before the
Bankers Association's Invest¬

Seminar at

businesses

ditions,
names

leading corpora¬

to

meet

but also

changing

con¬

change their

to

well.

as

ment

I




accepted
discuss

to

this

the

assign¬

Over-the-

Counter business I made to
a

definite

very

myself

resolution

that' I

would avoid any criticism or com¬

markets.
practically all
things in life are comparative and
it is extremely difficult for me to
try and point out the important
position that the Over-the-Counter
Market occupies without at least
making
some
reference
to
the
other markets.
Furthermore, any
controversy 'between" Listed and

parison
On the

the Listed

with

other hand,

Unlisted markets is certainly noth¬
Let

new.

me

read

from

an

article that appeared in The Com¬
mercial
as

it

and

follows:

might

was

acter

or

Financial
.

be

some

the University of Penn¬

sylvania.

of

Many

were

us

equity

market

and

bonds,

to

a

large extent, are left to dealers in

and special¬
the bond field.
Generally

securities

municipal
ists

in

future? Where will it come from?
How much will it cost?

.

Chronicle,

By the uninitiated

supposed

that

there

inferiority in the char¬

standing

of these

bonds

certifi¬

cates and,

I venture to say,

a very

substantial

portion of those cor¬
listed on various
exchanges are dealt in as Unlisted
bonds

porate

Over-the-Counter transactions.

or

centered

Operation

I

do not feel it

is necessary for

the

describe

to

mechanical

operation of the Over-the-Counter
Market. However, I do not thfhk
it would be amiss to discuss brief¬

ly the role of a trader in the Overthe-Counter
business.
Naturally,
as

an

individual

associated

with

trading activities in one form
another
may

over

a

period of

well be prejudiced

or

years,

as

I

to the

great re¬

and materials.

Our

are

past

advances

considered

which

these

—

a

generally

result

of

imagination

resources

the

with

have been

Now, a general public
is growing that a third

money

to

tant

be

to

and

efficiency

"M"

me

our

sources—manpower

awareness

■

two of

on

developed.
•

our

is equally impoiv
future.
Indeed, it

—

placed at the top of the
list of critical items we need. For
must

be

it

investment

is

money,

in

tre¬

mendous

quantities, that will de¬

termine

how

advances

how

plays

in the

securities

busi-

economy

our

living

and

standards

rise.
A

on

page

24

and

as

risk

to
for

in¬

of

the

one

most
significant
economic America.
record

about

Indeed it is inherent in the

10 years—and

last

of the

implicit

plans for the next ten.
For example: In the single dec¬
ade
that
ended with 1955. th«
in

our

invested in our storehouse
plants increased by an
astonishing
$230
billion.
Even
after allowing for
inflation, this
meant we were able to raise by

money

of

new

the goods and

one-quarter

serv¬

170 million people enjoy to¬

ices

day.
The gas industry's record,
might add, was even more im¬

I

By increasing your net¬

pressive.
of

work

pipelines, compressor
oilier facilities by $9
its output soared two and
-

stations and

billion,
half

a

This

times.

it the
in America.

made

sixth largest industry

What, then, of the future?
If we could jump across

decade

coming

would

we

the

see,

I

growth of even greater
import. By 1965 corporations may
have to pour another $360 billion
into new facilities. .These plants
expect,

a

being designed now—not

are

only

30%.

population esti¬
also to
living
standards
another
As part of this over-all ef¬

fort,

the

for the needs of a

mated
raise

190 million but

at

industry

gas

plans

to

output by 75% and
extend its service to an additional
increase

its

million

customers.

To do this

must add facilities costing
$19 billion, more than doubling
the amount of money invested in
the decade following World War
Two.
There

is

personal observation is timely

*An

precedent, even in

no

of
expansion. Yet,
even
allowing for the probable
ups and downs in
our economy,
industry-after-industry is
plan¬

our

past, for this scale

recent

money-raising

or

-

ning such programs.
My own concern, I would em¬
phasize, is not whether our growth
money can be raised.
I am sure
it can. But how the job is done is
a
matter of great
concern—one
that can have a vital bearing on
your

corporate future, and on the
nation's economy.
of tomorrow's dollars ob¬

soundness of the
Most

viously
sources.

will

and

vide

as

depreciation will

much

as

needs. In others,
Mr. Funston at the
Meeting, Southern Gas As¬

address

Annual

sociation,

by

New Orleans,

are

...

from internal
industries, earn¬

come

In many

ings

here.

44th

Continued

simplest
truths

'

our

the next decade,

in

high

far

part which I believe this individ¬
ual

need

is

funds

10

Plant

speaking, all municipal bonds, the
"There was a time, no so long
great majority of smaller issues,,
ago, when management's needs—
an overwhelming majority of U. S.
Government securities of various at least in the public mind-^were
types and equipment trust

vestment

have

future.

our

on

tremendous

The

that

—

do

needed

you

$360 Billion Required for
Expansion
,

Size and Scope

When

ing
am

address

Investment
ment

we

propounded

stands

it

sure

Curb

disadvantages of
outweighed any

particular significance
quite

that

reasons

York

thought is not in

new

a

business,

Over-the-Counter

should

action.. This

others,

far

the

value, I think

in

business

of

and

tions to adjust and rearrange their

names,

either
as

associations

few

a

nature.

all justly proud

similar posi¬

tion to the New York Curb
years

a

dollars

willingness

the

as

out

us

Americans

their funds

_

name

.

First of all, I would

bears

additional

the

an

are

of

millions

of the

mass

have such re¬
convinced—and

people
We

sources.

...

phatically

Only the

sum.

a

American

changes, are our largest corpora- J myself who is anxious to talk
NATIONAL tions,- with a vgreat number of with
you
about the future.
My
initely indi¬
SECURITIES MARKET would be shares outstanding. Nevertheless,
problem is simply this: how does
cate that each
an ideal one.
This name does not when one gives full consideration one
go about discussing the chal¬
adult
passen¬
in any way conflict with any of to the fact that the securities of
lenges of tomorrow with a group
ger on the
R. Victor Mosley
least 30,000
the present regional or other stock at
corporations are of men who have so successfully
"Mayflower"
exchanges and purely as a matter traded, either actively or inac¬ met the challenges of yesterday?
held
a
share or participated in
of
coincidence, the name seems tively, in Unlisted markets, a clear
Perhaps a way to begin is to take
this joint stock enterprise.
to be ideal for a number of other picture of its vast scope begins a look at the dimensions of the
It was in Philadelphia, the "City
to reveal itself.
reasons.
future.
of Brotherly Love," that securities
The
securities industry,
to a
Some years ago Carl Sandburg
Briefly, I would like to point;
transactions had a very early be¬
large extent, is governed by the out that in this market, with very did so and proved himself to be
ginning.
The Bank of North National Association of Securities
few exceptions, are all national, a prophet as well as a poet when
America,
located
in downtown Dealers as well as the National
bank
and
trust companies;
life, he commented: "I speak of new
Philadelphia,
and -chartered
in Securities Traders Association, a
I tell
casualty, and other types of insur-; cities and new people
1781, had its stock sufficiently
trading group with 31 affiliates ance companies; in addition, real, you there is nothing in the world,
widely distributed that within a
located from coast to coast, and in estate
securities, many Canadian only an ocean of tomorrows. A
period of a few years such stock excess of
4,500 members, and to a securities and investment compa¬ sky of tomorrows."
was owned by citizens of at least
very
large extent,
engaged in nies. Furthermore, the Unlisted
Twentieth Gentury businessmen
nine of our original 13 States. This
daily transactions in the Over- market is the original market and have demonstrated a remarkable
particular situation has an un¬ the-Counter Market. The
proposed the
proving ground for practically willingness to explore, improve
usual interest to me because my
name would be an ideal one in so
all new issues as they come on to and invent. They have set in mo¬
freshman days in
the securities
far as
this group
is concerned. the market.
Many of these, of tion a series of changes that have
business, in the period between
Finally, the National Quotation course, are listed on exchanges definitely altered the way we live.
1920 and 1925, were spent in the
Bureau, which I will discuss later, upon completion of distribution. They stand, as a result, as our
Trading Department of the Bank
likewise fits into the daily activi¬ As
yet, nothing has been said as truly great innovations. They are
of North America and Trust Com¬
ties of those engaged in the Over- to
the bonds and
other similar our real radicals.
pany, a lineal descendent of this
the-Counter business to
a
very
And having helped bring us to
type securities. As we all know,
early American banking institu¬
marked extent.
It seems hardly the volume of bond transactions our present levels of abundance,
tion,
likely that any other name could has changed in recent years until, our modern-day businessmen are
The Name
def¬

records

quite

is

It

decade.

postwar

beyond the capacity of our great
financial
institutions
to
supply

large great majority of stocks listed on unique prob-

bought and sold in every

are

Between now and 1965
corporations, for ex¬

money.

my

Counter"

in
dollars

we are

quiet economic revolution, the needed

available, and, for firms with a "truly national interest,
money generally can be obtained at much lower cost
through a New York Stock Exchange listing."

are

their daddies be
The

through the sale of

money

new

the New York Stock Exchange is advanced

The well known Exchange head concludes:

ing.

younsters arguing as to the size
their fathers until it was sug¬

on

on

expansion needs estimated for the next decade, of which
$60 billion is expected to come from new common stock financ¬

It

fairly and correctly.

of raising

cost

stock

by Mr. Funston after analyzing the nation's $360 billion plant

extremely

an

lower

common

question of size. This
difficult matter

As to the
is

prominent Philadelphia dealer-broker
it is not a mistake when a corporation fails to

place of the anachronistic name*

85 years

mere

to answer

forth by

it

of these bonds in

some

—a

industry, are set

in the securities

to those

even

Challenge for Management:
The Cost of Venture Capital

generally the case
point
of fact are better investments than
others which are
called at the
Board." This article did not ap¬
pear last week or even last year.
As a matter of fact, this quotation
is taken from a Chronicle of 1872
and

Misnamed, Maligned, Meritorious
By R. VICTOR

prevent their being placed oh
Stock
Exchange list. Such,

however, is not

subject
where

to

65%

of

pro¬

future

where companies

utility regulation

depreciation reserves

Volume 185 /Number -5642;.

The Commercial and Financial Chronicle

(2519)

15

V,.

are

^limited

where

there

are

large

investments per dollar- of
revenue, internal funds will meet

only 35% of your needs,
Well, what of the money.that
be

cannot

raised

borrow

you

stock?

but

it?

internally? *Do

Or

do

issue

you

The

problem is not new,
dimensions certainly are

its

without precedent ~
Consider debt financing.

long

been

new

outside

the

undoubtedly
reasons

Debt

and
to

the

fathom.

is

It has been

cheaper to ar¬
because in¬

and

terest

is

to

deductible.

for

side

Stock Exchange,
of

itself.

ment

Fpr

evidence

strong
listing

New 'York

And this

importance

great

the

on

Exchange

ing

on

of

raising

we.

New

tor: to

be

can

*

York

In

Results of

Study

worth

not

in

made

costs

the

sole

York

in

Stock

billion
of

complete

!

that

of the stock issue, or the
type of
industry represented.

Exchange.

financing
than

for

other

$100.

This

of

com¬

hand,

paid

represented

55%.

submit

I

that

was

figures

added

cisions.

its

to

common

stock

panies

not listed

Well,
have,

realized

on

our

financing

gardless

listed

de¬

the

on

marked.

their

assets,

re¬

—

the

our
study (
companies in'

for

an

more

listed

dollars

A

underwriting

point

is

it

cost-conscious

no

overlook.

can

third

that

Exchange
$1.47
per

,

statistic

utive

of

in

Other companies paid
The difference was 57%—.

$3.45.

size

even

companies

average

hundred

a

were

Here,

the New York Stock

paid

average,

important savings
of

com¬

thing

that

companies

charges.

major element has

a

we

com¬

companies

is

utility/ gas and ^petroleum
fields, the savings for our listed'
-

$31,000, then

all.

dramatically lower

4he

on

listed

our

{The ; second
showed

if, for every million dollars
raised through the sale of new
stock, a company can save almost

latest

what

the

on

per

Other

.

for

panies, the cost of

fac¬

is

sales.

differential

been

First,

in

a

1955 —the

which

found.
.

panies,
$5.65

-

securities

new

stock

common

somes $4

available—this

were

vacuum—and

a

not

are

for

year

particular
We recognize,
of course, that financing decisions
are

of

issued

types

corporate problem.

that

be specific.

me

In" analyzing

particularly

this

to

New

Listed companies paid an average

needs.

Let

months,
as
tight
money has driven financing costs
higher,
the
Exchange
has
ad¬
itself

the

,

Stock

recent

dressed

Neyerthe-

have learned is vital

morrow's financial

of

lowering the ultimate cost
—

considered.
we

any group of executives wres-; of $2.57 to underwriters for
every
tling with.the job of meeting to-- $100 of new capital received from

have

direct bear¬

a

capital

be

less, what
to

manage¬

now

the fact

that

have

can

to

v*.

we

also

discovered

cheaper

Continued

Ay

exec¬

-

for

is

our

on page

25

dollars

have

we

other

financing coin.
tight.

But

corporate

years

the

see

frequently

carry

tax

search
recent

to

will

financing"

range

in

of

source

hard

the

on

the cost of issuing common stock.

It has

This

continue
not

are

faster.

the

major

money.

listed

shares

begun

of the debt-

Money has

grown

Interest rates have pushed
And this has left com¬

upwards.

panies

with

certain

knowledge that the higher
charges, the more vul¬

the

unpleasant

but

their fixed
nerable

they

to

are

changes

in

the business cycle.

in

These

factors j have
focused
attention than ever on two

more

related
lier.

matters

I

mentioned

ear¬

Tin

The first is the

rising volume
equity financing—a volume we
believe ought to reach the
stag¬
gering sum of $60 billion in the
of

decade

ending

incidentally,

1965.

is

This

fully

the rate of the past

points

10 years.

exploring

They provide
important and
practical
question:

nently

will

mucn

'tomorrow's

in

key

a

most

a

emi¬

how

equity

Chicago, Illinois—Every minute
day,
6,000
of
of every

The

to

Can

Absorb

billion—was

In

of

the

new

$3,3

—

highest in his¬
this
record
motivated
by
equity financ¬

were

that

awareness

ing placed them less
of

common

year

achieving

corporations
an

So reports Miss Hilda

Director,

Home

cyclical

at the mercy

business

,

changes.

Moreover, they were maintaining
flexibility, while building a
In

base

the

that

for

future

borrowings.
they also proved
question 'equity-

process

a

major

minded

companies
once
faced
has been answered definitively. It
is whether the public ean

readily

absorb

stock

new<

issues.

is th§t the public

answer

even

in

The

can.

tea,

or

cereals,

over

selling

equities' in

recent years have found

new

pat¬

terns

of security
ownership are
drastically • altering
and
easing
their financing problems.
Shareownership is enjoying new favor

But

one

additional

among

millions..

And

investors have literally bil¬
lions
available
for
investment.
This fact has been borne out often
in the past two years. Companies
listed on the New York Stock Ex¬

change, for example, have raised
billion in new equity
money
simply through rights offerings to
their existing Stockholders.
$2

There is

fascinating mid-cen¬

a

tury revolution behind this trend.
Through broad shareownership a
new type
of capitalism is emerg¬
ing. It has been called
very
aptly — a "People's Capitalism."

phasizes,

Miss Ballestro

uses,

is

in baby

•estimated that

rated

milk.

are

Its

feeding,

is

it

best

since

illustrated

1952

the

by

one

number

raised

evapo¬

D-added,

quality—recommend it for in¬

fants' formulas and in solid foods for

growing children. It isrichin calcium/
A U.S.-Born Pro&wct

<

-

*

;

public corporations
million.

have

now

These

people

men

.

.

include
more

.

.

.

more

.

small towns than

over

investors,

discovered,

young

total

we

more
women

residents

larger cities

of
.

.

.

and many more middle and lower

income

people

higher

than

brackets.

ownership

of

duction

one

is

the

to

Some

occur

80%

shareowners,

in
of

I

in

Their
means

of

the

least-heralded

events

those

the

direct

of

pro¬

healthiest

economic

this century.
the

might

country's
add,




own

*'
gj.

And here's another basic convenience
of the tin

today's

"Nearly 13,000,000 of

can:

homemakers

the home," says

"Evaporated

work

even

outside

the home economist.

milk—always handily

in reach—enables them to

whip

up

^company-size' meals—hot,

tasty, nutritious—in just
utes after

a

few min¬

getting home from the job."

Evaporated milk is whole milk with
about

then

60% of its water removed. It is

homogenized,

Vitamin

D

is

milk

plus extra Vitamin D. It tasted

good,
were

was

readily digestible, its

and it

many,

And its cost

was

was

uses

always safe.

The demands

low.

of World War II further

multiplied

production.

all

automatically in sanitary plants.

Evaporated

milk

is

first

basically

Achieves Worldwide

The

—so

y

Popularity

World War I, popularized the

milk

could

be

kept

refrigeration.
in

cans,

indefinitely

Soldiers

war-blighted

use

enormously.

proved easily portable in

areas

and

can

of

many

brings

us

conveniently—today. Yes, with¬

in instant reach when and where

choose.

steels made by National Steel.

Our

research

work

closely with customers in

and

production

men

many

And

always

we

American

At National Steel it is

industry.

our

constant

goal to produce better and better steel
of the

quality and in the quantity

wanted, at the lowest possible cost.

in sanitary,

unbreakable form.

Enduringly strong, the tin can is really

Spanish-American War, and later

evaporated

one

an
was

prepared commercially in High¬

land, Illinois, in 1885.

Evaporated milk is just
foods the familiar '*tin"

American-born dairy product. It

Of course, tin plate is just one of the
many

products of all

National's Role

ward sterilized in sealed containers—

electrolytic and hot-dipped tin plate.

fields to provide steels for the better

added, the milk is canned and after¬

rectly in American business has
jumped
33%.
Shareowners
in

and

on

Vitamin

body-building nutrients—plus its soft
curd

of

individuals who have invested di¬

than

em¬

*

than half of all

more

bottle-fed babies

—

8.6

for

of evaporated milk's most

significant

these

fact:

and

snacks, parties, outings of all kinds.

\ './

Companies

And

popu¬

extensively

And

will. *;
:

y

widely

cooking and baking. Also in coffee

and

important, the public

more

Dept.,

Evaporated Milk Association,

their

solid

Ballestro,

Economics

lar nutritious food is used

New Issues

financing last

tory.

use.

cans

opened and put

are

This economical and

amount

stock

some

evaporated milk

money cost?

Public

among grown-ups, too

The

Both

detail.

more

to

worth

popularity

three times

shareownership.
are

plate has brought canned milk

worldwide

figure,

second factor is the trend towards

broader

cans!

of

It

and

without
civilians

eagerly

steel

thinly coated with tin to resist

corrosion. It takes tin
mous

40

plate in

quantities to make the

billion

uses

SEVEN

cans

every year.

Company is

a

the canning

And

our

enor¬

more

than

industry

Weirton Steel

GREAT

DIVISIONS

WELDED INTO ONE COMPLETE

STEEL-MAKING
Great Lakea Steel
Steel

Company

•

STRUCTURE

Corporation

Products

Company

Corporation

•

•

Weirton

Stran-Steel Corporation

Ilannalron Ore Company
•

•

•

National Steel

The Hanna Furnace

National Mines Corporation

major supplier of both

wel¬

comed it.
Families

by the millions took to

evaporated milk during the depres¬
sion. It offered all the food value of

NATIONAL STEEL
GRANT

BUILDING

CORPORATION
PITTSBURGH, PA.

..

Commercial and Financial Chronicle

The

16

Montgomery Ward,
a 6% yield, has a

Spiegel.

available at
market

THE MARKET... AND YOU
By WALLACE

Thursday, May 30,-1957

.

STREETE

inevitable

The

Atom-Stimulated Oils

correction they turned erratic, the

in the stock marweek after three

showed up

-

ess

slipped to

a new

low be* they

ever since
And, while

II.

War

World

within the
technical limits of a "mild"
well

held

Were

1 In

A

standout

on

were

ises to be

contrary

worthwhile ^enough

perhaps no more
than any other man's, but

hectic

good

try
dark

pressions,

of

antibiotic

tranquilizer

and

lines/ The stock was able to.

r

the

-

and rumors of
wars.

b(:AX\&/^tomic

with

and varied, in¬

prohiises

problem

:

the

in

way

age are many

of in¬ forge

The politicians

it.

delivering

•

•

1 It

I

soon

;eign aid he had
/^Ye.Childe,"

so

better- get rid of

hie removed him

created the j ob'of "secretary

; and

It has cost the. tax- ,
money to take care
of "Ye Childe" all these years. : " ' •
'As
secretary for peace,
"Ye
/Childe" decided "to let peace hang'
in the balance for a few months
peace."

ior

some

payers

•

real

a

Carlisle Bargeron

now,

'
to • new highs right cluding the possible elimina¬ one that chalthe correction al¬ tion of costly equipment for lenges men's minds, particularly
creased volume was attracted through
the politicians.
One might say?
by the selloff and, with Dec¬ though there were some stud¬ today's conventional oil.crack¬ that no nation ever faced such a
circulating that judged
oration Day at hand, hopes ies
decision.
ing processes. Sinclair, Texas
The
question
is
seemingly
for a summer rally in the tra¬ the market price to be fully, and Cities Service have all re¬
whether we may get a surcease
in line with the increase in
ditional style were still very
cently added a radiation lab¬ of the cold war through Harold
much alive. A rise sometime earnings potential indicated oratory to its research cen¬ Stassen. A surcease of the cold
for this year.
between now and Labor Day;;
ter and Texas Co. is taking war is eminently wanted.
Maybe it won't come true, may¬
has become a fixture of the
steps for the addition of ra¬ be we won't have to make a de¬
Still Lagging Film Giant
market in recent years.
diation laboratories to their cision. But Harold Stassen fool¬
An issue that offers intrigu-:
research establishments.
In the rebound from the
It ing around over there in Europe,
ing facets but has yet to find adds
talking with this person and that
up to * something of a
February low — which, inci¬
person,
and running back and
any
significant market ex¬ race
among the oil giants, to jorlh between
dentally, was technically a
Europe and the
pression is Loew's.
This is see who can come up with the
bear market signal — the in¬
ynited^fitates and engaging Mr.
one
of the last of the large
Eisenhower*" with
his
plans, is
first of the important profitdustrial average added around
film giants that has yet to
confident that the^ehd of4he cold
10% and in working across
bolstering applications of nu¬ war is quite near.
split
into
production
and clear
the 500 line for the first time

Little

Min-~

became apparent that if
Mr... Eisenhower wanted any for-

re¬

Somehow

lyuz/he
own

figured "Ye Childe" was wasned
up.
But Mr.- Eisenhower liked
him,. possibly because,, the politicians despised him, and he put
him in charge of foreign aid.: : ;

cessions, wars

'

411

his

over

delegation which was for
Eisenhower but which would not
let "Ye Childe" have the honor

%

in many
periods,

nomniauuii

control

no

nesota

i

panics, de¬

us

Summertime Hopes

had

:

still hectic, I have seen my coun¬

have
man-'
so that they will probably* be
riged, along
strength was Warner Lambert in the forefront for some
portion of the list m e re 1 y
^vith the rest
which, as with the other drug
of
to take"
to come. / *, • . dawdled while the recent fa¬
/ <' if \ '
companies, .is busily turmjig
"As Standard: Oil of New them in stride.
vorites were getting the brunt
But our coun¬
up new preparations in the
of the selling.
Jersey stockholders were told,
try is faced

correction and, in fact, a

BARGERON
hower's

this

of

lifetime

hectic

tne

correspondent,

atomic age, moreover, prom¬

Outstanding Drug %

of the News

By CARLISLE

something of prime
low the $290 mark against
months of virtually uninter¬
selling targets in the market's
the $332 price just prior to
corrective periods, there were
rupted advancing from the
the offering.
This included ho signs that the long-time:
year's low posted early in
an automatic trim of $8.75 as
February.
popularity is anywhere hear
the issue went ex-rights.
over.
The assistance of the
Reactionary tendencies
this

ket

Washington

Ahead

-

Oils have been in the most

stock persistent demand

also easy and in the proc¬

was

From

price some $8 under

$45 total working capital.

the

'

-

.

.

<2520)

*

■

while he tried to knock
Nixon. Nixon

last year

Vice-President

off

enjoyed such unanimous support
for the vice-presidency thereafter,
as he had not theretofore enjoyed,

,.

•

and

handily."

won

for peace," Secre¬

As "secretary

claimed
him¬
self, complained a few months
ago that "Ye Childe" was muddying up the works. Whereupon Mr..

tary of State Dulles who
he

-

working for

was

peace

Eisenhower removed "Ye

Childe"

.

this

year

spurred arguments

whether

over

a

new

all-time

ernment orders.,

r

energy.

theatre units in line with gov¬

It

that

Benefiting from
Missile and Exotic Fuel

is

not

overstatement to

say

Harold" is about

an

him

Now he has aroused Mr.

his way.

Eisenhower's

imagination with a

promise to accomplish something.
"Ye Childe" reports that he be¬
lieves the Russians are sincere and

unpopular among Washington really want a rapproachement with
us.
/:///v *.■ V-"
■v:
/. ■ - \ '
politicians, in Congress, in the
This burns our military up, in¬
executive branch and out among
terested as it is just at this time
the national and state chairmen

A Chemical

In addition the company

is

"Ye Childe

independent operator and
subordinate to Dulles.
Not
daunted in the
slightest,
"Ye Childe" has continued to go

as

made

as

peak is due finally to eclipse
Activity
the record level set early in currently being revamped by
a new management which so
Chemicals have not been of the country, as a man could in getting a /big appropriations
April of 1956.
"
on the grounds they are necessary
far has trimmed $2 million
any market favorites general¬ possibly be. He is unpopular with for our
security. One of the mil¬
Apart from the high hopes, from
operatingv expenses, ly, largely because of chagrin everybody except Eisenhower, itary, Admiral Radford, chief of
the ciearcut indication given
and that exception is manifestly
the Joint Chiefs of Staffs sounded
brought income of $7 million over du Pont's regular divi¬ important.'' .%"•
■/■/\
by the market was that there a
"Ye
childe Harold" who was off with the warningstatement
year in sight from lease of dend declaration, where hopes
was a sizable supply of stock
the
Russians
couldn't - be
elected governor of the State of that
its older pictures for TV use, for some better news were
trusted. Mr. Eisenhower squelched
available when the index
Minnesota at the age of 30 has
and is planning production of
high. Olin Mathieson, how¬ 5 always considered himself a youth him and has sent "Ye Childe"
worked between 500 and the
major new movies. Its foreign , ever, came to life recently leader. He still does. He had not back to Europe to see what he
521 peak set nearly 14 months
•
income
has
been
spurting, and has been able to stand its a single thing to do with Eisen¬ can do.
ago. The corollary debate
reaching some $50 million ground well since. It is the
was
whether this supply
last year and its radio and fourth of .the chemical giants
Steel
could be absorbed without the
music lines are both showing but is far more widely diver¬
help of the rail section which
Record
improved results. Because it sified than most others in the
has
persistently refused to
will take from half a year to
/ Steel Institute reports on rapidly expanding growth of stock¬
group or, for that matter, on
ape the buoyancy of the in¬
a full one to
get the benefits
s/holders in the iron and steel industry which, in the past two ; %
dustrial division.
the domestic scene generally.
of all these improved situa- '
One recent feature that was
years alone, gained more than 117,000.
Much of the interest in Olin
tions, earnings for the fiscal
More people are receiving steel
rather obviously snagged in
ment figure predominated, year
would seem to be. because of
industry
dividend
checks
than after year.
the
reaction
was
Corning year that ends in August are
its
participation in missile ever before, according to the - The employment statistics cited
Glass. The fanfare in this is¬ being projected at only mod¬
American Iron and Steel Institute, here are for the average monthly
erately better than last year's work through half ownership
sue centers on a new special
May 21. This rapidly expanding total of wage and salary employresults. The outlook, however,
of Reaction Motors and an in¬ industry has over 885,000 share ees, in non-steel producing activipurpose glass that, apparent¬
is a bright one.
owners—a gain of more than 117,ties as well as iron and steelmakly, is suitable for the exacting
terest in Marquardt Aircraft.
ing.
000 in two years.
requirements of missile work.
The rise in the number of stock¬
On its own, it is active in the
Twenty
years
ago
the com¬
Liquid Retailers
The issue, available under 70
holders has outraced the rise in panies
had only about 450,000
Store stocks, too, have had so-called "exotic", fuel busi¬
The
600,000-mark
workers—and it has slightly ex¬ stockholders.
a
couple of weeks ago,
little following and a recent
ness, high-energy compounds ceeded the expansion of ingot ca¬ was passed in 1949. The 700,000bounced ahead nearly to par
pacity during the past two years. mark was first exceeded in 1951.
study of issues selling at based on boron.
but then turned erratic and
'

Industry's Dividend Recipients at
High

...

•

-

around the
was

given to sinking spells.
IBM

In

the

International
chines

the

of

high-priced

Business

financing,

Ma¬

via

rights, weighed a bit heavy
the stock, enough in fact

on

levels

as

article
time

issues.

Aldens

market -tag

of $18 against
working capital of $18.57;
Spiegel at $12 against $18.30
in working capital; Reliable
Stores at $15 against $21 on
hand; and Grayson-Robinson
with a $6 price against nearly
$10 in working capital are
among the offerings available

lonsj
period of popularity and
more-or-less steady price ap¬
preciation.
Because of the
in this group.
spread of around $100 in the
Yields in the store shares,
price of the new issue against
the market price when the except for dividend-less Gray¬
subscription rate was set, the son, run from better than
rights had a rather high tag, 61/^%. in Aldens to between
8 and 8*2% in Reliable and
up to as much as $10. When
to

interrupt

its

rather




[The

working capital included

sev¬
with a

in the
Institute,

The

covering operations of 52 iron and

end

facts

These

the

eral

Interruption

case

same

do

not

coincide

"Chronicle "
as

necessarily
with

this

in

expressed

views

at any

those

of

the

They are presented
only.]

those of the author

output

of

raw

of Dec. 31, 1956.

as

15%

William

McGregor With
Swift, Kenke & Go.

the

—

William

The

J.

McGregor, Jr. has become associ¬
ated with

South
of

the

La

Swift, Henke & Co., 135
Salle

Midwest

Street,
Stock

members
Exchange.

Mr. McGregor was formerly with

the

com¬

of

1956

of

end

—

These

1954 was

figures exclude the

but do not allow
some

than

—

was

people
one

Many

Employees

stockholder total

at the end of

the

1955.

cation of holders of more

14%.

dupli¬

than one

885,861

about

in

the

for the fact that

own

stock in more

company.

more

viduals have
iron

a

than 885,000 indi¬
beneficial interest
steel industry's

and

preferred and common stocks.

The

of ownership listed in
824,894 employees receiving pay the names of brokers, nominees,
from
the companies
during the partnerships, and others—or by
year.
Employment increased means of savings represented in
nearly 63,000 since 1954, but the equities of insurance companies
117,000 gain in the number of investment trusts and other or61,000 higher than the average

double

thereto with Glore, Forgan

tween

of

nearly
Be1935 and 1954, the employ-

shareowners

Taylor, Rogers & Tracy and prior

& Co.

the

capacity

Exceeds

at

111.

1956,

panies was rising about

(Special to The Financial Chronicle)

CHICAGO,

ingot

in¬

1955 and

in

;

of

class of stock of a single company,

While the shareowners were

creasing

total

768,000 followed by 827,000 at

representing 94%

country's

the

steel,

the

of

steel companies,
of

shown

are

statistics

latest

the

has

rise

in

been

workers.

benefits

ganizations—accrue to many more
people than the stockholders of
record.
[
.
•

Volume

Number 5642

185

The Commercial and Financial Chronicle

(2521)

of

Cruttenden, Podesta
111.

share

outstanding during the

Podesta & Co., 209 South La Salle
Midwest

Stock

Johnson

Form Schenker & Co.

Exchanges,

Adolph Schenker and Christian
H.

Hoobs,

both

York

New

members

Stock

Carl E. Hill, J. Chappell
Summers,
and
D.
William Hindsman,
Jr.,

SAVANNAH, Ga.—Thomas M.
will acquire a member¬
ship in the New York Stock Ex¬
change and on June 6, Johnson,

year.

Street, members of the New York
and

of

Lane, Space and Co., Inc., 101 East
Street, will become ail Ex¬
change member firm.
1
s
»•_

Assistant
David T.

on

•

June 1, will form Schenker & Co.

Officers

are

Mr.

Johnson, Presi¬

Vice-Presidents;

With Coffin & Burr
(Special to The Financial Chronicle)

..

John Elliott Stewart has become

associated with Coffin &

and

corporated,

Johnson, Assistant Vice-

York

President and Assistant Secretary.

Ben

with

their

office

Sutro

Burr, In¬

Pine Street,

New

SAN MATEO, Calif. — James
Love is engaging, in a securities
business from offices at 460 South
' W'v Ellsworth Avenue. ; •

Sharp has become' associ-

ated

70

City.

James Love Co. Formed

With Sutro Bros.

Bay

the

Exchange,

George C. -Kneller, and D.'
Boyd, James M., Mason,

Hudson

To Bo NYSE Members

the

on

tery,

Johnson, Lane, Sims'

$2^885,000,

was

average number of common shares

Cruttenden,

—

company's former house¬
appliance and barrel manu¬

facturing division,
equal to $2.25y a

Admits New Partners
'CHICAGO,

the

hold

17

Bros.

' J'

in

Co.

at 625 Madison Ave-

with offices at 120

Broadway, New dent; Julian A. Space, Executive nue, New York City.
City. Mr. Schenker has been Vice-President; • Hagood
Clarke,
as an individual floor bro¬
Harrison ; Clarke,
and Wiley J.
■5With Whitney, Goadby
ker; Mr. Hoobs is retiring from Smity,* ; Vice-Presidents; - Allen
McManus & Walker.
SOUTH
C r a w f o r d, "Vice-President ••• and
CHATHAM, /Mass
York

active

Secretary; .Craig Barrow, Jr., Vice-

John H. Marshall

V

; :
*

Mayer

Mayer

as

general

Willis

and

passed

May

away

Jelks, Vice-President and As¬

sistant

15.

Treasurer; Joseph J. Slat-

sociated

with

H. '•

as¬

N.-

Whitney,
Goadby & Company/members of
the New York Stock Exchange, as
a

registered representative.

Opens " V

BALTIMORE, Md.
Securities.- Co. *has
with

offices

Avenue

to

at

—

conduct-

business., Morton

J.

partners in the
Marjorie O. Stephens
limited partner.

a

/

•

a

;

•

7' Mr. Mayer is Sales Manager of
Cruttenden, Podesta, having joined
the firm in 1953

Manager. He
ner

.7

in

Assistant Sales

as

formerly

was

part¬

a

Dayton & Gernon.

Mr. Meehan is

Midwest

member of the

a

Stock

Exchange.
With
partnership, Crut¬
tenden, Podesta & Co. will have

his admission to

'two partners

the

on

floor

of

the

Exchange.
Mrs.

Stephens is the widow of

Donald

B.

Stephens,

partner at

the

time

general

a

of

his

death

March 31.

on

A. G.
NY

Allyn Group Sells

Shipbuilding Stock

Public offering of 191,660 shares
New York Shipbuilding Corp.

of

stock, comprising part of
1,222,164 shares of the stock

common

.the

owned

Scott

by
Merritt-Chapman
&
Corp., was made yesterday

(May

29)

by

of

headed

an

by A.

The

.

C.

stock

share.

per

J

underwriting
investment
bankers

group

Jnc.

4

Allyn

was

and Co.,
priced at $37

...

•,

Merritt-Chapman 7 &
selling
the
stock
in

•••

T.'H

Scott

is

order

to

realize a portion of its appreciated
•investment. After the sale it will
continue
of

New

to

1,030,504

own

York

stock,

80.5%
*

shares

Shipbuilding

mon

com-:

of the outstanding

approximately
issue,

or

New

York Shipbuilding is one
leading companies in the
shipbuilding industry. In addition

of

the

through

equipment division it

an

manufactures and fabricates heavy

machinery

and,

through

Helping to speed your telephone call. Telephone

sub¬

a

,

man

Byron Jensen tests the intricate equipment that gets your number quickly and accurately.

-

sidiary,

Highway

Trailer

produces,

pany,

Com¬

,,

r;

/

-

;

,

'

"

•

PHOTOGRAPHS BY ANSEL ADAMS

-

truck

trailers,
furniture vans and fluid carriers,
and telephone and power line con¬
struction equipment.
Backlog of New York Shipbuilding cn March 31, 1957, exclu¬

He

keeps an

electric brain thinking clearly

*

,
■

-.y

benefit from

You

skills like his whenever you use the telephone*

sive of its

equipment and highway
divisions, was about $275,000,000.
The larger contracts on the books
include

Every time

aircraft

an

carrier, three
guided missile destroyers,
con¬
version of a cruiser, a submarine
and

several

tankers.
pany

In

was

contracts

March, 1957 the

apparent low

approximately
sister

ship

United
to

be

States

the

which

constructed

com¬

for

super

is

for

a

liner

tion

United

of

the

funds

necessary

by

The

management
has
recom¬
to the board of directors
New York
Shipbuilding Corp.

mended

that

the

company

quarterly
and

an

per

share

on

its

on

dividends

pay

common

stock,

initial dividend of 35 cents
was

declared

you

"thinking" in

a

call

start an electric

one

of

our

and

paid

"A

over a

offices.

big part of the job," he

"is to

First, it tells you when to start dial¬

ing by means of
number

a

tone. Selects your

automatically

thousands
your

or

millions.

from

every one

party or tells you the line is busy.

Such

able.

equipment is indeed remark¬

But with all

its electronic-

magic, it still needs the help of

peo¬

ple. Day and night, there is contin¬
uous

checking and maintenance by

telephone

office craftsmen

like

577,000
come,

and

consolidated
a

special

$1,869,000 incurred

some can

"Not

and

Each
for

are

For

a

radio

on

net

in¬

charge of
liquidation




those

dial

feeling I'm at the

nerve center

of the

community."

same

pro¬

pictures

equipment."

Sunday Byron teaches

a

class

Many evenings and week

boys.

ends

watch

<

even newspaper

through this

go

I

only personal calls, but fire

alarms, burglar alarms,
grams

be very

"Whenever

switches work," lie says, "I get the

devoted to Boy
person

Scout work.

who enjoys helping

others, he finds his telephone work

particularly satisfying.

Byron Jensen.

Instructing

during 1957 totaled $66,-

before

And

important. 7

March 29, 1957.

Sales

of those calls is important

to someone.

many

Then rings

says,

keep trouble off the lines. For

'

contract awaits appropria¬

a

Congress.

of

telephone,

brain

make

expected

the

States Lines; this item is not in¬
cluded in the March 31
backlog
figure because the formal award¬

ing of

you

bidder at

$110,000,000

of

six

for

dial

Working together to bring people together
BELL

TELEPHONE

SYSTEM

Boy

Scouts.

Byron,

a

chairman, shows scouts how to orient
themselves with a map and compass in the
troop

beautiful Wasatch Range

near

securities

Sandler

principal of the firm.

firm,
as

formed

Green mount

Meehan

and

Maryland

been

1238

Willis J. Meehan

announced the admission of Ernest

A.

N.

John H. Marshall of Thomson &

McKinnon,
Ernest A.

President and Treasurer; Freeman

?

^

James A. Thomas .has become

Md. Sees. Co.
—

Provo, Utah.

v

is

a

Chronicle

The Commercial and Financial

.

Thursday, May 30, 1957

.

(2522)

18

as I have thought about
spectacularly greater improve¬
ments in levels of living enjoyed

Fourth,

the

Opportunity and Responsibility
In a Vigorous and Free Economy
McCRACKEN*

By PAUL W.

ing of these

this

fact

impressive real growth of the past 56 years: (1)
encourage high savings-investment rate in the years

National

First

—

Bank Stocks

City Bank

*-

First National
York has

City Bank of New

the New York legislature re¬

But

a bill the effect of
which was to impose a "freeze"
work toward a of new
growth in output and a diffusion, will be given rights to subscribe on bank holding company expan¬
of the improved levels of living at $60 a share for one new for sions across the banking district
thereby made possible throughout each five shares now held., The lines set up by New York State.
As
First
National
the whole of society.
There is, financing will involve 2,000,000
City Bank

.

improvement in levels
of living widely shared does not
the
responsibility in a free economy. just automatically happen. A quick
look at the world today, a con¬
Most of us are familiar with the
proportion
of
whose
imp r essive siderable
opportunities population lives no better than
which have their predecessors a generation or
Such

to

system

those forces which

ahead; (2) ameliorate business cycle instability; (3) stable
purchasing power; and (4) vigorous, free enterprise system.
of my comments is
old theme of opportunity and

This Week

organize our economic activities.
Such a system inherently carries
with it the capacity to galvanize

carry on our

The subject

economic

competitive

McCracken sees in the years ahead an aug¬
mented demand for savings. Outlines four prerequisites to

By ARTHUR B. WALLACE

more

the

that

clusion

Economic Adviser

need to

to the con¬
explanation for
record lies basically in the
that we have utilized a free
and

more

come

*

Economic Advisers

Member, Council of

Bank and Insurance Stocks

the wide shar-v
improvements, I have

by Americans, and

an

therefore,

no

greater responsibil¬

just announced an issue
stock.
Its
shareholders

shares to be added to City's

new

ity in the economic sphere which present 10,000,000 outstanding, and
Americans must assume than the it will
add
$120,000,000 to the

responsibility

to

see

to

it

that

bank's capital funds.

policies and programs seemingly
appropriate to deal with specific

cently passed

to

happens

in

be

district

one

State

for

established

banks,

and

County Trust Company in another,
New York State officials appar¬

This will be the third time since

ently feel that this, under the
that the management has of¬ "freeze" act,; is a bar to the or¬
problems are also consistent with fered new stock: in that year ganization of the First New York
been
ours
in even a century or more ago, makes
maintaining the vitality and vigor 1,000,000 new shares were sold at Corporation, the holding company
a
free
econ¬ this dramatically clear. Therefore,
of the economic system itself.
$40; and in 1954, 2,500,000 shares planned by City.
omy.
At the a basic question is posed: What
The really important point thus
were taken up via rights at $52.50
turn
of
the accounts for this remarkable and
one
of
whether
New
a
share.
In all, in this period, becomes
century, a pri¬ unusual record of improving ma¬
National City has obtained new York State's legislative action can
terial welfare in the United States?
vate

First Boston Group

estimate

has

placed

I

Causal

average; earn¬

in

earners

ties

of

free economy

a

the
it

responsibili¬

Gas

which are

manufacturing ineluctably conjoined with the op¬

51/2% Debentures
Boston

First

The

Corp.' and

publicly

portunities we enjoy. First, our
year.
Last, rising levels of living depend im¬ terday
(May
29)
an
issue of
Dr. P. W. McCracken
year,
a
little portantly on the fact that the $15,000,000 National Fuel Gas Co.
/over
a
half- productive efforts of the American 5V2%
sinking fund
debentures,
century later, weekly earnings of worker are greatly supplemented due 1982, at a price of 101.363%'
t

a

$435

offered

associates

per

manufacturing workers were over. by a vast amount of

complex pro¬

to

The

5.40%.

yield

group

yes¬

sum

in

1953,
for

new

held

Thus,

National City ap¬
usual, to be forehanded,

First

alert

and

changing

to

the general economy.
Taken by
Therefore, in this half-, ductive capital and equipment. awarded the issue at competitive
itself this quest by First National
century period, wages increased One man equipped with an eartn bidding on May 28 at 100.16%.
A part of the proceeds from the
City- for new money would be
almost ten-fold.
Since the price, mover can literally move a moun¬
level roughly tripled during this tain, and the 10%
of our work sale of the debentures will be just another capital increase, of
which in recent years we have
period, the wages from an hour of force on farms can produce an used to prepay outstanding bank
had many in the banking field.
work
in 1956 apparently would abundance of food for the entire loans of $11,100,000, and the bal¬
ance, together with the proceeds But, while City has not tied-in the
buy about three times as much population.
of new bank loans of not more move with its proposed, or, more
stuff as 56 years earlier.
It
follows, therefore, that we
than $10,000,000, will be available correctly, its purposed, step to set
must have in this country careful
for the repayment of bank loans up a bank holding company with
Better Income Distribution
regard for those factors which will of certain of the company's sub¬ this sale of new stock, there seems
Moreover,
this
dramatic im¬ encourage a continued high rate
sidiaries and for the 1957 expan¬ to be but little doubt that the two
provement in levels of living has of savings and investment in the
sion program of the subsidiaries. , actions complement each other.
been very widely shared.
In an years ahead. Indeed, it is not in¬
The debentures are redeemable
After Congress enacted the Fed¬
appendix to the Economic Report conceivable that the demand for
of the President transmitted to savings in the years ahead may at the, option of the company at eral bank holding company law,
general redemption prices ranging City applied to the Federal Re¬
the Congress in January yoi? will be
augmented. Businesses are giv¬
from 106.87% for those redeemed serve Board for permission to set
find the manifold indications of
ing more attention to carefully
prior to May 31, 1958, to 100% for up a bank holding company. The
this wide diffusion-in our wellorganized programs for budgeting
those redeemed on or after June intention was to use this holding
being. In the last nine years the capital outlays, which ought to
1, 1981; and at special redemption company to acquire the stocks of
number of home owners has in¬ assure less
volatility in these out¬
prices ranging from 101.25% for First 'National
City
Bank
and
creased 48%, and the proportion
lays, less wastage, and less dan¬
the period, Jan. 1 to May 31, 1962,
of
families
without
their
own
County Trust of White Plains. It
ger that projects contributing to
to 100% for those redeemed on or has been assumed in some quar¬
household has declined 67%.
In
greater productivity and efficiency after June
1, 1981.
• J.
,
;
■; ters that this would be a nucleus
of wired homes

$82.00.

had

81%

1956,

(3% in 1948); 96%

television sets

will

,

v

overlooked.

be

The

activities.

leisure-time

in

number of weeks of vacation time

has

doubled

during the

last dec¬

ade; the number of visitor^ to our
national
parks
has
more
than

doubled;

million

37

and

automobiles'

now

own

them

to these

families
to

(and other)

carry

places,

compared with 23 million in 1948.
this

is

Nowhere

diffusion

of

well-being

more

spectacularly

dramatized

than in

provisions for

financial

security.

Since the war,

the number of life

insurance

in

force

pol¬

increased

has

50%

pared with 63% ten
the

years ago,

and

by

unemployment

pensation

during

increased

one-third.

ten

the

years

this

com¬

period
In

number

the

of

has
last

it

would

that

be

ments

premature to assume

have

we

business

interred

cycle,

protected by nospitalization insur¬
ance

has

almost

number covered

tripled, and

the

by other forms of

medical insurance has grown even
more

markedly.

•Digest
at

the

tration

27th

School

Alumni

Michigan,

Ann

of

these

major

movements

been

will

springs fully

a

develop¬

occur

have

as

contribution to make.

Third,

there. is

of which

can

can

a

and
part

people that the value of the

dollar

will

not

exhibit

a

chron¬

ically declining trend in the years
This

is important for rea¬

as

for




only

ernment, for assuring the Ameri¬

well

1957.

common

vitality
itself.

of

and

reasons

the

morality,
of

the

economic

as

basic

system

is

Should

public to be odd that members of
same political party who are
for a strong central governmental

the

economy, are,

in this case, revers¬

ing themselves and are attempting
to enforce a "right" of t e State:

not be a right at allshould not County Trust
Company shift to a national char¬
ter?
The entire move will then
involve
national
organizations

that

may

Why

It is to be hoped that the

only.

City move will be pressed.

Haig & McDermott With
J, F. Reiily & Co.

=

Co.,

&

J.

N.

CITY,

JERSEY

Reiily

J.

—

F.

Exchange
that A1 A. Haig
1

Inc.,

why

New

York

State

the latter
under the Federal
CHICAGO, 111. — Clarence W.
Bank
Holding Company Act of
Ostema
ha9
become
associated
1956, and so is entirely outside
with Cruttenden, Podesta & Co.,
the jurisdiction of New York State.
holding

(Special to The Financial

would be set up

209

South

of

bers

La

the

west

Stock

tema

was

Salle

New

Street, mem¬

York

Exchanges.

formerly

an

Os¬

Mr.

officer of

Com¬

Inc. of Philadelphia.

F. E. Davenport

Ardmore

Opens

to

the

West

London, E. C.
(London)

End

Burma,

Co.,

is with

Chronicle)
—

Raymond

F. S. Moseley &

110 Pettengeill

Street.

Login

Paid-Up
Reserve

Login passed away

May 19th at the age of 51. He had
been associated with Ungerleider
■

*:

'

Capital
Capital

Bulletin

also

New York Stock

Members

American

t*4»

£2,851,552

BROADWAY,

Telephone:

£3,104,687

and

undertaken

Request

Members

£4,562,500

exchange business
Trusteeships and Executorship*
banking

on

Laird, Bissell & Meeds

Tanganyika
and Somali-

The Bank conducts every description

COMPARISON

FIRE & CASUALTY

2.
Branchi

Protectorate.

Fund

1956 EARNINGS

INSURANCE COMPANIES

Kenya,

Aden,

Authorized

past 18 years.

Cole

in

13, St. James's Square, S. W. 1.
Branches in India, Pakistan, Ceylon

land

& Co. for the

Government

Uganda, Zanzibar,

Avenue.

Samuel E.

H.

LIMITED

Kenya Colony and Uganda
Head Office:
26 Bishopsgate,

N.

Samuel Elias

BANK

NATIONAL
of INDIA,
Bankers

J. — Francis E.
Davenport is conducting a secu¬
rities business from offices at 511
PITMAN,

LEWISTON, Maine

Mid¬

and

Philadelphia Securities

Moseley

Joins F. S.

as

company,

Avenue,

Second

North.

objects to the organization of the

(Special to The Financial Chronicle)

110

Company,

difficult to un¬

somewhat

derstand

Cruttenden, Podesta Co.

the

be assumed by gov¬

Business

University of
May
11,

a

responsibility,

equity

Mich.,

It

Clarence Ostema Joins

pany

of

Arbor,

State charter.

Preserving Price Level Stability

sons

Conference,

1955.

old

tne

substantially narrowed.

hope

by Dr. McCracken
Adminis¬

and of the Board's

Staff

the

ahead.

of remarks

Banking Department
counsel.
it not appear to the

State

York

.

give grounds for confidence
ranges
within
which

that

basic

people

of

instance

the

postponements at
both the New

several

made

_

proportion of the work force

covered

of

•

This
much from
and the average life insurance per
major developments in planning
family has more than doubled. and
procedures within the busi¬
The proportion of those in paid
ness community as from a greater
civilian employment covered by
awareness
that public monetary,
OASI
last year was 85%, com¬
fiscal, and other policies also have
icies

no

zation

National
Fuel
Gas
Co.
is a and that other units would be Place, announce
and
Frank J.
McDermott have
public utility holding company,/ added as time passed.
joined the firm's trading depart¬
having three public utilities and
But the Banking Department of
ment. Mr. Haig was formerly with.
six non-utility companies as sub¬ New York State
stepped in and Amos Treat & Co., Inc.
,
sidiaries. The properties of these
objected to the formation of the
subsidiaries
constitute
an
inte¬
holding company. One objection
Goodbody Adds to
grated system used in the produce raised was that too many State(Special to The Financial Chronicle)
tion, purchase, storage and trans¬ chartered banks were switching t^
mission
of
both
natural
and national
ORLANDO, Fla. — James Wcharters, this argument
manufactured
gas.
The
public
is
now
affiliated with
ignoring the fact that of all the Knight
utility subsidiaries also sell gas- banks in Manhattan, only two, Goodbody & Co., 127 North Main.
burning
equipment
and
appli¬ one of them relatively small, had Street.
He was formerly with
in the immediate years thereafter.
ances.
/; >*•«;. • / ]•>* ' . «•*
national charters. Only First Na¬ King Merritt & Co., Inc.
Second, it is important that we
Total operating revenues of the tional
City rates as a large national
ameliorate
the tendency
toward company amounted to $81,055,000
bank in Manhattan. Only recently
With R. F. Campeau Co.
instability which has characterized during 1956 and net income to
another large one, Chase National
(Special to The Financial Chronicle)
the American economy at some
$8,064,000,
compared with total Bank, upon merging with Bank
ST.
PETERSBURG,
Fla.—
periods in the past, and particu¬ operating revenues of $72,454,000
of Manhattan, gave up its national
Barnard C. Malloy has been added
larly in the prewar decade. While and net income of $6,599,000 in
charter and adopted Manhattan's
to
the
staff of R. F. Campeau

The
continued
strength
and
(77% eight years
growth of these capital outlays in
earlier); 8.6 million homes had
the postwar period has persistent¬
freezers (1.5 million in 1948). The
ly
confounded those expecting
facts are clear that there has been
that our free competitive economic
a
great improvement in the ma¬
system was on the verge of Tun¬
terial comforts of the American
ing down.
Since the war busi¬
home
in
recent
years
and that
nesses have spent $268 billion
on
these
improvements have been
plant and equipment, and recent
widespread.
surveys indicate a record level for
There has been a great increase
1958 and a continued high level

had refrigerators

objection to the organi¬
the holding company.
Federal Reserve Board has

vanced

conditions The

sphere, but in

not alone in its own

was

requirements.

the Federal Comptroller
paid to the. of the Currency, who, under the
new
law
is consulted, has ad¬

was

holders.

pears, as

which,

in

case

a

of the Federal law's

dividend of one Indeed,

stock

24

,

of the Federal Re¬

in

Board

serve

addition,

In

York.

New
a

influence that

heavily capitalized apparently, City has fulfilled all

most

/the

bank
in

subscription rights in
of $291,250,000, making

by

money

Offers National Fuel 0

Factors

Growth

This leads us to the

for wage

ings

1951

of

Bell
l

A.

Exchange

Stock Exchange

NEW

YORK 5, N. Y.

BArclay 7-3600
1-1248-49

Teletype—NY

Glbbs

Manager Trading

Specialists

in

Dept.;

Bank Stocks

Volume

Number 5642

185

.

.

The Commercial and Financial
Chronicle

.

(2523)

19

*• j
.

j,

Honoring the: Steel Indnstiy With
Stamp Issue

By JOHN T. CHIPPENDALE, JR.
The Government market continues to reflect
not
money

Conditions, but also the lack

longer-term

issues

the

and

capital

of

attraction

market

is

far

as

syndicates
these

have

issues

exempt

been

have

terminated

sold

well

in

below

Post

sector of the

corporate market, and
offering price, and tax-7
well, seems to bear out the

'

t

,

in

which

the

new

needs

money

obtained in the foreseeable future.

stocks.

,'v ~ /'/•
for Capital

Demand
The

a

demands for long-term

lesser

extent

~

Remains

into

funds continue to be

'

:

.

as

cost

to

of

out

move

which

at
'■*
,

which

the

a

corporate bonds

are

of Government bonds

the

which have been taken will be made
up,

Government Bonds Dull
pressure

led

the

of

also

world

to

keep

•

pvpr-'

r an

nroducts,

us

armed

the peace

that Governments

Bedrock

yet at levels which make them competi-7
live with corporate and
tax-exempt securities.

in

the

and

market, they

ent restricted

encountered

a

As

Sr-JJiu

it

system.

to

it

is

expected

that

by

cept

social

daily; lives,

our

this

are

credit squeeze

in June.

*

.

*

.

The Treasury announced that the

i

York

ex¬

reference.

t.

gis

tne

v

Co.

charge

nation

a

Elected to

a

the

citizens.

One

hundred

and

-

'i*

s

7

•

Joins Ginther Staff
(Special to The Financial Chronicle)

album

•

CLEVELAND, Ohio — Mrs.
Helen S. McGreevy has become
affiliated

of

Industry
*

commemorative

stamps

for

Steel

President

D. .Eisenhower

I shall
deliver it personally to hirn at the

,

pany,

Mrs

with

«•

MANUFACTURER of

"

a

'

I

oifo iti> 2i&tyea/v

119-day tax anticipation bills

the

CONDUIT

CABLE TROUGH

■—Five Year

banks were of the opinion that the Government
deposits created
by this borrowing would have remained with them for a long
enough period to make it worth while. Because the Government
is really pressed for funds this time, and these deposits could be

deposit banks

were

not inclined

Net Sales

»•

.

Net

Earnings

For

use

Net

Earnings

(Special to The Financial Chronicle)

WARRINGTON, Fla.—James C.
Noice is

affiliated with Good-

now

body & Co.

He

was

formerly with

Nolting, Nichol & Co. of Pensacola.

»»*...

„

1956

1951

$52,790,000

$47,518,000

$24,895,000

2,256,000

•

1,671,000

1,170,000

1,480,000

1,008,000

818,000

,

..........

improvements

$4.04*

per Common Share

Cash Dividends per Common

Share

Equity per Common Share

..

$2.99
1.19

.63

28.79

.

23.71

15.30

outstanding. The currently outstanding shares

(Special to The Financial Chronicle)

BOSTON, Mass. — Edward M.
Joyce is conducting a securities,
business
mont

from

offices

Street.

He

10

at

was

GENERAL

OFFICES

:

Rome, New York

PLANTS

:

Rome, N. Y.

•

Torrance, Calif.

•

Collegeville, Po.

Tre-

*,

formerly.

Sales Offices and Stock Distribution Centers in

Principal Cities

with B. C. Morton & Co.

Aim, Kane Adds
Joins

(Special to The Financial Chronicle)

George Patten

'

CHICAGO, 111.—James G. Currie
has

become

connected

with

Aim,

Kane, Rogers & Co., 39 South La
Salle

Street.

He

was

formerly

with Barclay Investment Co.




,

(Special to The Financial Chronicle)

PORTLAND, Oregon — Richard
H. Lange is now connected with
George
Patten
Investment
Co.,
American

Bank

Building.

ROME CABLE
C

O

R

P

O

R

$2.09

1.40

....

*At March 31,1957 there were 557,802 shares
five year averages.

E. M. Joyce Opens

Goodbody Co.

..

in tbe business, to provide

Share Owners'

With

Averages—

Years Ended March 31,

March 31,1957

some quarters that the last issue of tax anticihave gone at a lower rate if the commercial

withdrawn very rapidly, not a few
to be bidders for the 119-day bills.

of G/towth

Year Ended

A

T

I

O

N

&

were

Com-

Union Commerce Building.
McGreevy was previously

ELECTRICAL WIRES t CABLES

•.

likely be borrowed by the Treasury in July.
It is believed in

.

Ginther

with L. B. Schwinn & Co.

I

;-

u

corn-

University,

38,000

,»/
k

Secre-

Wilson,

conclusion, I now have the
privilege of accepting this first

Government through this fiscal year which ends June 30.
Additional new funds of between $3 billion and $4 billion will most

pation bills would

S/

executive

•,

carry

Also elected

He is also a,lecturer at New York
•

•

A

was

Vice-

Kahn,

Edward

*■!-,i

•

,lV

R.

anH

Co.,

elected

,

Dwight
.

&

E. Crane

the: Tr^suJerf
are

re-

for

Harris Upham
:

Nicholas

tarv

before

in

of

search

were

said

Ralph A.

Rotnem,

another.

have

Macomber

•

steel

one

Mr.
suc¬

of Reynolds &

6agl©<#

In

.

City, May 22, 1957.

sold at an average yield of 2.824%. In December of last year
the Treasury paid 2.585% for $1 billion of
95-day tax anticipation
bills.. It is expected that this new money borrowing will

'

York

ceeds W. Stur-

post offices of the nation.

passing

were

,

p a n y 's

c e:

Crane

Treasury to Borrow New Money in July
.

m

pouring.

be oni sale tomorrow in the

W&?

borrowing is just around the corner,corporations and others will again be

ot

o

of f i

:

and distributed and after first day
sales here in New York, they will

well-being,

The expansion of this great na-

hand, there are those who are,of the opinion that, because of the.
restrictive policy of the monetary/authorities, and even with /a,
minor lessening in the demand for tax loans, there could be a'
severe

C

New

,

lieve that the volume of these loans: will follow the
pattern of last/
i-March, and will be smaller .than'those of June, 1956. On the other •
/

Dean Witter &
1

com-,

twenty million have been printed

.

making loans in order to meet June 15 income tax. payments: Thereseems to be considerable
diversity of opinion as to.how much these:
borrowings will amount to. Some money market specialists be¬ (■,

<

department of

"

'

contribu¬

our

too extensive to mention here

Borrowing for June 15 Tax Payments Impends
since

of the research
1

picture gallery of its glories. They .mittee were
Stephen L. Joseph,
in miniature, its famous Nicholas F.
Novak, Gerald L. Wilmen and women, the
great events. stead, Ralph Wm. Michaud and
of its history, its natural
wonders,, George F. H. Nelson.
f, / • - -,
its industries.
';*;>**'
'
> Crane has. been Manager-of
This stamp honoring the Steel the Research
Department of Dean
industry will be widely used by Witter & Co, for the last
20-years.

Economy

The

makes

the comforts of

were

tax

a

So¬

*

show,

progress, our economic

was

of

shows

Postage stamps of

strength
troubled

tion's economy and the prosperity

round

*;

;

stamp

1

our

maturities in the Government list.

Another

of

York

ciety of Security Analysts, Inc. at
its annual
meeting: He is Manager

this, the
America's.

'°ngs/^°"c °Mh„e
3ii Am6rican

us

in-

tions

not to be taken too lightly in the pres¬
reported, however, that no difficulty was
taking care of this demand for the two longest
It

one.

in

on

-

industry 3nd

giowtq

our

industrial

There was, according to advices, orders in the market recently
for the Government 3s and 3 Vis and,
although they were not too
sizable when compared with the former breadth of the
long Gov¬

1

beautiful

elected

was

New

'■i'jLSwrfih^steenndustr^hlve^[succeeding Mr; Crane.
industry have
Lawrence

:

pioneering

a'u

ernment

this

stamp

anniversary

strong,,paralleled

dustity is truly thb bedfobk'of

not

are

of

This- great

designed

•

Analysis

Crahe
The

for"

world.

issues, there have-: not'been veryThis apathy stems from the fact

buyers of Treasury bonds.

many

Stamp

E.
of

Office

in

and,

other alternative

no

of

industry

made

riri^v'LJthp
today with the

is being put/

the long-term Government market because of this
switching
from Governments into corporate bonds. The market for
the most
distant Governments has been very thin for some time now

alMr.
His-

,

Of New York
.

Department

of Steel.

1857 steel

with

us*

range

has

of

Institute,

th&

,

The design selected by the Post.
Department for the steel

;

has

two^world warsC^d^providing^

on

aside from certain pension funds which have
but to put their money into these

100th.

7 Age

Summerfield

highest in known history.

Steel

though further

,

Nicholas

•

with outsPread winSs representing,
thfr honfe
fo? the farm and for" America- Across the upper half of.
industry 'which have deenlv en-"the
blue stamp are the: words '.
riched our lives in countles/wavs "America and steel Growing Toso
that our living standards are gether'" ^phasizing the fact that

willing to take losses in these obligations, provided the bonds
in which the money is reinvested have a call feature which allows:
them to keep the new investment
long enough so that the losses

as

E.

Office

memorative

>

A.

sunnlieri

widening

,

seems

Post

issuance

States

production of steel.

lias

are

Accordingly, it

.

is
pleased to honor the steel industry;
and a group of its leaders
by the

.

/In the/century since

are

an

Markets for

Petrucelli

President

Commemorative
The

-

the

officials

Nicholas Crane Pres.

technical processes.

and since 1890

yieldbeing offered, since the bonds

It is reported that institutional holders

"

,

the

nation

who

■

•

our

vision

and

the

and Steel

tingu.ished
artist
who
this beautiful stamp,

'.consumption, based on economic
laws and on raw materials- and

had

of

>

courage

group-of

Anthonv

also hallmarks of the

are

of

hallmarks of

are

a

'

not callable for a period of
years, or are not refundable
extended period of time, are
being offered at higher yields^
than those issues that do not. have this
protection. :
v
./7

for

i /

-

and other industry leaders.
Finally, a commemorative
bum is being .presented to

.

.

billion ~ tons

the price and

on

fto

and are willing to take-in-.
telligent calculated risks; the men
[ who knew and know the relation¬
ships
between j production"; and

produced
over
three

bonds, provided there is protection
refunding feature of the new issues./This

favorable influence

Institute.

were

abun¬

United

Government
or

Steel

"..American Jron

*•

Since then
the
steel
in¬

has

times.

men

de-

steel

dustry

prospective ones) of non-Government bonds are"
desirous of taking advantage of the
higher coupons which are
7 available in new corporate bonds, there is more of a
tendency now

through the call price
development has had

of molten

air

was

brings with it

They

begun.7 7/ /\7
/

as

industry's" 100th

commemorative

.

our

steel*

dant and low-

flotations have not gone well and syndicates had to be
dissolved,
and prices broke far below the
offering level. Because certain

•

it

by

of

age' ?of

and there are no indications yet of any: let-up in these requirements. Corporate and municipal offerings are coming into
the market in sizable amounts, even
though some of the recent

buyers (as well

w

i

veloped—and

ever,
•

•

the/ modern

large

as

*

manufacturing

iron

blasts

;

Strong

j

the miracle of

common

v.'

•

for

means

.

according to advices, is going

/

.-■■■v..

pig

of the Government will be

It is reported that savings bond

holders continue to get cash
which,
into non-Government bonds and to

•

ui

through decarbonization

re¬

steel

,

In the feeble industrial era of
the mid nineteenth
century a'con-

flecting the needs of the Treasury because it is believed this is the
area

-c

yertor

.

-

Government market is still

and

autographed albums of
these stamps are being presented

stamp.
Postmaster General Summerfield -stresses the
paralled growth
: •>
7 of America and the steel
industry.

the

„

The short-term

Office

Department honors the
/anniversary with the issuance of a

offerings have not gone
opinion that the new issue market is being crowded somewhat to
say the least.
'
*
-

•

industry, Mr. Benjamin
-Fairless, President, American

F.

Iron

Similar

There "

the

new

of the steel

Postmaster General of United States

appears to be too much of a rush in putting out new issues of cor¬
porate and tax-exempt bonds, a fact evidenced in the present
sharp '
case of indigestion, in the non-Government
market. The fact that

,

.

...

'

the

as

concerned.

*

.

The second album is for another
great American, a
great leader

By ARTHUR E. SUMMERFIELD*

only the tight

•

White
Houses„ with
your,
best
wishes upon my return to Wash¬
ington.
'•
V "
'
*'■

used for the prior

'

*
.

The Commercial and Financial Chronicle

000, divided into 956,000 shares of
common stock of the par value of

and

p5 each; surplus of $6,640,000;

less than

jndivided profits of not

$1,591,571.
*

J.

Edward

ment by Frank L. King, President
of California Bank, and Edgar R.
Hill, President of The Mariners

Mr. Marks has been serving as
Assistant Cashier with The Bank
of Virginia's South Richmond of-

Na-

First

resigned

branch

Calif, t

Jonal Bank and Trust Company of

the age of 56.

Silbersack, President

Walter F.

Na¬

Grace

.

uonal

Secretary;

club

formed

was

19as

in

bank's

the

Silber¬

H

n

o m e

when

company

Cincin¬
nati, of which

pany,

dent.

Silbersack

F.

waiter

He was

Vice-President

a

Bank,

the

at

a

0f

ident

in

President

and

1943

in

Joseph

assets

^rA^H/.Q«rpad1at
of American Radia-

Standaid

OC
&

appointed

was

at the Board meetDoartt meet

Hp^nrreeds
Chairman

dor

bank

was

zations sixth annual dinner meet-

as

a

LLB

an

University

1of

honorarv

was

1956

of

degree

at

Letters at

i

firm of Sullivan & Cromwell from
1928

he

when

1937

to

American-Standard

in

Cn,rptflrv

He

was

named Assistant Secretary

1939, and was elected Secretary
in
1947.
He was elected Vicein

President
and

and

Secretary in 1951,
Executive Vice-

named

was

President,

Director of the corpo-

a

ration, and

member of the exec¬

a

ail

Vip«

real

for

estate

the election of Dennis J. Cortney
the election of Dennis J. Cortney

Bankers

York,

Trust

it

was

Mr.

28.

was
»•«-

—

of

the
New

Company,

announced on

Mr.

1955

Greenleaf,
the Lindel'l

of

G.

Edward

;

Pr<Sdp!t•

ir

^a Sea, X1Ce

?

su?^>eeds

'„

reS~

CapPer

as

Vice-President and Cashier.

Vice-

Harry Klingler and F. Stanley
were

Executive

Committee.

^

"

place George

the

elected^Jo

They
m

re-

Marion, and Caro-

Fouuner.

*;

*

Bank
"
'

*

of

Narberth,
Geoffrey
S

and
President of Girard Trust

Smith

.

*

^Carl B. Metzger, President of

the National
A ~
1
Pennsylvania

Exchange

Philadel-

Bank,

effective

May

(10,000

15.

'
The

1

*

=:=

*

Nationii

Carolina

South

Bank of Charleston, S. C., with
cbmtnon stock of $3,000,000, and
The
First
National
Bank
of

J

*

Bank

porate
Director

Corporation

graph
elected
York

a

Massie,

has
of

Director

of

been

The

New

Company, jt was

Trust

nounced

an-

May 22 by Adrian M.

on

Chairman

of

the

Board

and Hulbert S. Aldrich, President.
*

Dime

The

*

composed

Club,

N.

i

Y.

Savings
has

officers

Bank

elected

for

the

of
the

dissolved

existance

of

declaring

and

its

cor-

terminated.

*

*

At

under

the

Bank of Charleston."

effective

the

soh(jation
will have

date

of

consolidated

the

Bank

A

A formal plan of merger is now

15

charter

by

The Board

Bridgeport,

with

stock of $4,180,000;

and

common

The

pany,

common

as

of

Conn.,

Waterbury Trust
Waterbury,
Conn.,
stock of

the

close

the

with

$400,000 merged,
business May

charter

was

and

of

of

Directors

Carl

of

the
an

B.

B.

Metzger, Jr., will concharge of all three offices

tinue in
the

of

Narberth

Bank

President—Narberth
the

title

as

Vice-

Division,

on

Exchange.

of

"The Connecticut National Bank,
Bridgeport."

staff

of

*

Frank

R.

Girard
*

Marks

Trust

Corn

*
of

Richmond

has been elected Assistant Cashier

of

The

Bank

of

the

Henrico,

Sandston, Va. effective June 1, it

»anK

■

India

of

Anma

E. I. Becker V.-P. of'

Blair & Co., Inc.
Blair & Co. Inc., 20
UWji

Broad Street,
,

The

joined their
firm as a VicePresident and

Director. Mr.
Becker will be

in charge of
an corporate
stock and bond

trading with
oarticular
„

h

_

f

.

emnn

„

p " 3 sr V

h

J

tions, and will

National

Lockwood

Edward
I.
Becker has

coordinate the

Bank

President is

of

Arthur

F. Hoehn and the Cashier is T. R.
a capisurplus of

The Bank has

tal of $300,000
$420,000.

and

a

A

member

Traders

Becker

of

the'

New

Association of

Securitv

New

York

and tbe National Sehuritv Traders

Association

wjth

he

was

Reynolds & Co
on
withdrawing
was

Dreviouslv

since
from

1934
that

Manager of the Trading

Department

Mont.

Livings
changed its title to The First National^ Park Bank in Livingston,

"lgston,

I.

the

York and branch offices

firm

ton,

Edward
,

activities' in

trading

and

The National Park Bank in Liv-

Metzger as its Chairman.

effected

Brooklyn,
At the effective date of confollowing solidation the consolidated Bank
coming year: will have capital stock of $4,780,-




of
will become

Narberth Bank will serve as
Advisory Board
with
Carl

Com-

of

10. The consolidation

employees

'

ii

gan a*

May

on

of

Houston, Houston-Harris County,

ard Trust Corn Exchange.

"The Connecticut National Bank,

issued

ficial action by both boards to be
submitted to the shareholders of

and

Natioaal

the.CompCurrency to the

was

the-office

troller

officers

.lke

-

«

*

being prepared by counsel for of-

All

T

'

Bank

nounced that

con-

capital stock of $3,650,-

*

Narberth stock.

*

Bridgeport,"

under

*

575 officers and employees of The
Dime

*

«5

National

The

other principal exchanges, has an-

effected

National

Exchange stock for each share of

the
Martindale,
joined
Syracuse Marine Midland Bank in
June,
1956, as public relations
representative.

Executive

International Telephone and Tele-

Q(ttnw

charter

consolidation

The

15.

^

advertising.

the

and

announced
announced

and title of "The South Carolina

iviay

the Narberth Bank
members of the staff of the Gir-

years.

Vice-President

year ago.

New York City, members of the
New York
Stock Exchange and

ness

Burridge.

Charles D. Hi lies, Jr.,

a

*

Mr. Calderon succeeds the late

of $500,000 conof the close of busi-

as

regulatory authorities.

six

*

Rico was
Rico was

Puerto
Puerto

stock

common
sondated

order granted on May 10

last

of

Limited London, England opened
p branch on May 15 at Gulu,

shares, par value $20.)

New York State Banking Department a copy of the final court

44th Street for the

East

President

Mann.

Trust

$200,000 by

was

t

Schaefeiy

May

with the bank's office at 5th Ave-

and

was

May 24. The appointment wefs
by Governor Luis Munoz

Greenville, Greenville, S. C., with

Co}T,i:>"
Mailon Neubauei, as S c e- 1ioiler was promoted to the rank
laiy*
oi vice-Piesxdent and Comptroller.
_

to

dend

f

"yNr-r

n

4^?^
ly.e

000

Texas.

nue

}

Bennett

The appointment of Cesar A.
as a Director of the
as a Director of the
Government Development Bank

capital stock from $100,a stock divi-

common

.

Cooper, Vice-Presi-

bpth banks for their approval as
well as to the state and Federal

has

fiWears

of Company,

The
Northville
Bank,
Northville, New York has filed with the

He

1945.

was

,

been

in

bank

•

hk

Calderon
Calderon

on

Robinson, formerly an
Vice-President, joined

Assistant
the

Robinson

at

Ho

*

for
for

President

°

P

Mr.

«•

25

the First Trust and Savings Bank

ioined the Bank's Trust
Cortney joined the Bank's Trust
Bank

the

new members, total club member- dent and Cashier was also elected
ship stands at 10L
Sjenior Vice-President responsiElected to serVe as club offi- ble for operations and for the

"

S.

Mr.

Department in juiY

generaT" admTnrstration Tf

banking divisions.

reclors- Wlth the addition ol the

of

Vice-President

*

until his retirement

_

York.

a

Assist-

'

National

^

Gardiner

*

«

of Pasadena, Calif., for 16 years

States

uepdnineni in auiy,

ATav

on

old

June, 1953, and President in Octo-

elected

-

wtirp*

PasadenacJlif

Bank of Omaha, Neb., announces

F.

acting Pres¬
in

American-Standard

of

died

*

RPnnptt

He

Robert M. Martindale, has been Phia, Pa. on May 24 jointly is- 000, divided into 365,000 shares of
common stock of the par value of
appointed advertising manager of sued the following statement:
ber, 1953.
lhe Marine Midland Trust Co. of
A proposal of merger of the $io each; surplus of $8,000,000;
He is a Director of the Johnspentl'aJ New York.
National Bank of Narberth and and undivided profits of not less
Mansville Corporation, a Director
Arthur B. Ziegler, who had the Girard Trust Corn Exchange than $2,157,952.
%\
. V
and
Chairman
of
the
Finance been advertising manager since Bank has
been informally ap*
*
*
Committee of the American Counwill soon join the Marine proved by the Boards of Directors
Tbe common capital stock of
cil
to
Improve
Our Neighbor- inland Corporation with offices o both banks. r
The peopjes National Baak of
hoods, a Trustee of Lafayette Col- JJ1. Buffalo Until that time, Mr.
It is proposed that the share- Greenville, S. C., was increased
lege, and a member of the Bar Ziegler will continue as Assistant holders of Narberth will receive from $500,000 to $600,000 by sale
Association of the City of New
Secretary and Officer in charge 3V2 shares of Girard Trust Corn Gf new stock effective May 14.

ident

*
rvrii

of

$

*

Russell

Corn
juciii

«

The

.

'nrs

department.

United

The

^

A

.

Wallington,

^

®(2Le n5Sl^n'

line

utive committee in 1952.
Mr. Grazier became

trust

i

-

sources

tvL

in

.

other

and

the

responsible

ap-

Mlariners Bank has reof more than $7,000,000.
California Bank, with 60 offices
in Southern California, has resources in excess of $950,000,000.

handle investment prop-

a

t

nouf

Mr- Di^<>n as Vice-President; and

fhA

,,

.

'

.

Theo.

<

office

Trpn«jnrpr

nnd

nf

r,

for

President

joined

the

_

ex-

^

Cortnev
Cortney

-.r-

Senior

President was elected to the newly
created post of Executive Vice-

associate of the law

an

^.

been

St. Louis, Mo., has been Agrgino Roig as a Director o
James E> Dempsey.
'the Bank.
appointed to the Bank's six-man the Bank.
j
Mr* Nathans is Vice-President
E< Lawrence Worstall, Vice- advisory board, it was announced.
»
in cbarge of the bank s Personal President in charge of PhiladelMr. Greenleaf has been associ- Banconew Ponce, Puerto Rico, was
A de agency olfice of the
credit department, Mr. Schall is phia National Branch Administra- ated with the bank since 1945.
opened on May 23 at 2112 Third
aa
c^! Jkm Division was elected Senior
•
25 .the County Center, White SSt
The Peoples National Bank of
l°Io ^i%Ze
aDd retail
PrSnfand agent in Ne w York

in

Letters

Humane

r^afavette^ in

re-

n

Merinwell

McDowell, Senior Vic~-

Nathans, Jr., Kirby J. Schall, and banking and operating divisions

from the

Pennsylvania

of
the

and

Doctor

1925,

degree

'

r_,_'
Tnhrf
n

an

' to Assistant Trust Officer.

President

Potts

dlkct

will

*

Pa.
dis-

were

has

ant Vice-President and Manager,
will continue in that capacity at
the San Clemente Office.
;

who first ioined the

™a

SL2TS Kfov-^bTFrederic^X
ori

The new members are: J- A*

ap-

upon

in

College

ceived

™

ing. held May 28.

born in Tyrone,

Lafayette

He

zation's sixth annual dinner meet¬

American Ambassa-

as

Grazier

192R

"J1.11®/-,a,1Vs' «. x., at uie orgam

France

tn

Mr

resigned

who

the

of

nolntment

it the oreani-

Philadelphia,

organization

to

e

r„

w

Bank,

level

Ray Lewis

^a* nhJlIe wZnllnfl
f
b
be^n consolidated

closed

Club,

€entury
Y

m

$132,000,000
largest

second

S.

paa<d

Five changes to be made effec^-ve june ^ in The Philadelphia

rinh.

rvntiirv

Quarter
piasm

w. ..

Corning

Board

the

of

,g

n

the

be

State

National

members were wel-

new

OnurfAr

v»

„

tn

of the Ohio
Company, Toledo,

^ ^933

the

comed to The county Trust Com-

Houghton

Amorv

^Vorks

Director

Corpo-

a Director
Citv Bank

National

First

of New York

Glass

Sanitary

oicmucou

The

of

the

than

more

would

-

agreement

Mr. King said.
Edgar R. Hill,
President of The Mariners Bank,
and Joseph C. Steelman, Executive Vice-President, will become

has been announced
I. Webb, Jr., Presi-

.

York.

Three

of

Savings Bank with

of

Lewis

Mr

the

be

-

a

Clemente,

Vice-Presidents of California

Trust

willard

by

approved

are

would

San

of both banks and, subject to the
approval of shareholders, is expected to take place about July 1.
There will be no changes in
personnel of The Mariners Bank,

dent

erties

County Trust Company, Brooklyn,
New

-

Secretary

department

ap-

been

Trustee of the Kings

elected a

title

United States

ton

A.

and Director

ration,

has

Magnus

plans

Bank's

the

and

C.

If the

Corp.

Trustee in

in

:

-V

The

Ghio, in charge of the real estate

and the Federal Deposit Insurance

1941.
Percy

citizens

Savings Bank

have announced

J.

N.

Assistant

J.

proval of the New Jersey Banking and
Insurance
Commission

in

October, 1945. He is also a Director.

lor
tor

Orange,

Promotion

Sav-

plans to merge subject to the

Mr. Barrett joined the Bank
in 1911 and was elected a Trustee

Executive Vice-Pres-

i

sistant Cashier.

N.

Newark,

the Half Dime

arid

1953.

m

institution,

j„gS

time.
He became

January, 1951, he was elected As-

v

,

Newark, N. J., the Franklin

a

President in 1947 and

."A")#-?,;:

Presi¬

named

January, 1949, he was transferred
to the South Richmond office as
Supervisor
of
Operations.
In

Trust

and

1

Vice-President,
succeeds
Gilbert Ci Barrett^ President since
1947, who was elected Chairman.
Mr. Bender joined the bank in
1945, and was elected a
Vice-

acquired A. S.
Boyle Com¬

was

Bank

subse-

and

the

Company

Mr. Bender, former-

President.

ly

iie

Naiional

First

department

quently served as loan and discount teller in the Main office. In

ap-

with

Bank

transit

The United States Savings Bank,

as

this

was

office

Bank.

Savings

Brooklyn

The

Products since
1927

and

and

personnel.

Brooklyn, N. Y. has announced
the election of George J. Bender

with Ameria

1918

in

National

the

sack has been

associated

e

Bank

j>0jnted to the post he held at his
death in 1947, after the merger

by
a
group
ol
employees
to
f livl hnr CGPinl TAlfttlrtnshlttS aiTlOTllf
further sccial relationships among

York.

Mr.

The

-

tional Bank of

New

Donnelly,.

Howard W. Pollock, Treasurer

the'

of

T.

Di- Mary

poration, has been elected a
rector

Stanley E. Huys, Vice-President;

Products Cor-

of American Home

C. Marquardt, President;

warren

Richmond,

Mr._ Marks began his banking proved by the boards of directors

►

,

Feeney was hired as a
messenger by the Paterson NaMr.

..

at

experience with The Bank of Virginia in January, 1946, in the

Paterson, N. J. died on May 21 at

.,

Bank.--, v
> V.
*
The Mariners Bank operates

from that Bank to accept the new
position.

Assistant

the

of

announced on May 23 by T.

fice

Feeney,

Vice-President

Thursday, May 30, 1957

.

G. Layfield, Jr., Bank President,

was

*

*

.

.

•

.

With Jaffe, Lewis

(Special to The Financial Chronicle)
effective May 15.
CLEVELAND, Ohio
Richard
*
*
*
California Bank, Los Angeles, Weiskopf has become connected
—

Calif-

and

Newport

The

Mariners

Beach,

Calif,

Bank,

reached an agreement whereby
the two offices of The Mariners
Bank will be merged with and
operated as offices of California

Bank.
Plans for the proposed merger
were

revealed

in

a

with

Jaffe,

Lewis

&

Co.,

have Euclid Avenue,

joint state-

members of
Midwest Stock Exchange.

the

u 17
'lDf
*«.L
Joseph L,. Monteith
,

-

1706

Joseph E. Monteith,
of the Aper'^i c"

passed away May 10th.

»

member
Exchange,

a

Volume

185

5642

Number

.

.

.

The Commercial and Financial Chronicle

'

■

'

'

(2525)

r

21

-

Continued

from

This

6

page

has

within
to

What's Ahead for Business

a

1967

increase
6%

took place at

last

Banking Industry

the rate of

where
there
is
reason to expect that we enjoyed
a
productivity gain not appreci¬
ably in excess of 3%. This in part
\yas inflation produced,
i The

year,

second

1956 to
growth in

new

plant

business
these

March,

and

since

1957

1955.

In

expenditures

for

by

that

year

the

at

were

record-breaking total of $28.7

billion. By the first quarter of this

this level

year
up

by

at

a

$36.9 billion

was

$8.2 billion.
rate

above

This

increase

28%

enjoyed in such

time.

a

have

we

period of

The

economic and price effects
of such an increase in outlays for

plant and equipment—this is

new

to

by

the

(1)

private

To

the

worked

extent

that

banks

of

businesses which properly ex¬
pect such needs to be met, there

expansion in the
This' was mildly

some

forces

toward

which

inflation

have

should

this year to a neater pro¬

creases

portion to productivity increases.
the outlook

Thus

tion

will

is

that

infla¬

be

brought under con¬
trol. Other factors reinforcing this
those

are

record

which

measures

general lull in business
at the present time. New orders
of
manufacturers: continue
to
a

orders

to

decline.

are

un¬

The

advance in GNP in the first quar¬
ter of this year was greatly slowed
down from the preceding two and
one-half years and this was true
for

retail

sales

well

as

as

gross

months and the next

10

years.

The

first of these is
inventory
liquidation. We have had two such

Forces Checking Inflation

Happily, several forces
erating to administer

"inventory

are

op¬

check

a

to

the

rising prices of the last 12
months, which produced an infla¬

have

we

highest protection

liquidity protection is most
V
r
.V-v
--'v.- v.'.'./

quick look

the

12

'

A

narrowing corporate profit mar¬
gins and the lack of "political
causes" shoultj restrain Wage in¬

-

in

the

Sees; No Decline in Interest Rates
at

money

later.

how¬

occur,

decline"

in 1949 under

one

ministration and

depressions,
Democrat ad¬

a

one

in 1954 under

Republican Administration.

well managed and well off¬

were

set

Both

current

In

•

should

interest rate

be

taken

levels

tightness of

and

money.

extended

"with

strings attached."
That means they were "borrowed
reserves."
Banks/ had
in
May,
1953,
borrowed
$1.4
billion
of
their required reserves.
Then

the truce

came

in Korea.

Defense

expenditures were soon
cut by more than $10 billion and
investment* in inventory and in
tools

cut

was

by

than

more

a

second

$10

weeks

Federal

was

completely reversed that
now, by the new turn

so

the

in

billion.

Within

Reserve

six

policy

banks

Federal

provided

"free

-

free

reserves."«

reserves

With

provided,
borrowings
from the Federal Reserve System
the

$1.4

was

repaid.

billion

of last year

resulted in the annual

remaining

savings rate
$5 Vz
billion

being

increased

from

the

by

similar

of
of

period in 1955. In the first quarter
of
a

1957

the increase

full

10%

savings rate
with

this

above

„

there

is the
of

use

but

the personal
earlier. Along

a year

of increase in

less

was

lesser

rate

consumer

in¬

stallment credit and the increased
rate of repayment of such credit.

Consumer

installment

credit

ex¬

tended

billion

in

billion

increased by $5^2
1955, but only by

in 1956. The increase will

doubt

no

be about $1^2 billion in 1957.
in

1957, is the result of the

tual

repayment

amount
in

1955

lesser

in

rate

have

Within

a

so

left

*

such

3957.

Thus
credit

some

economic

has

the

install¬
worri¬

a

problem.

increase

savings repre¬
depreciation re¬

by

serves.

Here the increase in

gross

such

available to finance

the

at

and the
balance
of
proceeds will be used for

which

The

had

also

final

'

demand

side

in

.

a

1957.

Thus

reduction

we

in

budget will produce

are

absorbing

investment

in

a




mod¬

in

in¬

Cleveland.

/

The

positive

of

rate

or

rates

is

Invention,
and

re¬

improvement

in productive methods and in pro¬

machines

of

be

to

is

and

accrued interest in

each

of

(Special to The Financial Chronicle)

New

Mexico,

with

incidental
gas businesses „
sells appliances.' Territory served
by the company with electricity
covers
67 incorporated towns in
and

to its, electric and

Texas

and

towns
cent

in

areas,

an

;Glore,

South
of

La

the

Stock
was

Forgan

& Co., 135
Street, members

Salle

New

York

Moore

and

with

an

adja¬
esti¬

Joins

estimated population of 25,750.

Elworthy Staff

(Special to The Financial Chronicle)

population of about 224,000.

THE
LIFE

OF

SAN

FRANCISCO, Calif.—Rob¬

ert E. Bates has joined: the staff of

Elworthy & Co., Ill Sutter Street.

EQUITABLE

ASSURANCE

THE

SOCIETY

UNITED

STATES

393 Seventh Ave., New York

The

second

economic

jected

Capital

hereby given that in accordance with the provisions of the

Insurance Law of the State of New York the Board of Directors of

The

Equitable Life Assurance Society of the United States has
nominated the following named persons as candidates for election
as Directors of said
Society:
;v
V

i.

i

.

>

fi

MALCOLM P. ALDRICH, New York, N. Y.

President, The Commonwealth Fund.

bids fair

ROBERT E. BLUM, Brooklyn, N.Y.
Vice-President and Secretary,

Abraham & Straus.

J. REUBEN CLARK, Jr., Salt Lake City, Utah.
Counsellor-at-Law. Vice-President and Director,
The First National Bank of Salt Lake City;

/

Director, Western Pacific Railroad Company.
MANLY FLEISCHMANN, Buffalo, N.Y.
Counsellor-at-Law.

:

.

ROBERT L. HOGG, New York, N.Y.
Vice-Chairman of the Board

of the Society.
R. STEWART KILBORNE, New

York, N. Y.
President, William Skinner & Sons.
,,
•
*

and

of

disturbance to

potential
our

pro¬

one-year and

ten-year eco¬
growth is the failure of
capital investment. Here the im¬
nomic

shortage

of

labor,

today's

high

wages,
combined with an
immense investment by business

in

research

and

development
augurs well that capital will be
strongly maintained in the period
The

1967.

third

of

even

all

of

our

devastating

!

for the Southern District of New York.

Chairman of the

Opens

1

(Special to The Financial Chronicle)

GEORGE V. MCLAUGHLIN, New

York, N.Y.
Vice-Chairman, Triborough Bridge

Mass. — Ray¬
mond B. Sideckas is engaging in
a

securities

business

from

and Tunnel

offices

the

under

firm

name

He

was

of

R.

Authority.

EORDYCE B. ST. JOHN, New York, N.Y.
Professor Emeritus of Clinical Surgery,

at 47 North Quinsigamond Avenue

Sideckas & Co.

York, N.Y.
Board,

Empire Trust Company.

SHREWSBURY,

B.

College of Physicians and Surgeons,
Columbia University.

formerly

with Keller & Co.

JOHN A. SIBLEY, Atlanta, Georgia.
Chairman of the Board,
Trust Company of Georgia.
SAMUEL A. WELLDON, New York, N. Y.

Winslow, Inc., 24 Federal

Street,

City of New York.
A certificate of nomination of the said candidates has been

members of the Boston Stock Ex¬

with the Insurance

change.

The annual election of Directors of The

He

previously
Keller Bros. & Co., Inc.

with

was

duly filed

Department of the State of New York.

Equitable Life Assurance

Society of the United States will be held

at its Home Office, 393
December 4, 1937, from
p.m.,and at said election twelve Directors,
constituting one Class of the Board of Directors, arc to be elected
for a term of three years from January 1, 1938. Policyholders whose
policies or contracts are in force on the date of the election and have
been in force at least one year prior thereto are entitled to vote in
person or by proxy or by mail.

Seventh Avenue, New York 1, N. Y., on

Vercoe Adds

<

-

*

to

Staff

(Special to The Financial Chronicle) •*

COLUMBUS,
has

Ohio—Robert" H..

been

added

to

the

staff of Vercoe &

Bank

Building,

New

collapse of the

Exchanges.

supply.

Retired. Formerly Chairman of the Board,
The First National Bank of the

BOSTON, Mass. — Charles E.
Clapp Jr. has been added to the
staff of Chace, Whiteside, West &

economic depressions has been the
money

t

inflation.

R. B. Sideckas

Jolliffe

cause

I

JOHN C. KNOX, New York, N.Y.
Chief Judge (Ret.), United States District Court
DEAN MATHEY, New

Outlays

cause

1, N. Y.

Notice of Nomination of Directors
Notice is

recession.

Lag in

Midwest

& Co.

(Special to The Financial Chronicle)

seriouj economic

and

Exchanges. ; Mr.* Chapel
formerly with/ McDonald-

incorporated

New: Mexico

rural

mated

nine

York

and

Co., Huntington
members of the

Pittsburgh

Stock

10

o'clock

a.m.

May 27, 1957.

-*;

CHICAGO, 111
Harold
R.
Chapel, Jr., has become affiliated

and
power * and
gas
businesses
wholly within the State of Texas
and

Co.

Chace, Whiteside Adds

will lead to any

,

Glore, Forgan Adds

case,

Community Public Service Co.
is engaged in the > electric light

which needs
larger to finance this more

threat

Dillon,
Co., 3115 Wilshire Boulevard. He was formerly

v

equipment.

innovation

large

Eastman

with J. Barth &

high for the full tenyear period to 1967.
I see no ap¬
preciable lessening in the demand

which

with

receding from 106.88% to par, and
special redemption prices rang¬
ing from 101.875% to par, plus

remain

to

ANGELES, Calif.— Ralph
Rollins, Jr. has become con¬

nected

at

-"j;-

further

rate

E.

/

available

development

ductive

LOS

Union Securities &

below

,

innovation,
for

:

(Special to The Financial Chronicle)

\

able at regular redemption prices

Thus U. S.

interest

of

the

5 > Eastman Dillon Adds

the
con¬

progress.

fi¬

to

sold

search

of

ventory at this very moment and,
happily without prospect that it

most serious and

roundly. Finally there can
expectation that the Fed¬

be

of

bonds will be redeem¬

is with respect

word

interest rates.

found

.

became

again.

reserves,

ac¬

rate

more than $4 billion in
final quarter of 1956 was re¬
duced to zero in the first quarter

of

now

new

the long-term U. S.

year

securities

This

The

is

slightly

a

year

It

with

Co., 271
Poplar. Mrs. Niss was previously
with Livingston, Williams & Co.

nection with the construction pro¬

bright ten-year future without th®

inventory

the annual

through

still

periods

character.

that

gross investment in plant fa¬
cilities by business is $2^2 billion

new

eral

two

the

pres¬

in

sented

reserves

in

noting

cumulation

mense

toward inflation is the auto¬

matic

these

inventory recessions have

modest

worth

the

borrowings in

A third force reducing the

sure

been

used

as

in

recession, 1949 and 1945.
Thus

high

credit

consumer

receded

size

associated

now

sufficient

reserves

selling at 103.

were

to

This

excess

securities

punc¬

comparison 'with
of

ment

;

of

of instalment

This,

that

third

is'

Central States Investment

con¬

gram,

primary

a

Niss

B.

won

competitive

bank loans, incurred in

the economic expansion we
noted
in
19541 and
1955.

nance

90

pay

nomic

been cut down to less than

<

"

MANSFIELD, Ohio—Mrs. Ruth

Net proceeds from the financing
be used by the company to

(investment) ex¬ that job is to seek in every fair
penditure by bringing about a way to enlarge depreciation re¬
whereas in the preceding period further like additional decline in serves
for
industry, to enlarge
consumer
this rate of increase was 28%.
(consumption) expendi¬ retained earnings for corporations,
/The second force restraining in¬ ture—which had a value in prac¬ and to increase in every way,
flation is the increase in personal tice and in theory of 2.00 in most
especially with workers' retire¬
1949,
has ment funds, the stream of savings
savings. This in the third quarter depressions prior to
plant and equipment this
year will probably not exceed 8%
new

underwriters

With Central States

of;

in

sup¬

>

,

the

(Special to The Financial Chronicle):

sale May 28 on a bid of 100.14%.

policy, were Towns served with natural
gas
billion of in¬ are all in West Texas and have

with $2.5

creased

these

Reserve

for

first force is that the

The

award of the bonds at

in

offering are:
Shearson, Hammill & Co.; Stroud
& Co., Inc.; Thomas & Co.

Service
Co.
first
mortgage
bonds, series E, 5%%, due June 1,
1987, at 101.875% and accrued in¬
terest,
to
yield
approximately

5.25%.

$1,497,109.

Associates

&

lic

struction

when inflation
was also
threatening, money was
made tight by the extension of
reserves
by the Federal Reserve
System but these reserves were

now pour forth
in increased
measure, whereas the
rate of increase in expenditures

The

in that period.

3.6%

Stuart

operating revenues of the
for the year 1956 aggre¬

$11,427,202 and net income

amounted to

Co. Inc. and
associates offered yesterday (May
29) $3,000,000 of Community Pub¬

May,/1953,

plies of goods will

of

by

future

policies promoting eco¬
expansion. As a result of for capital and consequently no
smart policies, the earlier multi¬ decline in the rate of interest.
plier of economic decline — the
This tells us that- we have a
multiplier which doubles a decline job to do on the supply side and

tion

Halsey,

gated

,

of this year, 1957. The mixed and

_

even

not

needed.

national
production. Automobile
supply.
infla¬
sales are less than 2% above a
tionary and the; public's more
year ago and industrial produc¬
rapid
use
of
money
meant
a
tion
has
not
risen
since
last
higher velocity of circulation of
bank deposits which is also in¬ October. Steel production is down
and the prices of heavy melting
flationary.
.:,/3
steel scrap and copper are down
(2) If funds are paid out for much more.
Housing starts are at
new
plant construction, incomes
their lowest in eight years, the
ol a high wage-earning class are
current annual rate being 880,000.
enlarged. This is spending power. Wholesale
prices now have been
In 1950 such spending power was
flat for more than three months.
greatly- enlarged and, naturally
enough, given an understanding
IV
of
the
period
of
gestation
of
Inventory Liquidation
capital goods, the supply of goods
We now turn to factors which
flowing
from ■ increased
plant
facilities built in 1956 will
not might mar this optimistic business
and banking outlook for the next
make their appearance until 1957
and

Thus

mitigate themselves by mid-year

filled

extended credit to meet the needs

was

the

deficit

economy—are two-fold:

of

; where

spending decline. And these new orders
sectors
of
the generally above sales, causing

extent

some

form

:

will

company

will

Thus

view

'

j

third

Total

Halsey, Stuart Group
Offers Utility Bonds

because

of

■

the

was

greatest rate of increase
ever

or

final

a

times

bank troubles have been most in¬
tense in past depression periods.

Inflation Will Be Controlled

was

expenditures
equipment

Thus

1958.

important

very

March,

then

surplus, available,
via
payment of Federal obliga¬
tions, to the banking system for
financing of business in 1957 and

of the inflation of 3.6% from

cause

the

estly enlarged

enlarged saving.

six

of the high liq¬
banking system—
a
liquidity which today is more
than double the
liquidity ratios of
the 1920's. Moreover, bank
liq¬
uidity today is highest in our
western agricultural areas where

uidity

And the

It

in the period forecast ahead

ever,
to

occurred

60-year period from 1873

1933.

to4 o'clock

GORDON K. SMITH, Secretary.

\

;

22

The Commercial and Financial Chronicle

(2526)

Continued

page

the

in

where

from first

them

of a
have
reduced—initially, at
neighborhood

look

beyond

promise

the

mit ourselves to be blinded

ferent

shall

brilliance—we
fore

the

us

also

ing number of bills that are now
before Congress. And in its most

by its
be¬

see

dangerously deceptive form it is
masquerading as an aid to small

menacing shadow of
hazards, in fact
lie not so much

hazard—of many
—most

the

economic

in

field

ated"

the conflicting ideologies of

The

of these hazards,
is war—the deadly pos¬
sibility that Man, having devised,
at last, an instrument capable of
his complete destruction, will be
irresistibly drawn to his doom
like
a
child playing
with fire.
Fortunately, there is no nation on
earth, I believe, in which the peo¬
ple are not increasingly alert to
this
awful
possibility and
de¬
termined to prevent it if they can.
In fact, our best defense against
this danger is our awareness of it.

ideological
which

that

me

defenses

our

nor

—

recently

observed

Wright Patman, and that is
currently known in Congressional
numerology as H. R. Seven. And
it is this bill that I should like

the

businesses which have been

the
for

these

But

why?

businesses

which
have

in

are

of

all

of

hundreds of millions in taxes

pay

and

billions

they

in wages?
Is it be¬
through costly research—
have devised many of the

new

products

cause

—

wants?

it

Is

made

that

all

because

American

America

they

have

rich

and

life

and

might say,
think

can

of

more

clearly

plish

that

designed

to

result.

exact

horses

mind anyone that under the

4
re¬

pres¬

ent

ate

peace,
and
have outproduced all of America's

system of quarterly "greet¬
ings" from the Internal Revenue
Collector,
all
corporations
are

enemies

in

times

taxed at the uniform rate

of 52%

earns

on
all of their
nkn.rn
r»nn
above $25,000.

income

The

'nlain

explain
merely
too

less

attackers, themselves,
uiwrnUr
TUn..
very
simply.
They

if

IKSl'tr

it
say

these

businesses

But

are

big, and that bigness—regard¬
of what happens to
progress,

or

production or national protec¬
tion—must be destroyed.

rate,
tute
on

in

H.
a

place

taxable

n

uniform
substi¬

so-called "progressive" tax

graduated

a

scale

ranging

Now, I
faith

in

—

for one^—have

the

collective

informed

an

people

great

wisdom of

in

free

our

American

society. I believe that
people, in the century that
lies before us, are
going to create
-—through their own actions as
these

consumers, employees, and inves¬
tors — millions of new and small

businesses to do the infinite vari¬

ety of jobs that their welfare will
demand.
create

—

that

nesses

the

be

I

believe they will

in the

same

ace

if

man

—

also

busi¬

big enough to do

monumental
done

way

jobs that must
is to continue to

I believe, in short, that
they will insistently demand busi¬

progress.

ness

growth

antjl the freedom to
in every range of size; and
that they will brook no interfer¬
grow

ence

So
ever

with this
necessary growth.
if this issue of
bigness is

put

clear-cut
I have

no

outcome.

before them fairly, in
terms, for their decision,
fears Whatever
I

believe

as

that

to the
any

straghtforward proposal to impose
an
arbitrary political limit on
business size—or
ness

on

growth—would

lawful
be

busi¬

emphat¬

ically rejected.
But, unfortunately, this issue is
not being presented to the Amer¬
ican

people

in

straightforward,

clearly-defined terms. Rather it




through

is

a

eight inter¬
high of 75%

J

__

11

.

of

average

Yet

ders of what the author of the bill
is pleased to call the

"super-giant

corporations."
For your
appear

that

information, it would
a
"super-giant cor¬

poration" under this bill is any
corporation whose earnings before
taxes amount to $37 million a year
or

For

more.

„

• _£»

XI

that, in

This

means

•

that the taxes

now

collected from several hundreds of
of

corporations

by

a

average
t

per

stock¬

bill

the

we

For

is what it is.
see

designed to favor

hundred thousand

while

few

a

small corpora¬

ignoring

than

more

would

be

not

hardly

re¬

seems

the doctrine of
greatest good for the great¬

"the
est

number."

But

even

amination

if

we

this

of

confine

our

ex¬

to

the

measure

the basic fal-

Regardless of its justifica¬
when a graduated tax is
on

tion is not

individual,
least in theory,
an

pay.

an

that have taxable incomes of

than $25,000

are

tax rate of 52%

that

above

paying

a

more

uniform

their earnings

on

level.

So,

taxwise,

so under H. R. Seven, how¬
for should this measure ever
become a law, these small cor¬
porations would be divided up

Not

into

six

with

rates

54%.

tax

different

brackets

ranging from 22%

either

would

tiohs

small corpora-

bill,

some-

But

a

it

is

upon

corpora¬

individual.

It

is

a

of

that

more

the

much, before taxes, as it now does.
is all that money go¬

where

And

nr»

than

half

of

it

come

can

have

place

one

from—the only

of receipts that
the average corporation has: the
customer.
So — if it is competi¬

continuing

source

tively possible— there go prices,
up the ladder again!
And down
goes the value of every dollar that
people have laid aside in a government bond, or a savings ac¬
or

,

policy,

count, or in an insurance

pension.

a

But let

us

the other

suppose, on

that this "Fragmentation
Tax" really works; and that there
are
no
big
businesses left in
America.
What
happens
then?
hand,

the professional

will

friends

hailed

as con¬

heroes

quering

by

populace

the

at large?

Well,

I

hardly

think so

—

not

the small businessmen
themselves; for the first result of
by

even

an

event would be to reduce

dollars—

by several billions of
the revenues of the

Federal Treas¬

And how would Congress
money to make up this

tax

ury.

advantage over their more prosperous competitors or would be at
a tax disadvantage in relation to
their more favored competitors,

find

* You know we hear a great deal
about so-called "perfect competi-

corporate taxes on the remaining
smaller businesses; and as these

these days, and about the
perfect competition I can

enterprises in turn began to fall
by the wayside, it would just have
to jack up these taxes some more.
So if there is anyone here tpday
who would welcome a "progres¬

a

most

think of at this
is

to

be

where

found

the

season

of the year

the

at

New

York

ball

park,

Yankees

the

deficit?

'

Well,

about

the

only

'

.

*

thing

could do would be to jack up

Washington Senators
at the box office by more than
three to one. But if the "progres¬

sive"

sive"

it

the

to remind him that

olitdraw the

were

principles of H. R. Seven
to be applied to our national

sport, the Yanks
be

limited

to

two

outs

and

would have

two strikes per

to
out

inning,

H.

R.

eral

on

corporate income at
provided for in

now

Seven, I would simply like
when the Fed¬
income tax first went into

effect, the rates on individual in¬
comes

1% to
as

per inning.

20%

ination!

tax

rates

the

while
the
Senators
would be granted
four strikes per out and four outs
per

showed

this

of inflation, a corporation in
top tax bracket is going to
have to earn about lVz times as

age

to ,such

So at each of these six dif¬

ferent levels, these

increased

under

profits for all the other purposes
that a profit must serve in this

of small business be

corporation whose taxes would be

every

peting stocks on the exchange, it
will be shunned by investors. But
if it is to maintain its payrolls
and dividends at present levels,
and still use the balance of its

And

relationship whatever to their in-What havoc this ideological condividual ability to pay.
•
cept would wreak when applied
For example, a survey of United
either to baseball or to business
States Steel's stockholders in 1953 competition, I leave to your imag-

"super-giants "
In fact, it appears that for

below the levels afforded by com¬

terms.

ever;

wage-

tries to reduce its dividends

it

they are able to compete on equal

tion"

•

would

few hundred so-called

facts

compatible with

m#»n

paid

that it is

these

of

face

If

that

White Horses."

on

based, at
his ability to
group

the

on

its

business, but promptly!

out of

be

taxes

individuals who have
pooled their resources and the
be diminished, and that the reskills to perform some service deSuiting deficiencv supposedly sired hv
f^llnw
An<4
g
deficiency SllDDOSedlv ciriaH by their fellow men. And no
would be made up by a corre- tax that is levied
upon a group of
sponding increase in the taxes individuals, collectively, bears any
thousands

seem

reduce

All of which

lacy in any proposal to levy a
graduated tax on corporate in¬

levied

have their taxes reduced.

lasting benefits
corporations — which I
doubt — then it would

_

essence,

And there

the

present tax rate; while com¬
panies below that level would

XT

—"A Tax

tion,

if this bill does pro¬

So

to

prevailing
industry generally, it will

the

duced.

decides to change the rather
lengthy title that this bill now
bears, I would suggest that he
merely label it—with simple truth

come.

But

in

whose

ever

companies above
that level, the bill would increase

partnerships.

or

tries

it

scales below the levels

more

this

set

first that big business
these confiscatory
survive. How does

black

A

t

pay

his

the

big

H

15%
of
All the
individually-owned en¬

small

tions

That, too, is

$1,000

under

to

ing to come from?
Why, there is only

an

tax

look at it both ways;

us

3% million other small enterprises

11

dollars before taxes.

able

is

If

this

but less than
corporations.

business.

corporation would be forced
in the top bracket.
to
pay
75%
of its top-bracket
Although this is, on its face, a earnings in taxes to the Federal
revenue
measure,
it is not in¬ Government, while the small cor¬
tended to increase the revenues
poration would pay only 22%.
of the Federal
Treasury. Neither Why? Well, not because the in¬
is it intended to diminish them. vestors in the
big corporation had
According to its proponents, its made more money or could better
primary purpose is to aid small afford it, but simply because there
businesses by reducing their taxes were more of them!
OIlKofonfiolUr*
So if the author of H. R. Seven
substantially; and by shifting this
burden of taxation onto the shoul¬

are

in

directly benefited by its,terms, we
find, I think, that it is something
less than a blessing in disguise.
At present all of these enterprises

holder.

rising

mediate levels—to

businesses

small corporations which would be

That is

let

So

had

he

this

objectives

his white

stockholders

100

a

other

the

of

any

>.

and

n/\n

and

Acquainting the Public

moment.

a

vide any real and

$1,000 per stockholder. And sup¬
a big corporation has a mil¬
lion and a quarter stockholders
and earns a billion and a quarter
an

business—

tially reduce the taxes on small
corporations,
it does not even
mention any other form of small

pose

from 22% in the lowest bracket—

are

terprises

of

this

of

Seven would

R.

A.

a

Business
not

or

actually produce that re¬
sult, I couldn't say; but certainly
we must all agree, I think, that it
is far more likely to fragmentize

are

hundred thousand dollars

has

ness

whether

would

while H. R. Seven would substan¬

"

before taxes.

No.

of war?

rest

that, of course^ is precisely
the principle upon which H. R.
Seven is based. By way of illus¬
tration, suppose that a small busi¬

times

of

country,

And

in

Fragmentize

Will
Now

and

a

aid small

small

sincerely

about

white horses!

fruitful

ness

Today there are more than four
million

these

than

more

l

it do it?

individual

pull

because

—

r

ntY* cin

"Fragmentation" tax de¬
break our whole busi¬
structure up into little pieces.
a

signed to

violates

Looking at the Facts

equally fair

farmer who found that

horses

U Vo

n

lact,

taxes and still

White Horses

to

it

4 ont

look at the facts for

just about as logical,
as
that
time-worn
gag that -Moran
and

used

Mack

let's

I don't have to

sure

is

vaudeville

accom¬

So

look at the terms of this bill:
Now I'm.

it

at their present levels. It is, rlo_
in
nnfov

and suppose

for

course,

of H. R.

dissolution

the

force

to

it purports to be—then it could
hardly have been more poorlydesigned for that purpose. Let's

line and sinker?

Yet

is

our

as

And does it surprise you
that—according to public opinion
surveys — 78%
of the American
people are swallowing it, hook,

of

•

of Artemus

words

evident it becomes that

forth in the title of the bill.

able?

on

in the

look at the measure,

we

American business than to achieve

just to have graduated rates

A Tax

'

i

i

more

intended to

aid¬
that
fair.
fair,

it is fair and just to have
on

the

politician and
good." But
tu
my simple, non-pontical mmd
it seems that if this bill is really

in

as

honestly, did you ever
hear any statement that sounded
more plausible and more reason¬

that I
device

political

no

Now

Now,

corporations.

moreover,

well

as

and that

Ward, "I am not
my other habits

corporate incomes!"

on

?

I

in numbers

_i_

_

expound;

too,

us,

R.

concept
of
justice
equity—tax or otherwise.

and ex-

grow

incomes, then it is

Examines H. R. Seven

they

it because

Is

it

graduated tax rates

author for his

dissolution" of large

like all of

see

cursory examination
Seven reveals these in¬

ir*

more

larger enterprises, and to
V; freeze the size of our smaller units

22%.

as

a

every

national

our

In

"If

frankness, at least, in voicing the
hope that one of its major results
will be to force the "voluntary

provided jobs for hundreds

thousands?

type of legisla¬

its

commend

to

to

vincing and—to me—the most ut¬
terly illogical argument you've
ever heard.
They say:

the wisdom of the measure, I want

industry—

own

reasonably

afford small business is a
blessing, at best. In fact,

the

Yet under

means.

low

as

even

H.

other

many

disputable facts: That it completely ignores the basic principle of
"ability to pay" which it professes

its supporters have the most con¬

the integrity of the pro¬

or

of

short, they believe in
ing small business in any way
is legitimate, reasonable and
And to prove that this bill is

ponents of this bill; and while I
do question strongly the logic and

ones

number

a

—

our

this

about

backbone

—

size.

and

cerity

it because

Is

pand

I may, at times, seem
somewhat emphatic in my state¬
ment of them; but I should like
to make one thing clear at the
outset: I do not question the sin¬

know—

us

have heard of
editor of a small¬

many

Well, unlike this ulcerous scribe,
do
have
some
very
definite

tion,

the

in

TT

of

in-

is

the American peo-

us

they want to

a

views

0f

So

•

designed
to
appeal
the public at large.

economy; and

bitter!"

been

that—as

true.

of

self-same

is

newspaper.
When asked
position he intended to take
burning local issue, he re¬
plied: "I haven't made up my
mind yet—but when I do, I'll be

I

to

Seven

R.

the

on

—at rates

•

pie recognize that small business

what
on

H.

that

nke

town

singled out, over
years, as the prime" targets
political attack.

And

is

the

are

may

aid which this bill would presum¬

ably

But

vestors

afford to overlook

we

can

fact

strongly

for I
hazard to

major

a

irascible

the

in

have

as

Doubtless

most

that

it

regard

doing the most for
the largest number of individual
citizens

we

conclude tnat the widely-heralded

ceived.

businesses de.

geniously

today;

you

small

these

Nor
the

America's future.

very

successful

with

discuss

to

colleagues

that

which

pend.

distinguished

the

by

man

we

na¬

our

structure.

lectively—through the corporation

-

industrial

our

think

I

So

they would also be taxed individ¬
ually, on any dividends they re¬

this

corporate

of

be atomized in the national

One of

smallest business units in
tional

And after that, of course,

Seven

long run—than the widelyexpounded doctrine that big busi¬
ness
is
a
menacing evil which
interest.

of 52%.

the fundamental purpose

in the

must

rate of 7i%

basis of our earnings last
instead of at the current rate

this bill, they might be taxed col¬

dangerous

more

at a top

the

year

wiping out their biggest custom¬
ers
as well
as
the principal sup¬

Congress

dangerously weak.
And among
all of these, perhaps, none is more
immediate

be

petition, taxwise — would impose
heavy
penalties
on
business
growth by corporations of any
size—not merely by the so-called
"super-giants" but by even the

pliers of the basic materials upon

moment, it appears that

gentleman from Texas, Congress¬

therefore

are

the

under

proponents of this type of leg¬
are
uniting their forces

the

which

to

of

Yet

of considerable

beclouded by other

hazards

earnings
mills.

our

these people would
taxed, collectively, through the

on

at which the bill is

islation

yet fully alert, and against

not

are

to

seems

in

Seven,

corporation

in favor of the passage

one

R.

It requires no imagination at all,
however, to perceive that this bill
—by abolishing equality of com¬

dubious

the

greatest

it

workers
H.

per

hand, the in¬
small, closelyheld corporations are often people

of course,

But

"gradu¬

a

:V-

bill—even though the de¬
struction of the "super-giants"—

corporations.

At the

future is also

sand to
of

"progressive" income tax

or

■

nerve

$5,000

less than the

aimed—might
seriously affect thousands upon
thousands of small businesses by

on

times.

our

impose

measures

>;

,

pocketbook

American

than

was

Thursday, May 30, 1957

.

largely behind one of these bills
in particular—a measure that was
first introduced in the previous

political field because they stem
from

of

rash

a

would

which

the

in

as

in

business

of which

the

if

were

And 'that
average
annual

of
people is as sensi¬
tive
as
our
practical politicians
have always believed it to be, we
might logically expect that within
the business community itself, the
corporate vote would be a thou¬

being offered in a number of dif¬
disguises and in a surpris¬

of

the future—and if we do not per¬

vVv

So

the
v/e

less

"year.

taxes

least,

White Horses

on

comes

their

A Tax

people whose total in¬

were

thousand corporations would

.

.

ranged from a minimum of
a maximum of 6%.
Today,

you

those rates have
to a minimum of
maxmium of 91%!

know,

"progressed"
and

a

Resulting Consequences
But all

this, of course, would be

only minor importance should
big business really disappear from
of

Volume

185

Number 5642

.

.

.

The Commercial and Financial Chronicle

(2527)
the

American

Just

-•

think about it

industrial'

scene.

VV

f

be

able

to

search

develop the

the

new

earth

ple must have in this second
we

are

that

in

the

kind

produced

of

or

that

machines

will

able

gigantic and complex
shall

we

national defense?

abstain from excessive

lines

that twice in the

have

LONDON, En£.—The downward

Twentieth

proved

salvation of America.

to

be

the

And where,

price trend of British Government
loans

is

much concern

causing

t h

attempting to unleash
upon our cities the flaming Hell
of the hydrogen bomb?
V'-'v

the

"Fragmenta¬
pne iof the
most decep¬

plausible, and
dangerous measures

debt,

as
.

our indus¬
trial system. And unless the Amer¬

of

is by

creased

point

view

that

Congress

will

find

of
Or.

irresist¬

Paul

Einzig

which

of

any

us

an

issue with

afford

can

temporize; for if I

cripple the American

and

to

self

America's

sap

to

seeking

were

economy

of

powers

defense, I could hardly hope
a device so
perfectly suited

to find

to

needs

my

as

H. R. Seven.

when

month

the

income-

tax deadline rolled
around, I read
in the papers about a

corporation

which attached to its tax return
little note which read: "Ours is

non-profit-making
didn't

plan

a
a

it

that

but

way;

Well,

I

perfectly

am

the proponents of

corporations,
ever

but

"

our

should

prevail,

I'm

very much afraid that that is

the

With

White, Weld

-

CHICAGO, 111. — John C. McCurdy has become connected with
White, Weld & Co., 231 South La

;

Street.

With J. M. Batchelder
(Special to The Financial Chronicle)

Jr., has become connected
Joseph M. Batchelder Co.,
Ill

Devonshire

of

the

&

liable

are

Bill

sake regardless of the
nomic arguments involved,
pendulum

This

But

flavors

of

New

Higginson Adds

BOSTON,
Spellman
of

Mass. — Francis R.
has been added to the

Lee

Higginson

Corpora¬

tion, 50 Federal Street.

more

tnem

among*

(Special to The Financial Chronicle)

V.

ANGELES, Calif. —Allan

Abbott,

Jr.

with Walston &

is

now

connected

Co., Inc., 550 South

.Spring Street.




in

the

solely by

volume

-

of

loans

of

the

capital.

the

Dogmatism
Britain

over

has

prevailed

common

The

in

even

prevent

this does not

400

and

certificates

000

gondola'

hopper

cars,

now

dustrial

rates

Under

they

we

do

not

nominal

A 5%

value-

the

of

yield barely

annual

increase

conservative

have

of

restrain

to

the

Merle-Smith; R. W. Press¬
prich & Co.; Freeman & Co., and

McMaster Hutchinson & Co.
,

replenish

:

With Hannaford & Talbot

their holdings of Treasury bills by

nanndrora oc i cuoui

keeping down and reducing their
investments in medium-term Gov-

„

SAN

.

FRANCISCO,

Calif.—

Philip B. Taylor has become conand nected with Hannaford & Talbot,
the Treasury will
eventually re- ^19 California Street. Mr. Taylor,
vert to the Keynesian policy of *h<? has been in the investment
ernment

funding

loans.

de.fun(jing.
p>ken

This

operations

will

make

too costly

Meanwhile

policy

means

the

business tor

mis-

Joins

many years, was

merly Wlth Hooker &

depressed

a

Fay

jn

Hooker & Fay Add

Paine, Webber

(Special to The Financial Chronicle)

(Special to The Financial Chroniclb)

SAN

piprPP

Fenner

FRANCISCO, Calif.—Ben-

With

£?

J?

W

'

Rennp

**.1111

Francis

Mr.

1

Coblirn, Mlddlebrook

-

Qrimley is

with

CoburrT &

Incorporated,

390

previously

was

Du Pont & Co^

.

Charles S. Godnick

WORCESTER, Mass.—Ernest F. '.
dlebrook

Coast Stock Exchanges,

Copenhaver

(special to the financial chronicle)

Mid-

Charles S. Godnick passed away

May

Main

17th at

Godnick

Street.

was

the

age

senior

of 70.
partner

Godnick & Son of New York.

EVERYTHING COMPLETELY REVISED

I

in

is

by

OVER-TH E-COUNTER

level,

doctrinaire

raising

1957 EDITION

infla-

prohibitive

a

en-

Common Stocks

interest

On Which

CONSECUTIVE

countries, such as the
for instance, it has
to be feasible to bring

whole

the

amount

of

a

expansion

hait

without

the

more

or

the

less

to

story

has its share in

the

of

success

high interest charges, and further

bills

hundreds of million of pounds are

responsibility

the

loans.

paid by industry. As the interest
charges paid by the latter are
passed on to the consumer, the

This policy has been thrust

the

Government

campaign

by

that

an

has

been

proceeding during the last year or
two, putting the blame for inflation

the

on

excessive

volume

of

Treasury bills.
The

liquidity

assets

to

ratio — the
easily
realizable

of
total

assets—of

British

banks is 30%, an increase in their

lioldings
that

tunity
to

of

limit

Treasury
provides

and

expand

standing

bills
both

temptation
their

any

above
oppor-

for

them

credit, notwithofficial policy aiming

result

of

high

interest

rates

addition to inflation,

an

.

would

induce

have

banks

been

not

to

wiser

to

full

make

0f the increase of their liquid-

ity

ratios for expanding credit,
But this would have been against
the dogma of pure laissez-faire.
Those

tained

On

titled

to

bankers

lend

to

are

orders

printed
Of"

on

above

of

it

Commercial
Wm. B.

without

&

Business

more,

cover

further

Financial

firm's

your

with

the

words

fully

en-

is,

they

are

within

rights to expand credit

so

their

long

as

will

be

"Compliments

charge.

Chronicle

Publishers

our

Market

order

—

Growth"

for

"

booklets

of

"Over-the-

Indispensable to Investors and Nation's
and

accompanying

dividend

Firm Name

Address

By

name

Place, New York 7, N. Y.

enter

Counter

or

front

Dana Co.,

Park

Please

100

the

the utmost limit

set to their lending by the established principles of sound banking

—that

20 cents each

15 cents each

opposed to this policy mainthat

—

200 up

25

it

BOOKLET

1 to 199

Mistaken Laissez-Faire Policy

use

argument is that, since the

traditional

net

have been

ag-

PAGE

COST OF THESE BOOKLETS

Thanks
orthodox

millions of pounds are paid out by
the Government in unnecessarily

for the unfavorable trend in
longand
medium-term
Government

60

—

having to burden
and industry with

taxpayer
prohibitive interest rates.
to

Treasury

DIVIDENDS

5 to 173 Years

States

proved

,

not the

CASH

Have Been Paid From

and vocal adherents

other

credit

by a long way. The Treasury's
policy of aiming at the reduction
of

forand

Walter C. Gorey Co.

gilt-edged market.

—

banks

credit

orthodox

numerous

United

con-

Government loans.

is

are

Dick &

of this revived orthodox school,

in

investors

going for good-class inequities in preference to

this

esti-

to

and

wages

of

issue

secured^by1

cost $10,086,646.
.
Associates in the offering

.

their credit expansion necessitated

can

entire

be

mated

fur-

a

to

cars

The

sense.

of the Interstate Commerce Com¬

is

liquidity ratios of banks are now
down in the vicinity of 30%. But

Government

cooperation

effort to

est

pro-

is

sidered equities as too speculative
are

to

mission.

Treasury bills leading to a fall in
the liquidity ratio of banks.

safeguard themselves against the rates to a level at which
borrowing
depreciation of the real value of is effectively
discouraged. Any
their
investments
in
terms
of appeal to bankers to practice selfgoods, or even against the depre- restraint has been condemned by

proportion

With Walston & Co.
LOS

liberalism

the

expansion

upon

England.

(Special to The Financial Chronicle)

staff

that

Government

gressive

Lee

be achieved

campajgn in Britain, hundreds of

was formerly
Planning Corpora¬

according

side-whiskered

growing realization by investors
that'by confining themselves to

But

Bouley

tion

should

reduction

conception the only way in which
the monetary authorities are entitled to intervene to check credit

.,

Company, 80 Federal

Mr.

out-dated

demands

also at work.

are

the past would

Markoff have

4.50%,

tion without having to raise inter-

who in

J.

to

ideological dogmatism

new

they declined at the time

Inc.,

Gilbert

op-

Conof 1951-1957.

an

So

been added to the staff of Nelson
S. Burbank

Investors

the

under;the

list

Nelson Burbank Adds

Street.

the

nearly down to the level

prices.

(Special to The Financial Chronicle)

4%

maturity.

—R is not really Conservative but
re-

Absolves Treasury B.lls

with

in

eco-

to which

Vance, Sanders & Co.

—

swung

servative regime

recent

with

Stock
Exchange.
formerly with Cof¬
Burr
Incorporated
and

BOSTON, Mass.
Bouley and Leon F.

has

direction

posite

the

to

own

has

anticipated

the

was

ex-

them

credit

preventing

"lerce> *enner & Beane'

reaction

a

are now

-

*

cialist regime of 1945-1951, under

covers

members

-an'

which nationalization and physical
controls were favored for their

as

As

should abstain from trying to

their

Boston

Mr. Wall
fin

Street,

f

pos-

far

Finance

in

iqc?3!1^ s^mlr™nu-

this.

lower

weeks, as a
result of which Government loans

ciation

BOSTON, Mass.—John H. Wall,

,

much

a

nineteenth-century

Foremost

(Special to The Financial Chronicle)

Salle

at

duction of the bank rate
may have
been the immediate cause for the
trend

by

which

Government

these

the

War

their

ideological dogmatism of the So-

avoiding death duties.
of

World

dogmatism.

brought to an end the demand for
short-dated stocks for the purpose
Absence

com-

War.
This ill-advised policy of
re-funding is based on ideological

which

trend

years

a

over to

appreciably by the
of
"gilt-edged"
stocks, especiaUy as the provision
this

of

proportion

means

interest rate than the First World

affected

downward

the

debt

trust

to

as

short-dated

found influences
-

end

com-

position to do this
All they can do is to

of the Suez crisis.

it might well work out!

way

to be

of

floating

and

hasabec~
tM'
w'"1 !??
h^become affiliated added to the staff of Hooker &
Curtis M FedCTal StrJt
He w^ Fay>
221 Montgomery Street
„ev!ouslv wfth Merrill Lv^ch ™enl(bers °£ ,tha N?w rYo?„and

switching

Even

in-

had been able to finance the Sec-

and

extent

themselves,

to

be

demand

a

it

a

negligible.

when

invest-

their

funds

time

a

weak

our

national economy along with
counsel

in

securities.

a

planning the fragmentation of
larger

the

are

confine

of

graduated tax
incomes
are
not

corporate

their

banks

that

sure

pension

equities,
is

of

For, while insurance

funds have been

in

organization.

that's the way it worked out!"

on

ments.

panies,

sible

Last

We

large proportion

at

Reduction
the

the de-

preciation of

Clearly this is not

supply

plete reversal of the Keynesian
policy of de-funding, thanks to
which Britain and other countries

banks,

means

ible.

to

of

But such

the

Prefers Keynesian De Funding
prefers Kevncsian De-Fundimr

the

ponents may in time be able to
build up a pressure for its
passage

that

mean

'

be carried out.

From

no

for them tends to decline.

oper-

ations have to

pro¬

but

in

way

banks

of Goverment loans must

and

ican people can be fully informed
of its hidden
implications, itsl

is

be achieved

can

funding operations

operations

re-fi-

nancing

has yet been aimed at

there

since

which the end

in

funded

wheh

that

And

not

the

budgetary surplus to abby the rising level of
sorb Treasury bills, the only way
prices. The

in

burden

the

proposal is

most

been

overall

means

an .increase

..

.

tively

it

payer

at all costs.

tax-

s

e

Inc.

expanding their credit. This,
Issuance and sale of the certifiaccording to the dogmatists, could cates are subject to authorization

°rderto make the credit squeeze

Treasury and

nation from

'

in

Co.

A* u"ei'e<i ifk"

'
^72, inclusive,
The
certificates,
second
and
value should be kept down final installment of a total issue
by persuading bankers to of $7,715,000, are scaled to yield

and

and
ae

It has

claim

value

pansion

industry.
restriction.

to

&

May 24 offered $2,-

from

From the point,
effective, the Treasury must reor.view of the duce the volume of
Treasury bills

short, shall we muster the over¬
powering strength that could suc¬
cessfully discourage any foreign

In my opinion this
Tax"

ket,

argued
by
bankers
economists
and financial journalists that, in

official circles and among bankers

in

tion

credit

at

fully entitled

determined by supply and demand in the labor mar-

'

we

production

mass

are

Stuart
on

4^,000 of Reading Company 414%
equipment trust certificates, series

laissez-faire the workers

is

densome cost to taxpayers and

Halsey,
associates

the prin-

on

market

our

Where shall

the

great

for

need

find

Century,

be

ever

trade unions that they
their wages de¬

They feel that

market

Absolving Treasury bills from inflation, the well known
economist would like to see Keynesian
de-funding restored and
suggests persuading bankers to cooperate in credit restraints
instead of relying upon prohibitive interest rates and its bur¬

But above all where is the small

business

to reduce the amount of

ad¬

moderate

stocks.

harness the rays of the sun?

to build the

to

should

ments, and weak trend in government loans and in "gilt-edged"

steel, and that must yet unlock
the innermost secrets of the atom
and

dressed

exhortations

any

Treasury
Einzig holds this
re-funding policy partly responsible for: increasing the funded
debt burden, depreciating large
proportion of bank's invest¬

T-l

a

of

mands.

bills and to continue the high bank
rate, Dr.

research

Nylon

a

argue
lines gQ g0 far ag to dis_

such

Qn

approve

ciple of

Opposed to British efforts

Halsey, Stuart Group
Offers Reading Ctfs.

' Some of the dogmatists who

cen¬

And what small business would
then be able to risk millions of

dollars

their liquidity ratio is above 30%.

VI

By PAUL EINZIG

beginning?

now

r

Weakens British Gov't Loans

iron

ore, or oil, or any of the other
vital raw materials that our
peo¬

tury that

¥

and

of

sources

" "'

VV

01 rlllft LiilSSGZ-f Alio
of Pure Laissez-Faire "

iJflflimi

moment:

a

What small business would then

23

.Date

tables.

Mr.

in

The Commercial and Financial Chronicle

the

in

Continued from page

14

average

Thursday, May 30, 1957

.

Misnamed, Maligned, Meritorious

distribution

mit that included in this immense

Nevertheless, I think it is a

interested in

there

are

securities

unlisted

of

definite

very

reasons

arguments in proving to cli—

that

enls

there

equally good

are

of Over-the-Counter
craftsmen and the many thousands
of importance depending upon a of securities are certain numbers
number of things such as the size and certain percentages that we
of the firm with whom he is as- could well do without.
in

their activity
securi-

the scope of

Over-the-Counter

the

the amount, if
any, of their position that ho carries and, of course, the know-how,
of

ties

all

function in advising other dealers
regarding these affairs. It is very
obvious that this type of personal
and intimate relationship can well
redound to the benefit of the purchasers of these securities and it
js equally obvious that it would
j,e unwise and impractical to expect to be compensated for this

ganizations, but serve a similar

opportunities among carefully selected securities in the Over-theCounter Unlisted market. Along
these lines, I would like to quote
from an article appearing in The }Yere us.ed *?
±0J. ihe adver- kind of service through a miniFirst of all, as to the protection Financial World in 1917. Louis tisements With the firms alpha- mum commission charge. Not only
of the public. Vast improvements Guenther, Editor, stated: "In the helically listed. Coupon returns m
our chosen profusion but in all
have taken place during the last final analysis it is not whether a tde nature of leads were distnb- lines of business it is a proven
several decades. It is immaterial stock is Listed or not which gives Uted Pr0"ra|f by the advertising fact
that customers, generally
as to whether or not this was it marketability, but its intrinsic agencies to the iirms in accordance speaking, will pay an adequate

trader

sociated

to their own clients and sales or-

n0 one

now

are

family

important one. The role of
can be of varying degrees

most

It was obvious that

firm of average size could
afford newspaper advertising of a
general nature. Therefore, a few
of us organized a scheme whereby
various amounts were voluntarily
eoHtributed, divided into classes
oi $100, $200, and $300 for our local firms depending upon their
sl??^a?d willingness to go along
urjth the program. These funds

behind PIIF.

•

who will become

and

sprang up

practically iden-

of you who

those

For
or

ness

time

tical.

Over-the-Countei Markets:

The same idea which these businesses and over a period
in our minds at about of many years are not only a
tne same time was the thought source of information and advice

effective.

greater, and

were

that from 1950 to the present

they have been

a

.

.

(2528)

24

types,

forced on the industry by legislation in the 30's or whether we
definitely, that all |secu- grew up to the realization that
do not make good traders the customer's interests are, and

J? their financial contribution price for quality.

}

experience, and skill with which
he conducts his chosen profession,

merit as an investment.

I

consider and quite properly. While
Naturally, it would be infinitely that customers should be educated
I am not decrying the advantages better to have some national or- as to the experience, time and ex-

know,

rity

men

and

to

buyers

of

That is
first

stocks

should be, paramount. The inves- of securities that are listed, I at
tor today in both listed and un-. least cannot see that it is a mis-

that

think

I

extent

some

what the

certain natural attributes are nec-

,

to the project.

.

-

..

I would like to raise the thought

ganization that might be comparative with the Association of Stock

involved to provide such

pense

In:. the

service.

'

a

instances

rare

this line - listed securities- has available and fake" when & corporation «fails -to Exchange Firms in size and struc- where they- are then* unwilling to
manner does receive a maximum protecplace itssecurities on the ex- ture and finances. I am merely properly compensate for this servtion if he will use a small degree change. As long as a stock has in- bringing this thought out with the jce> you will be far better off to
or
musicians. nf intelligence, in the lirst in- trinsic merit .behind it, returns hope that some might have the encourage, them to take their busistiinff.
nnrl
nvnil
bimsplf nf the
ennH
rlividonds
nnrl
has hnrnp
rlr>cir/i
fn
nrmnnfp' cnmpfhinir
nf
the
average stance, and avail himself of the good dividends and has borne_ a desire to promote something of ness elsewhere!

essary to be successful 4n
of endeavor in the same

they might well apply to doctors,

athletes

lawyers,
Needless

n

ramtto

to

say,

4i

^

,.i

4.

.

similar nature

A number of basic

would

be essential and I

to

seem

/

fvJhWa

...

Tnthe^^chai^ter [he ^Tat?onM AssociatSn^T Se °u!ove or'interest in^his chosen pro- «ies < Dealers, and ' the various
industry groups that are in operaand

friends

or

ability

an

will

find

nvector and

You

made.

are

,

-i

and

hft

how

know

the

on

v

,

.

Publicity.
Those

of

local communities.

-

f? Quototton Bureau

win

trad-

entele and secondly, the ability to
add to the efficiency and financial

,

obtain material and data

may

encouraee

m

#»•

f ork

New

Stock

Exchange

and

m

local and national ac-

tivities

-to

-better

work that

they

them

that have occurred in trading and
the Over-theCounter transactions over

lor

doing.

are

period

In

my opinion, the
today's excellent means services provided by the National
communication, markets and Quotation Bureau, to a very large
transactions in securities are tak- extent aided
in ,bringing
about
a

years.

With

of

improvement in markets and quotations, with unceasing efforts oil
the part of various organizations
such as the National Association

Investment

of Securities Dealers,
Bankers Association

d

a n

Jocal

in turn, warrants proper reward,

Frankly,

do

I

feel

not

the

that

security firm or the aversecurity saiesman can develop
properly handle a sufficiently
large volume of business and make
a satisfactory living on a nominal

conditions that prevailed 20 or 25
volume, the
years ago. They are an absolute
and the efficiency of these trans- must for those actively engaged in
actions are,
in many instances, this type of business. As I am sure
comparabie to any other type of most of you are aware, they afford

ing

mission

sections of

the

country. The
markets
available,

a

market
^-o4S

xr

llCgOtl^UOIl

stances

greater

UliritiPS.

as

as

Vacs

fa

than

the

Listed

This has not been

markets.

in t?1? sale and/or Purchase of se- There is still
wpll
thnep ripsirilld

a

/Auction

VS.

vehicle in which those interested

in Chicago, Boston,
Philadelphia and many other cities
are carrying daily quotations of
comparative size and in some inpapers

Ka

easy,

great deal of prog-

a

mielo

intrnefmanf

onrl

commission

me an

basis.

The

exchange

an

on

of

trend

com-

its equivalent seems to

or

absolutely unnecessary one

and a sure method of cheapening

actual

the

that

services

to your clients.

rendered

be

can

I have

desire to enter into any

no

sion

as

~U „..1J

discusto what such compensation

l.

i4

1-..4

„

..U

.1 -7

these records

sure

am

astonishing

to

friSTL
Sf.ainjn{,

all business

as a

t

n(fw

New York Times, as well as lead-

well

groups, as

unbroken dividends records extended 120 years or longer. Three
of the 12 are here in Philadelphia,

trv

self has brought a marked change, some security firms and many seToday, the Wall Street Journal, eurity salesmen to attempt to do

and

the

j?

i

_

or

tele, between trading and invest- primary interest for stocks and of
ment firms in the same locale, secondary interest for bonds,
and between firms in all states which is
the direct opposite of

thousands

daily in

i

age

great deal of
education within the industry it-

place

-

average

of these changes. The National Quoinstances between firms andclien- tations Daily Lists are now of
ing

is

pay

opinion that the Unlisted market icic, I noted 12 companies whose

nar-

nave

in

these

of

a

tably in the bank and insurance
j.l

4K^

re^Sib fDemons ls^V?d- ,by t?a.t company and of regional exchanges, but slowly and offers an excellent opportunity for
thT development of
r° th?Se ,enSaged ln ?"rel-v the broadening interest on those in this field of endeavor to
trfderk^nd haveTtem par
? Over-the-Counter the changes the part of investors in the Over- furnish a broader and different
business.
traders and
tnem
j mentioned above
the-Counter securities, the vast type of service to its clients that,

ticipate

One

are

evaluate

to

dividends without
interruption.
While this is not
probably the most valuable yardstock, it certainly has a definite
place in our considerations. Certain Unlisted securities, most no-

thow in

their
their

there

know,

methods

of

ability to

nffmYlint;

In

nnwennn/n c

all

we

securities.

Profit Motive

■

actively associated
We folks engaged in the securiwith the Over-the-Counter busi- ties business have two primary
ness have spent long hours over objectives.
The first is the welmany years in the general field of fare and best interests of our cli-

fn

Quality

? .

As

number

*

us

newspaper quotations. Frankly, it
has been a long and tedious job

i

to win newspapers to affording strength of our business or the fields, have outstanding records
Available through the kindness. valuable space. for these quota- firm with which we are associated jn this respect. From a recent
"J lv'ri L. B Walker President of tiens..Naturally the great amount as well as to earn a livelihood for compilation appearing in the
' Natlo?al. Quotation Bureau, of daily interest has been in the ourselves. I am definitely of the Commercial and Financial Chronone

other

areas

fhanSritiUrained"
Mhln hlS nf their* extrerience

the standards of the

;nrjnstrv

leading members

many

iirtto!Srlv 1^

more

.tiop to promote the welfare of the

confidence

instill

wherever contacts

make

to

i

..

Newspaper Quotations and

would include

i'ession,

.

_

,

as a means

presenting the message through
local newspapers or in your

requirements

.1

.

traterl
not

sections of the

good
coun-

is

relatively

of

fact

that

hv

little

matter

a

was

localities

4hosc

a

vou

industry

where
As

are

of

some

our

hvanv

heim*

being

was

native

anv

'done

in

nerne-

Indians

and

rvf the Indians engaged

in the securities business!
It

the

is important to note one of
significant changes that has

taken place since the enactment
the Securities Acts in the 30s
that practically all new fmancinS both for new money and re¬
funding now takes place in the
Over-the-Counter Market. SecuriflPS
lnndpr
lisfpri
ni'P

py-

on

nn

-

^ *—

.

Counter

getting
sellers

market,
,

insofar

together * of

is

concerned,

different

from

"V"

~~—

the

as

are

those

on

of

entirely

what firms

the

ested

ex-

in

are

""V
means of advising

There is

securities

that

dealers

specifically inter-

various

securities,

The

daily service, as we see it, appears
to be quite simple, with pink and
yellow sheets being mailed or delivered by hand to the various

market where the buying and sell-

orders are assembled at one
point and transactions resuit from

ing

highly efficient and thoroughly
dependable system
On the other
hand
basically,
the
Over-the-

a

is one

are a

thousands

changes.
As we know, the exchanges are, m essence, an auction

Counter market

—

.

likewise,

buyers- and

of negotia-

tion and many different faculties

pcii

in

wok

in

tiicn

iwdiiucs.

question in

no

mind

my

listed securities exists, and insofar
livelihood will permit, more
accurate and closer quotations will
as

a

help materially in increasing interest in this class of security. An
overwhelming majority of secusubscribers.
This service, which rity
buyers at least like to see
originated in 1914, collects, sorts, their securities in print. The quocompiles and distributes this vast tations themselves materially aid
amount of information with
a
tnose distributing this type of seminimum of criticism and an apcurity to develop customer interparent

ease

that affords

no

ind'i-

est;

Kiiow-now,

made to

broader opportunity for Un-

a

As

'many" aV aware,"

tre-

a

ume

ana

invesinieoi

give the service

we

are

securities

are

referring to.
-

insofar

enneernerl

as

T istoH

to

a

verv

laree

^Commissions charged
^
hP fQrttha^

iv

extent

are

solelv

t

}"e0?Snahle
on

ment firm

o.

a

the

re-

invest-

salesman would cera

Saktag

of

Dart

^deterrent

personal

„f^individual

from

o^rolongS
securities

do"dyt wish"tolnfer fofa

Over-the-Counter
purchaser actually
len'ds money to the corporation
and if he subscribes to stock, he
furnishes the money to conduct
or open up the business.
Subsequent transactions are merely be-

floated

in

the

Market' the

exhaustive

fM

the

and

^.

Market is the fountainhead of our
capitalistic system since it alone
provides the sinews of money necessary to carry on our free enterPrise system. * When bonds ;are

I

moment

tween

individuals

and

connection" with'" the"

have

no

company

^g^t^rs^a^d
the"'some*

changed during

that I have been associated

years

with

5this do" kSm'efS d^tributioh'of th?s™quotat"ons.nd that substantial sums of money are
3d service
not spent for services and statis-

the

securities

business

manner.

and

I would

in close touch with trading operaIt is pointless for me to

for

endeavor

to

January,

merits

the

lions.

of

argue

two

as

to

relative

markets, but I

do know in many, many instances
of unlisted securi-

sizable blocks
ties

are

the

transactions

hardly

a

skillfully negotiated and

ripple

on

completed

with

the price struc-

ture.
.

I

sincerely

believe

Over-the-Counter
NATIONAL
KET

as

I

that

market,

SECURITIES

or

the
the

MAR-

would like to call it, is
in many quarters,

ever

might call a revolutionary idea, at
least at the time, worked out by
a small
group of us in Philadelphia for the primary purpose of

Quotation

Bureau's

In-

dustrial Average.

There is no question in my mind that these averages

fairlv

were

and

accurately

compiled; that they were not in
any manner selected for the resuits that would be shown.
lieve you
to

find

ance

I

be-

will be quite surprised

that the market perform-

of the groun of unlisted

secu-

margin in its favor. To show that




few have

very

National

rities

I would be unfair if I did not ad-

"

assume

heard

not

investors or security holders but, likewise, in the
securities industry i1 self. Frankly,
a great deal of this is lack of understandihg but on the other hand

I

1957, between the Dow
Jones Industrial Averages and the

misunderstood

only among

Investment Firms

careful consideration charts
which show a comparison as of

this

selected
better

has

a

substantial

performance

was

not

at the cost of income, a corresponding chart will show that for
the period 1939 to 1950 the yields
of the unlisted securities included

listings

department. To
Another proof of the extent of
a great extent, however, this has
the Over-the-Counter Market is
to be confined to the larger firms shown by the daily listings in the
tical help in this

Pennsylvania Institute of

particularly recommend

of PIIF.

derstandable

finding
to the

ways

That

as

is fully un-

PIIF

and

what I

was

mTanTtHrinJ

investing public the story

of the Unlisted securities. PIIF

ran

series of large newspaper advertisements in Philadelphia, starting
a

in November, 1950.
of fact
the Charter

As

a

matter

+hat^an TffnrH

tn

rnaiTe °su"h

ex-

although

inner

4.

sinm

.

,

4,

its

ppaspH

-vr

v

PIIF

still

activities
ThP

c?*

pH.

Service of the

tt

instances a more personal January, 1957, b,3UU. in tne same
association exists. It is safe to say manner the actual ilumber of hstthat practically all corporations ngs jumped from 4 200 in 1929
have some investment banker to 22,800 in 1957
In too many
either serving on the Board or quarters it is felt that the listing
acting in an advisory capacity or, of strcks is the ultimate. Ot com se,
in ^eu
this, in close personal this thought is encouraged by the

many

touch with the officers and affairs
of these companies and on many
occasions
they
make
personal
visits and inspections to supplevertlsinS °f bde New York Stock men^ other information. In this
Exchange is known to all of us manner certain firms and individand, undoubtedly, has been very uals become well identified with

survives

of

National" Quotation

The
ipnH tn^
Nat onal Quotation Bureau
The
^atfnn obtahieH th^^
normal numbef of serrate stock 'issues
Sf^oic
through normal number of serrate st
.
channe*suif 1946 f<W0 andin
In the. Unllsted markets, in l^ fa^a^'19fi4^04^0'ha: ®

members and officers of the vanous stock exchanges. It is extremely lamentable that many
individuals and, to a large extent,
the trade organizations* interested
in the Over-the-Counter business
make little or no effort to point

Volume 185

Number 5642

The Commercial and
Financial Chronicle

;

"CS52b)

*

by ,""°g" -

curities

leave

certain

of

much

to

It is very

be

-

not be

Challenge fox Management:

xsszrs^ss The Security; A
The Cost oi Venture Capital
i m,e Best

corporations

desired.

obvious from what I

have said before that investment
firms and securities salesmen can-

adequately compensated

on

i;.

and it is obvious that
their interest in
studying, follow-

ing, and recommending securities
automatically ceases upon Listing,
The question

to the advantages

as

disadvantages that follow is

not

•

necessarily

a subject of this
discussion but I cannot too strongly urge those who are in favor of
the Over-the-Counter business to

.

«

,

^,uuucs

«vw

mc

check,

sized

Unns not bsted

important phase of chance
securities industry and that
Anally
is
is

tunitv
tunny

to
to

not
not

not

are

served
seivea

given

share
snaie

in
m

if
it

an

vour
youi

oppor-

of
oi

some
some

thes(»
tnesv.

securities.
statistics

I have presented
may be new
If
this is true, how even more 1mmade

available

should

be

factual

and

there

F

Rlanev WitK

oianey

'

VUUl
^

Chesley & Co.
1

(Special to The Financial chronkjle)

CHICACO

Blanev
with

La

&

Til

has

Salle

&

Street

105

wvi

J

P

omcer 01 J'

Co

South

She

of

F

associated

Co

^

officer

an

Kathprinp

become

Cheslev

ouslv

members

rias

Grn

?• 7 i
listed

I

.

Blanev

i3ianey

|

.

*

j,

Lundborg

irvmg

(special to the financial chronicle)

SAN

their

common

cost

York

stock

oi

to

What lies
ings? There

behind-these

or

the amount

of financing, or the time of year
the company went to market that

coner

of

tested

our

the

over

man-

years,

substitute for good manage-

no

have been added to the staff

Reynolds & Co., 425 MontgomStreet. Mr. Falconer was pre-

ery

viously with Kostman, Inc.

borrowing of funds
all

other

of

companies

change.

facets

The

character

of

well

as

of the

listed

as

in

operations
our

on

second
the

Ex-

in

the

is

Stock

Exchange
itself, and its role in our society.
The third has to do with the broad

With Wilson, Johnson
(special to the financial chronicle)

SAN FRANCISCO

aid E. Davis is
Johnson &

Calif—Don-

now'with Wilson,

Higfc'lns, 300 Montgom-

Cmft StotXhaMf
i^xenange.
c^oasi

Pacific

£>iock

With

\\t

l

Walston

Otait

fa7orr7oa7nrec?atowh7thev

^TnflueneeThTcTsfo'^ai^
money, we have to look first, I
believe, at the investing public,

today

approaching the market soundly. They have taken to

(Special to The Financial Chronicle)

ahead

*

*

in

terms

of

the

The first is that

can

are

a

£

,

Every

shares

have at least 300,-

outstanding

have

holders.

at

least

wilier

after

must

show

net

a

$1 million
net assets of at least $7 mil-

and

Each

be

must

leader

a

in

*

its field.

R.

securities

listed

loom

that

financing
one

as

the

out

reducing

;

most

.

important is
obviously see

distribution

key

a

And

in

costs.

of

wide

To

vital

are

underwriters

that
the

there.

market other values

cf this broad

shares

of

easier marketability,

to

has

become

with Dean Witter &

gomery

Street,

have

em-

underwriter,

0id issue rubs

off

the

on

new.

In

institutions are
limited by law or by policy to
investing only in our listed secuaddition,

many

.„■

ground

.

1?ird'
betore^the

away from tips, rumors
rich-quick schemes.

WUh
newspapers
across
the country
increasing their coverage of the
market
place, listed
companies
are provided with a unique form
0f daily advertising and publicity.

As

members

of

the

New York and Pacific Coast
Stock

Exchanges.




a

degree

of

writers

be

sophistication.

The

made

Finally,

change

result, even novice invesCo., 45 Mont- tors exhibit a comparatively high
affiliated

covery costs and the market
appears inevitable.

I

are

For

One of the companies which has

PerbaPs done the most extensive
re.seai;*ch ?n the problem, Union

in the

tronrf

relativelv short

a

Monthly

Invest-

pneo

;

-

we

ton

Tn0rnHn
Colorado right

^

r

nBotVl'nnt

now
nf

2r 11

that.the

bow

^liale f?11 Pioductioir may be, a
delegation of shale oil representatjVp«

recently

visiter!

Wncbinotnn

recently visited Washington

••

effort

to obtain

the 27%%
depletion allowance and told Congressmen that oil companies stand
m

an

:

h™„n

re^-

tofi^tost

bv

for

?vir^ 70?"miie PiPeline to tho
Coast.

billion oy l9bo just lor West

,

vemnre'monev mucKore <rf"it ' Several other large oil compam"n
l
eTS neertod before llies' includin=' tha Texas Co..
l,,hf
.nnnl
Ifift hillkm nf cities Service, and Continental
"""needs
of Oil, as well as the Dow Chemical
ve

ave

n

.

v

,

„

Third, these needed dollars are
available. They can be harnessed,
The equity financing
recent years indicates

record of
this. And

Co., own smaller
oil.'But

of shale

reserves

number of other major
companies do not have any.

oil

a

Equity is virtually the only small
with substantial

company

acreage

this fact becomes of paramount and in all probability represents
importance to companies that are the most logical way one of the
mcreasmgly concerned with the remaining majors might buy. their

difficulty and possible danger of way into this shale oil picture.
relying too heavily on debt fi- Moreover, since its half interest
nancing.
•.
with Socony is an undivided one,
.

—

,

Finally, for companies in which Fouitv should automatically benethere is a truly national interest, fit without the need of additional
new money generally can be ob- financing when Socony's tremen.tained
at much lower cost dous financial resources are em-

through

New

a

change

York

listing.

Stock Exstudies

bur

As

ployed to mine and market its
shale oil.

have shown, the burdensome cost

The

Middle East

situation

own

sim-

of

shareowners who

of all

hard

mand

Union Oil's shale deposits, for in-

additional income to be realized
from gas discoveries already made
gut' it js ajso true that America is, to date would appear to eliminate
as one writer has noted, "a whale
much downside risk at the current
of a success." We are continuing level around 22.
This makes it
age, and

decisions, great

cour-

considerable'imagination,

^deme™ buT^hkh"s superior °f *** ,substa"«al gelation
other. And
shall
Possibilities on the upside stem-

to

any

tinue

we

con-

building

it, I am sure, by
concentrating literally on what
Carl Sandburg labeled "an ocean
0f tomorrows."

siderable

issue

application

Over

of

the

Ex-

provide

to

assistance

companies.

new

to

the

our

con-

listed

years

we

have been callqd on to cope with

changing

our

business

organiza-

ming from additional gas discoveries

from

and

holdings
ih

_

i

that
_

be

by

worth

timp<5

mnn

oil

large-shale

may

nrcsont

^ 'es many times the piescnt

price of the stock,

.

Frank J. Walters, Jr.
Frank
,

J.

...

,

Walters,

roffin

«

Jr.,

associ-

Rnrr

Tnpor

Ray Hommes Co

Ixay I*omiI1Cb

A

porated, in New York City, passed
away

May 11th.

BEVERLY

Ray

«

JiH

n>

1

LOS
firm

ANGELES,

name

of

Spring

Calif.

Fewel

Street,

&

The

—

Co.,

has

453

been

formed

HILLS,

Hommes

been
XT

Now Evans MacCormack

Formed

u

(special to the financial chronicle)

...

list."

staff

able

a

"An

to

the

is

on

^d^o^ow^'lh'rrh Ic^ngieTeTo^ntX't afe
Exchange's
the

these

factors have suddenly
the production of shale oil

an .econ.omic civilization quite a unique speculation in view

tove'tLTpubhc3

that,

staying
and get-

of

occurrence

favorable

four

are

that

«

*

<

wjn

of

^

Second, there is a prestige in equate stock investments with the stance, contain roughly 8 times its
listing that can be a measurable New York Stock Exchange.
current proven crude oil reserves,
commodity in many ways. Listing
There is much in the above that
The fact that Equity is a sound,
improves a company's credit mav seem overly simple. This ob- well operated, profitable oil comstanding. At financing time the vi0usly is not the case.
Raising pany with excellent gas fields parhigh reputation attached to the future money will
certainly de- tialiy proven up and considerable

prospectus

and

production

j.Xstrvandthe naHmrenlfsion reaf.v to into up the necessary $300
Put
^
Pa
n enyjflon million
plants and the

the 80%

lessened.

note

advice

at

most

equity financing can, on the ply serves to emphasize the need
can
average, be cut almost in half be- for this country to develop really
qUickly, his risks are reduced, cause a company listed on the substantial reserves. And the risqhe amount of capital he must Stock Exchange can easily reach ing cost of
finding new oil makes
tie up for prolonged periods is the heart of the equity market— shale oil the next great "frontier."
if an issue
be expected to be distributed

an

ting

FRANCISCO, Calif.—John

Maurer

we

its

"broader share-•

as

~PPOnfl

pncouraepd

L

v,,.1.-

to

good

multaneous
made

must be carefully nourished and

stock-

taxes of

phasized the importance of get-

ArlrJ

/\aas

(Special to The Financial Chronicle)

SAN

And

that

reserves

What

10%.
Discovery costs,
completely eliminated with shale
oil, are approaching $1.50 a barrel,
And methods of retorting shale
oil are vastly improved. The si-

quiet economic revolu-

a

Each

1 500

Each

income

exclusive

holdings.

heart the content of the Ex- This, too, helps broaden share
W. Harder has become connected changes educational messages. In distribution.
And it serves ultiwith *Walston
&
Co., Inc., 265 these> we have stressed the risks mately to develop stronger cusMontgomery Street, members of ?nd rewards of ownership. r.We tomers as well. Thus, it is public
the New York and Pacific Coast have urSed the shaping of investacceptance
of the hallmark
of
Stock Exchanges
ment programs that meet specific listing that often prompts underranges.
personal needs.

prices.

another

**

^

SAN FRANCISCO. Calif.-John

npan

convinced

ex-

-tnc secona is tnat tnis trend

Everv

i!1
vote.

economic changes — particularly
the trend towards shareownership
~~Lhat
sbaPing the future.
rities.

Tbe great majority of people

Cl

a

" ^

company
*
.
'

has nassed several

concentrated

are, of course, quali-

In any business enterprise there

lace W. Everett and Karl L. Fal-

has

stock

mi,o+

find-

ment and this reflects itself in the

FRANCISCO, Calif.—Wal-

disclosure

comDanv

jion.

first is in the experience of

SAN

oOft

ol

;

analyzed separately, item by item,
Rather, I believe the explanaof the New York Stock
Exchange, tion of the cost advantages I have
He was previously with
Reynolds cited lies in several places: The

r

feet,

square

u

i

company must

con-

Irving Lundborg &
Co., 310 Sansome Street, members

rveynuius

full

♦

listed

non-

Exchange

with

twn WitL R*»vnnlrl<t
rviui

four

tative factors such as the caliber
Wider Share Distribution Ease
of a company's management, its
Marketing Problems and Help
past relationships with underReduce Financing Costs
writers> its earnings and growth
As a result of all this a, feeling
P°tential that are not susceptible Gf confidence exists in the Stock
to statistical measurement. But Exchange.
Whether
it
is
exwe can' at least' conclude this: {t pressed or not, it helps explain
is not size, or the nature of a cor- {he broad market that exists for

agement,

one

°n thie EX" tion known

on

\

]lj3ted

their size, paid an average of onethird less than their non-listed
■

pect.'

Th

financing at

explains the cost advantages

(speciai to the financial chronicle)

of

space

insists

the

in

Calif.— listed companies seem to enjoy.
become af- These factors were weighed and

& Co.

a

J-'*

^mailer

comparable

Stock

any

^couragea. ror a relatively snoit
machinery ach} tests. For example at the
e
unbelievable output of
completed m-esent time
each
new'lv-listed oa}' ®co"omy mu®t be multiplied

light
products

metal

to

South-

Smaller

engaged

of

and

what

midst of

FRANCISCO,

Bruce A. Merickel has
filiated

the

-Association,

companies

half the

of

Association

poration's business,
Joms

several

were

of' parbcula^ interest
llems. ,01 Parucuiar interest
associate

counterparts.
IT

atti-

w

the

scholarly and not emotional.

the

competitive

underwriters; practical even now. . The price oi
listing; constant crude oil has been raised recently

+l°°r that+accKuratcly r4e" ownership." It has resulted in the
l
thv?
by - minute, spread of a "People's Capitalism."
h™rrby-h.our> day-by-day value Millions have ventured billions
f thCir lnvestmen^' ^nd they Gn our recent growth.
know, moreover, the Exchange

Ex

our

public cerns.
And listed producers of
Our approach to this heavy machinery, no matter what

and clients.

subject

to

on

items

portant it is that this information New
be

enjoyed.
Tftey include
tude of the nation's

to

'

manufacture

Some of the facts and

duced from these shale

the chief fac-

are

have
covered,
there
things I would note:

averagedW^%llsr thanTimiSrHhere iSn

most

Welfare"
vveiiare

These, then,

They find this reassurance on
the Stock Exchange. They see the
great bulk of all trading in a particular security narrowed down

us

clients

.

essential feeling that despite the
But they are
important, I be- practical now in the opinion of
known risks, they can invest with lieve, for what they tell of the
som^ experts.', And even if it is
confidence in the openness, li- immediate past and
suggest of !lot feasible financiallytoday, it is
Quidity and honesty of the market the immediate future, r Hence, it bound to be comparatively soon,
place. ,
I were to summarize the years for a further increase in both dis-

-

interests of the "General

are

examined corporations erally by investors.. They seek,
*n &r°ups of various asset' sizes, "'in other words, reassurance — the

,

the

xney

we

a

the best

investors,

.

Conclusion

You might suppose, of course,
the prestige of
that our listed companies are
When investing, they look for publicity; and the help of the
generally larger than other cor- a flow of information about their Exchange's staff. I would stress,
porations we studied. Therefore, companies. They expect the right
course, that the cost figures
their costs could be expected to to vote. They want a continuous cited in our study provide only
he lower. Our study took cog- market, and a ready appraisal of a useful guide to the future. They
Jhzance of : this.' As y a further how their stocks are rated gen- are not an absolute measure of

We found two things that merit
reporting. The first is that when
The Preamble of thp ronstitu
very large listed companies —
tion contains
Clause entitled "to those Wlth assets over $500 milPromote the General Welfare " It Jion—went into the equity maris needless to sav that generally bet their costs averaged two-thirds
sneaking
we
in
the' securities below those of companies of combusiness do
and
should
alwavs Parablislze elsewhere. • And seckeeD this ohiective before
I °" '
smr bs*e4 c0!nVa"
sincerely
feel
that
THE
NA- nl^ST"T
assets of $25 million

a

„

J

buying for the long-term and 86%
are reinvesting their dividends.

constantly on the alert to put
forth the other side of the
question,

prises

,

are a good illustration.
concentrating heavily

iiisuiuuunax

entlre lLfe of the security.

be

TIONAL SECURITIES
MARKET,
as
I Would like to call
it, com-

__

,

,

^uwbynon-mem-

...

firms

and

.

companies to issue prePlan
red stocks and bonds. Here, They are

-

the basis of stock
exchange com-

ber

iii

™

•

t-v

with
•

offices

at

business.

—

has
120
in

J

El Cammo Drive
securities

Calif.

Company

&

o

n

1 g g
Officers

are

Ray L. Hommes, President; Monroe

F. Marsh and Frederic Walker

changed to Evans MacCormack & Vice-Presidents; and Dorothy E.
Company.

Knox, Secretary-Treasuier.

The

Commercial and Financial Chronicle

.

....

Thursday, May 30, 1957

m Mi

~

nnno

^

Growth

«

<■

2| Ufa

\fflA|

a

-

AitiUfll*n

Wmm MlVV*

iMIllJElvtt

f UI

growth, in terms of profits,: can.

from 9 to 6%!

profits subject to taxes is actually confidence in the future because
not profit at all, but an irrecover- we believe so deeply in the his-

Behind

these

figures—certainly

Here again has been evidence that wjtb respect to the steel industry
and the steel industry does not grow _is the clpar fact that wage costs
money to expand the industry and along rigid, automatic hnes, but are rjsjng far beyond increases in
meet the rising challenges of each must adapt often to meet changing productivity. This fact may be all
decade.
Self-denial, savings, and national and world events.
^00 evident to. ws: but there is
the absence of confiscatory taxaIn all, good progress has been urgent need for better public untion made
available billions of made by all the steel companies derstanding of the problem.
dollars to develop sources of raw and the 675,000 men and women.
The benefits of increased promaterials.
There
was
nothing who make up the great family of ductivity, we know, should genautomatic about such investments, steel employees.
Steel, to date, erally be shared in three ways,
They required
accumulation of has met its full responsibility in They can go, first of all, into defunds, risk-taking, and hard, re- growing with and for America.
creasing the price of the product
sponsible decisions in every case.
Now, what of the future?
to the consumer. (And the conAggressive decision-making, of
.
.
...
r ,
sumer, of course, includes all
course, was vital to the growth of
Confident ot tne future
workers.) They can go into inthe industry throughout the cenTbe outlook for the progress of creasing the worker's wage. And
tury. Every ton of new capacity the American people is bright in- they can go into profit that will
came
from a decision based not deed. There is, for all this nation, be used to pay investors for the
only on business sense, but on a towering opportunity in this age use of their money, and to mainconfidence in the future of Amer- °f
one great scientific advance tain and enlarge the business.
ica and Americans.
after another. But when I weigh
up until World War II, steel
It was never easy to decide to this opportunity, I tend to think prices either were decreasing or
organizations capable

effort built

marshalling

of

talent

men,

toric ability of the American peopie, fully informed, to make free
and dynamic decisions in the best
interests of the nation,
We believe there will be great
growth in America in the years
ahead-^not because it is simply
"in the cards"—but because every
American who is genuinely inspired by the opportunities of
growth will work devotedly for it*
We are confident the iron and
steel industry, conscious cf its re^
industry's expansion can be seri- sponsibility, will go forward in
ously impaired. If there is lack of the tradition of its First Century
public understanding of these of Service. Steel will grow with
basic problems, the problems will and for America — fulfilling its
increase and the growth of our basic part in the achievement of
economy will be affected accord- the bright promise of America s
ingly.
future.

1

decide

to

spend $1 billion for new capacity.
was it simple, in that period,

Nor

t

T

de-

research and

continuing

for

The expansion of the
criticized as being "ex-

velopment.
'30's

was

cessive,"

p

f

.

management ever made.

So the steel industry

fs vLt

and vital

thousands

world's

of

miles of

thousands

ways,

new

of new

high-

schools,

1957 —this

in

America's

is

It came about not

record in steel.

but

of advanced new products
services now standing at the

the

faced

to be

better

know

one

growth
anywhere could

than

steelmen
the

decision-making

hard

nroblems

increasing

in seeing this

continued. No

the

plan-

addition

of

million

five

tons

of capacity in 1956. No one could
be more aware of the enormous
of

task

$1,200 000,000

raising the

required to finance that addition.
No greater problem has
ever
faced
the

the

industry, in fact, than
current
problem of getting

for growth

money

mounting

highly

a Period of
coupled with
provisions for

in

inflation

inadequate

lndustrmi depreciation
The past year has also

required

record

research

and

investments

technology.

in

And

this,

cer-

tainly, is in keeping with the time.
The nation as a whole has spent
more

for

ment

in

these changing needs, a large part

had to shift its
product emphasis from the lighter
strip and flat rolled sheets to
heavy plates and structural shapes,




iargG

mGasure

bv

inprpadnd

riniiar*

tbe WO's which rest upon the force in the stable clerical
sharp rise in the population curve service lines of work, rather

and
than

sav.

h

h

f

;

nrtnctantiv

rjsing prices

e P

!

•

dollar can be expected to continue
l°ng"range decline — a fact
which almost forces portfolios to

in the far more cyclical factory
work which has always been paid
on an hourly basis and which
represented the bulk of the work
force a generation ago.
Based upon the prospect that
our national purchasing power
will be sustained, investors generally expect business to continue
at a high level over the next
several years — a prospect often
described as an economic plateau.

bere

tbe institute's meeting

,

Plateau

^°daybse PddedaPfa

a year ago, I devoted the sum total
While 1957 has not experienced
y
million tons a
my remarks to the subject of anything comparable to the booms
e
on tons a depreciation. What I said then which hit consumers' spending 111
y
\
imDOrtant t
nlan f
th-_ applies just as strongly now—in 1955 and plant expansion expenth
b*Jt it ■ eQuall ; 0 fact, more strongly because an- ditures in 1956, business has operS
to'keep before the American other year has gone by without ated durinS the first ciuar.ter at a
™
that
the relief.v Replacement
costs have very high level. Industrial proP®opje u11s cjlear la :t. tn;at the gone up further> but replacement duction, as measured by the Fed,

growth

are

"

t ,

1070

But the dvamics

expected to develop cut of the
70% spurt in family formations as

are

our

huge baby crQp

reaches the

marriageable age. This will supj an aimost insatiable market
for homes, cars, appliances, and
the industrial raw materials upon
which they are based. In addition
becoming increasingly allowance under the Federal tax eral Reserve Index is down only to this OVer-all growth, investors
becoming increasingly lawg remains unchanged.
about 2% in spite of the continued have every reason to expect tre-

cnucai.

Steel companies, therefore, con-

Cost-Price Inflation
At the root of these problems,
very largely, is the incessant cost-

money

occupation

hedge
„
Dynamic 196»'s
Ane uynamic i»oy s
protec-Most .inst"uti°nal ^
pect this plateau to be followed
by a breakout on the upside for
the 1960 s are expected to be both
Throne ™s is a situation of serious those possessed of raw materials
ankdetfrare aimost hound
over the long consequences but unfortunately and demonstrated research comshould be to the p9obIem' does not stop evey petence.
; ^ fxpand with the 25^ '"crease

past

industry

the

The

<2)

of greatest segment of our working

consumer

steel, in one way or another, is this decade, in which 42 million
part of practically every industry tons of new steel capacity were
in America, the same tremendous built, would have cost roughly $5
acceleration
must take
place in billion at construction costs presteel. Not only are the new steels vailing in 1946. Actually the cost
and
new
applications needed in has been higher to the extent
thousands of different ways, but that, for the same facilities, $3
steelmaking itself must use vir- billion of additional expenditures
tually all the sciences in its work, have been required. And I need
The past year has seen a major not tell you that this upward presshift
in
demand
among
large sure is continuing.
steel-consuming industries. It has
At the same time, for all corbrought the crisis in the Mideast porate business, and in terms of
and the call for a rapid buildup actual dollars,
the profits from
of tanker construction.
To meet which
a
great
part
of growth
the

of

(2) The dynamic prospects

the spiral ahead in
the techalmost
^7 wni Z It h0 Lind sure to develop out of the scienS.* Yi ,?"? _.„ayr
tific breakthroughs of the 1960's
sorjai><,Gf.llr;tv nnH
npncinn
Wl11 resu.At. in excellent business
ings
Th
(who again" 0PP0rtunities«
includes the worker) is affected
The buyinS power of the

and develop- price inflation of the past decade,
six years than The steel industry's modernization
in all the rest of our history. Since and
expansion
program
during

of

'out

infiatPH

And we know that,
"nge' '£ the goal
keep output abreast of population,
even
p

coming to recognize that employment stability has been tremen-

'^U^iSata'wiess dously improved by:

mTiafir term'

not

cene(j

research

the

buving oower of

industry can meet these

1998k"l

ning and the work that went into
the

have been so

• •

Depreciation Needs
buy a predetermined percentage
n.eeds.. onl5f. ,by going . £orvfrd
The industry is affected because of
^ a necessary
steadlly Wlth the expansion of its it parninff{,
inadeouafp for the aSalnst inflation.
capacity to produce. This year, all repiaCement and expansion re(4) The best investment
estimates indicate an increase
; d, while the costs of replace- tion against these developments
equaling, and possibly exceeding, ment ^nd expansion continPue to Hes in the equities of the bestt e mcrease of last year- Plans •
managed companies—particularly
Tbe

Certainly the past year has illustrated

m Th

on

outer space.

•

Problems

Increasing

unanimous in believing that:

PailoP

its key part in the development
of nuclear power, in electronics,
industry to meet the nation's and chemistry, and the search of

needs.

;

to commit these funds as they working conditions over the past
become available because the 20 years have been immeasurably
professional investors are almost improved, but investors are also

*7™™

and

of

spirit of the American people and
the irrepressible determination of
the

the

sweep

irrepressible growth, horizon for virtually every family
because of the irrepressible in America.
Steel must continue

because

m

Ami] Alfftf DvittfHUIP lQfifl C
AMM illlCI UyilflllilC AvVV 5,-

•

i!S

producer in
of the entire world
largest

to 40%

city

of

steel

of

*^ ^

m

m m

Increa'se^nn^heTndustrv^n order during 1957 and the yearS
V (1) The built-in social supports
1
f.li?
mausiry in oraer diately ahead at a very satisfac- like unemployment insurance, sojuf*? ^ W3gG .schedules'
tory . level—plateau is the usual cial security, pensions, etc.

supply the increasing
needed
to build

must

We

-

m

1870, to and other resources required by a .•<, +hGrpfnrP HnnP to tbo umriror —particularly
1890, swiftly expanding population.
th
!n^,mPr L thp
family formations—and
capaSteel < must power the
great itqplf Th_' w•nological advances that are

production in

England's

.ar.0

•

improvement

flow

one-third

,

1946'

.,

Markel Outlook Until ±
:,

_

-

^ince

labor has demanded and obtained
wage increases that leave no
margin for sharing the benefits
of increased productivity with
consumers. These demands have
steadily exceeded the productivity

advance> we in the steel industry
have a snecial resnonsibilitv that

tlon-

than

full

di^£

panics, recession inflation, wars,
and social and industrial revoluless

J

deiieve uiai iuu

-

.

,

has grown

through its first century-through

From

th

justification ot our outlook lies in
measure in winch all Amencans accept the responsibilities ot

decisions

wisest

the

among

American

,,

mv

that followed

years

be

events of the
proved it to

the

but

" my optlmlsm 1S Jus" ing benefits to all.
onf,-™;,,™
i„oti
V ?ut in the years

h*lip

* be,! ftveT TiL

assign millions of scarce dollars

to

A

,

„

,

„

in ways

.

I

Cnrttivupd from first naae

xurssx iasswayr&aus ■
S&ZSS&SiX SSSS
worriea; Ana ne f.aicf- 1 .m Jusl shared
that brought growto

i

These, then, are reasons why it
is hazardous for any Americans to
be lulled into the assumption that
growth is automatic. If labor
leadership assumes that industry
and the economy will continue to
grow indefinitely despite constant,
cost-price inflation, there is
mounting danger ahead. If needed
legislation is ignored in the belief
that growth is inevitable regardless of the depreciation burden,

sss-ssur.-si?•/~
denression

.

able cost of doinS business.

~

1930's

,

be given to the public—unless the
That is why we need to continue
real nature of these "phantom to promote a widespread underprofits" is made clear. There must standing of the facts. It is native
going into employee compensation be a wider and a better under- to the American people to asso-1
increased from 64 to 70%, while standing of the fact that a large cjate growth with responsibility:
the share in corporate profits fell Part of what must be reported as ancj we jn the steel industry have

corporate profits went down more
than 5%. Looked at another way,
the share of the national income

Attaining Future
Pn*

Understanding Required

tual dollars, went up 55% —but

-m.

e

Continued JTOTfl page **

must come have been de-

dining. From 1950 to the beginning of this year, the national
income rose 43%.
The cost of

tinue to recover only the original
cost of worn-out equipment—even
though the cost of replacing it has
multiplied two or three times.
We must point out again the
worsening effects of this tax policy. The steel companies are being
required to use a greater and
greater part of their so-called
profits just to replace facilities
as they
wear
out
Funds that
should be available to help insure
growth for the future are going
into the high cost of standing still.
This cost for steel is larger than
would be necessary in many other
industries that are not so heavily
invested
in long-life facilities.
But this only means that industries like ours are caught in an
extremely inequitable
situation,
because our capital is more heavily taxed away as it turns over

rolling correction that has low- mendous new investment advantages
develop out of the techradios, TV's, and appliances. Con- nologies being pioneered today,
sumption, as measured in dollars wbicb include the transformation
by the Gross National Product, is of.
up about 5%. This reflects, in
'
_
at0mic bomb into
Part. tbe higher 1957 price tags.
*
Dower
It also reflects the working off of dL
p
;
.
f

ered the output of homes, autos,

the business inventories built up
(2) I he jet Domoer into saier,
in the final months of 1956. As the faster, and cheaper air uausporiayear Progresses, is now seems tion.
likely that the momentum of
(3) The electronics, developed
business will pick up slightly, be- to guide the missile, into guidcause:
ance systems for industrial pro(1) Wages are being raised sub- duction automation,
stantially, which will provide a
(4) The high temperature
higher level of purchasing power metals from specialty to more
next faHgeneral applications, which will
(2) Business inventories will spiral the tonnages used,
have been adjusted.
In addition, the frontiers of
Institutional investors have chemistry will be expanded to
come to put an increasing reliance create entirely new products, and
upon the economic consequences new drugs will be found to im0f the national purchasing power prove the health and happiness

slowly through depreciation. —the bulk of which lies in the
It also means that an entirely hands of our 63 million work
compensation of employees, in ac- false
impression of industry force. Everyone appreciates that
more

of our people,
The dynamic

prospects of the

1960's provide the most

positive

Volume 185

Number 5642

...

The Commercial and Financial Chronicle

.

27

(2531)

tv
for

reason

buying blue chip equi-

ties today.

As will be shown, the earnings,
dividends, and market price of

Britain

than

more

tive

as

They

necessary

now

components

well-balanced
ment

viewed

are

trusts

committed

in

portfolio.

are

pects
eral

The

pros-

relatively

a

years,

high

dynamic

a

movement for

as

cline

the

stocks.

in

the

dollar

the

over

Therefore, it

sev-

has

military

of

cause

forward

which

additional
ate profit

rested

the

great

has

part

of
ahead,

of

a

the

good

a

slashes

foreign aid may be
by the present Congress.
our

in

enacted

clear that pro- T
Regardless of the philosophical
averaging to Sessional investors will continue to; merits of
the case, a slash in our
invest nearly one-third
of their feel that these blue
chip equities foreign aid cannot fail to
embarspiralling resources in the blue provide the soundest solution to
raSs
Pension

chips.
are

funds

1 rust

taking

both

departments of banks

greater

advantage

the

investment problems
will have to be faced.

of

ternTin™*," toSsfofthS?
S
their
■

cLi?c I

+VU-n

pLwj.1
Prudential
able

to sell

whose

"vari-

reserves

entirely invested in equi-

While

inflation

harmed

the

has

well-being

cruelly
of

force

enc^

the

have

is

a

decline, due to the

pricing British goods out of
If the present

10% round of wage boosts actualactual¬

ly goes
lygoe, through, their future

types of private debt

dis-

in

our

in-

leading

France
France

has
has

het.ter-halbetter-bal

a
a

the

economy,

factors

.

^

corpora-

to

521.05.

Both

the

of

cost

nrnfifl
Ph
1Q4o

havp

investorsr°thnatZethey
aroused

tion!
sise

to

It
of

the

are

dangers

the

hudffPf

"Businessman's

our

tion"

has

done

professional
with

nothing

subject
for

reason

divided

when

American

(1)

r

Go biithely

into

debt,

to

National

6 7%

ate

profits

only

bfll

$1 4

on

ferent

drudgery

default, the excesses
wb*cb have been built up within

hv

ing

e deb* structure,
Against
this
historic

calm

concern

cinnoi

of

United

,

bf

Therefore, the

J,945 spiral m consumer loans biland J955. While the $30 has

™"al.

a«^ted Urtoges'rLe bv^MS
rose by $94.5

The .institutional investors have

committed the bulk of their funds
in the shares of about 500 blue

States

and

companies

lion

Equities

the t°tal

comment, mortgages

,

lndif"

corporate

ana

«

taxes

perior facilities

huge

reserves

and

llCdSUUCS
treasuries,

o'f

rpspprr-h

nrnvpn

$5

some

million

unprecedented
recent

and the

years

continued

of

the

an

and

ratios

which

price

times

to the institutional investor-even
-even
though thev mav seem unreward
though they may seem unreward-

ing to

,

The
over

.

.

,

„

perience of A1

year

proviaes

a

splendid example. .Driven oy puplie enthusiasm over the
expansion

programs
minum

announced

by

tne

aiu-

industry, Alcoa spiraied to

p.hiirh
a

nf
high of *133 in spite of thp fact
$133 ,n snite nf the fact

that the $1.60 provided a yield of

only 1.2%.
.With

the

was

unacceptable

institutions.
block

of

keted

Yet

this

250,000 shares

the

to

winter,
was

a

mar-

2%
yield basis by
Davis, during one of
the
weakest
days of the "hair
curling" depression scare. Howon

a

Chairman

ever

inadequate

2%

a

yield may appear to

an

dividend

individual

investor, the record indicates
existence

of

institutional
of

dividend

joying

a

a

demand
return

the

sustaining

very

prestige

J?as fo."^

at

that

rate

for stocks

en-

comparable

Alcoa's.




to
I

have

This

since

these
have

tITww

managed
kept pace

is

surprising,

the

are

the

companies

largest stakes

in

power

^

^ below shows

o^the 30"Dow'Jone?Indus'

years than have

the total

corpor-

^

ateVrofflK

Dow Jones
As % of AH Corporations

$5.1 billion

.

3.1

23.7%

billion

the

ability

to

increase

their sales and profits in line
with
the tremendous increases
which
—

,

30 Dow Jones

Industrials

-$000,000,000-

—Per $1.00 GrossNet

Property

Sales

1956

$55.0
28.6

32.9

The ability of the 30 Dow
Jones

Property

Income

Sales

Net Income

$5.1

$1.13

$0,092

3.1

1.15

$62.3

1949

:r

of

the

)hp

ffrnw.u

due

in

to

lntroduced

faet

and

pri-

are even

tha^

that

new

those

l" investing for

longer term, there

the

the

0.104

For

economy.

il"!IT",'7 interfsted

.

their property
in the follow-

ing table:

Gross
Year

19.6%

:

better

contribute

significantly to the dy-

aia rre8hulta°fd
standin^ .ies^,arcb ana jthHej^ ™t- "amics ol <he 1S60'sdevelop,
ment work The new products of
Selections

their

been

able

to

maintain

profit

margins despite the
profit squeeze faced by
less
progressive
companies,

general
the

Je^TTie thousands. in the
"umber;,ng
ine

hundreds of

power,

For the period of economic
plateau that may very well be faced
with

foreign

profit
be

crises

margins,

advised

tions

on

to

and

poorer

investors

center

companies

would

their

selec-

which

have:

(1) A record of business stabillty.

:

late^qlo'^almo^fnevhablv^ore6

more^realistic than
m other Periods of

Korean

heing

Therefore

tinued

alter

iy^o.

the

inereiore tne

hold

to

the

bulk

of

their

dynamic

1960's,

investors

bl"e chip equities in spite of the center their attention

substantial

setbacks

which

many

which

panies

be

can

should

upon

com-

expected to

was the case
terest levels, wnicn nas been in
IIldlKClWlBC
marketwise since early April 1956.
.rf
.
,
iy /Af 1 11 1»JU.
V*/
(1) The uviiidinjo arising out of
demands
1101115 vui
fiy supplyjng the lendjng force for nearly three years, is an
By supplying
lending jorcneariy^tnree
y®a5®'.J^an However| with the p/o£if squeeze the 7
However,
profit
70% "
boom in family formainstitutions with a steady stream important investment considerabecomjng s0 general, it can be ex- tions.
0f repayment funds, their liquid- tion.
yvaj

uiv

V.C3W

xu

v/mv-i.

-

'

-

SlULC

.

oien

bas

immo,cnr-,Mu

also

improved

been immeasurably
However, the spiral in

private debt structure must
aiert professional investors to the
fact that all segments of our econour

rfe

and discounts

ing
have

foreign
picture
remains
discouraging even though Europe
weathered

the

experiencing

Suez
a

that might have caused
trial shutdown.

banks.

crisis

fuel crisis
an

indus-

Nevertheless, the

a

now

of

swing

While

which

resources

France.

With

raise

new

makes
our

it

terms, the stresses in the Middle

a

halt

that

the

flareup in
Jordan is probably only one in a
series
be

of crises that

will

have

to

faced.
The

world

real

disappointment in the
picture is that after eight

of

"
lead-

assets

temporary

the

industrial

Since

there

is

foretell at least
in

price
no

tremen-

so

the

rise

of

structure.

foreseeable

re-

laxation in the pressure for higher
wages,

0f

(Mr.

Reuther

has

to

influence

professional
piuicsoiunai

discon-

certing plans for 1958 negotiations) even a temporary stability

the

thinking

investors

the
mc

to
^

mvcawu

extent of limiting their purchases
and keeping them from develop-

ing a dangerous New Era type of
investment philosophy,

~ p
-

y y

(2) The enhancing value of

nomic

raw

eco-

materials.

(3)

The technological develop¬
ments surrounding
atomic pow¬
er,
the
jet engine, electronics,

chemlstry* and medical adv8nCe8-

Balance

at

equity capital

increased
may

such

risk

our

costly
to
private debt structure,

has

dously, but it

are

of

more

the canal is reopening on Nasser's
East

exceed 60%

most

fore, the potential supply of bank
credit is no longer far in excess
of the banking needs of the business
world.
Higher interest not

deplete the financial
and

to

if they are to continue to
expand
their loans and discounts. There-

only

Britain

appears

high level, these banks will

to

Suez crisis has served to
critically
both

trend

reality based upon the relationship of supply of and demand for credit, since the loans

than they the "
torTOTuid tto""" """ deposits of

ofThe war!

without

firmer

—

far less liquid
at the end

are
are

The

has

pected

This

have

International Problems

omy

Cell

a

uc

ity

.

,

-

,

such

rates,

return

■

advent

of higher in¬
Alcoa's market price
broke sharply since the dividend

terest

adequately.
which

billion

,

boom.

a",

market^experience of Alcoa
past
year
provides a

me
the

earning

boom

private investors.

many

but at

again

learned during the depression,
and 11 makes today's private indeMedness far

earnings

satisfactory

appear

.

Woi:1<^ War

of

support

whenever their market prices fall
to
levels that provide
dividend

yields

Interest is essentially the earning power of money. In the past,

the trend ol its buying

risen

sl(J^|r £,^te tban i!? .eitber 19.54

giants

Investors
(2), Low labor costs.*
Tbe ®ne mitigating cir- late 1930s almost inevitably fore- confidence inwill continue their
the blue chip equi(3) Promising new products to
cumstance in the debt situation is
thc ZvL now^
ties' unless and until the profit be/'ntrAodUted' °r,
the fact that today most forms of tne buying power _oi the dollar. saueGze whirh is
squeeze which
is being felt hv
(4) A convincing record of havbeing fell by
(4) A convincing
debt provide for their own peII, tl^e
affgi , general business should start to mg re-established their profit
nodic hqmdatmn during the usea"dp/phreat^st^ i^nsified the cut into the earnin& results of margins during he difficult pef"1 llfe
th® as^ts uponi.wbich downwardtrend ofbuvinenower these lead?rs-. Tbe record shows
nord oi lhe past 18+months,
ba^ed- Tbe amortization
inherent in
In order to participate in the
of debt ls the ^reat credit lesson which was inherent in the mone- that the instltutl°ns have conthe mone

during

assurance

investment

du-

or 1955,

day of new
the institutional
a

stability

significant

great

corporate

Companies

15.8

tions have

the trend of the

a

With

funds to invest,
buying has given these shares

very

existed

corporate profits
with the growth

stocks wmpares with a gain of they have made in
oni7 36% for all companies, and accounts, as shown

such

and

that they have

of

valuable natural

engineering know-how.

the

military

economy, the results of the
and progressively

30 Dow Jones

This 66% boost in the
profits of
the
30
Dow
Jones
Industrial

veryn«raiegic have

Plicate totals. While the official
net debt figures for 1956 are not
yet available,-it is safe to forecast

au_
su-

the ownership

anH

rp<;niirr>pc

customer's

names,

strong

BUUUK

our

all

pace

Companies

exclude

trade

not

kept

$21.5 billion

1949

been

fraction

now

lished

wm

While

have

All

Year

Canada.

making

are

1948, but there is

^iHion and corporate debt by Jar anlW a 81lracU01J at fde
$H1.5 billion. These are the net imPOIi neeus 01 oinex couiiuies. the research leaders have been so
d®bl figures as prepared by the
Higher Interest Rates
well received that these corporaDepartment
of

will,

the

has

(c) the far u:
higher expendi¬
tures being made today for re¬
search and development.

taxes

chip leaders. These companies are
distinguished for a variety of very
tangible reasons including estab¬
good

for

that

v.ri

1956—__

reflects

hilars involved 'account
small

Commerce,

built

Profits After Taxes

Except^nT mtgh" be°made"irtUhe
case

is

several

SthS3

companies with more than,
20% of their sales outside

the

of

squeeze

the

profits, including the facts that:
(1) The servile Tine's^the'fost

in

say,

back-

many

since Korea; and

of

"

affairs and currency problems to
limit his risks by avoiding invest-

or

facilities

amount

are

"P°n

performance

so

:emer^ency

un

i"e

Although the profit
the main cause, there

do.ing artificially expand
However, it does seem reasonbuyinS Power.
able for the private investor who
<2> Must
^ either is not too familiar with foreign

„

depreciation
companies
adopted since 1954, plus
the tax amortization
charges on

the

were

an

-

devel¬

rising commodity

our

rates which

Gross

iq^fi

omyO.7% of the
in the Gross National Product.

lu .s0

the

th4

Rv

after-taxes

eq/al to

of

which

have

have

of

Product

profits

price trends;
(b)
the higher

° JP; .+P
tU

„

adop-,

good share

a

otherwise

oped from

rw

Gross National Product had 'risen
by $203 billion while all cornor-

mar-

seems to be in the making.

and

most

$9n 9

her

investor does not need to be too
forehanded in preparing for the
currency
crisis
even
though it

between

the

|_-_f

K,,cinJ?c.
^

'

the past 30 years have
discounted foreign prob-

lems in advance.

be

may

people:

stocks.

„

periods

cycles

the

are

general

more

inventory

would

Pri-nrirQ+0

amounted

over

never

inflation, ground, it is discouraging to find
compelling nega- that our 'own private debts rose
buying common hy 180% to $400 billion between

which is the most
tive

to

business

conservatively
the

Administra-

investors'

the

Our

infla

qnhmittPri

kets
Debt

noTvet

of

might be noted that

nnt

h

nll

ta

the

the

costs

being

are

our

Prices,*

earn-

ings
and
the
dividends
have
tripled — earnings from $10.92 to
$33.23, and dividends from $7.06
to $22.99. The
advantages gained
by most employees and by most
investors have been so rewarding

(a)

were pen-

1948 by

vs.

tion of LIFO
accounting, which

Php

+

111.84

alized in 1956

in

as

npp«inaivWMtni-ntnWiMfl«e

altered, and unThe profit squeeze wbich jess they are
altered
it
would
tions.
The market value of theT*he
majority of our corporations seem that both countries are
Dow Jones Industrial
Averages has
avf
as
heading into a currency crisis,
risen
fourfold since 1940, from tei?ded to rise faster than their
The record shows that
vestors

collapsing

n

tax

ahead.

has eliminated

and

substantial

a

(3) Corporate profits

Profits

Profits

of

a

through,^^r i^dis-

While
While

foreign

rates

lhei- ris'ng costs have f-actors bearing

the world markets.

(i)
The
tremendous
postwar
increase
increase which has occurred in ail

interest

chance

reduction

corpor-

1953-1954.

continuing war in Algeria is bleed- tions.
(3) The implications of higher 'ng be[" financially. There are no
; (2)
Corporate
interest rates.
' Prasent signs that these adverse 52% vs. 38% in

,

same

economic

Gf

the Suez crisis.

vivfno'ef^ tnSter ts
-0VZ of K?*-15
true
the

nf

tettTrhi
years. The

ber

®four ?aet that
been

psychology,
we
find
limiting factors, which are:

(2) The possibility of

France,

Even the most radical cuts in
the British military expenditures
can
bardly be expected to halt

currency"crisis" developing Vut"of anced

their buy-

seen

and

gold and dollar reserves
have fallen to perilous levels.

Limiting Factors
,
•
" I +
U-1

1?"
Era

pen-

sioners, the bulk of the 631 million
work

1

England

whose

;

^

seeking

annuities"

will be

:£

A

which

m co.m?lon
bala£cln& Actors which will
ins"^ance .iad"s- Prevent .the four sustaining fac-

!c

trv

seems

are

upon

Although the current peak may
be passed there is little likelihood

Be-

over

proposed

pressure

little

margins.

aid, and

dissatisfaction

developed

the

to

assistance.

budget, it is probable that

power

years

boom

price structure would place

our

such

grams of relief, economic

continued de-

a

purchasing

financial

trade

finally,

entire economy

our

in the 1960's, and

every
Invest-

common

investors.

include

level of business for the next

overwhelmingly

to

made

institutional

stocks. Blue chip equities
are viewed as
speculacompared to high grade

longer

bonds.

in

in

condition,

are

great extent upon the $55 billion
generosity of the American taxpayer in regard to financial pro-

The

by general industry
that
they
have
warranted
the
confidence placed in them by the

dollar's purchasing power
has vastly altered the
attitudes
of professional
investors toward
no

France

gains

one-half

the

common

and

trade

precarious

ers

of

record-breaking

the shares of these blue chip leadhave
so
outperformed
the

Inflation
The loss of

of

years

s*

t

While it probably will take the

dynamics
the

the

of

market

out

1960's
of

to

the

present

broad

trading range on the upside, it should be recognized that
the

resistance

levels

of

Detroit Sees. Dealers

carry

last

Feb-

22nd Summer Outing
DETROIT, Mich.
.

ruary

also pretty thoroughly
Although the market
whole may be confined to
are

established.
as

a

and Michigan is holding its 22nd
Annual Summer Outing on Tuesday» June 18, 1957 at Western
Golf

abie

Road, Redford,

future, logic still favors the

ment

Gf

Policy.

economic

a

The Securi¬

,

.

these broad limits for the foreseecontinuation of

—

ties Dealers Association of Detroit

&

Country

Club,

near

Kinloch

Detroit, Mich,

Positive Invest-

During the
plateau that

period
is ex-

With

Empire In v. Co.

(Special to The Financial Chronicle)

pected for the foreseeable future.

IT"

T~

interesting

groups

individual

companies

that

thfe ar^ interestl^ f™UP:

every

prospect of running

of

have

ahead

o*DE^YER'k

Strank has become affiliated wl b

Empire Investment Compa
Seventeenth street.

y,

The Commercial and

Financial Chronicle

Thursday, May 30, 1957

.

.

.

(2532)

28

been

have

Continued from page

3

States

Free Climate oi

Initiative for

reaping substantial dividends from
atomic
energy,
both financially

wel¬
fare ol our people. These divi¬
dends are in the form of benefits
to industry, medicine, agriculture
and.
research
from the use of

Atomic

Commission

Energy

recently conducted a survey

We

from

.

the

all

estimated $400 million
through the use of radio¬
isotopes to improve the quality of
its
products and services. The

down to the

an

agriculture, through
strains and
the combatting of pests and plant
is calculated at another
million a year. Thus, the
to industry and agricul¬
have a dollar value of well
a
half billion dollars an¬

$200
ture
over

nually
The

are

that

and

extent

industrial

of

uses

variety of the
radioisotopes

growing so rapidly, however,
there is reason to believe

As

the British Gov¬
ernment largely for military
reasons.
Iron was important to
the British military posture but
by

as

of

result

a

manufacture,

iron

that, within a few years, the sav-. British shipbuilding suffered.
ings to industry alone — not in¬ Timber needed for ships was
cluding the benefits to medicine threatened because of the con¬
and
agriculture—will repay the sumption of wood to produce the
needed for iron mak¬
American people for their entire charcoal
atomic

in

investment

in¬

energy

cluding our weapons program.
The benefits to medicine in the

human ills, the al¬
leviation of suffering and the in¬
creasingly effective treatment of
diseases
cannot, of course,
be
valued in terms of dollars. Some¬
where between 800 thousand and
of

diagnosis

patients
arc
being
with radioisotopes
each

million

a

treated

and medical authorities tell
has
saved many more lives than were
claimed by its destructive use in

year
me

that atomic energy already

atomic

is

metallic

a

development

the

of

atomic number 26 and represents
a
mixture of four isotopes. The

problems in respect to the

many

behavior

of

iron

and

steel

under

various temperatures and in
with
other
elements, are
formance

of

alloy
per¬

the*

of

characteristics

shell

outer

atoms.

For
example,
scientists
are
presently investigating the forces

which bind the atoms of iron to¬

gether,

seeking to re¬
arrange
those
atoms
in
more
nearly ideal crystals in hopes of
one
day producing metals better
than any now known.
and

are

The

analogy can be carried
another step, for there is also a
similarity about the origins of the
two enterprises.
The controlled
uranium
to

the

ergy.
was

such

atom

fissioning of the
opened

the

way

application of atomic en¬
Yet this accomplishment

not
as

dustrial

an

evolutionary

produces most of
achievements.

process
our

in¬

and the many other benefi¬
applications of atomic en¬

would have come about ul¬
timately as a consequence of the
progressive enrichment of knowl¬
ergy,

edge, and the applications of that
knowledge.
But
that
ultimate
fruition would have required
many more years to accomplish,
had it not been for the exigencies
of

workers

in

the

years

follow¬

ing its discovery and use, was a
military monopoly. You may re¬




which

were

attending church—provided
Sabbath services were held at the
iron works,;
? •<:<f
from

had

on

equipment

,has

exclu¬

intended

been

tity

as

instance, crop and pi ice
data supplied by the Department
of Agriculture, data on sales, orders, shipments and inventories
correlated by the Department of

You

tunate.

histories
fects

are

not

financial

for¬

so

the

where

paternalism

and

harm than good and

Early U. S. A. Subsidies

themselves

made

individual

affairs

Such

the state.
states

new

dom¬

became

the economic dictates of

inant to

trated

in

decisions

his

and

economic

nation,

a

took a
The rights of the

direction.

new

into

policy

public

however,

colonies

American

the

When

assistance

granted
the

on

was

the

as

concen¬

of

development

while

transportation,

the

young
Government confined its

Federal

the

to

support

fisheries,
shipbuilding.

arms,

This

not

is

manufacture of
shipping and

to

say

the

that

where, given
hindsight, it would have been
preferable to have done without

This

of Governmental
is

not to argue

Aid

into

liance upon

re¬

private
decisions.
The choice is not, I
think,:, between clear-cut black
and white, between private enter¬
prise and government ownership.
The

individual

alternatives

port, but it gradually became in¬
direct support in contrast to the
outright grants and subsidies that
had cradled its beginnings.

in

that

not

which

never

been

governments

system
were not
a

required to carry on some eco¬
nomic activities, nor one in which
some reliance was
not placed on
the initiative of private individ¬
uals— witness

even

the

"toler¬

ated" black markets in communist

transportation, shipping
states. Moreover, it is possible to
shipbuilding — as exceptions
.conceive
of
an
almost
infinite
to
the free enterprise
economy
proclaimed in the Constitution — variety of combinations of those
divisions of responsibility,
gov¬
were
made on the basis of na¬
tional defense.
That is a justi¬ erned by times and conditions.

facture,

Usually

which

has

become

time-

honored.
For

in

example,

with

threat

the

1798,

of

war

faced
with

France,
Congress
appropriated
$800-thousand for the purchase of
small

cannon,

tion

and

the

to

livery.
most

for

arms

and ammuni¬

made advance payments

manufacturers

against de¬

fact, until 1850, the
important source of capital
In

small

arms

manufacturers

this country was government

in

ad¬

payments on orders.

Had it not been for war and the

government's
ments,

orders

Bessemer steel

for

arma¬

might not

Cooperation between
govern¬
ment and industry is essential, in

less than war, if our
is to be sound and of the
greatest benefit to all our people.

peace

no

progress

Within

our

lifetime, the United

has been compelled to

States

and

new

sibilities.

nations engaged in the task
protecting the fabric of polit¬
ical, economic
and intellectual

of

freedom.

.

..Our ability to do this, for our¬
and

for

I
I.

Woe

War

rS
But

thprn
t^eie

an-

,1S

suc^ encroachments as° in
of
^t is that such
Dower

case

the
in-

dustriesare essential and deDend-

resourced

upon
natural
belonging to the people, for which
reason
they must be developed

ent

others,

is,

I

sup¬

_\ur-f

of course

' nKunHanf'

f™-

°^^iecWc "power

rationale that

a

of

is

susceptible

being carried to very extreme
s*

has become

It

commonplace to

that few things have a greater

capacity for growth than a government agency or bureau. Once

invades an area of
industry—whether wisely or unwisely—subsequent and rapid expansion seems to be the pattern
government

tr*

™

if-f J?
thoir
their

'

^
nuclear power that exists in many
other countries where fossil fuels
are not locally produced and are
suhject to the high costs of im-

portation. For such fuel-deficient
countries,

atomic

of

present high cost
here is of sec¬

the

power

ondary concern.

We,

the other hand, are for-

on

tunate in that we have abundant,

atlhough

inexhaustible,

not

re-

of coal and oil—fortunate

serves

not only * because z\\ a vpfl^onahlo
they presently
pnpr^v
un

"ut

because they

allo»"us

time to continue research and de-

JbenTde^n

^mwer plants?

clear
ford

seek

to

the

c°an

We

afof

reactors

reliabil-

largest number of electrical kilo-

^ cheapest kilowatts

wa^s>

at the earliest Possible date. This
is not only our °PP°rtunity; lt 1S
our responsibility, to our own

?S,Sl?e',UKl10ttot
o£ ftlendly natlons- '.

.

;

1975 Power Picture

ea{Jcracy ^end
T <Jse wll° are ben-

nrSi

ffnH11 nrcrfntLa
gains.

-

•

Estimates have been made
is

that

will become comthat produced in
conventionally fueled plants in

nuciear power

p€titive,pwith

most sections of the United States
in

2o

we

watts

ity?

to

will

25

years

have

of installed

kilo-

nuclear capac-

nearly

one-third

national

output

Gr

entire

by which time

227-million

of

of

our

elec-

tricity
Presented

ir^

a

siightly differ-

ent way, that prediction means

nucjear power capability
United States will then
greatly exceed today's total inctoiipH

of the

JfiSh
c h.

Opposition w h i

be strong when the government first assumes a new type of

may

elpctric-ficncratinij

UvVvith

all

csD8C#

fuels

y ^
competition with its citizens tends
There are those who contend,
to weaken with time.
Finally, a 111
?a(;e
w^at American ingeneral principle is
established dustry already is doing in the
and the public, possibly through
development of nuclear power—lethargy, comes to accept what cither independently as a fullwas an innovation as a part of the
risk enterprise, or 111 partnership
national economic fabric.
with the government
that in¬
u

dustry
Government

enterprise,

cialization

not

—

alone

is

a

of '

^

cannot be relied upon to

-There

are

others who are more

direct in their opposition to reliance upon free competitive enterprise and who argue that, energy being basic to our national
security and progress, the pre¬
duction of energy is a prime consocern of government. They go furthe ther, however, in their belief that

Perhaps
one
explanation - for
the public
acceptance of—or at
least the waning public opposition to—government ventures of
economic competition and interference
with
the
principle - of
competitive

.

do this job.

Growing Reliance on Big

More

free

selves

-ownership

°LJS£?PLb<^
justified on the

as¬

staggering respon¬
by force of cir¬
cumstances
than
by choice, we
have become a leader among the

sume

^ development
although bv no

0nlv one—is

i

r

irnme-

nnosuf QhfnrJimr HiirtnS ity> and strive to produce not the

nnH

and

fication

is

•

do-

so

cneap,.ana sa?e eiecinc power.

AnVirnri«P

it

steel

government

widest

of

in

iy_

by establishing itself

government

of

optimum efficiency and

say

uncomplicated.
There has

involves

have

as
and

entailcd hi

s

atomic eneniv

°*eans t£e

„

If

«v«fpm

iron

embrace

thT

nromise

or

are

the

a11 that ls entalicd 111 80 d°-

^LTZl^tion°rJZPXZ

Woild

that there

sions of economic life and sole

the

vith all

w

pnHpavnr
endeavor

in

from

indus£ry.—or whether the atomic
energy industry is to lapse back

mforma-

•

ought to have been in the case of
every industry a definite and out¬
right choice between sole reliance
upon
government for the deci¬

iron industry did not continue to
benefit
from
government
sup¬

The support given by the Fed¬
eral Government to arms manu¬

if
oi

wilH

it.
Role

*terized

chara

of Labor, and the

industrial

„

ef¬

subsidy

by

incentives' such

cutting

»

familiar with the

those

of

of

were

-

economic f

^neiii

thus

tem_and.

(^mmerce, ar^employment^and diate
cost of living figures piovided by
the Department

government-supported

a

com^etitive

Jthe rapid expansion and cost-

industry more than 100 years ago,
other industries

the

whether

framed

f

work of the

as'

arms-mak¬

their

and

'

,

..

.

.

is

.

uses 0£ atomic
energy
develooed in the

peacefuj

mously valuable k owl
gc f<
industry
Information,
government-gathered and disseminated

have resulted in more long range

...

too,

Mills

ing.

military serv¬
for Indians."
even excused

"watching

and

vance

war.

Iron

had ceased to rely

CtCi

separate way, one
independently of the other
Research under government dircc-

^

Nuclear

power,

cent

to individual

enterprise."
By the middle of the 19th Cen¬
tury, the iron and steel industry

that

recognize

its

go

.

Iron

a

element

prosperity, are the most thriving

all

We

cannot

.

choice

The

Choice

Current

peoples
,

iun)

vifnrISlnVu'

ice

strong af¬
finity exists between atomic and
steel industries, and there is much
that they can do to assist one
another, to their mutual advantage
and to further peaceful progress
and human welfare. After all, the
iron and steel industry, from its
earliest beginnings, has been deal¬
ing with atomic phenomena. Iron
energy,

"agriculture,

busi-

o£

and individuals.

lamo

taxes but also from

Affinity of Two Industries
In the commercial

Jef¬

manufacturing,
commerce
and
navigation, the four pillars of our
when left most free

that would have appalled their
more independent forebears. The

sively for the making of weapons
tion gathered by the Federal Rewere adapted to the manufacture
ing.
Thus it was that early in
serve
Board and the Treasury^- ■
of agricultural machinery, and a
the
17th
Century Britain pro¬
an these - activities serve every
multitude of objects of peaceful
hibited further domestic
timber
cutting
for
iron
making,
and daily use. As a result of this turc
ture
sucn
Such forms of assistance
ot
assistance,
swords
into plow¬
turned to encouraging an iron is- beating. of
shares, what had been largely an
in^hS same raftZ
dustry in the Colonies.
people, are not in the
catcarms industry was, by 1880, ready
And so it came about that the
to devote its resources, skills, and
first iron-making ventures in this
QnSn?1 privileges fo pa t cu c
special
machines to the coming age of
country were subsidized projects,
segments of the economy.
electricity, later to automobiles
established under Crown patents.
and still later to airplanes.
Rationale of Government
The Company of Undertakers or¬
It is interesting to recall at this
Encroachment
ganized in Massachusetts in 1643
point that while the business of
received
a
21-year iron-making
Government
intervention
J
making iron and steel was able to
monopoly the subsidy for which
way
of special treatment some.
..
,T
included not only exemption from escape from its constricted iden¬

war.

of

that

to

easy

this

responsibilities

private

how¬

Thomas

to

belief

ferson's

manufacture
America were

Colonial

in

possible,

as

testimonial

—a

The first efforts to

iron

rapidly

not

of

nesses

ever, the iron and steel industry
elected to stand on its own feet

1

at its birth.

the

at

the Civil War—provided

strong influence for the growth
of the steel industry.

until

ages,

rail

willing to accept increased government regulation to an extent

clear danger is that excessive reliance uPon government, while it '
may appear to make life easier, is
at the cost of the surrender of na- ;
tional vitality.
I mention this growing relianceupon Big Government because it
involves a decision which must be ?
made by the* American people
life, it is ^at times difficult to fix and their elected representatives
the line which divides the public
ln respect to the new industry of
needs
of
government from the atomic energy. .
.,,v-

a

recent
times, iron was
treated primarily as a material of
war, in much the same manner
that atomic energy was regarded

encouraged

of now.

as

the

through

steel

the

of

success

demonstrated

the

particularly
close of

fairly

diseases,
benefits

support and subsidy for the
building of our railroads — and

share,

plow

his

of vast govern¬

era

worlds

the

of

40%

analyze the
complicated, massive, versatile and ever-expanding productive force.
Made up of
mines, machines, factories, ships,
highways,
railroads,
airplanes,
farms, forests and laboratories, all
animated by human ambition and
controlled by ethics.
It is a way
of life.
In pursuing that way of

ment

Philistines to sharpen

man

Down

to

benefits

Therefore, the significance of
gpvernment support in
prosperity of the
steel industry must be recognized.
Likewise the

though they believe in the
principle of free enterprise, are

output.
is

It

nature

the growth and

coulter, his axe and his

the betterment of crop

years later the builders
Monitor produced at Al¬

indirect

his
mattock."
(1 Samuel XVIII: 19.20.)

every

States,

United

the

than

total

but of the individual

even

115-million tons of steel a year—
more

—

attitude as well. By this, I mean
a growing willingness of the individual to rely upon the government to provide all the answers,
It is evident that many persons,

particular example, it has
possible for us to produce

more

bany the first substantial order of
this country by the

swords and
spears.'
Israelites had to go

themselves

year

in

possible for us,
world's popula-

the

economy

made it

steel made in

Israel, for the Philistines

land of

And

a

delay
the

of

said, 'Lest the Hebrews make for

which
wc
learned
that
industry is
presently

clads,

and two

no

was

found

be

iron

more

of

6%

tion, to produce nearly half of the
world's goods and services.
As a

Bessemer process.

American

saving

out

blacksmith
throughout all the

there

"Now
to

the

of the Navy,

ating successfully in England and
on
the continent—be built with¬

tells it:

radioisotopes.
The

for

Scripture

As

nations.

with

Secretary

it

made

has

It

urged that a Bessemer works—
patterned after those then oper¬

the Bible that
the Philistines had learned the
secret of working iron
and to
maintain the monopoly permitted
no
blacksmiths
among
their
neighbor

the States,

as

between

anxious

member reading in

the increased

early

as

war

pose, the most remarkable manitestation of ingenuity in history,

Assistant

Development

Atomic Eneigy
and in terms of

the

in any im¬
in the United
it was. During

produced

quantities

portant

Volume

185

Number 5642

,i\.

The Commercial and Financial
Chronicle

.

(2533)
Federal

a

of

program

power

development

promises

results

nuclear

to

be

tained

under

vidual

enterprise, and that

wise

the

that

need

not

the drain

nor

scientific

in

scarce

most

of

source

what

it would,

power,

traditional structure of

During

the

our

and

war

society.

for

nine

believe, despite all the
of history to the con¬

field

of

the

atom's

peaceful

uses.

Furthermore, it may well tran¬
spire that by exerting the fullest
of

measure

free

Public

resourcefulness,

Utility Securities

will be able to contribute most
the fulfillment of the noble

we

of

By OWEN ELY

concept of Atoms-for-Peace, for
Freedom is undeniably out great¬
est asset; we must exhibit our be¬
lief in it to the world. 1

Public Service Company of New Mexico

following the war, atomic
Public Service of New Mexico will be
although a Government
completed in 1957, with
is one of the smaller
monopoly in ownership and con¬
"growth" an estimated actual
It is interesting to
capability of
speculate on utilities.
During the postwar dec¬ 36,500 kilowatts.
trol, was operated by private in¬ what
A
would1
have
new
been
Mr. ade
plant
revenues have risen from
dustry under contracts without Schwab's
called Reeves Station will be built
$4.4
response
to the chal¬
million to $12.3
cost-cutting incentives.
million; and in the on the north side of
lenges of the Atomic Age and
Albuquerque.
years

Some

evidence

the

is

important

time, be able to dominate a
large part of the nation's economic
activity in contradiction of the

amounts

now.

the

the

were

control

in

all-

produce

large

future

Indeed

to

potentially

spare

on

to

manpower,

energy

ob¬

an

discussed.

Government

system of indi¬

government

expense,

have

somehow

not

29

energy,

,

trary,
more

that

the

State

can

move

expeditiously into whatever

technological fields it deems ap¬
propriate, for whatever program
it wishes to
launch, and then—at
some
vague future date
relin¬
—

quish

its

monopoly after it has
private industry how the

shown

business should be

This pre¬

run.

that the particular pri¬
industry; can hibernate and

Some who

upon

way

to

appear

work

vate

least

'

.

-

-

■

It is difficult for me to see on
what the assumption is.based that
free, enterprise
is incapable of

doing the job.* '

T

v.

producer

World.
est

Soviet

is

-

our

near¬

competitor, has barely onethe capacity we possess.
the
past five
years
alone,

fourth
In

American power companies have
installed
new
capacity
which
equals the total of Russia's ca¬

pacity.

We

have, in fact, more
capacity than the next
countries
of
the
world

electric
seven

Who has accomplished this? In
the main it has been the achievement
of
companies
directly
owned

by

millions

cannot

unleash

people

our

ment

American

of

Technology,
machines,
however

processes and

marvellous,
energies of
their develop¬

the

if, in

basis

for

some

at

pro¬

There

and use, we undermine the
of political and individ¬

is,

Alternative

however,

fourth

a

have just mentioned. It is a course
which relies upon a continuation
of the partnership of Government
and Industry that has been tested
during the past three years and
met

that

test

by

producing

results.
We

have

the

opportunity, by
formula, 1o
vitality and ingenuity of

of

this proven

industry

to

reach

our

goal

plentiful, safe, economic

of

nuclear

the earliest possible date,
r': However, since it is recognized
that the development of nuclear
power is not a
purely domestic
power at

affair

but

prestige

is

related

and

to

both

our

responsibilities
I
have
con¬

our

climate

in

ual

sistently advocated, the Govern¬

freedom, indispensable to fu¬

ture

creative endeavor.

There

is

before

us

de¬

a

cision, which differs only slightly
from

decisions

which

have .confronted

of

years

This issue

is,

the
of

excuse

the

private

*

unable

to fit atomic
bountiful prom¬

of

Of shall
the

atomic

structure

new

age

to

we

problems

s»:

*

-

O'T'U

vv.;-

nuclear

auspicious

which

This is

for

its

development

climate of free enterprise.
after the wartime cloak

Even

of secrecy was laid

reactor

situation

a

if

has

not

hopeful that it

am

aside in

1946,
and the original Atomic Energy
Act was written to govern nuclear

a

process of

President

15,

partnership
the philosophy

in

Eisenhower,

his

set

as

budget message.

earlier,

development, pro¬
duction and stockpiling of atomic
weapons, which
by law is the
"paramount responsibility" of the
Atomic Energy Commission, must
continue to be a monoply of the
Government; there is no alterna¬
tive

to

that' In

a

in

world

which

controlled, inspected, safeguarded
nuclear

disarmament

is

still

a

is

possible
what

would

do

or

to

state

figure

a

say

of

under

modern

conditions; what, for in¬
stance, Napoleon would have done

faced with a strategy decision of
World
War
II;
what
Lincoln
would

about

say

civil

rights

Jefferson

or

about

taxation used to redis¬
tribute wealth. But I think it not
too uncertain that Mr.

nation has prospered with
protection
and
blessing of
Divine
Providence.
This
well

we
seek
no
monopoly — in the
harnessing of the atom for man's

benefit.
courage
In

Rather, we seek to en¬
participation in that task.

particular,

we

want the maxi¬

mum

which can be realized
by
the application of those same tools

and

of

techniques
atomic

to

the

is

energy

new

field

immeasur¬

able."

Government

participation

will

be required for years to come—in
technical training, in support of
basic

science

agement

of

in

and

the

science

encour¬

education.

Government assistance to industry
of research will need

in the form

from

nor

any

fancied

monopoly of brains or talent. Our
blessings flow from the fount of
moral character of

has

been

"to

toil,

fathers. It
the American tradition

to

climate

of

couraged
and

dare,

our

to

save"

freedom

pride

in

which

a

en¬

in

craftsmanship
zeal, industry and

rewarded

invention. We do have

real and

inexhaustible natural

an

a

resource

—the

inherent vitality of a selfreliant people, free to plan dar¬
ingly without undue Government
restraint,
As

a

young

extraordinary
serve

a

a

it

man,

was

my

fortune

good

to

ygreatr >American.
quarter of a century ago
very

a

cogent than
that I might compose. Therelore, in closing, I should like to
repeat them:
any

He

said

"The

this:

implacable

march

of

discovery, with its train
inventions presents every
new
problems of Govern¬

new

problems of social
Questions often arise

Those

new

are

Hoover.

the words of Herbert

Had

they been spoken
yesterday, rather than nearly 25
years ago, one might well assume
that he had reference to the
par¬
ticular problems of government
and
the

of the social order posed
by
discovery of atomic energy.

to

economic nuclear power has been

pressed by Mr. Hoover retains its

demonstrated.

validity.

of

technology — Government
Industry must work hand in

our

and

hand

in

developing the atom's
peaceful uses, including Govern¬
ment assistance through research
and experimental development for
the benefit of all industry.

Therefore,
whether

play
a

a

the

the

role,

question

is

Government

but

how

not

is

to

dominant

role and bv what methods.

Unrestricted,

unregulated

vate oneration and

peaceful

uses

of

control of the

atomic

is neither advocated

sible.

plete

The other

pri¬

energy

nor even

extreme

of

pos¬

monopoly of
"ownership and operation is loaded
with

the

shortcomings which




we

Once

until
this

is

achieved—once we have reached
the point where the profit incen¬
tive comes into full operation—
then

The

principle then

of iron and steel

complishments
past

nuclear

which

power

is

now

beginning, but also for all the
essential supporting industries.
When

stage of

we

our

—perhaps
the
may
—we

in

have

on

that

1975

or

of

1980

the

(and

experts

the conservative side)

should then be able to elim¬

inate Government supports, guar¬
antees

and

ex¬

can

or

match—can

if

we

safeguard
nomic
founded

of

have

the

system
every

atomic energy,

surpass—the

productive

our

the

ac¬

wisdom

political

and

to

eco¬

upon

which

blessed

thing

is
we

have.

nuclear development

calculations

be

reached

controlled

markets

in

-

.

...

probably

was

not

as

great, it

has continued to show substantial

is

company

currently

doing equity financing

on a 1-forCommon stockholders of

10 basis.

population of

some

280,000 in Al¬

buquerque, Santa Fe, Las Vegas,
Deming and surrounding areas in
Mexico,'

and

also

in

Santa

services

provides
Fe

and

Las

Vegas. Revenues are about
93% electric and 7% water.

Albuquerque, the largest city in

a

The company's capitalization on
pro forma
basis is about 56%

debt, 7% preferred stock
The

stock equity.
record
of share

earnings
dividends paid in the
past five years has been as fol¬
lows:
and common

New

Mexico, is the commercial
a large area in that re¬
gion. Local industry includes the
manufacture
of
bricks, cement,
flour, sawmill products, and ma¬
chinery. Santa Fe, the capital and
second largest
city in the state, is
primarily a tourist and resort cen¬

Share

is also Las Vegas, widely
known for its "one-armed bandits"
as

and rich night life.

The surround¬

ing territory is devoted largely to
stockraising and growing of grains.

other. scientific

Paid

$1.14

$0.68

1955

ACF Industries, a prime
contractor in Albuquerque for the

0.68

0.96
0.75

0.56

1952

0.79

0.56

0.68

•

At the recent over-counter
around

15

and

based

on

the

price
new

quarterly dividend rate of 20(J, the
stock yields about 5.3% and sells
at 13.2 times 1956

J. D.

earnings.

Biggers Gov.

Of NY Stock Exch.

develop¬

ment.

0.98

1954
1953

Industrial expansion in the area
a marked
upswing, par¬
ticularly in. the field of electron¬
and

Earnings

1956

has shown
ics

Dividends

Year

center for

ter,

and 37%

common

;J>f TOLEDO,

Ohio

Election

—

of

John D. Biggers, Chairman and
AEC, started only five years ago
Chief Executive Officer of Libwith 87 employees;
today it has a
bey-Owens-Ford Glass Company,
payroll of about 1,200 people and
as a Public Governor of the
New,
a plant area of
280,000 square feet,
York
Stock
Exchange was an¬
with further expansion
plans in¬
nounced by Keith
Funston, Presi¬
dicated. Government

installations

and prime contractors for
govern¬
ment projects have continued their

dent of the

Exchange.

Mr.

Joins Harris, Uoham
(Special to The Financial Chronicle)

SAN

FRANCISCO,

Calif.—

Harold T. Dover has become
nected with

of major oil fields in the

covery

was

created in 1938 to

bring to the

which had Board of the Exchange a closer
been noted for its great natural understanding of the pubic view¬
gas potential, was one of the out¬ point and interest.
The Board is
Four

Corners

Area,

standing events of the

More

year.

composed

of

30

other

governors

oil and gas firms are

locating ad¬ representing the Exchange com¬
ministrative offices in Albuquer¬ munity, including the chairman
and the president of the Exchange.
que.
Construction

well

Our peaceful progress and pros¬

bility, not only for the production
of

so

perity, whether in the enterprise

private capital may be ex¬
pected to assume full responsi¬

com¬

Government

particularly

-.V^yV

>

as

Biggers succeeds Charles R.
steady growth with much of their Hook, Chairman of Arrnco Steel
order.
work devoted to classified atomic Corp., Middletown, Ohio, who is
whether, in the face of the growth
energy development. A major in¬ completing his term as a Public
of these new and
gigantic tools,
Other Public Gover¬
dustrial development was the an¬ Governor.
democracy can remain master of
are
Charles
E.
nouncement by Permanente Ce¬ nors
Wilson, a
its own house—can preserve the
Trustee of the Ford Foundation
ment Co. of
Oakland, Calif., of
fundamentals
of
our
American
plans for a $10,000,000 cement and former President of General
system. I contend that it can; and
Electric
plant southeast of Belen, N. M.
Company,
N.
Y.;
and
I contend that this American
sys¬
Frank Hugh Sparks, Chairman of
Oil and gas
tem of ours has demonstrated its
development, which
Wabash
College, Crawfordsville,
validity and superiority over any for some years has been a major
Ind.
system yet invented by human source of income in the state, made
The office of public governor
important strides in 1956. The dis¬
mind."
ment and

cepted

continue,

Bernalillo County

same

—

area

imaginary
resources

hope deferred.
Furthermore,

it is widely ac¬
that—at the present stage

rev¬

over

The company plans to
(al¬
expend
greater Albu¬ about $35 million for construction
querque) last October was esti-. during 1957-60
inclusive, of which
mated at
nearly 220,000 which, about $9 million will be spent this
compares with only about 145,000 year. No new
financing was nec¬
in
1950.
While
the
population essary from 1954 until the
present
growth for the rest of the service. time
the

water

year

and

—

of

the

New

spring from any
advantage of natural

scientific

monopoly

31

pop¬

ulation

most

being does not

of
no

March

gain of 12%

Present plans call for the
comple¬
tion in the early
part of 1959 of
The company's the first
generating unit at Reeves,
average annual increase in load with an
estimated capability of
for the five years ended 1956 ex¬
49,000 kw., and for the construc¬
ceeded 12% compared with
tion of a second unit of
the.
equal size
national average of 8%. The
in 1960.
a

.

Our

said:
is

ended

showed

the previous year.

•

when to the National
Industrial
Conference Board he
"There

months

enues

Schwab, increases.
were
he
record
alive
May 20 were given the
today,
would
The company last
year
cele¬ right to buy additional stock on
champion
the
development
of
brated its tenth
Atomic Energy in the free com¬
anniversary, but a l-for-10 basis at $13.50, with
the predecessor
petitive enterprise system.
companies have rights expiring June 12.
That
Some
would comport both with his ex¬ served the same area for nearly stock is also
being offered to em¬
50 years.
The company serves a ployees.
perience and his philosophy.
>f;

1955,

return
the

it

assurance

history

He

1954, to preserve the Government
course

that

with

Oct.

on

monopoly.

development, there appeared to be
the intent until its amendment in

come

he expressed his convictions in
few words far more

participation of American
industry. Our standard of living
is the product of its tools and
techniques. The magnitude of the

Of

feel

Nearly

had formulated it

in¬

most

were

a

industry
proves
either
unwilling to assume the

Such

forth

energy, conceived of a
marriage
between
war
and
science, was born in secrecy and
Government monopoly, under cir¬

cumstances

on

Cites President Eisenhower

.,

of

How Dominant A Role?

a

prepared

which conforms to
'V

Atomic

in

of

arisen, and I
will not arise.

that

alter

*

•

be

use

structure?
•

risk.

have

it, had he lived to experience
in them. I have
always looked
with skepticism
upon those who

or

181

are we

society?

our

concept

existence.

energy and its
ises into the traditional

of

should

as

"stand-by" basis to undertake the
development
of
any
promising

the

in

us

world,

hitherto

national

our

the

ment

now

which

the

the

use

problems

with

Federal

alternative which avoids the dis¬
advantages of the three courses I

has

12

the

legislation

Fourth

means

.

citizens.

the

That

ment-financed and Governmentoperated nuclear power plants.

.

•combined.

contract.

-

•

_

Russia,

Government

posals advanced during the past
year for a program
of Govern¬

is ' the larg¬
energy
in the

of

favor

under

The .United States
est

oppose reliance

ownership and control, but with
private industry doing the actual

supposes

survive.

now

private industry to lead the
in the development of power

con¬

Harris, Upham & Co.,
232 Montgomery Street.
He was
formerly with Reynolds & Co.

Mr. Biggers was elected Presi¬
activity has con¬
and
director
of
high rate and home dent
Libbeyconstruction has continued stead¬ Owens-Ford in 1930 and became

tinued

ily.
ings

at

a

Among
the
either built

year

were

maior

State

a

seum, a new State

build¬

started

or

Fmr

last
Coli¬

Penitentiary,

a

University of New Mexico gym¬
nasium, a Civic Auditorium and
two

bank buildings

que.

as

well

as

two

Chairman in

director

1953.

seven

He

serves

other

as

a

corpora¬

tions and

one bank, and is active
business,
civic
and
philan¬
thropic organizations.

in

in Albuquer¬

buildings
Highlands University and ma¬
jor construction at the State Hos¬
pital in Las Vegas.
new

at

Henry J. Tenaglia With
Dean Witter & Go.
(Special to The Financial Chronicle)

At the

en$ of 195« the companv's
generating capability was 122,-

net

of

000 kw. but capacity is

being sub¬

LOS
J.

ANGELES, Calif. — Henry
Tenaglia has become associated

stantially increased. The construc¬

with Deait Witter & Co., 632 South

tion

Spring Street. Mr. Tenaglia was
formerly assistant manager of the
Los Angeles office of Shearson,

at

the

of

the

a

fourth

Person

southern

querque

was

gmieratinc?

S+at'on
outskirts

started

unit

located

in

of

on

Albu¬

1956

and

Hammill & Co.

The Commercial and Financial Chronicle

while

sells

on

need

it. '

1

Performance

But

to

seem

is one of the best

agree,

places in the world in which to
invest, there is no royal road to
riches north of the 49th parallel.

its

like

something

it in

Thursday, May 30, 1957

.

true

perspec¬

tant

gestions about investing in Cana¬
dian stocks for the benefit of any

and

but

market

stock

for

ural

particular, be¬
variety of nat¬
situations subject

in

reason

to

of the great

cause

resource

the

to

whole.

where the more

than

acteristics

are

S.

U.

comparable

as

groups

a

qualifications, a comparison generality.
broad fluctuations of in¬
Different Set of Yardsticks
stock '"average in Canada
Analysts, however, are keenly
and New York does seem to make
conscious of the fact that it is
the point that while the Canadian
averages
tended to outperform one thing to find a good growth
New York during-the phase
of situation but an entirely different
matter to find one at a clearly
the bull market which culminated
price.
And when it
in
1951, the experience „of the attractive
comes to prices you will have to
average
investor
in
Canadian
use
an
entirely different set of
stocks since then has not been so
the

ment

dustrial

these

tax of .15% on
and interest receivecf, <5? (b) tHe regular Canadian
corporation income tax^ of
47% on interest and foreign dividends only, in which case divi¬
dend income from Canadian com¬

high

gain

(a

199%)

vs.

(117%

low

1949

the

from

low

1942

the

either
of 392%

from

or
vs.

But 1951 marked the peak
reflection of the commodity short¬
73%).

associated with the Korean
War, the inflationary pressures of
which were felt most keenly by

ages

natural

Canada's

econ¬

resource

and the subsequent slpmp
was correspondingly more
severe
in Canada. Thus the 25% drop in
Canadian industrial stocks from

omy,

low was three
times as great as the 8% average
dip in New York. From that low
point to date, the New York gain
of 95% has outpaced the Canadian
rise of 70%, but for the last year
1951

high to

been

has

no

sus¬

divergence of any signifi¬
so far as the averages re¬

tained
cance

balance

sheet

equally true of the general
of
better-grade
industrial
sons

in

stock

utility

Canada

run

and

for rea¬

which should be well under¬

stood

contemplating
stocks, because

anybody

by

Canadian

using

willbe

there

come

built-in

a

tendency for Canadian blue chips'
to sell

lower yield

on

and higher

price-to-earnings ratios than will
prevail for American stocks of
comparable quality.
the

Among
for

reasons

prominent

more

yields

relatively low

high price-to-earnings ratios
habitually commanded by the bet¬
ter
Canadian
stocks,
over
and
and

the

above

attributable

premiums
normally
growth character¬

to

istics, the following deserve
cial

spe¬

mention:

that

dian

The total supply of Cana¬
equities is limited.
In the

there have been times in the past,

first

place the Canadian economy

well be occasions
in
the
future,
when
Canadian
stocks as a general rule will of¬
fer relatively
better value than
U. S. equities, or vice versa, al¬

is

(1)

there

and

may

such

though
tunities

variation
not

may

the

by

solely

be

general

economic

activity

countries.

For

two,

shows

thus

record

the

in

oppor¬

determined

trends

in
past

the

of

two

year

or

however,
successful expe¬
in practice has depended

rience
on

ownership in the right groups

not

that

of

industrialized

fully

as

the

S.

U.

Canada

in

more

is

now

estimated

investors
ters
gas
our

of

Canada's




prime

«mivLShf

capital

pacity

three-quar¬
and

two-fifths

industries,

of

our

It

me.

too

the

proportion

being

greater in the heavy manu¬

down from

a

(To take one
Canada at 19,
high of 35, still sells

■

the

Meanwhile

eventually

be

future

tax

vested

in

of the fund

withheld

liability

belief.. Industry opera¬
running close to
capacity and should average fairly
tions

the

is

l^a^-^a

The

reason.

into

these

of

flow

funds

in

in

on

that

j

heres

in¬

have

money

the aggregate

are

their

least

at

oversold.

with in the Canadian equity mar¬
may

be

keening in tne back 01 vour
Keeping in the oacK of your

worth
worm

mind

it

(Incidentally,

that

come

a

these

supply

funds would

factor

of

serious dimensions if the

be-

really

sporadic

rumblings heard from Washington
should
of

ever

lead

to

withdrawal

the special tax advantages

stiffer

should

1958

and
come

first

attitude

re¬

markets.

final

lows

of

process

the

case

rate

gelling around
range

stock

lgy2

of 23-15%, it

in

a

a

sound

the pull on

a

year,

over

interesting test of the solidity of

pr®vfd°cd bymaprukbe]ticataiS0en W0f the
first

quarter report, which I esti-

the mate will show a drop of

more

buy

hope for
in

new

a

view xf

long-term

poten¬

a

a

year.

somewhat

similar

long-

term

category
is MacMillan &
Bloedel, now around 31 in a two-

of

range

year

primarily

a

MacMillan

has

48-28.

and

Hitherto

lumber
been

company,
hard hit by

the slump in lumber and

plywood,

earnings for the half-year to

March, 1957 were cut to 980 from
$1.70 a year ago. However, the
company

fit from

will soon begin to bene¬
$67 million diversifica¬

a

tion program

in the newsprint and

kraft fields which

near-

the current price being just

should

one

or

exceptional

In

to me

8 times 1956 net of SI.99. An

pro¬

'completed 7early -next

seeable within

St.

from ihe, $1 dividend twice was
that last
earnecj aim0st exactly

possibility

present: expansion

tial, which stretches well beyond
the $5 earnings rate that is fore¬

the

for

against

year

$5 earnings

whether

rjsk

commitment

earn

a

is

reaction

yield basis of 6%

and

to

Great Lakes has. been out¬
performing the other paper stocks
recently and I am not too sure

"

stability coupled with longgrowth potential to make the

56-33,

able

year.

i95g_57

seems

for

Great

conservative

a

gram

being

enough evidence of

is

of

;range
should
be

when the

sell-

of

closely

opportunities

which

highs

on

stocks that

paper

watched

be

two-vear

the

^

run

time

contribute

to

Lakes, which is currently 43 in a

currently
are

which

at

able

60% of the company's

as

buying
.

that,'

markets

the

to

in

In

be

may

much

Among other

environment

Lawrence Corporation, currently

term

ket.

for

earnings.

of the least

reached

reckoned

be

the

warrants,

kraft

currenf decline but I feel that they

term

to

projected

to

mand

than

brief ljst of suggestions
popular of a
presently unpopular group. The
paper- stocks
may
not yet have

there is

factor

year, while
in capacity

pulp
capacity
which
could
be
completed by 1958 or 1959 if de¬

being somewhat premature and

popularity subsided but it is still
demand

the

planned, in all probability) should
not, create enough excess
supply
to prevent the industry from
pro¬
tecting its profit margin if it ad¬

my

of

has been slower since their initial

a

for

increases

(not all of which will
operation
as
fast
as

Suggestions

j

am

one

new

97%

1959

into

the Cana-.

at or near their al]_time

w jtb

tax brackets and they

come

to

further
are

long and dis-

p0puiar Canadian stocks

,)ead

in high

still

that

the

rather

S

U

of

many

in-

a growth objective.)
Understandably, these NRO funds
can
accumulate
capital
ad van-

people

and

Specific
So

such

sumably with

for

my

are

close

get¬

investors

canadian and u-

for

Canadian equities, pre¬

tageously

as

the market has been say¬

as

ing, in

^e who do notfullv annreciate

Canadian

will

being

is

too

The newsprint outlook is not
bleak

will bear with
around
$2.25 this
to me, however,$2.44 last year, with

American

that

mpney

Thus, unless the U.! S.
exchange
fate
becomes

year's earnings should not be
$1.90.

ThTbL^

15% tax on

that part of the proceeds of his sale
which
represents
undistributed
income

newsprint ca¬
further
wage

far from

jot 0f groun(j that

a

seemed

many

tax on dividends it received.
To that extent the U. S. investor

untaxed

in

offset

adverse to the company, this

more

in this category

are

any

and

to

dollar

is wel1 kn<>wn to any who have
had- much practical contact with
things Canadian. I hope those who

■

would be subject to a

been

advanta¬

gain

market

cjjan

alternative

used

natural

manufacturing

that

extent

the

had

have

In

increases.

as

ratner

have coverecj

the company
"b" already
mentioned and did not itself pay

to

for

year

that customers'

now

appear -to

down.

increase

some

.despite the large flow of invest--'
the wir. ■
.u;*
"lentfunds ipto Canada from this
tax^,
Q,untry; there are a great many

withholding

this

addition, the
company will have the benefit of
the higher price ot newsprint and

are

are

year,

whittled

■*rom discussions I have had with

..

Canadian15%

the

inventories

important scale if

consideration,

These

thei

value^ of

the

in

increase

markets

on any

jointed observations

aiidy derive mo compain
sources, these

f» t!
tax,

quarter

canning industries, they promise
hold up well for the balance

current income,

-fro^'r.1^
SSS
S.
tex.when^ey. aiiy
ser
shares, at whrctxAime

their

bonds

stocks

common

long-term

nJeSn3^u"
?• u! J U.
liable to

over

facturing sector.
case,
du Pont of

it has in the United

oil

American

one-half of
mining enterprises and over
industries,

stocks in the respective
as

that

over

own

the right

in Canada

a

owned

even

This has been just as true

addition,

is
directly
by outside interests on a
or
less permanent basis. It

terprise

market, and on owning

groups.

In

as

large percentage of corporate en¬

either

in

U. S.

~

veal.
The

from

worst

to

these factors seem likely to decree• (At suchholder would also be liable -to,
that for an indefinite period to
1KO/
.

1953

there

more

or

and

earnings
ratios.
It is

dividend,

standard

utility

Canadian

geously

attractive to the
bulk of the NRO companies.
In either case, as Canadian companies, they are not subject to tax
on capital gains. Because t
y
Canadiam

than

you

public

the

which is the

is tax-free,

alternative most

-

the

company

dividends

panies

However, this should be by far
the

ting too high in price and may be cently demonstrated in this
subject in due course to correc-;
respect.
Growth
prospects
for
tive pressure, although I person- kraft products are still more in¬
ally am inclined to feel that a fair,
teresting in Canada, where the
number are heading still higher
domestic kraft market has a
long
on
a
selective basis before they
way to go before Canadian con¬
sell materially lower. It certainly
sumption matches U. S. on a per
means that one must look at most
capita basis, and St. Lawrence,
Canadian 'stocks
with J extreme
which last year turned out 31% of
caution for probf of value factors
its total output in kraft products'
to compensate" for low current
and is the largest kraft producer
yields. And for American clients,
in Canada, recently announced an
it means that they can only use
$18 million expansion of kraft

Canadian invest¬

the regular

(a)

50%

the

a

Canadian

companies.
As you know
companies can elect to pay

their

in

investor

carrying 5%% coupons!
This could mean, of course, that

when your

light

to

ment

for
most
Canadian
superior as one might have sup¬ yardsticks
posed merely on the basis of the securities, especially those where
the principal market is in Canada.
more rapid; growth trend of the
This is true not only for the nat¬
whole economy.
;
.
Using the Montreal Stock Ex¬ ural resource type of stock where
change industrial average and the chances for future discoveries are
more
important in de¬
Dow
Jones
industrial
average, vastly
and adjusting for fluctuations in termining market prices than are
foreign exchange, the comparison
was definitely more favorable for
Canadian stocks up to the 1951

term

permitted registration, for
sale in the | United States, of the
shares of what are known as non¬
resident-owned Canadian invest¬

these
of

investors.

SEC

in

apparent

brought

was

char¬

growth

stronger

imparted

charge

try today to put
reasonably diversified
attractive growth
equities in Canada, you are likely
to come up with an over-all yield >
closer to 3% than 4%, for as off¬
sets to the yields exceeding 5 %
in the currently depressed papergroup and close to that level in
the still reasonably priced instal¬
ment finance group, you will find
returns running well below 3% on
the integrated oils, around ZV2%
on
the leading nickel issues, 2%
in'aluminum, and so on. All .this,
be it noted, in an era of tight and
high-cost money, with 3-month
Treasury bills yielding close to
3%%, and Canada 3s of 1957-60
on a 4.6%
basis, while new long-

if

together

equities since 1954
of the tax gimmick that

because

and living standards has

incomes

non-Canadian

of

take

for

list of the jnore

Canadian

in

population,

of

expansion

good record for

domestic

as

riot

1, kraft busi¬
the first two

in

dividends on preferred stock
Canadian' that was not outstanding in the
- first 1956 quarter.
•

to

Canadian stocks

for

ences,

Also, somewhat over $300 million
of U. S. money has been invested

and in some of the better

rapid

well

as

did

March

poor

also, and this year's firfet
earnings had to bear a
of : roughly 40 per share

quarter

Mainly because of these influ¬

Canadian economy

the

of

treatment

fair

long-term opportunities
of banking and fi¬

situations,

retail

New

tential

and our country's

newsprint

until

months

of

years

many

of
;was

ness

JPrime' Investment Consideration

pos¬

seems

now

tax

price
effect

would otherwise be the case,

nylon

as

Canadian

yields,

(2) Competing for the limited
supply of Canadian equities of
investment quality, there is a dis¬

field

the

nance

York;.market as a
Nevertheless, subject to

the

suffered by
companies

That could come about

models,

per

equivalent, • St. Lawrence.
Kraft
sales have
in tax-paid income, to a
5.60% picked up smartly in the past two
bond
yield.
This,
therefore,
is months and,- subject to seasonal
another potent influence tending factors
bearing on demand for
towards higher prices, and lower containers for the
brewing and

sible.)

competition from imports. On
other hand there are well-

in

usually

is

good

a

defined

influences of their own,
even less accurate
to generalize about the trend of
Canadian stocks as a whole than
it is to use a sample average of
U. S. stocks as being truly rep¬
resentative of what has happened

to special
it

1958

earnings

Canadian stock yield is

will

they

occasion,

on

issues

latter

and in scope
the
employment of capital;
while they will grow in rela¬

valuable

more

net

because the $4 increase in the

ago,

lax bracket, for example, a 4%/.

continue proportionately large inflow of
to be capital, especially from the United
States but also in sizable amounts
handicapped by the limitations of
from
the
United Kingdom and
the domestic market together with
This capital comes to
their virtual exclusion from
the Europe.
Canada in large part because of
mass market of the United States
the
well-publicized growth po¬
and their exposure in most cases

aver¬

course, cannot represent
they exclude. For the

of

a

succeeds in taking
over a significant segment of the
original equipment
market for
tire

if

importance as time goes on
while diligent digging will
unearth interesting opportunities

like their U. S. counterparts,
over-simplify the often divergent
movements of their components
and,

much

in

25%

investors than interest income. For

with other secondary

common

industries.

and

ages,

the

in

of 'a*

-

liability in respect of such income,
tends
to make
dividend income

performance

growth

to

form

normal

the

from

deduction

the Canadian chemical

tive

knowledge of our markets.
Canadian

handicaps

tax-paying;

the

in

corporations,

a

next 6-12 months, de¬
its high valuation of cur¬
earnings
and
the
severe

rent

dividends re¬

all

of

20%

to

ing

ceived from Canadian

the (

spite

upon

magnitude,

in

for

be considering such ac¬
may
lack
first-hand

who may

tion

our

who want

market

fair

a

than

share from the 440 reported a year

dian taxpayers receive, amount-

supply to accommo¬

investors

other

over

ondary manufacturing industries
are
relatively much less impor¬

practical sug¬

tive and offer a few

in

hydro-electric
resources
consti¬
tute such an overwhelming share
of our total economy.
Tne sec¬

Canadian investment outlook,

should like to try to place

of

ment

one

against in evaluating Canadian
stocks, I would not be surprised
if du Pont of Canada should turn

develop¬
forest, mineral and

based

industries

over-glamorize

than

rather

So,
the

of

quickly appreciates ihat our lists
are top-heavy with stocks of the
extractive industries, because the

if Canada, as so many

even

ratio,

24 to 1

a

participation in one of the few
good chemical equities available
in Canada,
Moreover, as, a fur¬
ther example of what you are up

Any
investor
surveying
the
Canadian stock markets, of course,

Canadian-U. S. A. Stock

Compares

date

the signs I see point
continued need for the most

a

company

being that the latter owns

little floating

Employ

painstaking care in selection
commitments in either market.

and we know

money

your

to

parent

roughly 85%
of the
Canadian
subsidiary's stock, which- leaves

States and all

in Canada
satisfactory terms, because we
freely

invest

to

able

on

reason

Canadian Slocks ioi Investors
And Market Criteria to

the

shareholders of these funds now
stock enjoy.)
main,
(3) The tax credit which Cana-

1956 earnings

nearly 30 times

at

4

Continued from page

I

.

.

(2534)

30

.

eventually will
lift earnings well beyond the $3.55
level of the past two years. MacMillan's
coastal

vast

timber

British

resources

Columbia

are

in
an

extremely valuable
asset. Your
timing
in
buying
MacMillan
should

probably

considerable
and

how

be

guided

to

degree by how

much

you

a

soon

expect U.

home construction to recover,

S.

this

being the key to the lumber out¬
look.

Jumping

'

-

from

paper

to

foocl,

185

Volume

Number 5642

The Commercial and Financial Chronicle

■

■

■

,

■

(2535)

■

,

George Weston B is a powerfullyleveraged equity in the biscuit;
baking and food chain field in

in - this J group
are
Opemiska
(12%),* Campbell: Chibougamau
(10y2), Copper Rand (4) and Chi-:

Canada

bougamau

to

the

and

been well

around

U.

S.

which

has

marketwise.

22

in

It

is

a

improvement

with
up 25%.

is

first

year,

indicated

quarter

this

earnings

v

.89

.

.

Petroleum

and

Copper

The dynamic growth record and
outlook

of the Canadianyoil
has attracted a lot of

dustry
tention
and

and

the

of

most

in-

at-

good oil

pipeline stocks have had sub-

stantial

advances

however
the

I

at

126,

intrigued
possibilities

long-term

Trans

Mountain

which

carries

British

Even

still

am

Oil

Pipe

Alberta's

Columbia

by
of

Line,

crude

to

and.

Washington, with offshore shipments also
going to California and Japan,
On

200,000-daily throughout, on
the way up to 240,000 b. p. d.
by
a

this

Trans

summer,

current

earnings

Mountain's

rate

of

around

$8 could

be in the $10 plus area
year-end, and much exciting growth should follow in the

by

the

next

few

in

years

view

large projected build-up of refining capacity to serve the rapidly expanding consumption requirements
am

the

on

confident

:

west

that

coast.

the

I

basic

growth trend and the logic of usCanadian oil in the western

ring

states will prevail over any shortterm
uncertainties
that
may
be
caused

oil

by efforts to curtail U. S.

imports.^ Also for the latter

reason, I think it is still possible
.to be optimistic about the outlook
for

several

oil

*

and

O

panies.
liiein

.

the

research

u r

ago
a

tnis

on

com-

depart-

group

length

some

months

.jterested,

best-situated

exploration

views

*

set out at

:

of

gas

a

were

couple of

and, for anybody
few copies of this

inre-

.port

are
still
available. • Some
rather sharp advances have taken

place

in

the

interval

but

among

rthe issues which currently
most

attractive

seem

Canadian

are

At-

lantic; Bailey Selhern; Home Oil;
Oils;
Medallion
Petro-

United

associated
'

the

petro-

»

with

such

share

to

be

Securities Salesman's Corner

out-

ion

Magnesium. The important
thing is that now for the first

enterprises,

attractive medium is provided

an

by

holding

companies

and

time Ventures will be adequately
financed, in addition to being under direct control of an organizati°n with broad and successful

one

that
looks particularly interesting for long-pull holding in the
light of recent developments is
Ventures
vast

Limited

"ompl™

Ventures

ranffinfr

m!n

•

of

fmm

is

ng

mining and management experience. which has a minimum stake

a

com-

of $14 million and

thPwnnH

IroduTer

largest nickel

ootential in-

a

terest of $32 million

in Canada

or

in

more

through a long list of base metal,
gold and oil properties, and podevelopments. This
company
was
founded
and
its

enhancing the value of its investment.

empire

the

tential power

accumulated

was

and

These

of

corners

the

however, was
theory
that
ground
of

wealth

in

of

age

result

a

the

By JOHN DUTTON

current

A

mtle

and

over

a

year

ago,

must be placed upon the quantity
and grade of ore reserves that
will be available upon completion
of government contracts. Measured by this test on the basis of
information available to date,

re-

will

place

approxi-

which

mately $20 million in Ventures'
treasury immediately and if all
options are exercised will place
additional
$18,750,000 in its
treasury within three years. This

greatly strengthen

the

com-

panv's ability to place its various

development projects

entitled to further

group

would be Algom Uranium,

on an earn-

ing basis

appears

important price enhancement in
view of the more optimistic appraisal of the future demand for
uranium which now seems justifiable. My second choice in this

an

wiR

as

and

scale

of

far

as

as

rapidly

possible,
up and expand the
present operating units

as
build

to

whv

reason

+!! fSil,

il-iwb UIaimam

T'

UVIICagO DdllK

the

OIYIGVI

I¥

.

rru

.

,

..

r

,

of

hit

with

of

some

in

the

ment

cur

or

stages

the

which

most
of

the

by

Some

year.

credit

the

of

best of this group, which can look
forward
to. profitable
operation

30c

even

at

have

well-defined

being
tions

able
to

and

copper,

to

ore

which

indications

addiavail-

large

prove

reserves,

of

are

able at

their

that

are

(1)

in

apparently passed
phase toward the

acute

last

cor-

of the arrangements

rights will be issued to Ventures
shareholders to purchase approximately 200,000 shares at $30, one
for nine, and (2) Mclntyre will

previous^ enthusi- purchase 400,000 receive options
shares at $35
this group
immediately and

market

intensified

squeeze

enterprises
of develop-

production, and the
of

bull

was

end

younger

early

rection
astic

its

during the past year
particular severity

copper

has

interesting discounts from
|levels
of early
1956.
If

leaders of the copper industry are

E?

factor
ot

™ '
(?) Fear of

of

200,000

$35

indicated liquidating value
share of Ventures to be out-

the copper outlook for the second
half of the year,

curities

an

oversold

the rebound from

market

condition

in

this group of lusty junior coppers
could be a sharp one. I commend
to your
Mines

particular attention Geco

(15%)

the

big Manitouwadge property coming into production

this

anda-Miningr

summer

under

worship.
You
should
also
carefully, I believe, at the
which
gamau

promise
in

Nor-

Corporation

to

Quebec

make
a

39

would

tions
ali

are

Annual

May

ql...

21

yrni'frv

I * ifoafr

°

Eu

Vail

*a"»

at

*

rlllh

5*

A

President

T„f. a

b
^
^
?ag0' ^ecfetary

of

V,

"

o

g

warrants

would

market

the

largest

to

single

prices.

of

the

reduce

about

$53

By

at

Nickel

asset

which

means-

S^n|^^^S'h^lmortgages' hasa%e?vi^

share of Falconbridge for

each

of

Jlst

that this desire to

number

of times

have

you

John
jn

Winthrop

paine

Curtis

Foster

Webber

pa^sed

away

partner
&

a

Inc

With KOStman, Inc.

"tcT T

Where

You

Come

is

now

with

Kostman,

-

hefnre

■

them

a

^

_

+u-

,

you can

-

ep

-

ln

.

mir|d»

that Pf°P,le eith/' Want \° S?tist^

feeling of insecurity (need

desire to preserve capital from

^^nr^nnrnhMfon011™?1 will
need for approbation you
wm

understand

—

The

annual

meeting of the BirmingClearing House Association

ham
was

the

held

May

on

10,

with

1957,

following Officers elected to
for

serve

a

period of

'President* R

'

__Vlcf

B

one year,

Fore

*

.

President:

F.

Boykm

HLj..-.

^

|.

t,',,Cfiag0

A

0 |

U" # J

„

„

GrOlip NSITIGS V.-Pi

CHICAGO, 111. - Thomas M.
Mocella, staff member in the BusiDevelopment Department of

Chicago, has been
President

of

the

Commerc!

Association of
dustry

elected

Chicago

Ben T

Nejson

banS's i^an

and In-

a

member

^sc^

and

Department and John L

ViceJunior

SteDhens

Divil

a member °f ^ Porsonnel
.

elpptpd dirrrtor<? of thf

the

basic emotional jav(!ees
factors why people will buy certajn

securities.

You

investments

must

and

size 15 shirt to

a

then

.

a

wedding.
your
can

Once

you

have sized

client's basic needs then

up

LOS

f

with

man

has

Oscar

Sixth

was

yo1ur

Calif.—Loren

become
F.

associ-

Kraft

Street.

&

Co.,

Mr. Saltz-

with
Leo
Schoenbrun and prior thereto with
Gross Rogers & Co>

you

|

\
*7

P

Huffrtn

Arlrlc

listen

(Speciai to the financial chronic)

u

OAKLAND, Calif.

suggestions.

The

the investment of

impor-

THEIR

OWN

ABILITY

LECT

THE

RIGHT

TO

SE-

INVEST-

—

Paul P.

Morettini has been added to the
staff of E. F. Hutton & Company,

Street.

Two With D. D. Weston

Thl

people ask others for ad-

vice and follow suggestions concernmg

r.

formerly

bave understanding and apprecia- 1309 Franklin
^j011 ,of
customers needs,
heed

v

ANGELES,

Saltzman

530 West

Why Your customers Listen
o

^

(special to the financial chronicle)

offer specific suggestions.
f

.

Joins Uscar Krart

specula-

fellow with

r

IIUU»© LICUlO UlTICCiS

BIRMINGHAM ^Ala/

Harris Trust and Savings Bank,

In

(Special to the financial chbonicle)
tant sums of hard earned savings
LOS ANGELES, Calif.—George is that they themselves DISTRUST
Inc., 215 West Seventh Street.

Jroire

Hmica FIoaIc flfflftorc
v.

morte. of\en ^ tbeir

Hope)

reason

Kostman

wTll

VlCOl lllg

ness

to

g

nronor

neonlp

service Deiore tnem.

\

^

May 27 at the

age of 76

DroDer

fh^t

almost see the ears wag and waynes;
the eyes pop. How many times
Secretary: C. E. Kirkpatrick.

ff you have a sound foundation
of investment knowledge, if you

Jackson

*

Riflllin^hllltl filpArillO1

gone

The Association of Chicago Bank size 17 neck, nor would you offer
Women comprises 130 members him a blue chambray workshirt
employed by 62 Chicago area if he were going to his daughter s

r

sua

out todav if he will rtev

this

ated

n,

can

or

...s

seek'him

to lunch with a group of business
associates (those not in the investment business as well as engaged in it) and you have heard
one fellow say, "I just made a
killing in Zatzo Mining, bought it
at 10 and sold it at 20." You could

a

.

and who

needs

and

..

"do

client's

D^anned Sroeram of rel
snecifFc aroJ^th
te¬

a

if you are dealing with human a,
emotions in an endeavor such as p
the investment business you must
recognize

first
tbe

stocks in the

or they are unhappy. This
pretty rough accusation but

a

anajvze<.

jnvestmentwise

f

fellow
is

«

Ba"k-

that Ventures holds four-fifths of' Akoboff
a

developing

d.

.

of

satisfy have set many individuals the .past 25 years. Pwple want
toward thinking about other in- J|elp. ^ey want to solve some mvestments rather than the old
standbys such as life insurance, they are receptive to suggestions,

a

John W. roster

in^ecuritv

of

taxes, and higher living stand- ? 4
™1 investment accounts is
ards which most people wish to today greater than at anytime in

some

banks: Purposes of the organizau?n* formed in 1923, are to proY.ide a forum for the discussion of
financial problems and to help
advance women in the banking
profession.

fea^s

desires and

t

pany, Evanston, 111., and Treasurer tions that will fit these needs. If
Arm Beno, Assistant Cashier you were operating a haberur the Pullman ( Trust & Savings dashery you wouldn't try to sell

far

of Ventures is its 51.2% interest in Falconbridge

ft

future want aesmes and ]fears of insecurity, of

for ^re income now or later-or

^orberg. Assistant Casmer of tne

discount of

Exercise

some

r.

tr

wel

emotional structive suggestions wmch they

L

the

whv

reason

nnnnrinnitv

on

CMeago's

the

is

?y increasing cost of living, higher

the

ninn^r

at

E

this indicated

available.

year-end

pro-

value,
price of

break-up value, excluding holdings for which no market quota-

look

copper

a

from

value

ducmg area second only to Sudbury in Canada. Most promising

quoted

a

represent

roughly 31%

break-uo

Chibou-




having

Thus the current market

spon-

group

A«cnr»iatinn'«

Tuesday
cnilfh

na^d

then

or insecurity. Entering into this f^reciatmg ^oney, or the natParticularly today is the factor of ural wish to be financially sucdollar depreciation. The constant-

^

issue

Here*

upon

an

vWnUint

of
Chicago
Bank
Women for the coming year.
officers

THEY

KNOW

to

emo-

tndav

Flrs^ National Bank & J^ust Com- offer

Assuming the

itTomls

investment

{?ona™mo5vaLi^S^5tee^lv m^v in^vWuals today will wel;
motivations are extremely many individuals
oTXTeasonf w^V^ople make w^caUs
them1withwT
^vestments^ from
ImotTonal stroctives wjjswthms^-which thev

Mclntyre is underwriting the issue of rights and any stock taken
up
by Mclntyre at $30 will reduce the number of shares required to be taken up by it at $35.

per

When

mltte?

the

Association
Qther

a limited knowlmaking mistakes.

^basldT uponslme^mo- TOW®0 MORE^eiTHANy

Lonal

TueTsZl^Tt^

has been elected President of the

stocks Yet they

of P^specting and clientele build- know they have
Practically every major de- edge. They fear

1Y}g;

within two years,
and
250,000
shares at $40 within three years,

standing would be slightly over
$56 per share on the basis of Dec.
31, 1956, market values for se-

right in their bullish appraisal of

^

to purchase 250,000 shares at $35

shares at $30 and 400,000 shares at

about depreciating dollars so they
wish to invest in other mediums

.

CHICAGO, Ill-Mrs. Marion E

a«*.

»e

o

at occasions- such as this have
otherwise
solid
businessmen

m

ttioI

S
^vest*?ent.advisory services have
been flourishing so widely over
the country during the past sevej*al years. People are concerned

2

underlying assets

Canadian Hvdro CaZns in the he\d ef1rjalnatl01ns' engmeering
LP ca^field H Western^Canada
?
metallurgical testing, called
^
for s,un}f far bey°nd theDetailscomThe steep decline in the price pany's liquid resources.

lvrnvrT'c:

w?«fh

artuallv

advice in
?+0jwhere they have a limij ?L,f*ml?nce 5.1? kn°wledge.
Jf y°a wBl keep tais in mind you
JP'
able to-.guide: .your own
4?^

AssistantSecretarv^1 of'atheerM3eIr- beneft1J
LToSk1 th—riihesin f JentUreS' T1Udlng e^tens!^ntile ^a^on^ ^ank of (Chicago,
of

r»<5vehnlnt*ipal

neonle

Naitie NeW UlltCGrS

»

conditions warrant.

«

0pment

ha«:ir

a

Consolidated Denison Mines (23) as well as the next fellow" is a
is confirmed in my opinion as the compelling reason why some men
m°st attractive long-term growth buy speculative stocks. There is
equity, in the group and one no need to remind you,poi the

cently culminated in the acquisiR0n 0f COntrol by Mclntyre Porcupine Mines, under an arrangement. which

i<?

8® ® me * bo ds.
ments with sharper focus upon
(2) There is also the desire for
potential earning power in the approbation. Some call it "keeppost-contract period. This means, ing up with the Joneses." Some
of course, that primary emphasis people must do as well as the next

However, the credit
shortage intervened, metal prices
declined and their efforts along
these lines were severely handihas

be antici-

can

agency, it obviously becomes imperative to scrutinize commit-

a

possible.

situation

selective

for

pated from special price contracts
with
the
Canadian Government

themselves to a program designed to bring properties
into profitable production as fast

This

consolidation

make

cash throw-off that

dedicating

capped.

of

to

long-term capital
However, now that current prices no longer reflect any
important discount from the net

hoard took over, with
Robert B. Anderson as President,

as

to
has

gain.

inaugurated

was

used

purchases

new

a

period

be

can

ways
long on potential ore but
inclined to be short of production,
earnings and cash.

change of policy

which

stocks from 1956 lows (mostly
since November), I believe the

al-

was

reference

eroun

oomcining io hememoer
There

urn

depreci-

company

be

Despite the gains ranging to over
200% scored by Canadian urani-

ating money and he therefore
had only a minimum of interest
in taking them out of the
ground,
As

without

uranium

not

market leaders since last autumn,

only safe form

an

should

been in the forefront of Canadian

globe.
Lindsley,
imbued with the
minerals
in
the

the

were

remarks

concluded

put

together by Thayer Lindsley, who
displayed a genius for the discovery of mineral wealth in all

kT^dtacnanaHd^ybeCveon„S-Del ^
While
considering

Ventures

standing on exercise of all op¬
tions.
Among other major direct

man$r investors who want holdings are those in Hoyle Minparticipation in natural re- 1 ing, Frobisher Limited, Opemiska
source
developments
in
their Copper,
Lake
Dufault
Mines,
early stages but would like to Metal Hydrides, La Luz Mines,
spread
and
minimize
the
risks
American Nepheline and Domin-

the

of

each

.

.

_

For

nanip„
■

: •,

Ventures share to be
outstanding
immediately, and will hold twothirds share of Falconbridge for

some

Canadian

grocery chain,
and its
equity in National Tea, were approximately $2.73. Further marked

(2%).

.

Changes m Ventures Ltd.

now

two-year range
37-17.
Earnings
last
year
jumped 62%
to $1.56
and
the
earnings to the stock including
undistributed earnings applicable
to the company's controlling interest
in
Loblaws, the
leading

"

.

of

-

Jaculet

deflated and has begun

recover

31

-

Financial

Chronicle)

LOS ANGELES, CahL

m»v\c

—

Mars

E. Kiesel and Mabel S. Opley have
joined the staff of Daniel D. weston & Co., Inc., 618 South Spring
Street.

Miss Opley

was

former y

with B. C. Morton & Co.

Financial Chronicle

The Commercial and

32

Continued from -first page

See
We

As

p

between personal use
often tends to fade into nothingness.

life the distinction

and business use

Really Investment

moving to country
Workmen to man
must have daily transportation to them, and very
if not quite usually, the privately owned automobile

Plants

roads

cross

them
often,

all

or

the country are

over

other inaccessible places.

be

would
.

seem

to

ing wages or a salary. Of course, a good many other things
ordinarily regarded as consumer goods are producers

goods in a sense in as much as they make it possible,
directly or indirectly, for the owners to do work of a con¬
structive sort—hardly, in some instances, less so than the

give personal satisfaction,
and clothing do.
The point is that in many

instances—though in what

the

he must have in order to function in
society and often are used directly for

equipment

modern economic

This places the credit so used in about the
category as funds loaned for the purpose of enabling
an individual to buy the tools or the equipment he needs
and uses daily in his ^business. These are facts which
should not be overlooked by those who insist that credit
should be employed only for productive purposes—or by
any one else, for that matter, who wishes to gain a clear

have

from

interest

But

another

there -is

as

a

The interest

income tax.

by the

rate after taxes—the true interest
rate—is
is
as

not

nearly

high

as

it

as

presumed to be—for the lender
well as the borrower; the

lender must

taxes on the in¬
terest received and the borrower
pay

off

it

aspect

of this whole matter

good, such for example as an automobile, a washing ma¬
chine, a radio, or any of the other dozens of items com¬
monly purchased on time these days, is not "consumed"
instantaneously when purchased, or even within a relative
short period of time. Commonly the consumption of such
articles is a rather long drawn out affair, taking a good
deal

more

time than the life of the credit extended for its

purchase. In the statistics of the Department of Commerce, however, the purchase of consumer
durables is

-

"consumption" on the spot and credit ex¬
commonly thought of as financing
immediate consumption.
The truth of the matter seems to be that the purchase

regarded
tended

of

a

as

on

such items is

durable

that the

good is an "investment" in the same sense
purchase or the construction of a house is an in¬
The fact that

vestment.

mobile, for

neither the house

nor

the auto¬

may be absolutely necessary for the
purchaser has nothing to do with the
matter. What the consumer is doing is to buy future satisfaction, or what he regards as such, and that is at bottom
an investment.
It is as if sugar or flour or bread could
riot be purchased in quantities less than enough to last
several years. The ordinary consumer then who purchases
a three
years supply of, say. bread would certainly be re¬
garded as investing not consuming at the time of the
purchase.
This fact seems to put a different light on the sub¬
ject of consumer credit, or at least upon some types or
instances of consumer credit. It is one thing to borrow
to buy goods or services which are used up and disappear

example,

continued life of the

•

from the
•

scene

borrow to

when

they

at

or

almost at once; it is another to

supply of goods required in the future
not be purchased, or cannot at all events

lay in
can

once

a

be

j^urchased to good advantage, little by little as need
for them arises. Of course,, such considerations do not

apply to the

use




of credit to obtain perishable goods, or

added

itary expenditures, necessary and

irreplaceable dissipa¬
material. •<";

an

Yet

despite

to

be

operating and in addition the
to finance via the budget

efforts

what

the

private

incapable

that this budget provides, we have
gpt to spend this kind of money*'
In fact,

there are some people

and demand; therefore; Congress
decides to circumvent the law by

smaller

running to the Treasury to make
up the difference.

serling

chosen

have

we

fectiveness

an

as

dilute

to

nancing

ef¬

its

impersonal gov¬

erning agency in the free market
—by taxation. All of this is in
addition to the fact that public
awareness of the function and im¬

the interest rate has
by 25 years of arti¬

This

brings

to

us

the

million

$750

+he Truman

to

of

our

financing
the one where Patman asks Mar¬
projects which normally and his¬
tin whether he's opposed to the
torically have been carried either
education of children.
Mr. Patby the state or municipal governman's solution is for the Federal ments, or business and the private
Reserve
Board
to
buy enough
citizen; underlying all this is the
government securities in the open widely held assumption that the
market to drive the interest rate
government can tax away whatwe

come

.

This

down.

—

rather than
the inadequacy of savings relative
se

per

the

to the demand is the source of

implication it also
questions
the
assumption
that
savings are inadequate and in any
event proposes that the Federal

trouble;

by

make

Board

Reserve

the

by

up

expansion of bank credit for any
sums
which are not forthcoming
the lenders —the

from

insurance

the savings banks or the
private citizen
either because
they haven't got them or are just
stubborn about lending them at

company,

iU

U

~

J

11

—

the prescribed rates.
tamount to

of

policy,

public

necessary

to

be

~

i-.

This is tan¬
as a

there

matter

shall

if

the Federal
Reserve
build schools if the

forthcoming

at
determined by the Congress
is

money

to

i

„

be inflation of the cur¬

by

rency

Board,
rates

saying that

rn L

not

reasonable.

ever

mains to the

sufficient

anty Trust 2

-

be

that what

of every-

care

This

should be aware

popular demands for this,

it

such
politically im¬

becomes

possible to restrain the demands
on
thp rmhlir nurse with the reon
the public purse with the re

sultThaf the" government'over the
preempts
a
larger
and
iarger
share
of
the
available
funds" the "economy Ts~ headed" for

years

?

.

.

The only question

how long
be

.

_

trouble.

then is

the inevitable crisis can

forestalled.

after year item is added
taxes must,
is to remain bal¬
anced, inexorably absorb a larger
As year

if

the

has

a

now

before the Congress

budget

share of the economy's
which earnings are the
not only of the savings to

and larger

different

solution—it

pro-

Congress shall appro¬
priate $750 million to buy school
bonds, in the event that they can¬

poses

that

not be sold

in

the

at "reasonable" prices

market.

This

chnuld

tpp

means,

and

be aware:

That at some point the
Treasury will probably
be required to make'the funds availaoie either by additional taxation
(a)

or

additional borrowing;

and

source

finance

the

requirements
the state and the

capital

of the industry,

municipalities, including schools,
but
also of the very taxes
on
which

pends.
there

the

politically administered
—
be it more- budget

pansion—so strong are the overtones o£ the
thirties,

government

itself de¬

Looking ahead, therefore,
comes

a

when any
of earnings
shrink the pri-

point

massive

The
the

from ^
ates

ing.

In

experience stilI domin_

political economic think¬

our

Italy

Germany

and

two

experiences in t?la generation W* O/In
with
-3
4
mi
k O rro

inflation have made
gun shy that they
the disciplines neces¬
sary to avoid a repetition; in the
United States and England, how¬
«-!

devastating
the

public

so

will accept

it continues to be difficult
public to the danger
an
inflationary
splurge,
so

ever,

to arouse the

of

is still

strong

the impact

of

depression

great

the

and the fear of deflation
the

of the
thirties

hence

political emphasis on doing
everything to avoid unemploy¬
ment
hence the full employ¬
—

act

ment

of

widespread
1 The

Economist

by taxes will so

tends

to

1946

—

hence

the

belief in the efficacy

observation

additional preempting

vate sector as to break the camel's
back. Th's is the real significance
of Secretary Humphrey's state-

unemployment of
the Keynesian

and

thirties

theory of over-saving that evolved

to item in this process,

earnings,

A bill

stimulants

who re- spending or artificially lowered
it will agree—it can't. interest rates to foster credit ex-

that and the other thing are
that

mand for

anyone

as

The public

so.

that if

ness has become a familiar feature
of the American scene — at the

ening might occur, there is a de-

take

so

fleets upon

only to sustain but to stimulate
still further the volume of busi-

first sign of slackening, or even
unprovable suspicion that slack-

to

isn't

pointed out, the cry

for governmental intervention not

re-

and

thing else including growth.

just

unemployment. As the Guar¬

private sector will be

needs

jt

and with

such goal lest we run

fall behind

of

cost

and

ernment

,,

that the high

assumes

rate

interest

the

the shoulders of the

to point three

—

rising population it is argued
we
can't afford to let GNP

into

Now

that the budget is
considering
our

we've fallen behind

buy

growing tendency to shift to
Federal Gov¬

■

small

growth potential—in other words,
whenever GNP fails to attain preconceived goals in any one year,

that

ficially easy money,

argues

too

far

budget

symptomatic

is

bonds

out
that the budget is
in relation to GNP than
budgets
while Kev-

points

inflation, which is our point
four.
The proposal that Congress
school

that the budget is not
—■
Seymour Harris

large enough

and

appropriate

an

bursting at the seams—
prompting even the President to
state: "As long as the American
people demand and, in my opinion, deserve the kind of service
economy

high—apd it is ppund to .bp high
in a dynamic economy—but that

is

rate

of

evidence

added

simply

too

interest

the

sector seems
unwilling to do is

or

who argue

that

get the

down—Parkinson's law 1 seems to

shifted to the taxpayer.
Congress doesn't like the verdict
rendered
by the law pf supply

is

therefore

clamor, it
budget

public

difficult

seems

burden of the fi¬

the

and

cuited

expense.

an

as

difficulty

portance of

attention. It is this: a durable

of

is in addition to the fact that mil¬

(b) That the Congress has decided that the judgment of the
marketplace shall be set aside;
that is to say, that if there are
not enough savings in the marketplace to absorb these school bonds
at a price which the legislators
regard as reasonable, then the
marketplace shall be short cir¬

been blunted

which all too often escapes

dollat

every

additional taxes of $1
will
automatically result in a
decline of consumption of $1. This
by

stitute

icy is more than compensated for

real

Consumption

ered

11

page

to excessive rates of
matter of public pol-

as

write

vs.

becjause it

erroneous

the fallacious assump¬

on

that

that the notion

budget precludes

fiscal expenditures as long as cov¬

Credit and Inflation

can

Expenditures

is based

The Economics of Growth,

The

Consumer

is

tion of manpower and

that purpose.

credit.

aware

balanced

a

as they may be, are eco¬
nomically unproductive; they con¬

same

idea of the true inwardness of what is known as consumer

also be made

inflation

essential

Continued

may

proportion we unfortunately are not able to say — the
goods bought with "consumer credit," instalment or other¬
wise, are not merely something to gratify the desires of
the consumer, but on the contrary are part and parcel of

point
deficit fi¬
nancing because it will be physi¬
cally virtually impossible even if
it
were
politically feasible
to
shrink its operations to fit the loss
in revenues.
The public should

aspects of the subject which so often escape the
file—yes, even of the matriculate
—that it has seemed v/ell to call attention to them here-

while such things as food
W.:;

re¬

will almost certainly at that

tion

difference is that the tools are not
to

a

force the Treasury into

that

chest of tools. The only, or rather the chief
ordinarily used directly

carpenter's

through

income, the greater will be the
shrinkage of tax receipts in any
sizable
business setback,
which

attention of the rank and

a

economy

cession; moreover, the higher the
budget relative to the national

are some

washing machine, or a number of other items
which enable the housewife to go regularly to work earn¬

freeze,

the

carry

bearing on this point.
"
j
Naturally, there are many other facets to this ques¬
tion of consumer credit and consumer behavior, but these

only one step further to arrive at a some¬
about the purchase of a deep

is bal¬
spell fiscal

budget

a

remains

that
statistical information is currently available

no

because

be too high to permit what
in the private sector to

may

not be wholly satisfactory. It is unfortunate

virtually

will

that

recession

a

soundness and economic health. It

financed in excessive
tion may

something
budget, we

our

hair curl.

our

Just

expansion of plant. If such an accumulation is
degree by credit, the resulting situa¬

undue

of

anced doesn't in itself

just about the same trouble as so often comes as a result
of an undue accumulation of business inventories or of

conclusion

similar

what

make

his

to

have

will

is carried too far, then, of course we can have

process

imply.

One need go

added

has

size

about the

enlightening to eay that the con¬
plant and equipment. If this

accurate and

more

sumer

available to them. So far as
an automobile is purchased and used for such a purpose
it is much more of the nature of a producers durable good
than a consumer good. Yet, of course, it is listed by the
Department of Commerce as a consumption good and the
loan extended the borrower for the purchase of the car
is included in the Board's consumer credit figures. Evi¬
dently consumer credit is not always quite what its name

-

Thursday, May 30, 1957

.

ment that unless we do

ephemeral services such as tours of travel, or similar
things. Here credit may or may not be defensible. The
point is that it can not be defended on the same ground
and by the same process of reasoning as could be used in
the other types of cases cited above.
The fact that durable goods are not consumed im¬
mediately but often over a very considerable period of
time is of real significance in another way. When such
goods are accumulated by the people at a rate greater
than depreciation on such goods accrues, what might be
termed consumer inventories rise. In some ways it would

only feasible means

Is the

,

.

.

(2536)

that

made by the London

employment
the rate of 5.6^

government

proliferate at

'XT^lVn^xisYen. Pa™k°n°son.V£
Economist—Nov. 19, i955>.

2 Monthly Letter November 1956.

Volume

185

Number 5642

.

.

.

The Commercial

and

Financial Chronicle

and

purchasing

the

ever

heed

to

the

even

theory—

power

extend

resources which had been
away to the-, point where
depreciation reserves were

it when¬ taxed

slightest

thunderclouds

internal

economic

appear

hence

—-

even
-

inadequate to replace

excessively high taxation, coupled

machine6

with

to

the

unanalyzed

the government

notion

that

tax away any

can

amount

it pleases and that what
remains will be sufficient to take
care of
everything else.
:

There is

widespread feeling that
persistently rising price level is

a

the

eral

in

Reserve
recent

a

Board, pointed
speech:3 "the

out

disas¬

trous

to

as

calculation.

be

almost

J .Nothing

destructive of

more

beyond
could -be;

*

our

hopes for

growth that is stable—as it should
be clear that once individuals and
business

begin to make their de¬

cision

until

ance

only

growth
toward

long

prudent.

process

experience

At

far

as

...

.

There is also the
notion,

.

What is required is

complete
and /imaginative
recasting of our
whole structure — in which the

Board,

...has

provide new incen¬
tives-to work,-to save, to
invest, to
risk; we'll have to review and re¬
our

implied

and

grown,

which

comprehensively looked

excessively

and

corporate

of

passed. We can't go much further
in running down our
liquidity or

income

that if you could
those mysterious

non-existent
the

big
wealthy

individual
tax urates

only

divide
and

—

hidden

—

a

really

assets

corporations
on

up

and

of

the

socially or
ethically desirable basis, all prob¬
lems would
be solved;
actually
among all the inflationary viruses
in
our
system,; the wage price
spiral is clearly the most virulent
—

more

Federal

Reserve

Act

to

restraint

negotiations

in

wage

and

pricing policies
is an answer, but
only a partial
and
transitory one
a
timely
against

warning

the

dangers of
wage-price spiral.

the

tax

legislation

were

approached

icy

best calculated to promote

was

the

pol¬

growth

of

the

for,

economy,

Dr.

as

Henry C. Wallich, Profes¬
Economics at Yale, in a
noteworthy article* — required
reading — points out, "the masses
of

sor

of

the

perpetual

doesn't

solve

the

growth problems
both

parties
and

car

around

—

not

wreck

underlying

it merely asks

to

it

the

overrace

before

we

—

J

.

of

redistribution

promote them.""
Our

trouble

•

is

'

'

r :'

not

of

mands,

unsatisfied

which

tight
growth—•
manifes¬

growth
be

cannot

de¬

met

by

(a) artificially lowering the inter¬
rate; (b) resorting to bank
credit inflation;
,(c)^shifting the
burden to the Treasury by
having
est

the

federal

the

money

government

produce
taxes; (d) or
trying to resolve the problem by
resorting to controls to direct the
out

of

The free market is
probably the
non-technical
invention

greatest
man

it

—

is

by far

the

yet found to direct the
allocation of the available amount
of men,
Once

ket

in

abandon the free mar¬
favor of controls and the

we

fail

to

rency, we will lose our liberty as
well. But as I pointed out at the

outset, defending the currency and
maintaining the free market is
not enough — it won't
produce
the

additional

finance the
our

savings

enormous

modern

mass

under

the

growth

demands

this

and

to

capitalism —
of
these

pressure

we've

patched

resorted

needed

demands of

to

there

stretched
we've

—

makeshift

devices

which have been
pushed about

far

as

they'll go — when the cor¬
poration couldn't supply the funds
as

needed

to

finance growth out of

at

the

Rolling

adjustments,

orderly

eco¬

ness

Dec.

Economists,
14,

Washington,

D.

C.—

1957.

4 Entitled

capable

Icy"—Yale Review,

Autumn

issue




of

insist

we

1956.

and

managers

our

expense—what
mechanism just isn't

delivering.- In fact, if

on

operating the trusty

old jalopy in accordance with the
1914 rule book
regarding

fiscal,

banking and

money market pro¬
with it, we may

came

actually hasten its crack-up
lose

our

the

firm.

He

from

C

i

r\

rf/\l

r>

A

n

Mr.

>-3

w.

_

are

in their effects,
they react with unequal im¬
different classes of borrowers.

as

upon

V

This

contention

but

extent,

is

If

apparent.

icy of restraint
it

necessarily

ing

question
who

is

"An
erable

be

that

that
is

some

or

secure

an

at

limited

to

some

alternative

agreed

resources
are

then

to

is

pol¬

a

in

order,

borrow¬

restricted

in

a

time

when

supply. The

becomes, 'who shall

decide

restrained?'

that

responsibility,

degree,

upon

market

approach

is

a
consid¬
forces and

to

the

market
mechanism.
Certainly, allo¬
through the market will never be
perfect, but the alternative of placing the
allocation
authority in the hands of a
or

Corporation,
Mr.

authority may lead to less perfect
arbitrary decisions than those

Johnson

of

the

market.

Morec-ver, restriction

involves

be

through the market or by
a
central
authority, a
policy, if it is effective, must

worked

discriminate
far

burden

as

those

cerned."

burden.

between
or

users

unfavorable

who

are

Whether

Mr.

Johnson

carry

impact

inso¬

(Source—March

1957

are

ogmze.

a

result

which

of

con¬

Business

intervening price in¬
does not rec-

the Treasury

ac¬

headquarters
office

of

Research
Baker

in

the

National

Geisel

was

as¬

is

Street,

production continued to

American

capacity

based

Minneapolis
Securities

Iron

-

off last week, but there

ease

for

June

shipment.

•

^

and

Steel

Institute

announced

that

the

an average of 87.8%
beginning May 27, 1957, equivalent to
for castings, as compared with

and steel

of ingot

on

higher
are

annual

capacity of 133,459,150 tbns

like week

a

2,226,000 tons. A
operating

based

on

an

year

tons

ago

the rate

was

1957

of Jan. 1, 1957.

87.0% and

the actual weekly

pro¬

production

or

is

not

rate

capacity

than

month ago

as

96.3%.
comparable because capacity is
The percentage figures for 1956
annual capacity of 128,363,090 tons as of Jan. 1,

placed at 2,370,000
The

&

1228

at

orders

for the week

tons

For the

duction
his

in

1956.

1956.

Electric

Co.,

618

members

Lambert Co. for many years.

power

thitJ latest week

the

Pacific Coast Stock Exchange. Mr.
Geisel was formerly with Akin-

the electric light

industry for the week ended Saturday, May 25, 1957,
was
estimated at
11,574,000,000 kwh., according to the Edisoij
Electric Institute.
Output continued to move to higher levels in
and

South

of

Output Made Further Gains the Past Week

The amount of electric energy distributed by

joined the staff of
&

assembly plants planning to work

86.4% of capacity, and 2,212,000 tons (revised) a week ago.
The industry's ingot production rate for the weeks in

Com¬

Noble, Tulk

has

~7 "
.car

mild pickup in demand, "Steel" magazine reported on Mon¬

2,246,000

make

Corporation

Tulk

that

ing capacity for the entire industry will be
of

LOS ANGELES, Calif.—Charles
W.

noted

substantial volume of

(Special to The Financial Chronicle)

Noble,
Spring

2,876,000 units.

Steel Production Estimated to Yield 87.8%, of a*

The

Building.

With

or

108,126

operating rate of steel companies, having 96.1% of the steelmak¬

Research

and

will

above the

cold-rolled

mutual fund

as a

a

was

it

and

restrained

area,

representative.

of

Review, Federal Reserve Bank of Dallas).
flation

been

Broadway, New

Kinnard

16%

consumption, it added, has been exceeding demand this
year.
Government indexes show that users have been living off
their inventories.
When
inventory reduction runs its course,
consumers will have to buy at least as much as they use.
Many
can't be far from that position now, this trade journal declared. > '
Consumption should remain high. Unfilled orders for dur¬
able goods, while a little lower than they were at the start of
1957, are 8% higher in dollar volume than a year ago.
The uptrend in scrap prices that began at the end of April
continues.
For five months prior to that time, they declined.
A rise of $1.67 in the week ended May 22 put
'fSteel" price com¬
posite for steelmaking scrap up to $46.67 a gross ton. The lowest
mark this year, the week ended April 24, was $42.50.
,
Much of the increase stems from broker bidding to get scrap
to fill orders on hand. Lower production in the rnetalworking in¬
dustry, particularly the auto plants, is reducing the generation
of production scrap, according to this trade publication.

Vice-President

formerly

in St. Paul

out

decisions

restrictive

a

G.

but

week last year.

Steel

un¬

doubtedly
the

a

with the investment firm

John

more

of

has

Central

120

127,390

125,473 units,

rnetalworking weekly said demand is perking up, chiefly
and hot-rolled sheets, hot-rolled bars and mer¬
chant pipe. But producers of these products can still accommodate

City.

sociated

pany

cation

central

Johnson

of National Securities &

York

.

.

to

The

for

cording to an announcement by
Henry J. Simonson, Jr., President

ever-increas¬

in

impersonal, objective

place

to

to

of

resources

true

restriction

restrained

attempts

amount

such

it is

or

follows

be

must

ers

probably

acceptable

an

sales holding close to April
..'A.*.-;- C. v/:..

day of the current week.

Nat'l Sees. & Research

North

car

schedules last week held

.

Steel

E. D. Johnson Joins

Resident

new

'

since 1937, with general
responsibility for all operations
and direct responsibility for real
estate, labor relations, finance and
all corporate legal matters. He is
a member of the New York Bar.

the

k V

Ingot Capacity This Week

was

international transactions,

Bonn,

same

.

Co.,

company

for

car

1

have general responsibility for
Glickman
Corporation
national

D.

*

«

Administrative

Joyce, who remains

Edward

^

also will operate, it added.

will

,

discriminatory

pact

their

,

ic

I •

cipal stamping division plants in the Detroit area and all offices
of the company. Eleven out of 15 Ford Division
assembly points

realty

ited partner with Bache &
investment banking house,

,

_

'•

'V'hm

HM.ni

'AV-vv

last year.

rTte.^d "eneralire'dU r«?r£ aPP?inted Assistant to Leighton

interest
tion

,

"■

iii

truck building remained strong the past week,
with United States plants scheduling 23,754 units. This compared
with 23,138 the week before and 21,678 in the May 21-26 week

lim¬

and

,

this Friday included Plymouth and Chrysler divisions, plus prin¬

a

and

'

1^.1 n.

Meanwhile,

Appoints

as

.

assembly in Flint this Friday.

mate for this year is

Investment firm, has announced
the appointment of Thomas F.
Joyce, A
Jr., as Vice-President and
T
Ailin

'...y

automotive

"Ward's"

Vice-President.

VvV,:..,;:~

The statistical agency said that May car output is
marking the
first gain in 1957 monthly volume over the same period last year
and is pushing January-May volume fully 4.1% over like 1956
when 2,762,100 cars were built. The five-month
production esti¬

was

Exchange.

Louis A. Siegel

are

services

and

below the prior week's

in the

until 1950. He continued
Governor until 1953, when he
was elected member of
the Board
of the New York
Stock

Corporation,

rose

for /food

471,673 and with May

1.5%

a

held

Glickman

goods

;•i* \

Passenger

a

Glickman

/.

levels.

Exchange in 1944, ViceChairman two years later and iii
1947 became
Chairman, an office
as

price'index was
0.5% over the previous month.

said the long weekend will end on a bright note,
May automobile output in the United States showing an
approximate 14% gain over like 1956, or to an estimated 535,000

Stock

he

the

With

elected Governor of the American

liberties to boot.

,

6 As

"Conservative Economic Pol-

P •

_

taxpayer's

the existing

some

3

nomic growth—before Conference
of Busi¬

i.

in

rise in

The statistical agency,

Stock

bought

costs

April

"Ward's"

Prior to joining Glickman Corporation, Mr. Siegel was a Direcpressure
to make
up
either by tor and Executive Vice-President
inflationary bank credit or by of Hearn Department Stores, Inc.
additional governmental
spending He had been associated with that

not

economy —
defend the cur¬

l

Department
will
be
under continuing and
potentially
dangerous political and popular

inasmuch

money and materials.3
we

completely managed
once

monetary

best

method

1.

«

Treasury

cedures that

allocation of available funds.

of

U ^

market
structure
in
which
all
these things can be accommodated.
Until we get at these problems
our

that

money is strangling our
rather tight
money is a

tation

could

partner

a

he

r

the

senger car

Exchange and became

1940

higher

other

general

In

that

on

get

parts of the engine because growth
requires the capacity to expand
than any conceivable income re-^ debt
growth requires bigger
distribution.**A speed-up in real savings and bigger banks to fi¬
output of only an extra percent a nance bigger corporations as well
as
a
year would
soon
lift
even
the
public debt — and money

amount

&

Exchange.

modernizing and en¬
larging the engine; we must en¬
large practically all the major

people have much, much
gain from faster growth

economically weakest into income
brackets to which no conceivable

a

),t

•

the

1

which

seat

to

to

more

does

of these earnings

power

Included in the nine factories'are, Mercury, Lincoln,
Cadillac,
Dodge Main, De Soto (and Dodge Truck) in the Detroit area, plus
Oldsmobile, Pontiac, Buick and Chevrolet outstate. Chevrolet
plans, while tentative, at that time, called for truck but no pas¬

firm

Johnson

Wood,

buying

the period because of the cost of living

in a survey of Michigan's 12 passenger
assembly plants, plus manufacturing operations,' said nine
planned to suspend final car assembly on Wednesday night of this
week and resume the
following Monday. v
^

Exchange

American

exercise

It is most
necessary and desirable
that
both
sides
comply but it

from the standpoint of what

•'

commission business and also spespeeding up the velocity of the cializes in rights.
<
currency or continuing to try to
Mr. Werle was employed
by
substitute credit for
inadequate Johnson & Wood in 1924 and later
savings.;
v.;/-';;
worked for them as a floor
repreAsking both labor and industry sentative on the

•—much,

much more
would
be
obtained if wage negotiations and

Edward C. Werle

was

.

car

1953. He

member

since

at

the

and

j

Industry

industry last week- upwards of 85,000
Michigan auto workers, including more than 32,000 in Detroit
area, were granted a long" Memorial Day weekend, "Ward's Auto¬
motive Reports," stated on
Friday of last week.

partner in

the

haven't

-

,

A /'7'

In

•

o v e r nor

a

year, the

over

factor In

April.

•'i'vV-V; U-'

'

been'a

since
is

the

for

in

rose

•

chan g e
since 1950 and

banking,

we

G

.«

-

only part of the story.
have continued what the
bureau calls their "long term
upward creep." All except clothing

x

a

-

chief

But

Prices

member of the
E

*—

-

v

The

v

an¬
•

of last

higher costs for food which

,sMf. Werle

r

econoray can grow and thrive. We

modernize

s

nounced.

will need to

and

n

President,

month

down nearly 1%

*'

t.o n,

u

-

-

same

increase.

Keith

F
j.

like

was

meeting of the

a

in constantly rising
wage demands

high

the

By NYSE Governors

If the. New .York Stock

j

-

...

point the cor¬
Edward C. Werle was re-elected
poration dipped into its own
re<the* BoarTof
training resources and depleted its
,
liquidity to the point-where on
March 15th it had to borrow
organization
again Exchange,, .at .til £

]

1

•

time, the buying power of factory Avorkers turned
down for the second
straight month after 30 months of gains over
year-earlier levels.
Even though the.
factory worker's weekly
spendable -earnings in April were about
$2, or 3%, higher than

Edw. Werle Re-elected

deemed

5

page

The State of Trade and

as

that

from

the index went
up another 0.3% during Aprils the eighth straight
month of advances to new records.
The index now stands at 119.3
of the 1947-49
average.
"
; /
"
;
At the

be

serious crisis."

a

Treasury
they

what

the banks became

even

credit, tax, fiscal and money mar¬
forfeiting our ket structure and procedures which
prospects -but
moving- are partly outmoded, partly out¬

not

the

up against until we evolve a
solution which is to be the task of
the commission which the
Presi¬
dent
has
recommended
to
th*

reluctant to extend further; credit
because they had run down their

onthe
assumption
that
there will be continued
deprecia-i vise
tion in the value of the dollar we
.will

and

trying to do and

Continued

Federal

are

consequences of a general just to pay its taxes. We're burst¬
acceptance of ah assumption" -of ing at the seams—
everything is
continued inflation ? areso far- too-small." -*v ♦ —

reaching.

and what the

able, the corporation went to the
banking system to borrow the bal-. Congress,

their

desirable, al¬
though nothing could be further
from the truth. As Can
by Balderston, Vice Chairman of the Fed¬

Board

are

the

funds there became too
expensive
or. for practical
purposes unavail¬

liquidity in the

even

when

—

Reserve

out

worn

market;

not

bad and

problem

the corporation went

—

capital

preferable to unemployment—-and
that actually
creeping inflation is
so

a

We
desperately need broader
understanding of the nature of cne

7#

(2537)

t
of the

The past week's output
•

of the

advanced 55,000,000 kwh. above that

previous week; it increased 647,000,000 kwh. or 5.9%
Continued

on

above
34

vaae

;
M

Financial Chronicle

The Commercial and

-

34

Thursday, May 30, 1957.

v.

.

(2538)
•

:

kwh. over the week

comparable 1956 week and 1,598,000,000

ended May 28, 1955.

of

Loadings

cars,

Like Period

Week But Was 16% Above

a

24, 1957,
1.5% under
16% higher than the similar period in

but was

1956.

.

loss

of

below that

units

1,301

output

car

of

the

preceding

states "Ward's."

*

week's output,

1

Last week the agency

reported there were 23,754 trucks made

week and 21,678 a year ago.

buying

trucks

616 vehicles during the
108,126 cars and 21,678

and its Free

United States

' Vr

■

..

■

•

sales

store

Federal

the

of 2%

6,890 cars and 1,563
Dominion plants built 9,893 cars
2,117 trucks, and for the comparable 1956 week, 6,641 cars
2,163 trucks.
j

level

of

military

our

should be. But when

and

previous

on

combined military, diplomatic, and

Board's

Reserve

recommended would be

.

.

country-wide basis

a

as

taken

1, 1957 to May 18,
registered above that of 1956.

will not and should not support.
But

come

we

now

264,111,000 barrels,

week-earlier

an

people who say: spending for de¬
at home is one thing, but
the

the

that these

programs

anywhere

from

18, 1957, rose 3% above that of

The latest total, the agency declared, reflects a rise in both
production and refining of crude, as well as a continued drop-off
of emergency shipments of United States petroleum products to

from

The latter averaged only 206,000 barrels a day

types of products in the week ended May 15, down sharpiy

Business Failures Reached

Commercial
week

ended

a

Nine Week

industrial

23

failures

from

and

May

in

Bradstreet, Inc., reports.
and exceeded

High

264

the

climbed

to

preceding

309

week,

in

Dun

the

&

The toll was the highest ip nine weeks

the 273 last year and the 204 in 1955. Two percent
than in the comparable week of pre-war

failures occurred
when

303

were

recorded.

Casualties involving liabilities of $5,000 or more rose to 263
from 216 in the previous week and 217 a year ago, while those
with liabilities under $5,000 dipped to 46 from 48 last week and 56
in the similar week of 1956.
had liabilities in

excess

of

Thirty-four of the failing businesses
$10,000 as against 26 in the preceding

week.

wholesale

food

price index, compiled by Dun & Bradslight rise last week. The May 21 figure
$6.09, from the six-month low of $6.08 recorded a week

street, Inc., registered
to

a

earlier.

The current level compares with $6.11 on the correspond¬
ing date last year, or a drop of 0.3%.
Higher in price the past week were rye, barley, beef, bellies,
sugar, cocoa and hogs. Lower in wholesale cost were wheat, corn,
oats, lard, coffee, cottonseed oil and eggs.

The
raw

index

represents the

sum

total of the price

foodstuffs and meats in general use

pound of
and its chief function
per

is to show the general trend of food prices at the wholesale level.

Wholesale Commodity Price Index Registered a Further

Slight Rise In Latest Week
There

another

slight increase last week in the daily
wholesale commodity price index, compiled
by Dun & Bradstreet,
Inc. Price rises on some
grains, steel scrap and rubber offset de¬
clines in

was

livestock, tin and lead.

On

May 20 the index stood at
287.33, compared with 286.27 in the preceding week and 291.69 a
year

ago.

weather

conditions in growing areas boosted
grain trading the past week and most prices advanced fraction¬
ally. Wheat exports may amount to about 500,000,000 bushels for
the crop year, noticeably
reducing Government surplus stocks.
Local stocks of wheat fell moderately in the week
boosting prices
somewhat.
Corn trading picked up
slightly, as wet weather de¬
layed planting again last week. There was a slight decrease in
soybean prices.
While coffee futures prices slipped, in the cash market prices
climbed

slightly

as

buying

improved.

end of the week purchases of cocoa
prices closed at higher levels than in the

rose

appreciably

preceding week.
•Warehouse stocks of cocoa declined to 277,310 bags, compared with
337,901 bags in the same week last year. Arrivals were 21% less
than

lion

from page 7

'

level where they destroy

The

the pro¬

crease

economy.

our

the amount'individuals can

.

for

the

similar period

last

season.

Reports that

duction in Puerto Rico would probably fall short
resulted

in

a

noticeable rise in




domestic

prices.

sugar

pro¬

of expectations
1

my

opinion the $4 bit-

spend for our programs
as
essential a part of
national defense as the $38
is

for

spend

we

Army,

our

the

despite
which
grams,our

mistakes,

for

getting more

are

we

the

in" security Tor

money

United

and

waste

inevitable in such pro¬

are

what

in

States

are-

we

primary factors contribut-. spending abroad than we are in
what we are spending at home.
Now
to prove a
point, let us

which

million

12

critics,

Navy and Air Force at home. And

The ing to the size of the current
present tax level, if continued in¬ budget are these: 80% of the in¬
definitely into the future, could crease is directly attributable to
seriously weaken the economy. the higher prices the government
Consequently, our objective must has to pay for both material and
always be to reduce government personnel. The other maior factor
expenditures so that we can in¬ is the increase in population of
of

ductivity

these

we

our

Victory in the World Struggle
DependsUpon Budget's Passage

occurred

has

amount

this

examine

item

■■■"

item.

by

,,

Proving A Point;'..

i

Approximately $3 of the $4 bil¬
lion

goes

Formosa,

to Korea, Tndo China,
Thailand, Pakistan,

1953 which results in inTurkey and other countries to
is the solid
creased demands on the Post Ofassist them to maintain the armed
real progress in America is built... fice and other service departments
forces needed lor their own de¬
That is why I believe that the of the government,
fense.
current discussion which is taking
Turning now to the basic quesMost
of
these countries
have
place throughout the nation on the tion, what cuts should and can be common borders witn Communist
Federal budget will in the end made in the 1958 Federal budget?
nations.
If they were not able to
prove to
be a healthy develop¬ As I have already indicated, the
In the

ment.

erally

has

aware

of

past, the public gen¬

not

the

been

fact

sufficiently

that

when

the

since

President has himself suggested

of

cut

billion.

$1.8

To date,

defend themselves, the chance

a

the

Congress has approved cuts aver¬

that

they might be attacked wculd be
increased.
If they are attacked

we
would inevitably become in¬
approximately 7% in the volved.
bills which have been acted
We had one experience of this
a
result of the wave of tax con¬ upon by both Houses. Up to this
That war cost us
sciousness which is sweeping the time, however, Congressional ac¬ type in Korea.
$18 billion and 157,000 American
nation, I
predict the political tion has been completed only on
casualties.
Putting it bluntly, it
demagogues who in the past have bills covering appropriations for
costs less to equip a few Korean
thrived on the slogan of "Let the other than so-called defense ex¬
divisions
than
to
fight another
government do it," regardless of penditures.
Korean War.
the cost in money or freedom, will
In
other words, if we do not
The Key Question
find their audiences much less re¬

Government

Federal

does

some¬

thing the people pay the cost.

As

ceptive than previously.
With these general principles in

examine the
why the budget is as large

mind, I

suggest,

as

we

it is.

Dispels Misconceptions

First, let me dispel two widelyheld misconceptions on this point.
The

increased size

of this

budget

is not due to the initiation of

new

so-called New Deal spending programs.

If

which

had

approved

At the

and

Continued

to

I would like to under¬

May 21.

abroad

reasons

Unfavorable

the President gave an

answer

ply that in
7

enterprise which
bedrock upon which

Improvement the Past Week
The

31

.

1956.

invest in private

Wholesale Food Price Index Made Slight

went

&

to

any

line what he said by stating sim¬

billion

In the Latest Period

1939

period of Jan. 1, 1957 to May 18, 1957, the index
rise of 4% above that of the corresponding period in

effective
on

S3 billion
serious dam¬

SI

risking

I believe

For the

recorded

It has been suggested
could be cut

to the Unit;d States.

age

was reported.
4% wai regis¬

290,000-barrel daily average in the week ended May 8.

a

more

•

tered.

reported.

for all

without

the like period of last year. In the

] preceding week, May 11, 1957, an increase of 7%
For the four weeks ending May 18, 1957, a gain of

place to cut the budget is in
so-called foreign
give-away

programs.

According to the Federal Reserve Board's index, department
sales in New York City for the weekly period ended May

total, the United States Department of the Interior

Western Europe.

volume in New York City

store

increase of 2,235,000 barrels over the

;■«;

more

fense

preceding two weeks by ris¬
ing 6 to 7% above the comparable 1956 period, trade observers

The nation's crude oil stocks climbed in the week ended May

the

to

difficult question. There are many

1957, an increase

slightly improved the trend of the

United States Crude Oil Stocks Rose In Period

18 to

reckless

foolhardy action which on so¬
ber reflection the American people

last week maintained

or

18th

a

and

week ended

the

for

index

For the period Jan.
was

Retail trade

week

Ended May

strength
with the

men

report.

and

the

In

:

Retailers reported a seasonal
business experience of Dwight Ei¬
implements and hardware. Purchases
senhower, Arthur Radford, Charles;
of major appliances equalled those of last year. - •
Wilson, George Humphrey, and
The total dollar volume of retail trade in the period ended
Foster
Dulles,
after months
of
on Wednesday of last week was from 1% below to 3% higher
study of information available to
than a year ago, according to estimates by Dun & Bradstreet,. Inc.
£ them from all parts of the world,
Regional estimates varied from the comparable 1956 levels by
agree that $38 billion is the mini¬
the following percentages: New England and Mountain -fl to -f5;
mum we should spend for our own
Middle Atlantic +2 to +6; East North Central —4 to 0; West
security, I say that cutting the
North Central —6 to —2; South Atlantic +3 to +7; East South
defense budget in any substantial
Central and Pacific Coast —1 t^ +3 and West South Central 0 to
amount below the level they have

corded.

Canadian output last week was placed at
trucks.

control

today is the strength

war

As I have indicated, reasonable
men will disagree as to what the

May 18, 1957, fell 2% from the like period last year. In the pre¬
ceding week, May 11, 1957, an increase of 3% was reported. For
the four weeks ended May 18, 1957, an increase of b% was re¬

assembled.

were

/

bedding slipped.

chairs and

from

1,917 cars, while truck output increased by
week. In the corresponding week last year

of

duplication.

these factors should

the

of

'

fell below that of the previous week by

Last week's output

con¬

some

decision. The major guarantee

World allies.

+4%.
Department

the previous

This compared with 23,138 in

in the United States.

would

,

.

,

totaled 125,473 units and compared
with 127,390 (revised) in the previous week. The past week's pro¬
duction total of cars and trucks amounted to 149,227 units, or a
week's

Last

one

rise in the call for garden

,

according to "Ward's Automotive Reports," declined

previous week

»

circumstances, I be¬

against

stered

output for the latest week ended May

Automotive

the

Under

lieve

regions discouraged consumer buying of women's Summer dresses
and sportswear.
Volume in men's lightweight suits slipped, but
interest in boys' clothing was sustained at a high level.
Sales of
outdoor furniture rose again in the week, but volume in uphol¬

Year Ago

so

establishment

an

inefficiency and

,

Preceding

Output Fell 1.5% Below

no

in

purchases of household goods and food products held total
volume slightly over a year ago. Cold and rainy weather in many

responding week in 1955.
U. S. Automotive

that

this size there does not exist

rise in

decrease of 56,476 cars, or 7.2% below the corresponding
of 47,358 cars, or 6.2% under the cor¬

a

tend

our

1956 week, and a decrease

be

would

one

as to

And

defense.

of Summer apparel accounted for
much of last week's decrease in total retail volume. However, a
the

\ -

Army, -Navy,- and;

No

claim rthat this;,
or any other figure is exactly thei
right amount to spend for national'

••

..

the

for

Force.

presumptuous

In Past Week
in

decline

A

18, 1957, totaled 722,521

the week ended May

Air

Declined Somewhat

Trade Volume for Country

May 18,
preceding week the

cars or 0.1% below the
Association of American Railroads reports.

Loadings for

•

for the week ended

freight

revenue

dropped 871

1957,

and

Loadings Declined 0.1% In Latest Period
7.2% Below Like 1956 Week

Car

period.

for $38

President has asked

billion

ports helped boost cotton futures prices

The Slate oi Trade and Industry
the

The

price sup¬
in the week. .
!
There was a seasonal rise in trading. Estimates by the New
SYork Cotton Exchange of exports in the week before last;
-amounted to about 185,000 bales, as against 126,000-bales an tne
prior period and 98,000 bales in the like week last year. For the
current season through May 14 exports amounted to about 6,631,
000 bales, compared with 1,674,000 bales in the comparable 1956
in Texas and doubts about new

Damaging rains

C

33

Continued from page

taken out

the new programs
been
not previously

all

the Congress were
of the budget, less than
in

$300 million would be saved.

the

size

And

of the budget can not be

aging

money

'

then, is

This,

Unless

matter.

the

heart

Congress

of the
decides

help them to develop the strength
which will enable them to defend

themselves, our national security
will require that we assume that
previously has approved, budget
burden ourselves. This would mean
cuts as high as $5 to $6 billion,
that we would have to spend bil¬
which some have suggested, can

to

domestic programs

discontinue

it

not

be

the items for

made unless

national

defense

are

reduced.

Anyone

otherwise

is

substantially

who

contends

just kidding himself

anc^ the public as well. Because
approximately 75% of the entire
Federal budget goes for the Defense Department, Atomic Energy
Commission, interest on the debt,

lions

I

submit

defense

the

This

aid

eign

lated items.

program
for

tually $4.1 billion less in 1958 than

dent has asked for in

The amount requested is ac¬

So

now

we

come

to

the

these fields?

us

with

mately $1 billion of the
marked

^

♦

leaves

in 1953.

foreign

the

under no stretch of
be held sound

total for¬
is ear¬

assistance

directly to military aid

The question
should

approxi¬

which

economic

programs

in

cutting

economy.

unrelated

increases

that

imagination

foreign aid and other defense-re¬
.

then

programs can

question. How much can we safely
cut from the amounts the Presi¬

aid.

to

we

portion of our foreign aid

key

attributed

than

defense

for

more

presently are spending

the

is well asked: why
people be

American

Volume

185

Number 5642

.

.

.

The Commercial and Financial Chronicle

35-

(2539)

taxed to aid the economies of other

countries

Who

allied with
the

this

in

the

world

today.

approximately
allied

1

tions. 'There
900

utives

are

under

na-

classified

anri

uncommitted

as

tral.

or

its

and

2.

j

•

domination

coun-

will go. I have visited most
of these countries. I have seen our
ance

that

agree

in operation.
of

some

been wasteful and

You can

oe sure

them

badly

tnat

recommendations

in

its

600

over

deterred

by

pansion

If

we

can

course,

are

we

from

oa™with

I

AriMint

t il
and

launching

have

on

our

first

This is

con-

Zv!
Cb-

hand

Government whicn
tial

to

is

moretessen-

national security

our

than

—

no

millions

for propaganda.
For example, they consider Africa today
important a target as China was

as

to

tnem

25

years
ago,
and we
happened there. They
if they
can
win a

know what
'realize

that

nations

the

to

uncom-

Communist

side they will gain the balance of

and

people and resources
world whick will enable

power

ip

the

them

to

their

knees

bring the free nations to

of fighting
'

The

which

r

j

forget that the Communists

;-never

gamed

World War II

since

other
f

million

600

over

than

The

overt

people

through

means

,

that a fund will have
$75 to $100 million

investments

ch^re

nHcei
Prices

—

or on accumu-

will

bp

will

I

modest
$

1?

^.at tne
Business

especially

25^
deiwrmen.

Ouitstanding shqres

af asset va^e

able

large

as a general matter. Since the

announce to

frQm

Marshall

a

Plan

Turkev

hp's t-poHv

the
tne

and
ana

world

fill

tc

the

aid

of the nation.

Lets look at

the

mQst

of

the

natl"nal characteristic. What we
™ust do now is to demonstrate to
pelves and the world that we
'he sa.me wl".to w'n and

returns

by

Service

shows

that

tax-

reporting $20,000 to $30,000

payers

income

of

analysis of 1952
the Internal

recent

a

income
Revenue

derived

78%

their

of

income from salaries, professional

fees,
Tii

or

the conduct of

contrast

a

taxoavers

contrast,

business.
reDortin0"

taxpayers

figures.

some

recent

fQr

year

In

which

have full statistics, there were
about 58,000,000 individual income

tax

returns

filed

824'000 sbowed
$15>000

and

Qf

from

the

iepoiun&

thp*p

th

Res

whose

income

the

t

famfe

from
$100,000 per
year
are
the high income, low
capital group the fund people conceive to be the market for taxexempt bond fund shares,
$15,000

per

ranges

to

year

one

investment

company sponsor indicates that it
wQuld be fair to asgume ^ &

tax-exempt

bond

fund

under

present conditions could net after
3%

exoenses

gross income over
than
$100,000.

less

Prp<;nmablv

«?onrrp<;

824 000 individuals'and

its

for

What does this

ers.

market

tex"

man fUilV
lncome

^ers wh° flled these returns'
Net Taxable Income After

sharehold-

the

to

mean

envisioned?

Take

a

W retUm
ifc

Taxable Interest Income Required
to net 3% after taxes to investor

Deductions and Exemptions
$16 000

20,000

4.83

30,000

5.66

the

50,000

7.32

100,000

jns(,itutions-only

only if he agrees to
amount

in^orea> are ay examples of this

over-

so-called

taxpayers," do not

income
*
Z Zr: A nilot studv bv

we

if

invest?r accepts

Greece

sifnmort

the

a ; J;" SfJj
t °UP0Sd Kesoiuuon, oui resisiance

the

the

a limited reclemption delay agreement, or

we arc

to

ample,

tn

short, the tax-exempt
bond market is not organized
and,
I understand,, is not intended -to

oiWs-especially

large

of

available wnen he s ready to gross income over $100,000 demay baffle rived only 38% of their income

demaS",

on

bulk

a vfery large'part'of their
income from investments. For ex-

,

to be ivailahlp whpn

modest

be

react magnificently when

maximum
redemption — say

of

75,000

a

$100,000 in a specified period of
time, such as 30 days.

8.57
12.00

;

„

;

Even the $16,000 man—whose
savings accounts yield, perhaps,

business.

3%

must

taxable,

whose

savings

and

To be able to honor

demptions

re-

demand, the funds
steps to reduce the

on

take

loan shares yield> Perhaps, 3%% chances of being confronted with
taxi taxable', is. a Prospect, you can single mammoth requests for releads ?ee'
,He s in a fairly respectable demption.
nirpd ^^^hp^nn^nrtnnifv
them to assume there is a large
^aSeti
takeS
What about the role of municif
f
tunity 1Rarket for shares of such funds?
t
r-^ls top dollar of income, pai dealers? What help will the
V1
y with u
war as we *
intprpc;t
+
hv
^ he fiks a joint return, and tax-exempt funds seek from
fwJ^uYpa^n^dpfpnf in war.
considerations Fo^one it's tI» h-a separate return, them, and how will they be
the threat.of defeat
many^consid^
The higher up the income scale helped by the funds? First, re¬
; This, then, is the case as I see it *a1^'tficull; to imagine a busi- you go, the more attractive the member that the managers of a
tor our defense and foreign aid "'®s upars ?bp ^f/nature
of
the
becomes.
tax-exempt bond fund will be
budgets. The President is the man prp<;;dwit ?0f the United
StatpZ
To reach the market» the tax- new customers for municipal se.

mutual fund

soj!hyh^eSC>^ne

TntereSt

<mon

in

|vemnt fun^-and wha?

t

,

,

H

mmw

primarily responsible for our ha-ariotlipr-manv Deonle believe exemPt bond funds win have a
tional defense. He has indicated
f
,
canyh^,DT0 ease th potential retail sales force of ap.

mum

should sPend both at

we

™alK1 ^

J?x. ^as®

LemS^^f

existing

some

home and abroad if we are ade"
quately to protect our security.
TheMCongress has the power' to

;or fund series
" 7

appropriate less than he requests,
but in doing so it must assume its

S?'rc^®rfing
* y.®p nl{

share of

aggression.

responsibility in the event
developments prove those

world

people of the uncommitted

.

especially from, institutions-or

Communists
uommun sts

constituted

derive

be organized, to.meet the requirea profitable venture.
iments of this type of investor.
shares will be offered to the ; • yet in
the aggregate, we are
public on the two bases tradi- told, the modest
investor repretional to our business: in lump sents the real

P

S

" '

gat we are bred of the
J™,3
eou^e

con-

fronts the free world today is not
.
.
f /
w
in a shooting war. We must

-It
defeat

,

wealth and

-

■

•

what he believes to be the mini-

danger

P

We Americans
and our
ourWe Americans

war

major

P

i<?

underlying securities Will be
relatively illiquid, the sponsors
expect either to limit orders_

witnout the necessity

a

Xf

n

substantial number of the
mitted

noint

even

-

on

one'

; The Soviet Union,
Communist
China, and the satellites are bending every effort to win these people.
They are using offers I of
economic aid. They are spending

break

agree

sum

war.

chance, a real
the victory we

time to

;

an

a

who

\ "upper bracket

m

,

to the maturities that may happen

joria

the

servation, that I know of no
ex-.;
penditure
being
made
by
our

■.,

,

to total from

present

No Time to Cut

complete

Wltn

.

ff

f llllfl
A MMM

,

gP. D-^aP

i

win-

now

.

P

-jr

KOHfl

WiftU

flnwst the idea those who ve buy^Senal maturities
certain,
paper seem
him. In

be-

other than

means

continue

we

.

'

tested

halt.to

in

Fairless

'

I SXafiYPIIIDt
JJPH

,

bi2h

a

_

veare
yeais,

a

m

yeai.

million

is

" ; Vf

ff|

before its management becomes

inating waste and increasing ef-i chance, to win
ficiency. But we don t scuttle the want without war.

Viction,

•

has been built
to the point that the Communists

are

and

perhaps too widely available. He requires
offering price.
diversification. He needs more
Jn1a/n?ugei?en} fee Yfll\ be
than his small holdings,
about % the fee for equity-type were he invested directly in
""dsaveraging perhaps y4 of municipals could command. He
I% ,ol average assets for the can't gear his financial planning

military strength

have

*

lu2.

hi-

ning the battle forlhe world. Our

I

Report and otner studies, we shall
aevote every effort toward elim-

beeeLseaworthvne

.

in

executed.-attack.^ Our -economic: their ex^strength
on the has
aided
stopping

the

•

a.

n^feseven
past seven

the
tne

in

acting

of

IHL.
1 If A

reasons

they have been brought to
and the inevitable -strain

h

tries that the greater part of this ginning to tell.
billion dollars in economic assist- > I believe that

programs

people

' •
Communists gamed a vast empire
•

9

page

whelming

dictator-

a

»

'

various

for

victories

new

lt ^ustexDandor

w.'-oMDle
people,

It is to these uncommitted

that

us

have

give

r*

neu-

Aiding Neutral Countries

to demands

ternalstr^wUl uuLatevtear
aSunderFrZ 1M5to'1950 the

arp
are

from

■

to

ards

the

wnn
wno

AfriVa
Africa

Continued

for their sacrifices in llving stand-

Com-

Asia,

Fact

leading

must

order

rnunist rule, and there are another
700 million people in
Near

is

Historv tells

shin

approximately

people

be-

are

economy.

freedom.

people

of the free

are

million

let

There

their

on

The education given to their exec-

of power

billion

the side

on

ginning to tell

To find

question,

examine the balance

us

wi+^ut o^estion

be

even

militarily?

to

answer

not

may

us

cuts

believe

that

proximately

ftinds
tax-

a

and

men

curities; they're going to want all
the advice and counsel that can
be obtained only from municipal

women representing security dealers of long experience. Redealer> firms ^hich, up to now, member, too, that these managers
have

largely

ignored

municipals

must take every possible precau-

problems of
liquidity, etc. If the

inventory,
bond-fund

tion to assure liquidity of their
fund.
Managements
may-and

legislation is enacted, over-night
about 50,000 security salespeople

they know they may—some time
in the future find it necessary to

will have

^

turn to the municipal dealers for

due

a

hp]ipvp

50,000

it

will

hp

'hla nnHprtakin«
Pr°fltah e u d ta
g,

^
f

to

municipal bond prod-

a

.To make a profit, these compa- uct} a ready-to-sell
inventory help in liquidating parts of their
n*es must first find their markets which will require no outlay of portfolios in order to meet share'economic progress. They
would port for the President's position is I—they look to a large, previously their own capital resources. Per- holder
requests for redemption,
'prefer to gain that progress and growing among both Democrats untapped market which they behaps it is proper to assume that Perhaps its logical for the fund
•keep their freedom and independ- and Republicans in the Congress beve
W1
Permit
tax-exempt a large number of those salesmen people to expect help in such an
•ence at the same time.
I am con- and
that
the
prospects for ap- *ul}ds
grow past the break-even in a position for the first time to event from the dealers who made
vincea that if we and other free proval of his
program have sub- P01^ °J
mi*11
n^gh- 0ffer tax-exempt Securities, will the original sale to the fund of it's
"nations do
not
help them, they stantially improved.
borhood of $100 million per tund. be quick to suggest their consid- portfolio issues, either as part of
nations

determined

are

will turn elsewhere for

will

be

forced

to

have

help. They

listen

to

have

been

could

x

think

the

subiects

Moscow line which promises plenty
at the cost of freedom.

pleasant

to

to

-

This, then, is
-700

million

greatest

is at

what

people

undeveloped
the

in

sources

able to them in

the

natural

re-

world

significant
new approach for development as
a supplement to
the funds which
a

very

-will be invested
prise,

by private enterby standing ready to assist
like

countries

Iran

and

Jordan

.when they are confronted with
economic

emergency,

we

an

will ef-

fectively stop the Communists in

their
efforts to
increase
their
sphere of domination, and we will,
.at the
tions

time, help these
acquire, and retain

same

to

economic

and political

with

^nce

which

the

independ-

international

,

..

have

problems
Let

in

problems
ness

of

United

for

a

the

our

States,

armament

moment the

economic

and

their

I recognize that there has

^etideofonnosition

strain

foreign




with^hpnponle nT™<ft wealth'T era!ion by la^ge numbers °uf tbeir

? new isTsue, or of a secondary ofP p
f w^altn' 1 customers. It may even be fair fenng. In short, the tax-exempt
am t?1?-These people already own to anticipate that this new prod- funds will look to the municipal
mun}cfPa s and are W|U served by uct in the salesman's portfolio dealers for an active, responsive,
*

i

hatf enoulh"1"- SMS™

of

aid

vested

But I believe it

..

is

they own and get
lhe diversification of credits, of
geography and of maturity dates
that

ministration

such

an

to

the responsiAd-

an

analyze the facts
reach

issue,

decisions

which we consider to be in the
national interest, and then to fi^ht
for enactment of our program by
the Congress.
•
It is
the

case

ipals requires.

amounts

we

I believe that

-

have

requested
-

,,

.

1 jeopardize not only our safety,
our

chance for victory in the

world struggle.
j

Th

won't

be

with

big

investors, either,

institutional

a

new

most

u

js

reasons

part,

exists—or

h£Ve faith

*

neoole

that

know

as

the

facts

thev

care

as

moment of

destiny.

I

ask

I

feel

don't
the

believed to exist—to

lesser degree among the smaller
institutions which do not at this

I

I'm

dues-

y°u

join me in a guessing
don't
know;
no
one
the background
of the potential market and the
potential sales force, sales could

?Id

problems

time hold tax-exempts because of
To

resources.

a

a

disappointment.

answer

I

have to

for

one

reason

This is the best
the question.

but low-capital
past

investor who has
municipals in the
normally, never would

and,

i

ratjons>

high

nessmen,

has

officers

income

of

corpo-

small

busi-

about

some

type of investor I refer to

almost

no

whether

the

capital.

He

can't

bu>* in $1*000 denominations.

He

credits
the

issued,
incredible

figure of 170,000 issuers, and needs
professional advice which is not

one,

of

will

be

enacted.

is

that

of

A

the

3^
^°"{i

i

01 Seneral Policy,

Caughlin Director
ROCHESTER, N. Y.
last

At the

—

of di-

meeting of the board
of Fashion

Park, Incorpo-

,

prob-

obviously, is

necessary

lem

etc.

^

legislation

second

educating

phila-

should

be

made

raiea» ^
'
delphia, was elected a member of
,

the

probretail

dealers to the realities and possibilities of the tax-exempt fund.

Investors

dis-

not

v®

T

What

—professional people, executives, lems? The first
administrative

rve

kIm

rectors

Some-Problems

owned

never

to

/q iiS

whiph

™! :lgbt'.

0r another the concept doesn't appeal to the sales people or to the
market envisioned, sales could be

restricted

wh eh

I

If

to

"rhere a^eamvf
feeaf technical oplrattos

of

'Against

substantial.

k

a" °Pen'end fund-

tax-exempt

be

their

•„

dlsPenfable to Proper admmistran

wil-1

to

knows.

f,!nS rf!?tnmpr
Ikn/nliP ^

on

large

game?

present, for the
wholesale market.
It

can
peoplf *n0w tne tacts tney can't aopraise the
will not fail to meet the chal- j under^tand> by
lenge which confronts them in this

if

will

someone

How

,

invts- eJenli^'in'hTlnin^tffe f^nds
essential in helping the funds

a

The

the Ameri-

possibility

mention

to

new

Prospects, new inves

last

later

as

the

is

ought
tion

^

prospects

ru bond funds saIes be? Would

envisioned

market—a retail market

to

Qne

fo?

later

opp0sed

velo^new

TorsP
sure

market

that basis that I present much larger degree, the potential
for our defense in foreign-market is with the high-income,

they are necessary for our survival and that substantial cuts in

but

portfolio of munic-

on

assistance programs.

the

sound

a

outline

bility of the members of
on

that

so

the same and other

the tide of opposition

Communists.

definite signs of weakthe Communist empire of

The

the

I realize that it would be
far more popular either to ignore

wi

discussing

are

in

today.

the

examine

us

There

been

of

more

prams.

-ii

U. S. S. R. Problems

We

be

than

opposition to government spending, understandably so, all
oyer
the nation and that this opposition
is directed with particular vehemence against our foreign aid pro-

na-

.Communism is completely incompatible.
'
.

-

biK?get

am

sup-

number

a

would

discuss

I

stake

plus

today.
By
helping these countries to help
themselves through technical as•sistance, by making loans avail-

^

of

which

to

unwise.

glad to report that I believe

thor-

oughly aware of what they are
buying.
'
I've mentioned another problem — that
of
"underwriting"

..

,

board.
n

,r

.

f

Mr' LauSmin 1S tne senior Pari"
of Edward J. Caughlin & Co.,

ner

Philadelphia,
f

th

°r '

as

well

Frppdnm

XnP^l

Pa

eiaiea ^eneicu
Philadelphia, Pa.

as

President

Insulator

American

and

Corp*

the

Utiimes

Asso-

Co

of

The

Commercial and Financial Chronicle

.

Thursday, May 30, 1957

.

(2540)

56

if INDICATES

ADDITIONS ,rV

SINCE

in

Securities
Academy

Co.

Insurance

Life

April 18 filed 750,000 shares of common stock (par 50
cents) to be offered for subscription by military, Na¬
tional Guard, active, retired or reserves, personnel and
not to the public at large. Price—$1 per share. Proceeds

Springs,

operating capital.
Office — Colorado
Underwriter—None. Offering—Expected

—For

Colo.

two months.

'

,

.

.

Proceeds—For expansion program. Un¬

derwriters—Blyth & Co., Inc. and Merrill
Fenner & Beane, both oi New York.

Lynch, Pierce,

Engineering Corp.

Acme Tool &

April 4 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—
For leasehold improvements; purchase of equipment,
inventory material, etc.; arid for additional; working
capital. Office — 4142 Howard Ave., Kensington, Md.
Underwriter—Williams, Widmayer & Co., Washington,
C.

D.

|

Agricultural Equipment Corp.
1 (letter of notification) 500,000 shares of com¬
mon
stock (par 10 cents).
Price—50 cents per share.
Proceeds—To reduce obligation, purchase tools and for
working capital.
Address—P. O. Box 322, La Junta,
Colo.
Underwriter—Mountain States. Securities Corp.,
;

be¬
ing offered for subscription by common stockholders of
record May 24, 1957 on the basis of one new share for
each six shares held; rights to expire on June 10. Price
—$28 per share. Proceeds—For general corporate pur¬
poses, including retirement of bank loans and for capital.
■expenditures.
Underwriters—Reynolds & Co., Inc.,
New
York;
Drexel
&
Co.,
Philadelphia, Pa.; and
Marks &

^■Alden

(Vern E.)

Chicago 2, 111.

May 3 filed

writer—None.

in Brazil and other

Bros.

•

stock

each 2.398838

both of New

Philadelphia,

(5/31)

Pa.

to be offered for subscription by
at

the rate of

shares held.

one

Price—$3.50

share for

new

share. Pro¬

per

Willow,
Underwriters—Stevens, White & McClure,
Inc., Tampa, Fla.; French & Crawford, Inc., Atlanta, Ga.;
First Florida Investors, Inc., Orlando, Fla.; Pierce, Carrison, Wulbern, Inc., Jacksonville, Fla.; and J. Herbert
Evans & Co., St. Petersburg, Fla.
expansion.

loans, for expansion,
current accounts payable
Business—Manufactures build¬

pay

Office—107-109

South

Bankers Fire & Marine Insurance Co.

April 25 (letter of notification) 19,854 shares of common
stock (par $5) to be offered to stockholders of record
May 30, 1957 on a basis of two new shares for each 11

appliances. Office — St.
Underwriter—Atwill & Co., Inc., Miami
:

shares

American Fire & Casualty Co.

per

held; rights to expire July 30, 1957. Price—$11
share. " Proceeds — To increase capital and surplus
Office

May

1, (letter of notification) 12,060 shares of capital
(par $5) being offered to stockholders of record
May 17 on the basis of one new share for each l!t shares

accounts.

stock

held

312 N. 23rd

Underwriter—None.

Feb. 11

(with

Friedman & Co., Inc., New York,
Boston

advertising in the Chicago Tribune

best prospects (and

billion dollar Mid-America.

more

of them) in multi-

on

how your

advertising dollar

can pay out

both fronts. Call your nearest

in

more

most

widely circulated market table

sales




.

pages

'

Edison Co.

N. Y.

(6/4)

debentures;

Chicago Tribune office.

^Tribune
America''s

•

if Brandywine Loan Inc.
May 17 (letter of notification) $250,000 of 7%- 10-year
Price—At par (in multiples of $100 each).
Proceeds—For working capital.. Office—147 E. Lincoln
Highway, Coatesville, Pa. Underwriter—None.

It sells both investment

groups—the professional buyer and the general public. Find
out

-

May 7 filed $25,000,000 of first mortgage bonds, series
F, due 1987. Proceeds—To retire bank loans and for con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Lehman Brothers; Harriman Ripley & Co. Inc.; White, Weld & Co.
Bids—To
be received up to noon (EDT) on June 4 at 182 Tremont
Street, Boston, Mass.

Covers the Fiehl!
reaches your

.

Oil & Mine Corp., Sutherlin, Ore.
(letter of notification) 71,710 shares of common
stock (par 10 cents).
Price — 75 cents per share. Pro¬
ceeds—To go to selling stockholder. Underwriter—L. D.

N. Y.

'

St., Birmingham 3, Ala.

Bonanza

oversubscription privilege); rights to ex¬
pire June 3, 1957. Price—To stockholders, $23 per share;
to public, $24 per share.
Proceeds—To increase capital
and paid-in surplus.
Office—307 S. Orange Ave., Or¬
lando, Fla. Underwriter—Goodbody & Co., New York
an

^our securities

—

construct plant;

to

purchase machinery and equipment;

Business—Pro¬
other vibration test
equipment. Underwriter—None. Robert C. Lewis, Philip
C. Efromson and Thomas Gouzoula, all of Winchester,
electro-dynamic shaker and

duces

Mass.,

the

are

of this

general partners

Massachusetts

Limited Partnership.

W "

if Capital Reserve Corp., Washington, D.
in

C.

(by amendment) an additional $1,000,000
for the Systematic Accumulation of
Stock of Potomac Electric Power Co. :
< •

Potomac" Plans

Common

Brantly Helicopter Corp^ ^ r
April 8 (letter of notification) 21,818 shares of common
stock (par 50 cents).-: Price—$13.75 per share.-Proceeds
—For
working .capital;/' Office—24 Maplewood Ave.,
Philadelphia 44, Pa. Underwriter—Drexel & Co., Phila¬
delphia, Pa. No public offering expected.

.

,

Publications, Inc., Topeka, Kan.
March 25 filed $1,000,000 of five-year 4% first mortgage
bonds, series six, and $3,000,000 of 10-year 5% first
mortgage bonds, series seven. Price—At par. Proceeds—
To redeem outstanding bonds and for improvement of
Capper

Under¬

present facilities and other corporate purposes.
writer—None.

Carolina

-

Mines,

shares

are

.

/*'

;.

%
which
to be offered for subscription by
Inc.,

Kings

Mountain, N. C.

shares of common stock, of

March 29 filed 679,469

283,676

Merchandising, Inc., Tampa, Fla.

Tampa, Fla.

bank

.

Corp.,

stockholders

ceeds—For

electrical

'

Credit

(par 50 cents)

common

Florida, Inc. (6/3-15)
May 1 filed 130,000 shares of class A common stock (par
$1) to be offered to stockholders of record about June 3,
1957; rights to expire about June 18. Price—$11.50 per

Petersburg, Fla.
Beach, Fla.

Atlas

Automatic

Products of

and

Brothers,

April 17 (letter of notification) 85,714 shares of common

Offering—Expected this week.

materials

Lehman

and

ing capital. Underwriter—J. A. Winston & Co., Inc., New
York.;
/.
y ■
,.

Proceeds—For reduction of bank loans and working cap¬
ital. Underwriter—The First Trust Co. of Lincoln, Neb.

ing

of" 20-yea'r subordinated deben¬

May 3 filed 680,000 shares of class B common stock (par
10 cents). Price—$2.25 per share.
Proceeds—For work¬

countries. Under-

—

inventory purchases, to
and for working capital.

& ..Hutzler

■/. Calidyne Corp., Winchester, Mass.
" "
: I
May 1 filed $1,250,000 of Limited Partnership Interests to
be offered first to present limited partners at the rate of
one $1,000 unit for each $1,000 of his present investment;
then to public. Price—$1,000 per unit." Proceeds — To

May 24 filed
>

York.

Allied Finance Co., Dallas, Texas
April 22 filed $1,200,000 6% sinking fund capital deben¬
tures due 1972. Price
At 100% of principal amount.

retire

stock

—

LeRoy R. Haynes, of Pasadena, Calif., is

Proceeds—To

.

1, 1977. Price—To be supplied by amend¬
ment.
Proceeds
For working capital .and to reduce
short-term bank borrowings' Underwriters — Salomon

President.

Allied

Office— Washington and Cherry Sts.,
Conshohocken, Pa. Underwriter-L-Norie./ ' V
: '

tures due June

of which

—

working capital.

and to reduce outstanding demand notes.

if Associates Investment Co.v (6/J.9)

Proceeds—For general
Business—Purchase and resale of

purposes.

grown

Proceeds

Co.

May 24 filed $20,000,000

(letter of notification) 14,000 shares of com¬
(par $10) to be offered for subscription by
and employees.' Price—$12.50 per share.
For machinery, equipments inventories and

stockholders

(par
$2.50). Price—$6 per share. Proceeds—For investment
in stock of APAF Co., a subsidiary; to carry an inven¬
tory of leases for present and future drilling programs;
and for general corporate purposes. Underwriter—APA,
Inc., another subsidiary, Minneapolis, Minn.

proceeds from sale to promoters.
oil fruits

(W. R.)

stock

mon

Orleans, John S. Tanner, of Dallas, and C. L.
of Houston, three of the 22 directors, are

Ames

Batteries, Inc.

March 28

.

Pasadena, Calif.

prior

Bull*, Inc., Boston, Mass.

&

C & D

working capital/ Underwriter—Dean Witter & Co., Sari
Francisco, Calif.
* ' •//
;
•

92,000 shares are to be offered to public and 92,000 shares
issued to promoters. Price—To public, $1 per share; no
corporate

New

Apache Oil Corp., Minneapolis, Minn.
March 25 filed 50,000 shares of common

184,000 shares of common stock,

—Coffin

—

"Underwriter—None.

All America Expansion Corp.,

n

.

(6/4-5)
May 13 filed 50,000 shares of capital stock (par $2). Price
To be supplied by amendment. Proceeds — Together
with funds from private sale of $500,000 of notes to
insurance firm, to retire bank loan; for expansion and

of service and mutual agreement of retired part¬
ner and the partnership.
Price—At par ($50 per certifi¬
cate). -Proceeds— For working capital., Office — 33 N.

'

Price—At par .($25 per share). - Pro¬
ceeds—For the purchase of the
Barnstable pipeline.
Office—25 Lyanough Road, Hyannis, Mass. Underwriter

Chairman, yice-Chairman and President, respectively.

years

V

preferred stock.

Edmonds,

employees and retired partners of the company based on

:

-

if Buzzards Bay Gas Co.
//"://.,
/• Vr
May 22 (letter of notification) 5,840 shares of 6%

50,000,000 shares of common stock (par one
Price—$2 per share. Proceeds — For working
capital and general corporate purposes. Office—Dallas,
Tex. Underwriter—Peoples Securities Co., J. D. Grey,

May 16 (letter of notification) $100,000 of 10-year 12%
Employees Participation Certificates to be offered to

LaSalle St/,

Underwriter—-None.

chandise.

Feb. 15 filed

Co., Chicago, III.

-%>*. (

Chicago, III.
r
* ■'! *
May 28 filed 40,000 shares of common stock/(par $15)
to be offered for subscription by certain of the Ben.
Franklin franchise holders.'/Price—To be supplied by
amendment.
Business — Distributors .of -general mer¬

cent).

Co., New York.

Tex. Un-

Corsi'c&na/ Tex.

* Butler Brothers,

Provident Investors Corp.

American

•

;

Office—1400 East Jefferson Ave., Dallas;

ers.

York.

of

Manufacturing Co. /

derwriter—Wm. B. Robinsoir & Co.,

if American Income Fund, Inc., New York
500,000 shares of capital stock (par $1).
market.
Proceeds—For investment.
Under¬
writer—None.
Burton H. Jackson is President. Invest¬
ment Adviser
Securities Cycle Research Corp., New

-

-

M.

..

V ;
" :%'/{
April 10 (letter of notification) 82,500 shares of common
stock (par one cent). Price-~At market. Total offering
not to exceed $300,000. Proceeds—To selling stockhold¬
Browne Window

Price—At

Air

share.

general corporate purposes. Underwriters—Smith Ram*
& Co., Inc., Bridgeport, Conn.; and Chas. W. Scranton & Co., New Haven, Conn.
//' ;/';*

say

May 24 filed

Products, Inc., Allentown, Pa.
May 1 filed 170,160 shares of common stock (par $1)

-

tire bank loans

writer—None.

.

Laurence

amendment. Proceeds—To re¬
(presently outstanding $600,000) and for

Price—To be supplied by

J ) American Hardware Corp.
April 8 filed 118,000 shares of common stock (par $12.50)
being offered in exchange for common stock and class B
common stock of Kwikset Locks, Inc., at the rate of one
share of American Hardware for each two Kwikset com¬
mon
shares and 55,500 American Hardware common
shares for 150,000 shares of Kwikset class B common
stock. The offer is conditioned upon its acceptance of
hot less than 85% of the issued and outstanding Kwikset
common and class B common shares by June 28.
Under¬

March

•

Bridgeport (Conn.) Gas Co. (6/7) .:
17 filed 34,572 shares of common stock (no par)
to be offered for subscription by common stockholders
of record June 7, 1957 on the Oasis of one new snare
for each seven shares held; rights to expire on June 21'.

—

Denver> Colo.

ISSUE

f

May 1 filed 396,079 shares of common stock (par. $10)
being Offered for subscription by common stockholders
of record May 21, 1957 on the basis of one new share for
each six shares held; rights to expire on June 5. Price—
S29.50 per share.

REVISED

May

►

r

PREVIOUS

ITEMS

•

if American Guaranty Corp.
(letter of notification) 38,651 shares of common
stock (par $1) to be offered to stockholders of record
May 17, 1957 on a basis of one new share for each three
shares held; rights to expire June 28, 1957. Any unsub¬
scribed shares will be offered to public residents in
Rhode Island and Massachusetts. Price—$7.50 per share.
Office—49 Westminster St., Providence, Rfc I.
Under¬

May 13

writer—None.

111.

Co., Riverdale,

Steel

Acme

in about

•

stockholders at the rate of five additional
shares held;

four

shares for each

and the remainder will be

offered to

public.
Price—At par ($1 per share).
Proceeds—
To repay loans, for exploration and development work,
construction and working capital.- Underwriter — None.
A. S. MacCulloch of Vancouver, B. C., Canada, is Presi¬
the

dent and

principal stockholder.

it Chess Uranium Corp.
May 14 (letter of notification) 600,000
,

shares of common
$1—Canadian). Price—50 cents per share.
(U. S. funds). Proceeds—For exploration costs, etc. Of¬
fice—5616 Park Ave., Montreal, Canada. UnderwriterJean R. Veditz Co., Inc., 160 Broadway, New York.
stock

(par

if Chinese World of New York, Inc. May 21 (letter of notification) 5,000 shares .of common
stock.
Price—At par ($10 per share).
Proceeds—For
equipment, etc.

Business—A newspaper publishing firm.
Street, New York, N. Y. Under¬

Division

Office—41

'

writer—None.

if Cities Service Co.

•

'.

-

participations in the Em¬
and its participat¬
ing subsidiary companies, together with 80,000 shares of
common stock which may be purchased under this plan.

May

23

filed

$5,390,000

of

ployees' Thrift Plan of this company

Clark Oil & Refining Corp.

shares of common
At market (estimated at about
$20 per share). Proceeds—To Emory T. Clark, President
of company. Office—8530 W. National Ave., West Allis,
Wis. Underwriter—Loewi & Co., Inc., Milwaukee, Wis.
March 22
stock

(letter of notification) 5,000

(par $1). Price

—

Coastal Chemical Corp.,

Yazoo City, Miss.

May 1 filed 150,000 shares of class C common stock to
be offered for sale to farmers and other users of fertilizer
materials.
To

Proceeds—
of
ammonia. Underwriter—Mississippi Chemical
Price—At

construct and

anhydrous

par

($25 per share).

operate facilities for manufacture

Corp.; Yazoo City, Miss.
Colonial Aircraft Corp.,

Sanford, Me.

shares of common stock (par 100),
to be issued upon exercise of warrants to purchase the
following number of shares and held as follows: Glick
Mareh 29 filed 250,000

& Co.r Inc.,.-underwriters of original
shares; and by three individuals 110,000

offering, 140,000
shares. Price—

Volume

185

Number 5642

.

.

The Commercial and

.

Financial Chronicle
(2541)

Shares to be offered at market. Warrants
at 10 cents per warrant.

exercisable

are

—To

Proceeds—From sale of shares

to sellers of warrants.

Underwriter—None.

June

on

^

6 at

stock.

•

Continental Gin Co.,
Birmingham, Ala.
April 30 filed 143,298 shares of common stock (no
par)
being offered for subscription by common stockholders
of record May 27, 1957 at the rate of one
additional

Price—$2

Proceeds—To construct mill; for payment on
and royalty agreement. UnderwriterSoutheastern Securities Corp., New York.

mining

share for each share

leases

^Commercial Credit Co*

June 17.

loans..

Underwriters

The

—

F{.rst

Boston

—TO

be

per share.
Proceeds—For exploration
and development of properties. Underwriter —
Leward
M. Lister & Co., Boston, Mass.
*

determined

stock

Stanley & Co. and the First Boston Corp. (jointly). Bids

•

Turpentine & Rosin Corp.
;
(letter of notification) 11,400 shares of capital
(par $5) and $125,000 of 20-year 5% subordinate

debentures dated March 31, 1957 to be offered in denomof $100 to present stockholders, officers and

illations

employees of the corporation at rate of 3/10ths of

NEW
/

May 31

'

.

-i-i Atlas Credit

(Friday)

Corp._
&

Co.,

•>;. v.

'

•

(Offering to stockholders—no underwriting)

i

*;
;

(Frederic
i.

V

Hatch

&

Co.,

Inc.; Clark,

June 3

Lake Lauzon

/

(Offering

to

stockholders—underwritten
r:

-Inc.)

130,000

&

4

(Bids

Ames

(W. R.)

&

(Bids

&

50,000

Consolidated

u■:>

(Bids

Bonds
EDT)

noon

*

$25,000,000

>

:

:

First National Bank of Fort Worth
(Offering

■/*

v

to

Securities

t

(Bids

10 a.m.

(Bids 11

Parrish &

Co.)

June

(Bids

.

(Wis.)

5

11

(Kuhn, Loeb &
v'fj

.

Indiana Harbor

,

Co.

Southern

to

Belt

First

(Offering

-

Debentures & Stock

act

agent)

as

Gas

&

Co.

and

Morgan

609,815

and

Preferred

Dean

Witter

&

.

\

Common

&

Co.)

6

51,000

by

11

-

Gas

'

$20,000,000

7

150,000 shares

10

Co.

noon

Consolidated

Stroud

170,000

Credit

(Merrill

Co.)

be

Eastern

Invited»

Texas

Eastern

&

Co.,

(Bids

Electric

Pacific Gas

(Bids

11

Preferred

be

to

(Wednesday)

be

invited)

Corp

*

(Bids

(Hugo)
(Bids




-

Bonds

to

be

$18,00.0,000

.

.

,

Bonds

invited)

$10,000,000

Go.__

Electric
to

be

(Thursday)
Equip. Trust Ctfs.

(Bids to be invited)

;

Bell

about $9,000,000

(Tuesday)

Telephone Co. of Pennsylvania—Debentures
/;

(Bids 11

EDT)

a.m.

$50,000,000

(Monday)

Pacific Telephone & Telegraph Co
(Bids

to

be

invited)

Debentures

$90,000,000

$20,000,000

August 20

Preferred

$20,000,000

Corp

___Bonds

invited), $60,000,000

Debi.

Northern

States

Debentures

11

(Tuesday)

Co.

Power

(Bids

(Minn.)

EDT)

a.m.

September 4
Louisville

Bonds

$lo,000,000

(Wednesday)

Gas & Electric Co

EDT)

$2,925,000

September 10

'

Duke

(Monday)

Power

Bonds
$15,000,000

Bonds
$15,000,000

September 11

$10,000,000

October

EDT)

530,712

(Bids 11

Utah Power &

shares

27

California
'Bids

to

EDT)

(Bids

Utah Power &

265,000 shares

Debentures

$100,000,000

to

be

Bonds

invited)

$15,000,000

Light Co._
to

be

Common

invited)

400.000

shares

Co.

invitedl

Bonds

(Offering to stockholders—may be underwritten)

11

Ohio

Power

Common

Ohio Power

19

Co
(Bids

217,286 shares

(Tuesday)

E&T)

a.m.

November

$35,000,000

Tampa Electric Co.

15

Indiana & Michigan Electric Co

(Thursday)

Gas
be

'Tuesday)

Telephone Co

Light Co

(Bids

June

1

Debentures

$30,000,000

(Wednesday)
Common

a.m.

(Wednesday)

(Bids to be invited)

Bonds

$20,000,000

Bell

Southwestern

Common

p.m.

$50,000,000

(Bids to be invited)

Corp
3:45

invited)

Jersey Bell Telephone Co

Debentures

EDT)

noon

Bonds
be

;>

(Tuesday)

and Allen & Co.)

(Tuesday)

Co

(Bids to

(Bids

Southern

Loeb,

Bonds

?

Co

July 30

Corp

Inc.)

;

Debenture*

Common

V

-

$4,965,000

EDT)

a.m.

August 12

Duquesne Light Co

(The First Boston Corp.; Dean Witter & Co.; and Carl M.
Rhoades & Co.) 900,000 shares

•

Equip. Trust Ctfs.

to

July 25
-

Debentures

invited)

June 26

$25,000,000

v

-

$15,000,000

Southern Pacific Co.

3,337,036 shares

Puget Sound Power & Light Co

Peabody & Co) $75,000,000

Co

EDT>

about $20,000,00(1

EDT)

a.m.

11

(Bids

(Thursday)

noon

Higginson Corp.

Notes

Gas

:

'•.*>,.!

Bonds

October

a.m

Bonds

(Wednesday)

Service

&

shares

Lehman Brothers)

oO.

20

Steel Corp

stock

(Tuesday)

';

July 23 r(Tuesday)

and

1

'

,

Tampa Electric Co

(Bids

Co

anu

Transmission

(Bids

(Lee

common

$30,000,000 * "

,

(Bids

Delaware Power & Light Co

The Milwauke Co.,
Inc.) $1,700,000 Of

of

invited)

be

Equip. Trust Ctfs.

Noyes & Co.) $8,000,000

shares

Debentures

(Bids to be invited)

Stinnes

$10,000,000

July 16 (Tuesday)

$70,000,000

Erie RR.

Barium

Beane)

Jersey Central Power & Light Co

(Wednesday)

&

to

(Bids

Common

Transmission
Reau

&

Great Northern Ry

Common
200,000

(Offering to stockholders—no underwriting)

Texas

Preferred

Fenner

West Penn Power Co

Texas

Airlines, Inc

Investment

;

Co

Msnjks & Co.)*$30,000,1)60

New

Debs. & Stk.

Pierce,

Bonds

$15,000,000

(Tuesday)

July 17

$680,000

Southern Bell Telephone & Telegraph Co.
to

shares

(Kidder, Peabody & Co.; Blyth & Co., Inc.; White. Weld & Co.:
.* " and Laurence M.

'?■

"v.

(May be Morgan Stanley & Co.; Drexel & Co.;
dlore, Forgan & Co.) $25,000,000

World

584,176

Debentures

EDT)

a.m.

invited)

Service

Lynch,

Allyn & Co., Inc.) $15,000,000

11

be

to

(Bids to be invited)

Bonds

shares

underwriting)

Washington Water Power Co

Debentures ;
.* ;

$10,000,000

:;"

,v

Wisconsin Telephone Co

$30,000,000

Public Service Electric & Gas Co

Inc.,

and Kidder,

11:30

/ / Kaiser Industries

Electric

$661,040

:_

h

.

(Tuesday)
Electric Corp.„-__^._^

July 9

(Tuesday)

June 25

Co

Natural

'Bids

&

(Monday)

July 10

•

$19,000,000

Humphrey,

and

and

(The First Boston Corp.
^

July 1

-

Common

June 24

Bonds

EDT)

June 11
Commercial

;;

Texas

Co.)

;

,

July 2

Preferred

Gulf States Utilities Co

(Monday)

Stearns & Co. and Hemphill,

Ohio

/

,

Fairbanks, Morse & Co

<

&

stockholders—may be underwritten by
First Boston Corp.) $120,000,000
:
'

to stockholders—no

Common

June

debentures

to

Common

486,058

June 18

(Friday)

Reading & Bates Offshore Drilling Co.__Debs* & Stk.
The

(Offering

$250,000

&

/

(Friday)

City Bank of New York___Common

(Bids

Co

invited)

Co.)

June

.

&

&

$15,500,000

i

Applegate

'

38

on page

>

Bonds
EDT)

a.m.

Northern Ontario Natural Gas Co

(Hulme,

be

Continued

;

June 28

The

(Dillon, Read & Co. Inc.) $15,000,000

Metropolitan Edison Co

(Bear,

; ;

Mountain States Telephone & Telegraph--Common

shares

Securities

EST)

a.m.

to

(Dillon,

Co

(Bids

11

(Salomon Bros. &c HUozler

.!
-

.

Associates

to

..

bonds due 1987.
Proceeds—To retire bank loans
and for construction program of company and its sub-

''"I'

.

$6,450,000

Co.)

Union

June 19

stockholders—underwritten by Smith, Ramsay
Co., Inc. and Chas. W. Scranton & Co.) 34,572 shares

--

trust

Goldman,

Debentures

EDTi

noon

June

>(Offering

(6/24)! *
May 28 filed $15,000,000 of first mortgage and collateral

'

-

(Offering to stockholders—unaerwritten by Morgan Stanley

shares

(Thursday)

(Smith, Barney & Co.)

^Bridgeport

Delaware Power & Light Co.

(Monday)

Utilities

'Bids

Common

;

~-r

Outboard Marine Corp.____

Trans

Trane Co.
t;

rights to expire June 14, 1957. Price—At par
($10 per
share). Proceeds—For a construction program.- Office-^
112 W. Elm St.,
Sycamore, 111. Underwriter—None.

Bonds

Co.-i.___

Milwaukee

Montana-Dakota

Co.)

Georgia Power Co._
(Bids

,

Stanley

General Precision Equipment Corp
Preference
**>'.
Offering to common stockholders) 194,200 shares
-v

17

Dillon,

(Bids

shares

System, Inc

(Bids

Eastman

(A. C.

Common

Corp.

June
Columbia

and

I

$8,125,000

stockholders—underwritten
Sachs

/

!

$300,000

Michigan Consolidated Gas Co

$4,181,250

Bonds

CDT)

underwriters)

as

Boston

to

Co.

common

stock to be offered to stockholders of record
May 1, 1957
the basis of one new share for each seven
shares held;

on

:/

$30,000,000

484,276

$20,000,000

Vanadium-Alloys Steel Co

t

Inc.)

invited)

(Charles Plohn

1,200,000 shares

*U

*'

Bonds

California Edison Co

(The

■

act

to

•

Seaporcel Metals, Inc

RR

noon

^

*

EDT)

a.m.

stockholders—Drexel

to

&

.

Commas

-

1,000,000 shares

Philadelphia Electric Co
'(Offering

225,976 shares

Government Employees- Corp._w';_
-Debentures *(Offering to stockholders- -anderwrit.m by Johnston, Lemon &

(Wednesday)

Co.

(Bids
r

Bonds

$10,000,000

Heritage Petroleum Corp.-

;

DeKalb & Ogle Telephone Co.
April 25 (letter of notification) .22,025 shares of

-Equip. Trust Ctfs.

be

Water

(Bids

CDT)

EDT)

a.m.

100,000 shares

General Telephone Co. of California
vr',',

Price — At market (approximately 53 cents
per
share). Proceeds—To selling stockholders. Underwriter
Herrin Co., Seattle, Wash.

(Thursday)

Weeks)

(Bids
and

Virginia Electric & Power Co

.1,

'

'

Common

(Hemphill, Noyes & Co.

Northern States Power Co.

'■i■ i

-

Common

stockholders—underwritten ^by Dallas Union
Corp. and First Southwest Corp.) $2,400,000

Moore Products Co
,

Co..

EDT)

13

to

(The

t'Cj Boston Edison Co.—
"V.

10

cents).

(Offering

Common

&

a.m.

June

shares

com¬

50 cents per share.

.

(Bids

$2,400,000

Co.)

—

Daybreak Uranium, Inc., Opportunity, Wash.
May 7 filed 631,925 shares of common stock (par

Common

Witter

Price

—

.

Timken Roller Bearing Co._
Common
(Offering to stockholders;—co be underwritten by Hornblower

Co

(Dean

11

Equip. Trust Ctfs.

EDT)

cent).

one

For diamond drilling on
company's lands,
prospecting expenses, working capital and other corpora
ate purposes. Office—83
Campfield St., Irvington, N. J.
Underwriter—Roth & Co., Maplewood, N. J.

Common

-

Norfolk & Western Ry

(Tuesday)

noon

(par

Rochester Gas &

$2,550,000

Alabama Great Southern RR

Proceeds

(Wednesday)

Randall

June

-

-

12

(Bids

Co.,

Equip. Trust Ctfs,
EDT)

noon

June

Atwill

:

shares

// Central of Georgia Ry
(Bids

by

stock

mon

First National

Michigan Wisconsin Pipe Line Co

(Monday)

Cougar Mine Development Corp.
(letter of notification) 560,000 shares of

March 15

share

$6,450,000

Mines, Ltd

(Steven

Allied Products of Florida, Inc.__Class A Common

„,0'

EDT)

(1

June

&

share held and

$300 debentures
Price—Of stock, $15 per
share;
and,of. debentures at facg.
apiount. Proceeds—For con¬
struction purposes in
Shamrock, Fla. 'Office — Laurel,
Miss. Underwriter—None.
t

-Equip. Trust Ctfs.

noon

shares

Landstreet

a

..

Common

H.

,

I

*

Kirkpatrick, Inc.; and Minor, Mee & Co.) $350,000

.

-;i',

/

900,000

i Quinta Corp.

;

(Bids

;

(Offering to stockholders—may be negotiated)

Common

each

CALENDAR

Portland Gas & Coke Co

Inc.) $1,430,000

k-U Bank of Montreal-

ISSUE

New York Central RR.

Class B Common

Winston

A.

stock for

new

«

Continental
March 12

bidders:-'
and

/

.

Underwriter

by competitive bidding. Probable
Halsey, Stuart & Co. Inc.; White, Weld & Co.
Paine,-Webber,- Jackson & Curtis (jointly); Morgan,

;

cents),, Price—$1

(6/11)
May 9 filed $25,000,000 of debentures due June 1, 1982.
construction program.

Underwriter—

.

„

Continental Mines & Metals
Corp., Paterson, N.J.
April 24 filed 400,000 shares of common stock (par 10

Consolidated Natural Gas Co.
1957

on or about
Proceeds—For expansion

share.

.

Corp. and Kidder, Peabody & Co., both of New York./

Proceeds—For

held; rights to expire

per

machinery and equipment.
Co., Atlanta, Ga. ! >

Courts &

May 28 filed $75,000,000 of senior notes due 1977. Price
~-To be supplied by amendment.
Proceeds—To pay off
short-term

Price—$30

program and

(6/11)

of

for each 100 shares held.

notes

—

share.

per

3000, 30 Rockefeller Plaza,
to 11:30 a.m. (EDT) on June 11.

—

Comico Corp., Memphis, Tenn.
common

Room
up

term debt in the total
for new

Street, New York 17, N. Y.

May 2 filed 750,000 shares of

at

Y.,

discharge
payable, including bank loans, and long
sum of
approximately $1,030,000;
equipment; and for working capital. Under¬
writers
Allen Shaw & Co., 405
Lexington Ave., New
York 17, N. Y.; and Shaw &
Co., San Marino, Calif.
current

.

120 East 40th

received

Conticca International
Corp., Chicago, III.
"
March 13 filed 558,100 shares of class A
common stock
(par $1). Price—$5 per share. Proceeds
To

Columbia Gas System, Inc. (6/6)
May 8 filed $20,000,000 of debentures, series H, due 1982.
construction program.
Underwriter—To
be determined by competitive bidding. - Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.;
Merrill Lynch, Pierce, Fenner & Beane and
White, Weld
& Co. (jointly). Bids—To be received
up to noon (EDT)

Proceeds—For

be

New York 20, N.

37

(Tuesday)
Bonds

l.

11

a.m.

EST)

$28,000,000

Preferred

Co
(Bids

Bonds

$20,000,000

11

a.m.

EST)

$7,000,000

•

The Commercial and Financial Chronicle

(2542)

38

Continued from page

37

;

acquire by purchase, lease or otherwise, and to hold,
own, subdivide, lease, mortgage, exchange, bargain, sell
and convey lands and every character of real property.

•

— To
be determined by com¬
Probable bidders: Halsey, Stuart &
Co. Inc.; Eastman, Dillon, Union Securities & Co.; Mer¬
rill Lynch, Pierce, Fenner & Beane, and Kidder, Peabody & Co. (jointly); Kuhn, Loeb & Co.; Salomon Bros.
& Hutzler and Wood, Struthers & Co. (jointly); White,
Weld & Co. and Shields & Co. (jointly); Francis I. du
Pont
& Co. and Reynolds & Co.
(jointly); Lehman
Brothers. Bids—Tentatively scheduled to be received

Underwriter

sidiaries.

St., Amarillo, Tex.

500 Monroe

and

1,537,500 shares of common B stock (par $1). Pro¬
the Attorney General of the United States.
Underwriter—To be determined by competitive bidding
Probable, bidders: Blyth & Co., Inc., and The First Bos¬
ton Corp. (jointly); Kuhn, Loeb & Co., Lehman Brothers
and Glore, Forgan & Co.
(jointly). Bids — Had been

Underwriter—None.

Dominion Resources Development

York
:
A stock (no par)

'

D. C., but

general corporate purposes and working capital. Office
—1129 Vermont Ave., N. W., Washington 5, D. C. Under¬
writer—Landrum Allen & Co., Inc., Washington, D. C.
Dorr-Oliver,

General Credit,

Expected to be received up to 11 a.m. (EDT) on June 18.

held; rights to expire on June 12, 1957.
supplied by amendment. Proceeds—For

be

Underwriter—Dominick

purposes.
York.
•

Precision

pire

on

ment.

Probable bidders:

26.

&

Engelberg Huller Co., Inc.
May 6 (letter of notification) 4,084 shares of common
stock (par $10) to be offered for subscription by stock¬
holders of record May 15, 1957 on a 3-for-10 basis; rights

&

& R. L.

First

&

(6/5)

program.

by competitive bidding. Probable bidders: Halsey, Stuart
Co. Inc.;
Webster

Paine, Webber, Jackson & Curtis and Stone
Securities Corp. (jointly); White, Weld &
Co. and Kidder, Peabody & Co. (jointly).
Bids—Ex¬
pected to be received up to 11 a.m. (EDT) on June 5.
General

Telephone Corp., New York
April 26 tiled $4^,520,600 of 4Vz% convertible debentures
due 1977, being offered for subscription by common stock¬

Underwriter—None.

holders of record

debentures

May 16,

each

for

30

1957

shares

the basis of $100 of

cn

of

stock

held;
Proceeds—
temporary advances to telephone
subsidiaries and for general corporate purposes. Under¬
writers—Paine, Webber, Jackson & Curtis and Stone &

rights to expire

on

June 10.

common

Price—At

par.

For investment in and

Securities

Webster

Corp., both of New York; and Mit-

chum, Jones & Templeton, of Los Angeles, Calif.
.

*

it General Telephone Corp., New York
May 24 filed 1,480,787 shares of common stock (par $10)
and 170,000 shares of 5.28% convertible preferred stock

ic Estates Life of Washington
May 17 (letter of notification) 7,500 shares of voting
common stock and
7,500 shares of non-voting common

(par $50) to be offered in exchange for common and
preferred stocks of Peninsular Telephone Co. on the

$20 per share. Proceeds — To
qualify the company to do business as an insurance
company in the State of Washington. Office—7001 Main
Street, Vancouver, Wash. Underwriter—None.

of

Price

—

+ Fairbanks, Morse & Co., Chicago,

III.

(6/18)

May 27 filed $15,000,000 of convertible subordinated de¬
bentures due June

company's

common

Texas Corp. at
& Co.

1972.

1,

Proceeds—To

amendment.

$50

stock

per

Price — To be supplied by
purchase 300,000 shares of
owned by PennUnderwriter—A. C. Allyn

presently

share.

Inc., Chicago, 111.

Famous

Virginia Foods Corp., Lynchburg, Va.

common

stock and debentures are reserved for

rescission offer, etc. Price—$1,000 per

unit. Proceeds—To
buy equipment and for general corporate purposes. Of¬
fice—922 Jefferson St., Lynchburg, Va.
Underwriter—
Whitney & Co., Inc., Washington, D. C.
First Mississippi Corp., Jackson, Miss.
April 10 filed 10,000,000 shares of common stock (par
$1), of which 2,500,000 shares are to be offered publicly
at $4 per share prior to Nov. 30, 1957, each purchaser of
one
share to receive an option to purchase two addi¬
tional shares at any time prior to Nov. 30, 1959 at $4.50
per

share.

will be $5

The price of the remaining 2,500,000 shares
each, of which 500,000 shares

are

to be re¬

served for exercise of options to be granted to directors,

officers and

employees.
Proceeds — For industrial and
development of Mississippi and the South.
Underwriter—None.
business

Florida

Power

Corp.

April 19 filed 255,813 shares of common stock (par $7.50)
being offered for subscription by common stockholders
of record May 14, 1957 on the basis of one share for each
10 shares held
(with an oversubscription privilege);
rights to expire on June 3. Price—$51 per share. Pro¬
ceeds— For construction program. Underwriters — Kid¬
der, Peabody &
& Beane,

Co. and Merrill Lynch, Pierce, Fenner

both of New York.

Florida Trust,

of

Pompano Beach, Fla.

General

common

for

each

share

preferred

stock

is

exchanged.

Under¬

writer—None.

of

$750

of

18.75 common shares.

producing oil and gas properties. Agent—Kuhn, Loeb
Co., New York.

share

each

for

per

share. .Pro¬

business.

line

of

Ga.

Underwriter—None.

Office—70

Georgia Power Co.

Fairlie

Dan D.

St,, N. W., Atlanta,
Dominey is President.

(6/6)

May 10 filed $15,500,000 first mortgage bonds due June
1, 1987. Proceeds — For construction program and for

for each of

stock.

mon

shares

Corp. and Eastman Dillon, Union Securi¬
(jointly); Harriman, Ripley & Co. Inc. Bids—
Tentatively expected to be received up to 11 a.m. (EDT)
on

June 6 at office of Southern

250 Park

Services, Inc., Room 1600,
Ave., New York 17, N. Y.

★ Gibbs Automatic Moulding Corp..
22 filed $1,000,000 of 6% convertible debentures
due March 31, 1967.
Price—At par. Proceeds—To in¬
crease
company's activities and for working capital.
May

Office—Henderson, Ky. Underwriter—Cook Enterprise,
Inc., Ill S. 7th St., Terre Haute, Ind.

are

Iron Works Co. common stock on

Shops of America, Inc.
Jan. 21 (letter of notification) 240,000 shares of common
stock (par 30 cents) of which 86,610 shares are
being
sold pursuant to outstanding warrants. Price—$1.25
per

/

24.

.

Import Corp., Houston, Texas
notification) 100,000 shares of common
stock. Price—At par ($3 per share). Proceeds—For in¬
ventory, working capital, etc.
Underwriter—Benjamin
& Co., Houston, Tex.
•<
L
/
v
* "
Holy Land

Feb. 27 (letter of

Ignacio Oil & Gas Co., Denver, Colo.
May 20 filed 650,000 shares of common stock (par 50
cents). Price—$1 per share. Proceeds—For drilling and
completion of test wells; for acquisiiion and exploration
of additional properties; and

^ Income Fund of Boston, Inc«* Boston, Mass. .
May 27 filed
(by amendment) art additional 304.448
shares of common stock (par $1).
Price t— At market.
•

(par $1), of
being offered for subscription

45,150 shares are

common stockholders of record May
basis of one share for each six shares

by

24, 1957, on the
held; rights to

expire on June 11. The remaining 12,917 shares are be¬
ing offered to employees and others. Price—$7.50 per
Proceeds—For construction program.
share.
Under¬
writer—White, Weld & Co., New York.
International Bank of Washington,

D. C.

Sept. 28 filed $1,000,000 of time certificates, series B, C
and D.

principal amount. Proceeds—

Price—At 100% of

For working

Underwriter—Johnston, Lemon &

capital.

Co.. Washington, D. C.
Business

International

Machines

Corp.

1,050,223 shares of capital stock (no par)
being offered for subscription by stockholders cf record
May 21, 1957 on the basis of one new share for each 10
shares held; rights to expire on June 10, 1957.
Price—
$220 per share. Proceeds—For working capital. Under¬
writer—Morgan Stanley & Co., New York.
May

1

filed

Francisco, Calif.
(par one
Proceeds—To equip and
launderettes and for working cap¬

International Duplex Corp., San
Dec. 21 filed

500,000 shares of common stock

sent)*- Price—$1
establish

five

per

super

share.

Underwriters—Names

to

be

supplied

by

amend¬

ment.
•

International Fidelity Insurance

March 28 filed
be

offered

rate of

—To be

one

Co.* Dallas, Tex.

100,000 shares of common stock (no par)
subscriDtion bv stockholders at the

for

new

share for each seven shares held.

Price

Proceeds—For work¬
Underwriter—Franklin Securities Co.,

supplied by amendment.

ing capital, etc.

Dallas, Texas.

* Government Employees Corp. (6/17)
May 24 filed $661,040 5% convertible capital
by

:

-

May 6 filed 58,067 shares of common stock

for

Underwriter—Bruns, Nordeman & Co., New York,

.

Inter mountain Gas Co.

store

R. I.

for working capital. Under¬
President.

W. Clay Merideth is

writer—None.

to

hr. v,

Statement effective April
' \< y,- ■.

Underwriter—None.

July 10.

share.

Proceeds -— For additional discount department
operation; to increase the number of stores; and
working capital. Office—41 Stukely St., Providence,

a

Holly common shares are
certain finders, 60,000 shares to certain ven¬
dors
of
property;
1,016,595 shares will be reserved
against conversion of preferred stock; and the remain¬
ing 388,176 are to be reserved for possible issuance at a
future date in exchange for 64,696 shares of Van Dorn
Iron Works common stock.
The offers will expire on
38,333

basis;

offered to

ital.

Gob

Vernon

shares of Holly common stock
the 305,204.52 shares of Mount Vernon com¬
Of the remainder, 210,000 Holly ccmmon
being offered to certain holders of 35,000

six-for-one

able Securities
ties & Co.

shares of Mount

the 406,638

of

shares of Van Dorn

purchase of shares of capital stock of Southern Electric

Generating Co. Underwriter — To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.; Blyth & Co., Inc.; Kid¬
der, Peabody & Co. and Shields & Co. (jointly); Equit¬

pre¬

stock and

preferred

which

Price—$30

expand and finance the company's regular >

'/,/•//

stock, series A (par $5) and 2,476,116 shares of
common stock
(par 60 cents), of which all of the pre¬
ferred and 763,011.3 shares of common stock are being
offered in exchange for Mount Vernon Co. preferred
and common stock on the basis of one Holly series A

agents, then to the public.
To

*

v

ferred

Proceeds—For investment.

—

*

Holly Corp., New York
•
Jan. 25 filed 406,638 shares of 50-cent convertible

Georgia Casualty & Surety Co.
;
;
(letter of notification) 10,000 shares of common
stock (par $5) to be offered first to stockholders and

May 10

the




of

common,

Peninsular

the

March

4 filed 850 certificates of beneficial interest in
Trust.
Price—$1,Q00 per certificate. Proceeds—To

shares

and one-half share of General
preferred share for each share of Peninsular $1 pre¬
ferred, $1.30 preferred and $1.32 preferred. No exchange
of preferred stock will be made unless at least 80% of

tures

'

1.3

Peninsular

ceeds

April 29 (letter of notification) 12,640 shares of common
stock (par $5) and $100,000 of convertible 6% deben¬
tures due 1967 of which 7,000 shares of common stock
and $70,000 debentures are to be offered in units of $500
of debentures and 50 shares of common stock; the re¬
maining

basis

debentures, 25 preferred
Price — $1,018.75 per
Proceeds—To acquire, own and operate interests
units

in

ris J. Steelman and Jerome L. Herold.

Proceeds—To repay bank loans and for
Underwriter—To be determined

1, 1987.

construction

Petroleum Corp.,

* Herold Radio & Electronics Corp. *

Day, both of NeV York.

due June

Corp. of America,

(par $10).

Office—287

Underwriter—None,

May 24 filed voting trust certificates for 200,001 shares
of common stock (par 25 cents). Voting Trustees—Mor¬

May 3 filed $20,000,000 of first mortgage bonds, series K,

expire June 15. Price—$25 per share. Proceeds—For
expansion of belt grinder division. Office—831 West Fa¬

.

in

Corp. and Tucker, Anthony

General Telephone Co. of California

to

stock

incentive wage plan.

an

Hartford, Conn.

16 filed $2,250,000 of 5%

unit.

Equipment Corp.

Boston

Heritage

shares and

Price—To be supplied by amend¬
Proceeds—To increase working capital.
Under¬

writers—The

Philadelphia, Pa.
May 14 filed $375,000 of 10-year 6% debentures due
March 1, 1967; 3,750 shares of 7% cumulative preferred
stock (par $100); and 7,500 shares of common stock (par
$1) to be offered in units of $500 of debenture, five
shares of preferred stock and 10 shares of common stock.
Price—$1,010 per unit. Proceeds—Together with other
funds, to purchase, directly or through, subsidiaries,
drive-in theatres; to acquire other properties, etc.; and
for working capital. Underwriter—None....

#

May

June 24, 1957.

Pierce, Fenner &
Smith, Barney &
C. (jointly); The First Boston Corp. and Lehman Broth¬
ers
(jointly); Kidder, Peabody & Co., Stone & Webster
Securities Corp. and White, Weld & Co. (jointly). Bids
•—To be received by Standard Shares, Inc., 15 Broad
Street, New York 5, N. Y., up to 11 a.m. (EDT) on June

Eric

dealers.

5, 1957 on a l-for-6 basis and by holders of $1.60 cumu- '
lative preference stock on a l-for-9 basis; rights to ex¬

Blyth & Co., Inc., and Merrill Lynch,
Bean (jointly); Kuhn, Loeb & Co. and

yette St., Syracuse, N. Y.

installation of

Homestead Ave.,

offered

Underwriter—None

Offering to be made through selected

(6/6)
May 17 filed 194,200 shares of cumulative convertible
preference stock ($50 liquidating value) to be offered
for subscription by common stockholders of record June

(6/26)

competitive bidding.

by

Price—At par ($20
Proceeds—For construction and equipment

share).

and

Inc., Washington, D. C.

expansion and working capital.

General

May 22 filed 265,000 shares of common stock (par $10).
Proceeds—To Standard Shares, Inc. Underwriter—To be
determined

held; rights to expire June 21, 1957.
per

-

Application is still pending with SEC.

Price—To

Offering—Expected this week.

Duquesne Light Co.

Special Machinery Co.

Dallas, Texas (6/5)J
income debentures due
1972; 75,000 shares of 6% series A preferred stock (par
$10); and 56,250 shares of common stock (par $1) to be

named.

corporate
Dominick, New

&

Hartford

•

April 30 (letter of notification) 6,105 shares of common
stock being offered to stockholders of record May 24r
1957 on the basis of one new share for eacn eight snares

For

May 29, 1957 on the basis of one share for each six com¬
mon shares held and one share lor each three preferred

v

Bids—

preference stock, to be offered in units of $500 of deben¬
tures and 40 warrants. Price—$500 per unit. Proceeds—

Inc.

May 7 filed 173,970 shares of common stock (par $7.50)
to be offered for subscription by stockholders of record

shares

Corp.; Carl M. Loeb, Rhoades & Co.

Securities

Aug. 17, 1956 filed $2,000,000 of 6% subordinated sink¬
ing fund debentures, due Sept. 1, 1971, with detachable
warrants to purchase
160,000 shares of participating

bidding has been postponed.

.

(no par).'
portion of outstanding bank loans.
Underwriter—To be determined by competitive bidding.
Probable .bidders:. Merrill
Lynch, Pierce, Fenner &
Beane and Lehman Brothers (jointly); Stone & Webster/

2fc45 p.m. (EDT) on May
654, 101 Indiana Ave., N. W., Washington 25,

13 at Room

10

(6/18)

Proceeds—To repay a

scheduled to be received up to

Co.

(letter of notification) 298,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
.—For exploration and development; road improvement;
May

Gulf States Utilities Co.

-

May 17 filed 200,000 shares of common stock

ceeds—To

+ Diversified, Inc.
May 16 (letter of notification) 50,000 shares of common
stock (no par). Price—$5 per share. Proceeds—For in¬
vestment ip real estate and for making loans.
Office—

held; rights to expire

capital. Underwriters—Johnston, Lemon & Co., Washington, D. C.; and Eastman Dillon, Union Securities &
Co., New York.

General Aniline & Film Corp., New
Jan. 14 filed 426,988 shares of common

of debentures for each 20 shares of com-'
on July 8, 1957:
Priceof principal amount. - Proceeds — For working,

100%

—

Glass Co., Marion, Ind. •
notification) 8,339 shares of common
Price—$25 per share. Proceed;—To
stockholders.
Underwriter—RaffensCo., Inc.; Indianapolis, Ind.

it Foster-Forbes
May 21 (letter of
stock (par $1.50).
go to four selling
perger, Hughes &

'

'

24.

June

on

stock

Thursday, May 30, 1957

.

of $100

mon

Underwriter—None.

bidding.

petitive

rate

.

.

due

June

common

•

deben¬

30, 1967, to be offered for subscription
stockholders of record June 10, 1957 at the

Interstate

Fire

& Casualty

Co.

(Iff.)

being of¬
stockholder^ ji record
the basis of two new sharf
for each

March 29 filed 20.000 shares of common stock
fered for subscription

April 1, 1957,

on

by

common

Number 5642

185

Volume

five shares

The Commercial and Financial Chronicle

;

held; rights expire

June 10.

on

Price

—

$21

Price—$3 per share. Proceeds—For completion of plant,
provide for general creditors and for working capital.
Office—Jackson, Miss., Underwriter—None, offering to
be made through company's own agents.
: ;;
v

■

p£r shares ProceedSr—For working-capital. Underwriter *
.j-Nonel" Statement effective May 23, 1957. 7/ ; 7
Investors Variable

Payment Fund, Inc.

.

'

-

(2543)

bidders:

Halsey, Stuart & Co. Inc.; Merrill Lynch,
Beane; Lehman Brothers and Riter
(jointly); Blyth & Co., Inc.; The First Boston
Kidder/ Peabody & Co. and White, Weld & Co.
Fenner

,

Monticello Associates,

ment

Manager

—

Investors ,* Diversified

Minneapolis, Minn., which will also act
7

Industrial

American

Israel

7 .7' v.7.

Ltd.

Services, Inc.,
distributor. -;

Development

/;\7,

capital

7\

-Feb. 13 filed $2,500,000 of perpetual 6% debenture stock.
.Erice

-—110%

of

Philadelphia, Pa.

Proceeds—To be converted into
pounds and will be used as working capital to
extend the medium and long-term credits to enterprises
in Israel:; Office—Tel Aviv; Israel. Underwriter—Israel
Securities Corp., New York.
:
'
par.

.Israel

«

i

Ltd;, Toronto, Can. (6/12)
shares of common stock (par $1).
Price—40 cents per share. 'Proceeds—For drilling ex¬
penses, equipment, working capital and other corporate
purposes. Underwriter—Steven Randall & Co., Inc., New

I
.

Marion
March

28

Finance Corp.,

filed

:

_

^

/cash.

Utah.

Price—$10

per

share.

Proceeds—For general

cor-

;

,

.

cents) to be offered for subscription by

„

;

Philadelphia, Pa.; B. Ray Robbins Co.,
Berry & Co.*Plai.nfield, N. J.
77~

/

•

McFaul

/

quisitixm of production machinery and equipment; pur¬
chase ef materials and tooling; advertising; patent ex¬

Metropolitan Edison Co. (6/10)
30 filed $19,000,000 of first mortgage bonds due
1987.
Proceeds—To repay bank loans and for construc¬

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co.; Blyth & Co., Inc.; Kidder,
Peabody & Co. and Drexel & Co. (jointly); The First
Boston Corp. Bids—Expected to be received up to noon
(EDT) on June 10 at offices of General Public Utilities
Corp., 67 Broad St., New York, N. Y.
program.

(6/17)

May 22 filed $30,000,000 of 25-year first mortgage bonds
due 1S82.
Proceeds—To repay bank loans and for con¬

Underwriter—To be determined by
bidding. Probable bidders: Halsey, Stuart

program.

competitive
Co.

Inc.; The First Boston Corp.; Blyth & Co., Inc.;
White, Weld & Co. and Lehman Brothers (jointly). Bids
—To be received up to 11 a.m. (EST) on June 17 at 415
&

Clifford

St., Detroit 26, Mich.

Michigan Wisconsin Pipe Line Co. (6/12)
May 15 filed $30,000|,000 of first mortgage pipe line bonds
due 1977.
Proceeds—Together with $3,000,000 from sale
of

$3,000,000 common stock to parent, American Natural
Co., to pay $25,000,000 of bank loans and for con¬
struction expenses. Underwriter—To be determined by
Gas

competitive bidding.
&

Probable

bidders:

Halsey, Stuart

Inc.; The First Boston Corp.; Blyth & Co., Inc.
Bids—Expected to be received up to 11 a.m. (EDT) on
•

12

offices

at

of

American

Natural

Gas

Co.,

165

Broadway, New York, N. Y.
Midland

March

Telephone Co.

of seven shares for each six shares held (with
oversubscription privilege); rights to expire on May
The remaining 18,667 shares have been offered to

public. Price—To stockholders, $1.25 per share and to
public, $1.50 per share.
Proceeds — For retirement of
outstanding bonds and working capital. Office—126 N.
Fifth St. (Box 988), Grand Junction, Colo. Underwriter
—None.
•

Contmercral Corp.

Micf-Sfa*e

(letter of notification) $190,000 of 7% regis¬
tered debenture bonds due May 1, 1967. .Price—At 100%
March

29

and accrued interest.
ice

area

Underwriter

dletown, N. Y
New

York.

—

Frazee. Olifiers & Co.,

public offer contemplated.

No

Mississ:nr
Dec. 26 filed

Proceeds—For expansion of serv¬
Office—2 King St., Mid-

working capital.

and

.

alley Portland Cement Co.

1.600,000 shares of capital stock (no par), of

which 708,511

shares are subject to an offer of rescission.




—

5001

West Broad St.,

matic exchange.
None.

stock¬

one

new

Proceeds

—

For

the basis

on

Office—Buckfield, Me.

Price

converting

manual service to

a

ex-

dial auto¬

a

Underwriter—

Proceeds—For

of New York

:

Office—10

Investment Advisor

—

7

*

.

/

*

•

>7 v.-

■//' 7;

"

-

Machine Co., New Britain, Conn.
(letter of notification) 4,000 shares of common
(par $10) to be offered to employees. Price—At
average market during week ended May 25, 1957.
Pro¬
ceeds—For working capital.
Underwriter—None.
Britain

May 17

Brunswick

14 filed

(Province

of)

tures due Jan.

Price—To be supplied by amend¬

1, 1982.

Proceeds—To

be

advanced

to

The

New

Bruns¬

Electric Power Commission to repay bank loans
Underwriter—Halsey, Stuart & Co. Inc., New York and
Chicago. Offering—Indefinitely postponed.
Northern

Ontario

Natural

Gas

Co.,

Ltd.

(6/10)

$8,000,000 of 5%% subordinated deben¬
tures due 1982 and 400,000 shares of common stock (no
May

14

filed

par) to be offered in units of $20 of debentures and one
share of stock.
Units aggregating $3,940,000 of deben¬
tures

and

United

197,000 shares of stock will be offered in the
States; the remainder in Canada. Price—To be

supplied by amendment. Proceeds—Together with funds
from private sale of $12,000,000 of first mortgage bonds,
for construction program.

derwriters—In

United

Office—Toronto, Canada.

States:

Bear,

Stearns &

Co.

Un¬
and

Hemphill, Noyes & Co., both of New York. In Canada:
McLeod, Young, Weir & Co. and Bankers Bond Co.
Northern States Power Co.

(Wis.)-

(6/4)

May 2 filed $10,000,000 of first mortgage bonds due June
1, 1987. Proceeds—To repay $5,750,000 bank loans and

$1,000,000 advanced by parent, Northern States Power
(Minn.) and for construction program. Underwriter
—To be determined by competitive bidding. Probable

Co.

St., Coffeyville, Kan.
Co., St. Louis, Mo. .77

&

Underwriter

—

G. F. Church

Philadelphia Electric Co. (6/5)
May 14 filed 609,815 shares of common stock
be offered

to

for subscription

by

common

(no par)

stockholders

of record June 4, 1957 at the rate of one new share for
each 20 shares held; rights to expire on June 25. Price
—To be supplied by amendment.
Proceeds—To repay
bank loans and for construction program. Underwriters

Co., Philadelphia, Pa., and Morgan Stanley
Co., New York,

(par $5)
exchange for common stock of Milprint,
Inc., Milwaukee, Wis., on a share-for-share basis. The

to be offered in

offer

will

become

effective

upon

346,500 Milprint common shares.
Lehman
the

Brothers

acted

as

deposit

of

at

Underwriter

least

—

None.

intermediary in negotiating

transaction.

Plymouth Fund, Inc., Miami, Fla.
Feb. 5 filed 500,000 shares of capital
market.

Price—At
writer

Proceeds—For

.

stock

(par $1).

investment

Under-

Plymouth Bond & Share Corp., Miami, Fla.
Joseph A. Ray vis, also of Miami, is President.
•

—

Portland Gas & Coke Co.

(6/11)/

May 22 filed 226,194 shares of common stock (par $9.50)
to be offered for subscription by common stockholders
of record June 10, 1957 on the basis of one new share for
each

$12,000,000 of 25-year sinking fund deben¬

common

i Philip Morris, Inc., New York
May 28 filed 385,000 shares of common stock

•

stock

of

(par 10

oil

8th

&

Corp., New York
3,120,000 shares of common stock (par one
cent). Price—$1.25 per share.
Proceeds—For acquisi¬
tion of properties; for ore testing program; for assess¬
ment work on the Yellowknife properties; and for cost
of a concentration plant, mining equipment, etc. Underwriter—Gearhart & Otis, Inc., New York.
Offering—

New

May 13 (letter of notification) 299,000 shares

—Drexel &

National Lithium

Indefinite.

be

Pepsi-Cola Mokan Bottlers, Inc.
April 11 (letter of notification) 60,000 shares of common
stock (par 50 cents).
Priee—$5 per share. Proceeds—
For general funds of the
company.
Office—207 West

*

Nassau

—

Underwriters—Names to

program.

cents). Price—$1 per share. Proceeds—
drilling expenses. Office—27 William St., New
York, N. Y. Underwriter — Bush Securities Co., New
York, N. Y.

•

Feb. 19 filed

Dec.

construction

For

Underwriter—None.

* New

—

★ Pancal Oil Corp.
t

Harland W.

:>■.

a

supplied by amendment.

~

V.v*

of

—

stock

investment.

units

in

■

May 9 (letter of notification) 23,529V2 shares of common
s.ock (par $3) to be offered through warrants to holders
of 5% $50 par preferred stock who are participating in
the exchange of their shares for 5% debentures pursuant
to a plan of recapitalization adopted on April 8, 1957.
Price—$10 per share.
Proceeds—To be applied to the
sinking fund set up for the retirement of the 5% deben¬
tures.

for

due

20,000 shares of

common stock
(par $1) to be
$50 note and one common share.
To be supplied by amendment.
Proceeds
To
short-term debt and other current liabilities and

repay

(6/4)

Hoisington, Inc., same address/ Offering?—Expected this
week.,: », ,'■/ '
' ',
J-..*-?- 7 f,
/ ,7
/ <*;7 "• *'r. /,</.
* National Alfalfa Dehydrating-& Milling Co., Lamar, Colo.

★ Pacific Natural Gas Co., Longview, Wash.
May 28 filed $1,000,000 of subordinate interim notes

Price

-

Minerals,. Inc.
(letter of notification) 150,000 shares of com(par $1). Price—$2 per share. Proceeds—For
purchase of royalty and working interests. Office—1518
Walnut St., Philadelphia 2, Pa. Underwriter—Walter S.
Sachs & Co., Inc., Philadelphia, Pa.
K
j;

*

($5 per share).
change at Turner from

.

Corp., New York.

St., Princeton, N. J.
r

At par

offered

stock

mon

market.

•

stock to be offered to present stockholders
of preemptive rights, thereafter to the

1963 and

President

wick

13

basis

31.

7

Mutual Investors Corp.

ment.

(letter of notification) 170,154 shares of com¬
mon
stock (par $1) of which 151,487 shares are being
offered to stockholders of record April 1, 1957 on the
an

•

Co.

June

Office

7

Nassau: Fund, Princeton, N. J.
May 8 filed 250,000 shares of common? stock. Price—At

April

struction

i

.

April 22

,■

i'

•

*

Mutual

(Claude)

Michigan Consolidated Gas Co.

Proceeds—For investment.

—T. Coleman Andrews.

Securities

Underwriter—None.

Corp.
Apru itj ^xeuer oi notincauon) 10,000 shares of common
stock. Price—At par ($10 per share). Proceeds—For ac-

tion

Sharing-

(par 30

public.

/

stock (par 10 cents).

penses and working capital.
Office—560 Mills Tower
Building, San Francisco, Calif. Underwriter—Financial
Investors, Inc., Sacramento, Calif.

!

;

May 17 (letter of notification) 295,000 shares of common
Price—$1 per share. Proceeds—To
acquire real estate properties and mortgages. Office—550
Fifth Ave., New York 36, N. Y. Underwriter — Stuart

Inc., . Yorktown, Ind.
18,181 shares of common
stock (no par) to be offered to employees other than
those salaried employees who are entitled to a stock
option plan. Price—$16.50 per share. Proceeds—For in¬
ic Marsh. Foodiiners,

May 15 (letter of notification)

/

Price—At market.

Richmond, Va.

Securities Corp.,

:

Profit

stock

common

Oxford County Telephone &
Telegraph Co.
April 18 (letter of notification) 6,000 shares of common

Plans, Inc., Richmond, Va.
March 19 filed 50,000 shares of capital stock (par $1),
to be offered trustees of profit sharing retirement plans.
/

Pro¬

Retirement

-.

each). Proceeds—For working capital. Office—17
W. Lancaster Ave.,. Ardmore, Pa. Underwriters—Walnut

market.

Investment Trust for

com¬

expire on July
1, 1957. Price—To be supplied by amendment. Proceed^
—For capital expenditures.
Underwriter—Morgan Stan¬
ley & Co., New York.
7

Underwriter—None.

Mutual

v

on

and

/'/..;:•>•./•/.-

holders of record June 14, 1957 on the basis of
share for each 15 shares held;
rights to

-

,

Ardmore, Pa.
renewable subordinated

v

it Outboard Marine Corp. (6/17)
May 24 filed 486,058 < shares of common

Motels,

~

$250,000 of 6%

new

stockholders

employees;

gas properties. Office

porate purposes.r. Underwriter—None.

$500

ventories for a

to

to

Judge Bldg., Salt Lake City, Utah. UnderwriterMid America
Securities, Inc. of Utah, Salt Lake City,

offered to retire 972 outstanding class B common
shares held by employees, and 13,988 shares offered for

-

debentures, due upon demand May 1, 1967, without de¬
mand May 1, 1972. Price—At par (in units of $100 and

New York; and

first

—725

Moore Products Co., Philadelphia, Pa.
;77
April 30 filed 41,204 shares of common stock (par $1) to
be offered for subscription by certain employees and
officers of company. 7 Of the total, 27,216 shares are to

Wash.

Tex.

offered

unsubscribed

,

Inc.
-\7/;/77 .
:7-7"
York.
7
May 20 (letter of notification) $250,000 of 10-year 5%
';*•
:
/, ,V
/
mortgage bonds (holders of each bond will be given
Levingston Shipbuilding Co., Orange, Texas
May 15 filed 100,000 shares of common stock (par $6), ». option to purchase one share of no par common stock
7for each $100 principal amount of bonds held' at $1
of which 66,666 shares are to.be offered for account of
upon final payment or expiration of four years, which¬
company and 33,334 shares for account for selling stockever occurs first)/
holders.- Price—To be supplied by amendment. Proceeds
Price—At par (in denominations of
_To construct a floating drydock and two oil barges
; $500 and $1,000 each).
Proceeds—For modernization of
a
motel.
Office—610 Dexter Horton
and for working capital.
Underwriters — Underwood,
Building,, Seattle,
Neuhaus & Co., Inc., Houston,

to

basis;
public.

Price—$16 per share. Proceeds—
construction, payment of current liabilities and
working capital. Office—1313 Sixth St., Redmond, Ore.

•

r

$5)
to

For

-be

Mines

March 18 filed 750,000

.

(par

preemptive

remainder

I

common

,

.

-r~

Lauzon

be

a

J

—

:7: .! Kaiser Industries Corp. "(6/11)
May 21 filed 900,000 shares of common stock (par $4).
Price
To be supplied by amendment. Proceeds — To
selling stockholders. Underwriters — The First Boston
Corp., New York; Dean Witter & Co., San Francisco,
Calif.; and Carl M. Loeb, Rhoades & Co., New York.
>
Lake

;

*

*

notification) 7,200 shares of

Ca., Philadelphia, Pa. (6/4)77/77
Underwriter—None.
1 ~
April 30 filed 100,000 shares of common stock (par $1).
Price
To be supplied by amendment.
Proceeds—For
he Oil Ventures, Inc.
'improvements and other corporate purposes.
Under¬
May 13 (letter of notification) 2,500,000 shares of
writers—Hemphill, Noyes & Co. and Parrish & Co., both
mon
stock.
Price—At par ($10 cents per
share).
of New York.
7
7 / '
ceeds—For development of oil and

i

t1

'

Co.

Corp.;
(joint¬

•

March 28 (letter of
stock

Moore Products

v,

•

.

7 V/

&

Northwest Telephone Co.

v

expenditures,

including construction of motel,
^roadside restaurant and gas station. Business—Has been
processing and selling of gravel: Office—203 Broadway,
.' Monticello, N. Y. Underwriter—Walnut Securities Corp.,

Bank,

.:/

Inc.

Feb. 18 (letter of notification) 300,000 shares of common
stock.
Price—At par ($1 per share). Proceeds — For

as

Pierce*

ly). Bids—To be received up to 10 a.m. (CDT) on June
4, at Room 1100, 231 So. La Salle Street, Chicago 4, IlL

■

March 25 filed 10,000 shares of common stock. Price—At
market. Proceeds—For investment. Sponsor and Invest¬

.

&

31*

Price

shares

five
—

To be

construction
New

held; rights to expire on July 1.
supplied by amendment. Proceeds
for
Underwriter—Lehman Brothers,
—

program.

York.

Prudential Investment Corp. of South Carolina
April 30 filed 209,612 shares of common stock. Price—
$1.20 per share. Proceeds — For general corporate pur¬
poses.
Underwriter — None. J. C. Todd of Columbia,
S.

C., is President and Board Chairman.
Public Service Co. of New Mexico

April 25 filed 181,997 shares of common stock (par $5)
of which 166,997 shares are being offered for subscrip¬
tion by common stockholders at the rate of one new
shares held on May 20, 1957, with
June 12. The remaining 15,000 shares
being offered to employees. Price—$13.50 per share.
each

10

rights to expire

on

share

are

for

Proceeds

—

Allen & Co.,

For

construction program.
Underwriter—
New York, for offer to stockholders.

Puget Sound Power & Light Co. (6/25)
17 filed $20,000,000 of first mortgage bonds due
July 1, 1987. Proceeds—To repay bank loans. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp.; Merrill Lynch, Pierce, Fenner & Beane; Stone
May

Continued

on

page

40

Financial Chronicle

The Commercial ancl

Plan, Inc., New York

Sire

39

Continued from page

v

Thursday, May 30, 195l7<

.

Price—At par

Bids—To be received at 90
(EDT) on June
25.
"
■ .''/■/'
v.:
Pyramid Productions, Inc., New York
Sept. 27, 1956, filed 220,000 shares of com. stock (par $1)
of which 200,000 shares are to oe offered to public and
20 000 shares issued to underwriter. Price—$5 per share.
Proceeds—To retire $125,000 of outstanding 15% deben¬
well

tures as

Inc.;

tions,

que,

Co., Inc., Washington, D.

Statement withdrawn.

to

C.
Products, Inc.

S. Semiconductor

U.

April 11 filed 500,000 shares of common stock (par $1).">
Price
To be supplied by amendment. Proceeds — For
—

Angeles, Calif.

Underwriters—The First Boston Corp., New York,
Dean Witter & Co., Los Angeles and San Francisco,

—

•

April

expire on June 17. Price—At par

agreed to purchase all of the debentures
t for
by the other stockholders. Statement
•17.:.: /
: i •
:

working capital.
—

Jonaihon &

'

Office

Co., Los

•'■•;} <";

;;;•

ij

Inc., Abilene, Kansas

United Utilities,

105,000 shares; of-common stock (par
$10) ;being//offered in exchange for stock of OregonWashington Telephone Co. on the basis of 2y2 shares for
each Oregon-Washington common share and five shares
for each Oregon-Washington preferred share. This offpr
is subject to acceptance by not less than 80% of each
class of stock and will expire on July L Dealer-Manager

(flat). / Proceeds—To reduce bank loans. Underwriter—
None. The largest stockholder, Pyramid Rubber Co., has

filed

25

—Zilka, Smither & Co., Inc., Portland,

not subscribed

Uranium Corp. of

effective May

Ore.

Z

America, Portland, Ore.

• -

/'

;

April 30 filed 1,250,000 shares of common stock (par 10
cents). Price—To be supplied by amendment (expected5
to be $1 per share). Proceeds—For exploration purposes.
Underwriter—To be named by amendment. Graham Al¬

,

if Standard Electrical Products Co.
May 16 (letter of notification) 99,980 shares of common :i
stock (par 25 cents) to be issued through exercise of r bert Griswold of Portland, Ore., is President.
/ V:''V,v
warrants on or before June 30, 1961. Price—$2 per share./;.
Vanadium-Alloys Steel Co., Latrobe, Pa. (6/5) -j
Proceeds—For equipment and working capital.
Office
May 13 filed 51,000 shares of capital stock (par $5) to be
—2240 E. Third St., Dayton 3, Ohio. Underwriter—None.
offered for subscription by stockholders at the rate of •
Steadman Investment Fund, Inc.,
one new share for each 10 shares held as of record about

supplied by amendment. Proceeds—To be applied to the
purchase of off - shore mobile platform- and related
equipment. Underwriters—Hulme, Applegate & Hum¬
phrey, Inc.,1 The Milwaukee Co., The Ohio Co. and
Stroud & Co., Inc. r

N. J.

East Orange,

May 10 filed

June

100,000 shares of common stock (par $1)
connection with merger into this Fund

—

to be offered in

^ Research Products Corp.
JVIay 17 (letter of notification) 8,200 shares of common
stock (par $5) to be offered to stockholders and to se¬
lected officers and key employees.
Price — $12 per
share.
Proceeds—To replace the capital formerly sup¬
plied by the preferred stock and to provide additional
•working capital. Office—1015 East Washington Avenue,
Madison 10, Wis. Underwriter—None.

(6 5)

Calif.

Price—To be

purchase 15 common shares.

Ave., Bethesda 14, Md.

and

' C,

(6/10-12)
IVIay 21 filed $1,700,000 of 6% subordinated sinking fund
debentures due June 1, 1967, 170,000 shares of common
stock (par 20 cents) and stock purchase warrants cover¬
ing 225,000 shares of common stock to be offered in
tmits of $100 of debentures, 10 shares of stock and one
-warrant

and

Elmo

scription by common stockholders of record May 23, 1957
on the basis of $100 of debentures for each 30 common

Tulsa, Okla.

Office — 4932 St.
Underwriter—Whitney &

proprietary development.

ment

Spalding (A. G.) & Bros. Inc.
April 11 filed $2,017,300 of 5V2% subordinated convertible debentures due June 15, 1962, being offered for sub¬

Drilling Co.,

Bates Offshore

Reading &

Engineering Corp.
(letter of notification) 100,000 shares of class A
stock (par 10 cents).
Price—$1.50 per share.
Proceeds—For working capital; machine tools; equip¬

purchase of new materials and
Phoenix, Ariz. Underwriter

shares held; rights to

Centinela

Tripac

gram.

Raytone Screen Corp.
Feb. 15 <letter of notification) 50,000 shares of common
atock (par 10 cents). Price—$3.25 per share. Proceeds
—To reduce debt, for purchase of inventory and for
Working capital. Office—165 Clermont Ave., Brooklyn,
fj. Y. Underwriter—J. P. Emanuel & Co., Inc., Jersey

S.

Feb. 27

filed 1,200,000 shares of cumulative preferred
stock (par $25). Price—To be supplied by amendment.
Proceeds—To retire bank loans and for construction pro¬

•

■City, N. J.

Edison Co.

Office—5631

common

13

May

:

,

,

California

Proceeds—For

equipment and to ex¬

Calif. -Underwriter—None.

be received on June 18.
Southern

share).

per

program.

Ave., Culver City,

Fe, N. Mex.

,

($10

debentures due June
1, 1986.
Proceeds — To repay advances from parent,
American
Telephone
& Telegraph Co., expected to
amount to approximately $36,000,000, and for additions
and improvements. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co.
Bids—Expected to

>■■/«''''

N. M.

advertising

pand

(6/18)

$173,180 debt to Trans-Union Produc¬
for working capital. Business—Tele¬
Underwriter—E. L. Aaron & Co., New

Qu.nfa Corp., Santa

•

par

woiking capital, machinery and

May 28 filed $70,000,000 of 29-year

;4'/' •/'''/"/•,
(5/31)
April 22 filed 700,000 shares of capital stock (par five
cents). Price—50 cents per share. Proceeds—For build¬
ing program, for future development of mineral deposits
and working capital.
Underwriters—Frederic H. Hatch
& Co., Inc., New York; Clark, Landstreet & Kirkpatrick,
Inc., Nashville, Tenn.; and Minor, Mee & Co., Albuquer¬
York.

notification) 10,000 shares of common

May 15 (letter of
stock.
Price—At

Bell Telephone & Telegraph Co.

if Southern

as a

and

vision releases.

if Trewax Corp.

working capital and other corporate purposes.
Underwriter—Sire Plan Portfolios, Inc., New York.

—For

New York, N. Y., up to noon

Broad St.,

Hughes Tool Co., the holder of 2,476,142 shares of TWA
common stock may purchase any unsubscribed shares.

^

nine-month 8% fund notes.
(in denominations of $100 each). Proceeds

14 filed $l,0u0,000 of

May

Securities Corp.

& Webster

'

.

.

(2544)

40

Fund

of

-

Inc., Fortune II, Inc., Fortune III,

of Fortune,

—

Underwriter—Goldman, Sachs & Co.,

pansion program.

;

./'r" / /■//'/':'/v";

;•

^

■

4

Village Enterprises, Inc.

4^

May 9 (letter of notification) $250,000 of 6%% 25-year
collateral trust bonds (each $1,000 bond having option

Stinnes

.

4, 1957; with rights to expire about June 19. PHce
be supplied by amendment." Proceeds — For ex¬

New' York.

Underwriter— William Allen
Steadman & Co., East Orange, N. J.
■
Inc. and Fortune IV, Inc.

(Hugo) Corp., New York (6/25)
March 29 filed 530,712 shares of common stock (par $5),
of the presently outstanding 988,890 common shares.
Proceeds
To the Attorney General, of the United
States. Underwriter—To be determined by competitive

To

attached to purchase

100 shares of common stock at $5

share exercisable Jan. 1, 1959 through Dec. 31, 1963^ /
Price—At face amount. Proceeds—To be loaned to com-r ;

per

/

•

pany's affiliates. Office—1013 Southern Finance Bldg.,/
bidders include Kuhn, Loeb & Co.,
August, Ga. Underwriter—Johnson, Lane, Space & C04
Glore, Forgan & Co. (jointly);
Augusta, Ga.
" /.■/,v;
./
trice—At market,
Proceeds—For investment.
Bids—To be received up to 3:45 p.m. (EDT) on June 25 »•/
writer—None.
D. John Heyman of New York is Presi¬
Virginia Electric & Power Co, (6/4) , *
'
at Office of Alien Property, Washington 25, D. C.
dent. Investment Advisor—Resource Fund Management
May 1 filed 1,000,000 shares of common stock (par
Summers Gyroscope Cp.f Santa Monica, Calif.
w Proceeds—For construction program. Underwriters—Tq
Co., Inc., 60 Broadway, New York, N. Y.
be determined by competitive bidding.; Probable bkU/
May 20 filed 250,080 shares of common'stock (par $1) to
if Rota Parking, Inc.
be offered for subscription by common stockholders of
ders: Stone & Webster Securities Corp.;,Merrill Lynch*
May 13 (letter of notification) 275,000 shares of common •
record May 31, 1957 on the basis of two new shares for
Pierce, Fenner & Beane. Bids—To be received up to ll,
stock to be offered to stockholders and the public. Price
each five shares held. Price—To be supplied by amenda.m.
(EDT) on June 4 at 40 Wall St., New York, N. Y.
—At par $1 per share). Proceeds—For expenses incident
ment. Proceeds—For working capital and general cor- /
to development of a new concept of mechanical parking.
Western Electric Co., Inc.
.'/.V,
porate purposes. Underwriter — Daniel Reeves & Co.,. April 16 (letter of notification) 2,856 shares of common
Office—515 Maritime Bldg., 911 Western Ave^, Seattle,
Beverly Hills, Calif.
Wash. Underwriter—None.
stock (no par) being offered for subscription by minors

Fund, Inc., New York

Resource

March 29 filed 100,000

Probable

bidding.

$1),
Under-

shares of common stock (par

Brothers

Lehman

and

.

,

,

St. Louis Insurance Corp.,

St. Louis, Mo.

if Tab Products Co.

cumulative pre- ; May 17 (letter of notification) 10,727 shares of 7% -'.
cumulative convertible preferred stock (convertible un¬
Price—$97 per share. Proceedstil Dec. 1, 1966).
Realty Co., who is the selling stockholder.
Price—At par ($10 per share). Pro¬
1,250 shares of class C

March 27 filed

ferred stock (par $57).
—To R.

M.

Underwriter

—

St.

;

-

.

i

—None.''

if Texas Eastern Transmission Corp. (6/19)
May 29 filed 200,000 shares of cumulative convertible

preferred stock (par $100) and $15,000,000 of debentures
St. Regis stock for each share of Lumber company stock.
due 1977.
Price—To be supplied by amendment. Pro-'
TThe offer will be declared effective it 95% of the latter *, ceeds—For construction program and reduction of bank;
stock is deposited for exchange (and may be declared
loans. Underwriter—Dillon, Read & Co. Inc., New York.r
effective at option of St., Regis, if not less than 80%.
if Texas Glass Manufacturing Corp.,; Houston, Tex.
of the stock is deposited).
May 28 filed 3,000,000 shares of common stock (par $1);.
if Salesology, Inc.
of which 2,700,000 shares are to be offered to public at
May 13 (lettey of notification):-2,500 shares of class A
$2 per share. The remaining 300,000 shares are under
common stock.
Price—At par ($10 per share). Proceeds
option to original stockholders at $1 per share. Proceeds
-—To expand activities. Office—Suite 630 First National
—For expansion and working capital.
Underwriter—T. _*
Bank Bldg., 411 N. Central Ave., Phoenix, Ariz. Under¬
J. Campbell Investment Co., Inc., Houston, Texas.
San Juan Horse

t

•

Racing Association

of

—For construction of a horse racing oval; erection of
stable, etc.; in operating a race track and working capi¬
tal. Office—1040 Main St., Durango, Colo. Underwriter

be

(Loyd)

10

on

the

basis

of

one

new

common

share for

each

Underwriter

—

share

on

the

basis

of

one

new

share

for

held; rights to expire July 1. Price—To
Proceeds—For capital im¬
and working capital.
Underwriter—HornNew York.

Oil Co.

First National Bank Bldg.,

Trane

Denver, Colo.

Co., LaCrosse, Wis.

New York.

expansion program.

Underwriter—Smith, Barney & Co.,
t

if Seaporcel Metals,

Inc., Long Island City, N.

May 24 filed 340.000 shares of common stock (par
cents), of which 300,000 shares are to be offered

if Trans World Airlines, Inc., New York (6/18)
May 28 filed 3,337,036 shares of common stock (par $5)
to be offered for subscription by common stockholders
of record June 17, 1957 at the rate of one new share

Y.
10

(6/17)
~

Price—$2 per share. Proceeds—For

ment and working capital.

Co., New York.

...




„

'

"Z

"v-

••1';.'

'

-

■,

"v V

■

.

new

to

■

r

for each share held; rights to expire on July 8.

equip¬

Underwriter—Charles Plohn
.

...

To

.

?

ue

ouppned by amendment. Proceeds

aircraft

„

and

other

equipment.

.—

To

Price—
pay

for

Underwriter —,None.

>

,

y

oesh,. in exchange for 151,882 shares'of capital stock 0$
Kable Printing Co. (111.) on the basis of $20 Of notes and
$6 in cash for each share held. This offer which is to
expire July 12, is conditioned upon the acceptance
holders of at least 130,00(1 shares of Kable stock (about

Holders of Kable stock who own less than 51
receive cash at the rate of $26 per share,/

85%).

will

shares

Underwriter—None.

Office—Racine, Wis.

if Western Resources, Inc.
i *
May 15 (letter of notification) 800,000 shares of com¬
mon
stock (par 10 cents).
Price — 20 cents per share.
Proceeds
For mining expenses.
Office — 711 Hutton !
.

—

Building, Spokane 4, Wash.
Aug.

filed

28

bentures

due

V

*

$20,000,000 of 20-year sinking fund de¬
1976.

Proceeds

ment.

Underwriter—None.

^

Wilson & Co., Inc.

—

Price—To

To

supplied by amend¬
presently outstanding

be

redeem

bonds, to repay bank loans and for ex¬
pansion program.
Business—Meat packing firm. Unierwriters—Smith, Barney & Co.: Glore Forgan & Co.

first mortgage

and Hallgarten &

Co., aU of

Ne^

York City.

Offerinf—

Indefinitely postponed.

Prospective Offerings

(6/6)

Price—To

.} j&l

i

Printing & Lithographing Co.

May 15 filed $3,037,640 of 5% serial notes due Dec. 1*/
1958
to
1967, inclusive to be' offered, together with

Underwrriter—

May 17 filed 150,000 shares of common stock (par $2).
be supplied by amendment. Proceeds—For

+ Scudder Special Fund, Inc., New York
May 23 filed (by amendment) 100,000 additional shares
of capital stock (par $1). Price—At market. Proceeds—

public.

'

'■

Western

Wayne Jewell Co., Denver, Colo.

Scherck, Richter

For investment.

*

(6/13)

O.

May 6 (letter of notification) 6,000,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For exploration of oil properties. Office — 704

stock¬

Co.

-

Canton,

shares

Titanic

held; rights to expire on May 31. Price—At par ($1 pershare). Proceeds—For working capital. Office — 1049
St., Festus, Mo.

12

blower & Weeks,

Co., Festus, Mo.

offered for subscription by

stock being

Bearing Co.,

supplied by amendment.

provements

April 11 (letter of notification) 54,646 shares of common

Front

June

record

each

—None.

holders

Roller

Timken

May 21 filed 484,276 shares of common stock (no par)
to be offered for subscription by common stockholders"

April 29 (letter of notification) -259,945 shares of com¬
mon stock (par 50 cents).
Price—$1 per share/ Proceeds

Scruggs

>,

.

New York t, N. Y. Underwriter

Office—195 Broadway,

y

writer—None.

*

by American Telephone & Telegraph Co., the parent.
—
$45 per share. Proceeds — For expansion, etc.

derwriter—None.

Regis Paper Co.

,

Price

ceeds—To

April X filed 850,000 shares of common stock (par $5) *
to be offered in exchange for common stock of St. Paul
Tacoma Lumber Co. on the basis of 56% shares of

;

for

expand'inventory and for working capital:
Office—995 Market Street, San Francisco, Calif.
Un¬

Yates, Heitner & Woods, St. Louis, Mo.

Offering—Expected within the next few weeks.,

.

ity stockholders of record April 9* 1957 at the rate of o&q
new share for each nine shares held; rights to expire on
June 3. An additional 1,565,662 shares will be subscribed

Advance

Mortgage Corp., Chicago, III.
reported this company (to be surviving
corporation following merger of First Mortgage Corp.
and Irwin Jacobs & Co. of Chicago)
plans a public
Dec.

4

it

was

offering of $1,000,000 class A 6% participating convert¬
ible stock (par $1). Underwriter—Baker, Simonds & Co.;"

Detroit, Mich.
*

Offering—Expected in June
'

1

:

„**

s

Aerojet General Corp.
May 10 it was reported that this company (a 95% owned
subsidiary of General Tire & Rubber Co.) may raise be*
tween

$5,000,000 and $10,000,000 by the sale of additional

Volume

185Number

5642^r.^The Commercial

and

Financial Chronicle

(2545)

41

sto^k, jserhaps^25,000 shares or so, either prir Harriman
Ripley & Co.- Inc.;. Merrill Lynch, Pierce, Fenr r
vatelyv pT -publicly^ Proceeds—For working
Consumers Power Co.
capitaL Un-3* ner ScvBeane and Stone
-+> /
& Webster Securities
derwriter—Kidder, Peabody & Co., New York.
Corp. " April 22 it was reported company plans to issue and sell !
YYYpYY (jointly). Registration—Expected early in. June.
$40,000,000 of first mortgage bonds this Fall. Proceeds— ;
,i
Airborne instruments
Laboratory, Inc. ' -*Y ,£> YY ^ Central Illinois
To repay bank loans and for construction
Public Service Co.
i ^
program. UnMay 116 it was announced, company plans to issue and
sell
April 9 it was reported
derwriter
To be determined by competitive
company plans to issue and sell
bidding.
$2,000,000 of 15-year 5V4% unsecured subordinated con„« $10,000,000 of 1st
Probable bidders: Halsey, Stuart & Co.
mtge. bonds.Proceeds—To reduce bank
vertible ; debentures.
Inc.; White, Weld American
Research
&
Develop¬
loans and for construction
& Co. and Shields & Co.
ment Corp.; owner of
(jointly); Morgan Stanley & :
program. Underwriter—To be
31,500 shares or 15.8% of Airdetermined by competitive
Co.; The First Boston Corp. and Harriman Ripley & Co. •
borne's stock, propose to purchase
bidding.
Probable bidders:
$320,000 of the new
Inc. (jointly).
Halsey, Stuart & Co. Inc.; Salomon Bros. &
debentures.
Proceeds—Together with $4,000,000 to be
Hutzler;
Equitable Securities Corp.; Eastman
borrowed from institutional
Detroit Edison Co.
Dillon, Union Secu¬
investors, for a building and
rities & Co.; Blyth &
Co., Inc.; Kidder, Peabody & Co.;
expansion program.
May 6 it was announced company plans to sell in 1957 *
and Merrill
Lynch, Pierce, Fenner & Beane (jointly);
about $60,000,000 of
Alabama Great Southern RR.
mortgage bonds. Proceeds
For
(6/4)
Kuhn, Loeb & Co. and A. C. Allyn &
construction program (estimated to cost about
Bids will be received
Co., Inc. (jointly).
by the company up to noon
$89,000,000 (EDT)
Offering—Expected late in 1957.
this year). Underwriter—To be determined
on June 4 for the
purchase from it of $2,400,000
by competi- >
equip¬
tive bidding. Probable bidders: The First Boston
Central Louisiana Electric
ment trust certificates. Probable
Corp.
bidders: Halsey, Stuart
Co., Inc.
and Halsey, Stuart & Co. Inc.
April 8 it was announced
& Co. Inc.; Salomon Bros. &
(jointly); Coffin & Burr,
Hutzler.
company plans to issue and
sell late this
Inc., and Spencer Trask & Co. (jointly). Bids — Now
year $6,000,000 of first
Allied Paper Corp.
mortgage bonds.
■'
Proceeds
expected to be received in latter part of June.
Together with $4,500,000 of 4%% 12-year
/ ; /
May 13 it was
common,

•

■

-

-

-

—

—

—

some

April

reported company plans to issue and sell
convertible
preferred /stock.
Stockholders
on

;

24

authorized

issue

an

convertible debentures to be
placed privately, to be used
to repay bank
loans and for construction
program. Un¬

of

100,000 shares of $50
value stock, issuable in series. Proceeds—To
repay

par

short-term

•

debt

March 18 it
sell

15,000

Specialty Co.

\

mort¬

announced company plans to issue and
shares of $1.20 cumulative convertible

pre¬

v

the aufllotized Capitalization from
600,000 shares (con- >
sisting- of 500:000 common shares and 100,000
preferred
shares).to^l^OOO,000^common shares,' without par value.Y
It^is

probable

offered to

that

additional

common

stock

will

be.

stockholders during the current
year t.
although-no offering, is presently planned. Underwriters
—Dommick,^ JDbminick Jn United
States; and Pictet &
common

Cie, in Switzerland. ^Latter

of record, but not
380,532 of the 459,379
shares
outstanding. YY'"""*- «. ^" •',

beneficially;
common

•

Arizona

on

March

Public"

owned

May 17 it
in

was reported company plans to issue
and sell
Summer or

late

early Fall $10,000,000-;;of bonds.
bond financing was done
pri¬

Underwriters Previous

YYY

Bros. & Hutzler.'

omon

Co.

Baltimore^Gas
ray 6 it

& Electric Co.

reported company

was

plans to issue and sell
first mortgage bonds before
July 1, 1957. Underriter—To be determined by
competitive bidding. Probble bidders:
Halsey, Stuart & Co. Inc.; White, Weld &
o.
and The First Boston
Corp.

ome

(jointly); Kuhn, Loeb
Co. Inc., and Alex. Brown

Co.; Harriman Ripley &
Sons (jointly).

^Bank of Montreal, Montreal, Canada (5/31)
ay

7 it

was

f record

announced Bank will offer its stockholders

May 17, 1957, the right to subscribe for 900,000
(par $10) on the basis

shares held; rights to
Aug. 9r.1957. Warrants will be mailed on or
bout May 31. Price—$30
per share.
Proceeds—To inease capital and
surplus. Subscription Agent
The
oyal Trust Co., Montreal, Canada. The
offering will
ot be registered with the
Securities and Exchange Com-

xpire

March

on

~

.

/'

Y. Y'

Y'Y

,

;•••

Barium Steel Corp. (6/25)
27 it was reported company plans to
register about
une
5 $10,000,000 of
12-year convertible debentures,
\y

nderwriters

—

Lee

>th of New York.

Higginson Corp. and Allen &
/

Bell Telephone Co. of

Pennsylvania

(7/30)

Co.,

,

bidding. Probable
idders: Halsey, Stuart & Co.
Inc.; Morgan Stanley &
o.; The First Boston Corp.; White, Weld & Co. and
astman Dillon, Union Securities & Co.
(jointly). Bids—
Birdsboro
pril 19 it

dditional

Steel

was

the

probably

future

and

ends.

Central

on

July 30.

announced company may have to obtain

financing,

uilding for

(EDT)

Foundry & Machine Co.
this

year,

to

continue

earning and paying
•

divi-

-

Hudson Gas &

Electric Corp.

pril 9 it

was announced
company plans to issue and sell
is year additional first
mortgage bonds. Proceeds—To
construction program.

Underwriter—Probably

idder, Peabody & Co., New York.
Illinois Light Co.

and sale of

announced

was

YYY^YYY

YY

to issue
trust .bonds.;

company proposes

$3,750,000: of 25jyear collateral
—

$25,000,000 additional debentures in Septem¬
(in addition to $20,000,000 additional to be sold at
competitive bidding on June 6—see above). Proceeds—

Empire District Electric Co.
■■■'*
March 14, D. C. McKee, President, announced company
plans to issue and sell some additional bonds this year..
Proceeds—To

retire

bank

loans

($2,200,000 at Dec.

31,*

1956) and for construction program. Underwriters—Pre- '
vious bond financing was done

★ Erie

RR.

(6/20)

Bids

privately.;Y;/Y'Y
Y'YyV"; r.Yv Y I;

help finance 1957

construction program, which is ex¬

pected to cost approximately $87,000,000.
To be determined
by competitive

Underwriter—

bidding. Probable bidbers: Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.;.
Merrill Lynch,
Pierce, Fenner & Beane and White, Weld
& Co. (jointly).
Bids—Expected to be received in Sep¬

tember.

Columbus & Southern Ohio Electric Co.
Feb. 21 it

was

sell in the Fall

reported that company plans to issue and
$8,000,000 of cumulative preferred stock.

Underwriter—Dillon, Read

& Co. Inc., New York.
Connecticut Light & Power Co.
Feb. 18, it was reported
company plans to sell not less
than $20,000,000 of first
mortgage bopds, possibly this

Fall, depending

upon market

conditions.

Underwriter

program.

—

Proceeds—For
Putnam

&

Co.,

Hartford, Conn.: Chas. W. Scranton & Co., New Haven,
Conn.; and Estabrook & Co., Boston, Mass.
Consolidated

Edison Co. of New
York, Inc.
May 20, H. R. Searing, Chairman, said the company will
probably sell a new issue of first and refunding mortgage
bonds later
of

sold.]

on

this

year. [On Oct. 24, 1956, $40,000,000
series M, due 1986, were offered and
Proceeds—From this issue and from bank

these

bonds,

to pay part of the cost of the
company's 1957
tion program which is
expected to total about

loans,

construc¬

$146,000,Underwriter
To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Morgan Stanley & Co.; The First Boston Corp.

000.

—

& Hutzler.

f

^

Erie

x

-

Resistor

Corp., Erie, Pa.
Richard Fryling, President

" ' •'
announced
200,000 shares of preference stock;
(par $12.50) has been authorized and that the 62,475/
shares of outstanding convertible preferred stock (par$20) are expected to be called for redemption at an.
early date. Underwriter — Fulton, Reid & Co., Inc.,:

April

23,

that

new

a

G.

issue

.

of

Cleveland, Ohio.

May 9 it

Gas

Co.

was announced

company* plans to issue and sell
$25,000,000 25-year debentures in October in addition to
$25,000,000 to be sold on June 11. Underwriter—To be
determined

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; White, Weld & Co. and Paine,
Webber, Jackson and Curtis (jointly); Morgan, Stanley

& Co. and the First Boston

Corp. (jointly).

Consolidated Water Co.

April 30 it

To

10,000
retire

was

announced

shares

of

(no par).

bank

$1.50

stockholders

plans to issue and

company

cumulative convertible

for

per

other

share.

the

corporate

purposes.

Underwriter—The Milwaukee Co.,
Milwaukee, Wis.

privilege

subscribing
(par $10)

of

additional shares of capital stock
one new share for each 6V2

of

for
on

100,000
the basis

^shares held. Stockholders

will

vote

June 4 on increasing stock to 750,000 shares.
$24 per share.
Proceeds — To increase capital
and surplus.
Underwriters — Dallas Union Securities!
Corp. and First Southwest Corp., both of Dallas, Tex.
;
Price

—

First

National

May 17 it
holders

City

Bank of New York

(6/28)

reported Bank plans to offer its stock¬
right to subscribe for 2,000,000 additional,

was

the

shares of capital stock (par $20) on the basis of one
new_
for each five shares held as of June 24, 1957;

share

rights to expire

on

July 22, 1957.

to be mailed

or

about June 28.

on

Warrants

are

Price—$60

Proceeds—To increase capital and surplus.
—The First Boston Corp., New York.
-

expected

share.
Underwriter.
per

I

I

General Telephone Co. of California

May 3 it

Y Y

announced

application has been made to
the California P. U. Commission for authority to issue;
and sell 500,000 shares of 5% cumulative preferred stock
(par $20) shortly after the sale of an issue of $20,000,000 first mortgage bonds which have been filed with the;
SEC (see a previous column in this article). Proceeds—
For construction program.
Underwriters—Paine, Web¬
ber, Jackson & Curtis, Boston, Mass.; and Mitchum,
Jones & Templeton, Los Angeles, Calif.
was

General Tire & Rubber Co.

May 10 it
issue

was

of

reported that this company is considering

convertible

subordinated debentures, prob¬
ably around $15,000,000, which may first be offered for
subscription by common stockholders.
Proceeds—For
working capital. Underwriter—Kidder, Peabody & Co.,
New York.

Great Northern
Bids

are

expected

Ry.

(7/17)

company to be received on
July 17 for the purchase from it of $4,965,000 equipment

by the

Probable bidders:

Halsey, Stuart & Co.

Inc.; Salomon Bros. & Hutzler.
Gulf

Interstate

pre¬

Proceeds—

(6/4)

announced company plans to offer to its

was

trust certificates.

(6/17)

Price—$25

debt and

First National Bank of Fort Worth

May 15 it

an

Natural

•

are
expected to be received by this company in)
Cleveland, Ohio, up to noon- (EDT) on June 20 for the
purchase from it, of $2,925,000 equipment trust
certify
icates to mature In 15 equal annual in^tallrnerits. Prob-'
able bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros.?

ber

ferred stock




shares

Gas System, Inc.
18, company announced that it plans the issuance

sell

by comProbable bidders: Halsey, Stuart & Co.
Morgan Stanley & Co.; Kuhn, Loeb &
Co.; Eastman
illon, Union Securities & Co.; The First Boston
Corp.;

678,900

Columbia
Feb.

etitive bidding.
c.;

and

(Common stock not sold in units
by Delhi-Taylor Oil Corp., or its
average price of $10 per share.)
Pro¬

e

—

the~ cofnpany

Brothers and Allen & Co., both of New
York.

14 it was announced company plans to sell around
middle of July $15,000,000 of
30-year first mortgage
onds.
Proceeds
To repay' bank loans and for new
nstruction.
Underwriters—To be determined
y

reported

an

Consolidated

'nance

Central

was

ceeds—Together with funds from private sale of $40,000.000, for construction program. Underwriters—Lehman

construction

prll 25 it was announced company plans to issue and
ell $50,000,000 of new debentures due 1997.
Proceeds—
*o redeem
$50,000,000 of 5% series C bonds. Underwriter
To be determined by
competitive

xpectea to be received up to 11 a.m.

it

stockholders at

—

ission.

6

publicly $7,800,000 of interim notes
of $1 par stock in units.
would be purchased

To

dditional shares of capital stock
f one new share for each five

sell

and

...

r

(jointly); The First Boston Corp. and"
(jointly); Eastman Dillon, Union Securi-/
ies & Co. and
Smith, Barney & Co. (jointly); Lee Higinson Corp.; Blyth &
Co., Inc.
fexel &

Eastern Utilities Associates

For advanees to Blaekstone Valley Gas
Co.,; a subsidiary. Underwriter—To be deter- >
mined by competitive
bidding. Probable bidders: Hal-[
sey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth& Co;, Inc.; White, Weld &
Co.; Stone & Webster Se-^
curities Corp. and Estabrook & Co.
(jointly).

plans To "ftffer

nd Shields & Co.

'

Electric

.

Cleveland Electric
Illuminating Co. :
"
Nov. 12 it was reported
company plans to issue and sell
$25,000,000 of first mortgage bonds in the Summer of
1957. Proceeds—To
repay bank loans and for construc¬

'Y'- Y

Underwriter—For any bonds to be de- by competitive'bidding.< Probable bidders:!
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White, Weld $
& Co., and Kidder, Peabody & Co.
(jointly)Y Y
Y i

Proceeds

Halsey, Stuart &
\
V :.'-Y-

Inc.; Salomon Bros. & Hutzler.

f

•

•

termined

April 15 it

tf

'

next two years.

s

Chicago, Rock Island & Pacific RR..• Y: Y-Y
Bids are-expected to be received
by the company in July
for the purchase from it of
about $3,000,000 equipment
trust certificates.
Probable bidders:
Co.

Eastern Gas & Fuel Associates

April 3 it was announced company may need additional
;
capital of between $25,000,000 and $35,000,000 during the'

pre- ;

;

Y;

;

YYYY'YY",

.

••

Corp.;

.

-

Chance Vought
Aircraft, Inc*
was reported
company plans io issue arid sell
$12,000,000 of convertible securities (debentures of

Underwriter—May be Harriman Ripley &
(;t' -./ Y" Y f,':5<
i >« :

4

Inc.; The First Bos- /
Morgan Stanley & Co.;, Stone & Webster
Securities Corp. Bids—Tentatively scheduled to be re¬
ceived on Sept. 10.
Y - Y Y
s
%
Y
;

ton

YYY YYYY" Yw / Y' Yl Y

April 15 it

Co., Inc., New York.'."

-

J

vately through The First Boston Corp. and
Blyth, &
Co.; Inc. Y Y Y. Y YY: Y -i-'-'V- Y Yr;:* •:" -'1:
:vY;\Atlantic City Electric Co.tion program.
Underwriter—To be determined by com¬
April 9, Bayard L. England, President, announced that V petitive
bidding. Probable bidders: Halsey, Stuart &
later this year the company will
Co. Inc.; The First Boston
probably issue about
Corp.; Blyth & Co., Inc.; Dil¬
$5,000,000 of convertible debentures. Proceeds—For con¬
lon, Read & Co. Inc.; Blair & Co.
Inc., and Baxter, Wil¬
struction program.
liams & Co.
Underwriter—May be determined by,
(jointly); Glore, Forgan & Co.; White,
competitive bidding. Probable bidders:
Weld & Co.
Halsey, Stuart &
Co. Inc.; Kuhn, Loeb &
Co., American Securities Corp.
Coastal Transmission
and Wood, Struthers & Co.
Corp.
(jointly); White, Weld & Co.
Y
-

writer—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co.

..."

■

equal semi-annual installments to and
including June 1, ;
1972. Probable bidders:
Halsey, Stuart & Co. Inc.; Sal¬

ferred stock).

1,.' 1957,

Service Co.

'

"

A Central of Georgia Ry. (6/3)
I
Bids will be received
by the company up to noon (EDT) '
on June
3, at the office of J. P. Morgan & Co.
Incorpo- /
rated, New York, N. Y., for the purchase from it of :
equipment trust certificates, series D, to mature in 30

was

Underwriters—Emch &
Co., both of Milwaukee, Wis.
American European Securities Co.
April 24 stockholders approved a proposal to increase

& Co. and White; Weld &
Co. about the middle
of last year arranged the private ;
placement of an issue of $5,000,000 series G first
gage bonds.

YY'

ferred-stock series A (par $20).
Co. and The Marshall

(9/10)
VY
Y !
was reported company plans to issue and sell <
$50,000,000 of first refunding mortgage bonds. Proceeds j
—^To repay bank loans and for new construction. Under- >

derwriters—Kidder, Peabody

and for expansion.
Underwriter—Possibly Julien Collins & Co., Chicago, 111.
f

Aluminum

Duke Power Co.

April 22 it

May 3 it

was

Gas

Co.

announced company plans

to issue some
of which has

additional first mortgage bonds, the amount

Continued

on

page

42

and Financial Chronicle

The Commercial
42

Thursday, May 30, 1957

.

.

.

(2546)

Iowa Southern

Continued jrom page

program.

and Merrill

Lynch, Pierce, Fenner

—

and
Pro¬
pro¬

Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Lynch, Pierce, Fenner and Beane and White, l.
Weld & Co.
(jointly); Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co. (jointly); Kuhn,
Loeb & Co. and A. C. Allyn & Co. Inc. (jointly); Stone
& Webster Securities Corp.; Lee Higginson Corp.

27, Eugene H. Walte, Jr., announced company plans
to sell an issue of convertible deben-

bidding.

Dec.

Merrill

In the near future

Co.

8 it was reported company tentatively plans to
issue and sell some preferred stock this year. Proceeds
—To finance construction
program.
Underwriter—To
be determined by competitive bidding. Probable bid¬
ders: Stone & Webster Securities Corp.; Lehman Bro¬
thers and Equitable Securities Corp. (jointly); Lee Hig¬
April

Carl M. Loeb, Rhoades & Co. (jointly);
Glore, Forgan & Co. and W. C. Langley & Co. (jointly).
Hanna Steel Co., Birmingham, Ala.
April 8 it was reported company plans to issue and sell
120,000 shares of class A common stock. Price—$5 per
share. Underwriters—Cruttenden, Podesta & Co., Chi¬
cago, 111.; and Odess, Martin & Herzberg, Inc., Birming¬
ginson Corp. and

Kuhn, Loeb & Co.;

^

Offering—Expected in June.
Hilo Electric Light Co., Ltd. (Hawaii)
March 9 it was announced company plans to issue and
sell $2,000,000 of first mortgage bonds, series F, at an
interest rate not to exceed 6%.
Previous bond financ¬
ing was done privately.
Houston Lighting & Power Co.
Feb. 13 it was reported company may offer late this
Fall approximately $25,000,000 first mortgage bonds, but
exact amount, timing, etc. has not yet been determined.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Equitable
Securities Corp.; Lehman
Brothers, Eastman Dillon,
Union Securities & Co. and Salomon Bros. & Hutzler
(jointly); Lazard Freres & Co. and Blyth & Co., Inc.
(jointly); Kidder, Peabody & Co.
ham, Ala.

Louisville

after Nov. 1. Underwriter—To be
determined by competitive bidding,
probable bidders:
(1) For bonds—Halsey, Stuart & Co. Inc.; Salomon Bros.
and Eastman Dillon, Union Securities & Co.

& Hutzler

Blyth & Co. Inc., Lazard Freres & Co. and
Boston Corp. (jointly); Kidder, Peabody &
Weld & Co. (jointly); Equitable Securi¬
ties Corp. (2) For stock—Kidder, Peabody & Co.; Blyth
& Co., Inc., and Lazard Freres & Co. (jointly).
(jointly);

(6/5)

refund

corporate

Probable

,

new

bonds.

Proceeds—To

retire

bank

Underwriter—To

be

First

Eastman

Boston

Dillon,

Securities Corp.

(jointly).

market a

and

Stone

& Webster

first
loans and

$25,000,000 loan in New York. This followed rejection
of a bid by a Montreal banking syndicate to take a

determined

$10,000,000 bond issue at a net interest cost of 6.11%.
Proceeds—$18,000,000 for public works and $7,000,000

by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; Kuhn, Loeb & Co.; Glore. Forgan & Co.;
The

local

for

Corp.; Harriman Ripley & Co. Inc.;
Union Securities & Co., and White,

ably

Savard

& Co.
(jointly); Dean Witter & Co.; Lehman
Brothers; Equitable Securities Corp.; Blyth & Co., Inc.

projects.
Underwriters—Prob¬
Halsey, Stuart & Co. Inc., and

improvement

Shields

&

Co.;

& Hart.

Weld

Mountain

10 stockholders approved

shares

of cumulative preferred

eeeds

—

a

new

Barney & Co., New York.




& Telegraph Co.

•

of

for each
shares held; rights to expire on July 31. Subscrip¬
warrants are expected to be mailed about July 1.

capital stock

five

tion

States Power Co.
was

on

to sell any

reported

(Minn.), (8/20)plans to issue and

company

bonds.
Under writer-^ i o
Probable bidders:
halsey, Stuart & Co. Inc.: Merrill Lynch, Pierce, Fenner
and Beane, Kidder, Peabody & Co. and White, Weld &
Co. (jointly); Lehman Brothers and Riter & Co. (joint¬
ly); The First Boston Corp. and Blyth & Co., inc.
(jointly); Equitable Securities Corp.: Kuhn. Loeb & Co.:
Harriman Ripley & Co. Inc. Bids—Expected to be re¬
ceived up to 11 a.m. (EDT) on Aug. 20.
approximately $15,000,000 of first mortgage
construction

(11/19)

Power Co.

Ohio

program?"

by competitive bidding.

May 15 it was reported that this company now plans to
issue and sell $28,000,000 of first mortgage bonds and

shares of $100 par value preferred stock. Pro¬
repay bank loans.
Underwriter—To be de¬
by
competitive bidding.
Probable bidders:

70,000

ceeds—To

termined

(1) For bonds—Halsey, Stuart & Co. Inc.; The First Bos¬
Corp.; Blyth & Co., Inc.; Eastman Dillon, Union Se¬
curities & Co. and Salomon Bros. & Hutzler (jointly).

ton

stock—Eastman Dillon, Union Securi¬
Bros. & Hutzler (jointly); Harri¬
Ripley & Co. Inc. and Stone & Webster Securities
Corp. (jointly); The First Boston Corp.; Blyth & Co.,
Inc.; Kuhn, Loeb & Co.; Lehman Brothers. Bids—Ex¬
pected to be received up to 11 a.m. (EST) on Nov. 19.

ties & Co. and Salomon
man

it Pacific Gas & Electric Co. (7/23)
May 23 it was announced company intends to offer and
sell $60,000,000 of first and refunding mortgage bonds.
Proceeds—For construction program.
Underwriter—To
be

determined

the basis of one new share

competitive

by

bidding. Probable bid¬
& Co., Inc.; The
be received on

Halsey, Stuart & Co. Inc.; Blyth
First Boston Corp.
Bids—Expected to
ders:

July 23.

it Pacific Power & Light Co.
May 28 it was announced company plans to offer to it
common stockholders
sometime in July 376,600 addi
tional shares of common stock at the rate of one ne
share for each 10 shares held.
Proceeds — For con
struction

Underwriter—To be determined b
Probable bidders: Lehman Broth
Dillon, Union Securities & Co.; Bear

program.

competitive bidding.
ers;

Eastman

Stearns & Co. and Dean

Witter & Co.

Peabody & Co.; Ladenburg,
•

Pacific

of common stock

89.6%

the basis of one nestock and/or pre
($100 per share). Pro

on

six shares of common

Price—At par

ferred stock held.

None.

Co.
plans to offer to it
for 1,822,523 addi

Telephone & Telegraph

tional shares

ceeds—To

(jointly); Kidder

Tnalmann & Co.

May 24 it was announced company
stockholders the right to subscribe
share for each

May 21 the directors approved an offering to stockhold¬
ers of record June 20,
1957 of 584,176 additional shares

issue of 50,000

stock (par $100). ProTo finance expansion. Underwriter — Smith,

States Telephone

(7/1)

Iowa Power & Light Co.

April

& Co. Inc.; Eastman

it Montreal (City of)
May 23 it was announced this City plans to

Beane

Electric Co.

construction.

Halsey, Stuart

There are no piesent plans

(2) For preferred

(6/17-21)

Co.; Kid¬
der, Peabody & Co.; Smith, Barney & Co., and Blyth &
Co., Inc. (jointly); Merrill Lynch, Pierce, Fenner &

April 1 it was reported company now expects to issue
mortgage

and general
Lehman Brothers,

Dillon, Union Securities & Co.; White, Weld &

and sell in the second quarter of 1957 $11,000,000 of
for

.*

Utilities, Inc.

bidders:

it

4

be determined

was

Co.

Illinois Gas Co.

Proceeds—For

it Montana Power Co.
May 20 it was reported company may issue and sell in
the fall about $20,000,000 of debt securities. Proceeds—
For
construction program and to reduce bank loans.^
Underwriter—To be determined by competitive bidding.

(par $5). Underwriter—Butcher & Sherrerd, Philadel¬
phia, Pa., handled last equity financing.
Gas &

Northern

sell

Halsey,

working capital

Utilities

(6/13)

purchase from it of

(par $100).

March

file a regis¬
proposed is¬
stock. Proceeds—To re¬
—

Ry.

to be received

of these shares.

—Scheduled for week of June 17.

April 17 stockholders approved an increase in the au¬
thorized common stock from 2,500,000 to 4,000,000 shares

Iowa

stock

•

Inc., Burlington, Mass.

expected

are

Northern

issue and sell
$10,000,000 of convertible debentures due 1977. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.,
Merrill Lynch, Pierce, Fenner & Beane and Kidder,
Peabody & Co. (jointly); Blair & Co., Incorporated. Bids

Underwriter—May be

Corp.

,

May 9 it was announced stockholders will vote June 11
on approving a new issue of 300,000 shares of preferred

May 20 it was reported company plans to

Brothers, Goldman, Sachs & Co. and The First
Corp., who underwrote last equity financing.
Utilities

-■>

by the company on
$6,450,000 equipment
trust certificates due semi-annually to and
including
June 1, 1972.
Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler.
\

underwriting, with oversubscription privileges.

Lehman

International

first half of

^

Telephone Co.

New Jersey Bell

•

feasible, and an issue of $8,000,000 in bonds in 1958. Tem¬
porary bank loans are available and probably will be
utilized, during at least part of 1957. Additional secu¬
rities will need to be sold in 1959 and 1960, amounting
to approximately $14,000,000. Proceeds—To repay bank

Boston

*;

June 13 for the

RR.

Underwriter

Montana-Dakota

construction.

Wood, Struthers &

Offering—Expected in

(jointly).

\:

Norfolk & Western

announced company may consider an offer¬
ing of new common stock within the next year or so.
Proceeds—About $19,000,000, for investment in common
stocks of the System operating companies during the
three-year period 1957, 1958 and 1959. Underwriter—
Previous stock offering was to stockholders, without

Indianapolis Power & Light Co.
Nov. 21, H. T. Prichard, President, announced that pres¬
ent plans contemplate an issue of $6,000,000 of preferred
stock some time in 1957 if market conditions make it

new

for

and

purposes.

Middle South

May 8 it

15.

for

1957.

Bids

New York.

Underwriter—To be determined by competi¬
Probable bidders: Halsey, Stuart & Co.
Inc.; Harriman Ripley & Co. Inc.; The First Boston
Corp.; Eastman Dillon, Union Securities & Co. Bids—
Tentatively expected to be received up to 11 a.m. (EST)

and

loans

bank

duce

bidding.

loans

Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn,
& Company; Salomon Bros. & Hutzler; Eastman

Co.

&

are

of 50,000 shares of common

sue

1, 1957.

program.

Oct.

Co.,

(jointly); Lehman Brothers; The First Boston Corp.;
Equitable Securities Corp.; Merrill Lynch, Pierce, Fen¬
ner & Beane; Kidder, Peabody & Co., and WThite, Weld

(9/4)

& Electric Co.

Gas

* Microwave Associates,

it Indiana & Michigan Electric Co. (10/15)
May 20 it was reported company plans to issue and sell
$20,000,000 of first mortgage bonds due 1987. Proceeds
—For
reduction of bank loans and for construction

on

Co.;

Co.

May 29 it was announced company plans to
tration statement with the SEC covering a

Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler; Kuhn, Loeb & Co.

tive

ding.
Loeb

equipment trust certificates. Probable bidders:
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
;

this company up to noon (CDT)
June 5 for the purchase from it of $8,125,000 first

bonds due July

merger
Electric

company.

one

Dillon, Union Securities & Co., and

expected to be received by the company some
time in the Fall for the purchase from it of $14,400,000

Bids

Bids will be received by

mortgage bonds due June 1, 1982. Proceeds—To

.

& Light Co.

Louisville & Nashville

First

Co. and White,

on

\

This would be followed by a $20,000,000 first mortgage bond issue by the resultant com¬
pany, to
be known as Marrimack-Essex Electric Co.
Underwriter—May be determined by competitive bid¬

plans to issue and sell
$15,000,000 of first mortgage bonds. Proceeds—To repay
bank loans and for construction program. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co. and
American Securities Corp. (jointly); Kidder, Peabody &
Co. and Goldman, Sachs & Co. (jointly); Harriman Rip¬
ley & Co. Inc.; Lehman Brothers and Blyth & Co., Inc.
(jointly); The First Boston Corp.; Eastman Dillon, Union
Securities & Co. and White, Weld & Co. (jointly). Bids
—Tentatively scheduled to be received on Sept. 4.

first mortgage bonds

Indiana Harbor Belt RR.

.

\

.

England Electric System

New

into

May 14 it was reported company

May 16 it was reported company plans to issue and sell
around 200,000 to 225,000 shares of common stock in the
Fall in addition to between $10,000,000 to $15,000,000

The

•

(9/11)
~
May 1 it was announced company plans to issue and sell
$30,000,000 of debentures. Proceeds—Together with pro¬
received up to 11 a.m. (EDT) on July 16. .
ceeds from sale of 900,000 shares of common stock (par
Kaiser Industries Corp.
L
$100) to parent, American Telephone & Telegraph Co.,
Nov. 28, E. E. Trefethen, Jr., Executive Vice-President, ,V
will be used to pay for expansion program. Underwriter
stated that it is anticipated that a portion of the funds / —To be determined by competitive bidding. Probable
necessary to meet the $25,000,000 installment due April
bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.;
1, 1957 on its 4%% term loan may have to be provided
Morgan Stanley & Co.; Shields & Co.; White, Weld &
by the creation of debt by, or the sale of equity securi¬
Co.; The First Boston Corp. Bids—Tentatively expected
ties, of this corporation or Henry J. Kaiser Co., or
to be received on Sept. 11.*
:
•
/ •
'
2
through the public or private sale of a portion of the t
New York Central RR.
(6/11)
securities of the companies owned by the Henry J.
Bids will be received by the company in New York,
Kaiser Co., or of certain other assets. Underwriter—The /
N. Y., up to noon (EDT) on June 11 for the purchase
First Boston Corp., New York.
from it of $6,450,000 equipment trust certificates. Prob¬
Long Island Lighting Co.
able bidders: Halsey, Stuart & Co. Inc.; Salomon Bros. &
April 16 it was announced company plans to sell later
Hutzler.
this year $40,000,000 of rist mortgage bonds, series J.
Niagara Mohawk Power Corp.
Proceeds—To refund $12,000,000 of series C bonds due *
April 22 it was reported company tentatively plans to
Jan. 1, 1958 and for construction program.
Underwriter
issue and sell this fall about $40,000,000 of bonds.
Un¬
—To be determined by competitive bidding.' Probable
derwriter—To be determined by competitive bidding.
bidders: Halsey, Stuart & Co. Inc.; The First Boston
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Corp. and Blyth & Co. Inc. (jointly); W. C. Langley &
Boston Corp.; Morgan Stanley & Co.; Kuhn, Loeb & Co.
Co. and Smith, Barney & Co. (jointly).
and Eastman Dillon, Union Securities & Co. (jointly).

Co.

Power

Idaho

'

Co.; Lowell Electric Light Corp.; Lawrence Electric
Haverhill Electric Co. and Amesbury Electric Light

(7/16)
Sept. 12, it was announced company plans to issue and sell $8,000,000 of first mortgage bonds due 1987 (later
changed to $15,000,000). Underwriter—To be determined '
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody & Co.; The First Boston
Corp.; White, Weld & Co.; Eastman Dillon, Union Secu- v
rities & Co., Salomon Bros. & Hutzler and Merrill Lynch,
Pierce, Fenner & Beane (jointly). Bids—Expected to be,
Jersey Central Power

; -

May 23 it was announced SEC has approved the
of the five following subsidiaries: Essex County

Proceeds—For expansion program.

tures.

Telegraph Co.

•

Lake Sulphur Co.

Jefferson

gram.

Gulf States Utilities

&

Underwriter—To be determined by competi- Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co.; White, Weld & Co.; Lehman v
Brothers, and Bear, Stearns & Co. (jointly) Ecjuitable
Securities Corp. and Salomon Bros. & Hutzler (jointly);
The First Boston Corp.; Dean Witter & Co.

Gulf States

Proceeds — To repay
Underwriter:—None. A majority of
is owned by American -Telephone

($100 per share).

loans.;

the outstanding stock

bidding.

tive

par

short-term

program.-

& Beane.

Utilities Co.
March 4 it was reported company plans to issue
sell $16,000,000 first mortgage^bonds in November.
ceeds—To repay bank loans and for construction

Price—At

Utilities Co.

April 2 it was announced company plans to issue and
sell $5,000,000 of first mortgage bonus later this year.
Proceeds — To repay bank loans and for construction

For construction
Underwriters—Carl M. Loeb, Rhoades & Co.
determined. Proceeds

been

not yet

41

repay

parent. Underwriter
Telegraph Co. own
Pacific T. & T. Co. Offer
time in August.

advances from
Telephone &

American

of the voting stock of

ing—Expected some

Volume 185

•

Pacific

May 24
sell

Number 5642

.

.

The Commercial and Financial Chronicle

.

Telephone & Telegraph Co.
announced

was

it

$90,000,0o0

of

(8/12-16)
issue and

of

plans to

company

23-year

new

debentures

due

middle

expected

of

August.
part of July.
-

to

be

received

aoout

28

it

pected of

For

about

two-thirds

of

issue.

Balance

to

Public Service Co. of Indiana, Inc.
/'/V
11 it was announced that it is expected that

Feb.

cf

first

mortgage bonds
will be issued and

$30,000,000)
during the

1957.

year

(about
sold

Proceeds—To

a

new

the company
bank loans

repay

(amounting to $25,000,008 at Dec. 31, 1956) and for new
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc;; Blyth & Co., Inc.; The First Boston Corp.; Harriman Ripley & Co.
Inc.; Glore, Forgan & Co.; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler and Eastman
Dillon,

April

15 it

announced

was

Corp., Ltd.

200,000

15 it

and

some

Gas

this

&

&

year

company

stock in 1958.

March 20,

A

total

shares

of

of

$70,000,000 may be raised in
$30,000,000 from the sale of

$25

par

preferred

Southern

sell

21

it

California

Co.

on

June

26

on

l-for-10

a

26.

(7/9)

February,
1957, in¬
1,200,000

Utah

S.

were

Grand,

Stauffer

Auchincloss,

President,

Dec. 27 it
additional

ket

bring

Report
Investment

aving

difficulty

etermine
uyers
re

ate

of

Utah

and

)ouring

Reno, Nev.

cspife

a

still

of

way

of

Light Co.

announced

was

(10/1)

company

plans to issue and

are

coupon

for

lull

in

issues

new

t-o

and

the

this

out-

week,

holiday,

entirely

those

the

bills

the

latest

for

leaning

to

the

rule.

been

of

a

of

in

fact

ing,

dis-

libuting such issues.




but

rather

in

of

paper,

heavy
as

of decided lack of
And

in

the

prospective

that

is

to

hike

in

cor¬

been

side.

Not

buying interest.
new

week
bond

several

New

debt

issues

weeks

many

on

the
is¬

an

up

Service

Co.

Corp., Merrill Lynch, Pierce, Fenner & Beane,
Co.(jointly).

deal
as

witnessed

bankers

were

in

able

the "all sold" sign quickly
offering of $15 million of

Put up for bids on Tuesday, this

issue

was

awarded

to

price of 100.16 for
The

pon.

priced

a

successful

the

issue

at

bankers

re¬

for

a

yield of 5.40%.
Indicative

of

how

bankers

scattering their shots in
to

the

locate

range,

is

saving feature, however, is the

100.30

for

the
a

an

investor
runner-up

55/s%

coupon.

Side

Other

the

week

brought the first dis¬
a syndicate agreement
on
a
recently offered new issue
and this one rated Triple A.
Bankers
lion

brought

out

Cincinnati

of

Carrying

$25

Gas

bonds.

interest rate,
they were priced for public offer¬
ing at 99 y4. The sponsoring group
struggled along in the hope that
the

4%%

a

market

would

turn

are

on

turned

about.

level

Tuesday the bonds were

loose

to

find

their

own

and

they dipped almost 3
points under the offering price
before buyers came in attracted
by the 4.30% yield.

effort

on

Wednesday, and Columbia Gas
System's $20 million of debentures

Thursday, head

on

up

next week's

list of debt offerings.
Scheduled also

are

/
several large

equity offerings headed by Phila¬
delphia

Electric

shares
the

at

and

being
rate

of

Southern

609,815

Co.'s

offered
one

holders

to

for

20

California

shares,

Edison's

1.2 million shares of $25 par pre¬
ferred stock.

Virginia Electric & Power has a
million

common

market.

And

a

shares

small

going

to

freight rail¬

road, Indiana Harbor Belt, will be
The

buying
bid

day, along with General Tele¬
phone of Calif.'s $20 million bonds

mil¬

at

cou¬

group

101.363

York, N. Y., on July 9.

On the other side of the picture

But

5V£%

& Co.; Morgan Stanley & Co.; The First Boston
Bids—Expected to be received at 195 Broadway,

solution of

National Fuel Gas Co. debentures.

a

The

size, that

brought the first "out-

the-window"

short

the

1.

Glint of Sunshine
The week

Stuart

Tentatively

—

a

this

has

the

Oct.

on

Bids

requiring the rounding
large syndicates.

of

consequence

ensuing
of

Public

Robert W. Baird & Co. and William Blair &

determined

not

stacks up to a sizable figure.

sues

A

list

a

be

of so-called "Street"

are

mar¬

nature

another

market

the

some

$20,000,000

Corp.

change

such

bond

issue

(jointly); Kidder, Peabody & Co.
scheduled to be received

offering

producing
rate

(7/10)

Wisconsin Telephone Co. (7/9)
April 3 it was announced company plans to issue and sell
$30,000,000 of 35-year debentures due 1992. Proceeds—
For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,

the

porate

pro¬

unwelcome

engaged

Underwriter—To

to put

the

Co.

announced company plans to
senior securities, probably about

by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp. and Blyth & Co., Inc.
(jointly); Salomon Bros. & Hutzler; Eastman Dillon,
Union Securities & Co. and
Smith, Barney & Co. (joint¬
ly); Lehman Brothers and Bear, Stearns & Co. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.

secondary

any

Boston

—

from any marked pressure of sell¬

the

not

about

Regis¬

4.

was

Wisconsin

tive

not

been

June

on

April 24 it was announced stockholders will vote May 28
on increasing the authorized
preferred to 300,000 shares
from 200,000 shares and the authorized common stock
from 3,000,000 shares to 4,000,000 shares. Underwriter—
(1) For preferred stock, to be determined by competi¬
tive bidding. Probable bidders: Merrill Lynch, Pierce,
Fenner & Beane, Salomon Bros. & Hutzler and Eastman
Dillon, Union Securities & Co. (jointly); Kuhn, Loeb
& Co. and A. C. Allyn & Co., Inc.
(jointly); Kidder,
Peabody & Co.; The First Boston Corp.
(2) For any
common stock (probably first to
stockholders), The First

about $15,000,000 of first mortgage bonds due 1987.
Proceeds
To repay bank loans and for construction

contrary, with Treasury
issues continuing on the soft side

yield.

largely

dded

On

corporate securities

seeking in the

not

Co., all of New York.

filed

be

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Secu¬
& Co.; Kidder, Peabody & Co. and White, Weld
& Co.
(jointly); Lehman Brothers; The First Boston
Corp.; W. C. Langley & Co.; Harriman Ripley & Co. Inc.
Bids—Tentatively scheduled to be received up to 11
a.m. (EDT) on July 10.

Corp., Box 8834, Britton Station,
Okla., of which S. M. Stauffer is Presi¬

Power &

attitude.

in /seeking to
the
potential

what
new

Certainly
ue

bankers

has

to

rities

Petroleum

March 12 it

than

or

:

West Penn Power

announced

under way with an underwriting firm

Inc.,

mind to rush in. And the behavior

seasoned,

stock, plans also to sell in

Probable bidders: Halsey, Stuart & Co. Inc.;
Dillon, Union Securities & Co.; and Lehman
Brothers (jointly);.Blyth & Co., Inc.; Smith, Barney &
Co., and White, Weld & Co. (jointly); W. C. Langley &
Co. and The First Boston Corp. (jointly).

.

a

of the

common

bidding.

shares of

Oklahoma City,
dent.

been a bit rough
quick cleaning up of any
particular offering has been the

Reporter's

o

Eastman

announced

was

300,000

The going has

have

certain;.

Washington Water Power Co.
April 1, K. M. Robinson, President, stated that the com¬
pany will probably market an issue of first mortgage
bonds by June 30 (sale of up to
$30,000,000 bonds is
planned). Proceeds—To carry out 1957 expansion pro¬
gram.
Underwriter—To be determined by competitive

per

(7/25)

rather

of

Dealer-Manager—May be Kidder,/

and Laurence M. Marks &

company plans to issue and
capital stock. Price—At par ($1
share). Proceeds — To explore and develop com¬
pany's 64 uranium claims in two groups,—'approximately
1,280 acres in Hells Roaring Canyon and Yellow Cat
Mining Districts in Grand County, Utah. Underwriter—

sell

expected to be received by the company on July
it of approximately $9,000,000

just

payment

of

Valley

(jointly);.
Hutzler; Eastman Dillon, Union Secu¬
Stone & Webster Securities Corp.; White,

tration—Expected

a

April 29 it

the purchase from

Buyers

part

as

®f

★ Washington Water Power Co. (7/10)
lviay 28 it was announced company plans to issue and
sell $30,000,000 of first mortgage bonds due 1987.
Pro¬
ceeds—To repay
bank loans.
Underwriters—Kidder,
Peabody & Co.; Blyth & Co., Inc.; White, Weld & Co.'

May 21 it was announced company plans a public offer¬
ing of securities to provide about $6,700,000 of new
working capital.

June 27.

.exception

stock

of first mortgage bonds due 1987. Proceeds — To
repay
bank loans and for new construction. Underwriter — To

program.

Our

receive

stockholders

common

common

Salomon Bros. &

(6/27)'

and

to

additional

rities & Co.;
Weld & Co.

Transocean Corp. of California

bidding. Prob¬
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.
and Merrill Lynch,
Pierce, Fenner & Beane (jointly);
White, Weld & Co. and Eastman Dillon, Union Securi¬
ties & Co. (jointly).
Bids—Tentatively expected to be

are

is

to

of

be determined

able bidders:

25 for

it

and

$2,500,000

the Fall $20,000,000 of debt securities. Probable bidders
for bonds may include: Halsey, Stuart & Co.
Inc.; Kuhn,
Loeb & Co. and American Securities
Corp.

dealer-

as

of

sale

basis;

16. Price—To be set by the
Underwriter—The offering may

sell

Bids

Co.,

parent)

Blackstone properties.

Proceeds—For new con¬
Underwriter—Merrill Lynch, Pierce, Fenner

Samuel

17

ceeds—To repay loans and for new construction. Under¬
writer—To be determined by competitive

on

turn,
three

who handled previous stock financing.

was

Southern Pacific Co.

in

first

the

public offering of capital stock. Proceeds—
working capital. Business—Electronics. Underwriter
—May be Lee Higginson Corp., New York and Boston,

announced company plans to issue and
$35,000,000 of first mortgage bonds due 1983. Pro¬

received

latter,

sale

this

..Peabody & Co., New York.

reported company plans to issue and sell

was

looking to

stock

Gas

in

For

early in June (see
preceding column). Underwriters—(1) For any bonds, to
be determined by competitive
bidding. Probable bidders
may include: Halsey, Stuart & Co. Inc.; Blyth & Co.,
Inc.;
The First Boston Corp. and Dean Witter & Co.
(jointly);
Kuhn, Loeb & Co. (2) For preferred stock: The First
Boston Corp. and Dean Witter & Co.
(jointly).
Jan.

■«

July

Goldman, Sachs & Co. acted
last standby,
>c'%

negotiations

balance of this year the
company's present in¬
tention is to issue additional bonds and
probably a pre¬
ferred stock.
He added that the company will
require
more than
$180,000,000 of new money in 1957 and 1958,
in.addition to the $37,500,000 bond issue of
1957.

The

negotiated

paragraph.
also announced Blackstone plans to offer
(other than Eastern Utilities

the

Tracerlab, Inc.

for the

cluding > about

its

latter

Gas

Beane, New York.

May

that

announced

Blackstone.

mentioned

was

Associates

Corp.; Eastman Dillon, Union Securities & Co.;
Kuhn, Loeb & Co., Blyth & Co., Inc. and Lehman Bro¬
(jointly); Harriman Ripley & Co. Inc. and Stone
& Webster Securities Corp.
(jointly). Bids—Expected
July 17. Registration—Planned for June 14.

Edison Co.

Harold Quinton, President,

of

company,

Electric

&

dispose by

the

thers

bonds, to be determined by competitive bidding.
Probable bidders; Halsey, Stuart & Co.
Inc.; Shields &
Co.; The First Boston Corp.; Kidder, Peabody & Co.;
White, Weld & Co. (jointly); Salomon Bros. & Hutzler;
Blyth & Co., Inc.;; Eastman Dillon, Union Securities &
Co. and Equitable Securities
Corp. (jointly). For com¬
mon
stock, The First Boston Corp., New York.' Bids—
Expected to be received for bonds on July 2.
California

Gas

to its common stockholders

Boston

Underwriter

—For

Southern

Un¬

•

Electric

common

construction.

Texas Electric Service Co.
(7/17)
May 27 it was announced company expects to sell $10,000,000 of first mortgage bonds due 1987.
Proceeds—
For plant expansion. Underwriter—For
any bonds to be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane
(jointly); Hemp¬
hill, Noyes & Co. and Drexel & Co. (jointly); The First

Corp. (7/2)
plans to issue and
$15,000,000 of first mortgage bonds

additional

about

on

June

on

struction.

(Calif.)

announced

was

later

record

expire

May 27 it

announced that proceeds of at least
$1,to be received by the company prior to
July

Rochester

sell

new

★ Texas Electric Service Co.

San Francisco and New York.
•

for

and

assets

to

securities

new

determined

Valley

certain

proposes

$10,000,000 of preferred stock.

1, 1957 from the sale of new capital stock and used for
working capital. Underwriter—May be Blyth & Co., Inc.,

May

of

to

manager

was

are

loans
be

be underwritten.

—

Purex

1.

April 15 it

directors

250,000 shares of cumulative preferred stock. Pro¬
About $25,000,000 for expansion program. Un¬
derwriters—May be Morgan Stanley & Co., Drexel
Co. and Glore, Forgan & Co.
(jointly) or Merrill Lynch,
Pierce, Fenner & Beane.
,:
April 30 it

Oct.

on

bank

repay

rights

(6/18)
plans to issue and

company

Blackstone

for

holders

sell

ceeds

a
subsidiary of
Co., plans to issue,
within one year, $4,000,000 of bonds,
$1,100,000 of notes
and $900,000 of preferred stock to
its parent in ex¬
change for $6,000,000 of notes to be issued in exchange

.

bid¬

Virginia Electric & Power Co.
Tampa Electric Co. (6/27)
May 8 xe was announced company plans to issue and sell / March 8 it was announced company, in addition to pro¬
posal to raise late this Spring $22,000,000 through the
217,286 additional shares of common stock, first to stock¬

/. //'/, •//;/

(jointly).

Valley Gas Co. |
April 15 it was announced

program.

competitive
Stuart &
Co.

•

Public Service Electric & Gas Co.

•

expansion

by

by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Goldman,
Sachs & Co.; Stone & Webster Securities
Corp.; Kuhn,
Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly); Merrill Lynch,
Pierce, Fenner & Beane. Bids—Expected to
be received up to 11 a.m.
(EDT) on July 17.

construction.

Union Securities & Co.

received

derwriter—To

$25,000,000» to

by

For

To

■/•"

'

-■

—

determined

Under¬

Fenner

Tampa Electric Co. (7/17)
May 8 it was announced company plans to issue and
sell $18,000,000 of first
mortgage bonds.
Proceeds -—«

underwritten

be

:

,
.

series

be

Operates shopping centers. Underwriter —
Dillon, Union Securities & Co., New York, for

Canada.

in

be

stock.

bidding. Prob¬

Union Securities & Co. and

ding.
Probable bidders: Halsey,
Inc.;
Morgan Stanley & Co. Bids — Tentatively expected to

—

Eastman

Proceeds

Underwriter—To

tures due 1932 and 1,500,000 shares common stock to
be sold in units of $50 of debentures and five shares of
stock.
Proceeds—For expansion and working capital.

Business

debentures.

new

(Canada)

common

Kidder, Peabody & Co. and Merrill Lynch,
& Beane
(jointly); Eastman Dillon,
Smith, Barney & Co. (joint¬
ly); Lehman Brothers; Blyth & Co., Inc. Bids—Tenta¬
tively scheduled to be received on Oct. 1.
Pierce,

Underwriter—May be Blair

★ Southwestern Bell Telephone Co. (10/1)
May 24 directors approved the issuance of $100,000,000

that

public 400,000 shares of

writer—To be determined by competitive
able bidders:

Incorporated, New York.

the

early registration is ex¬
issue of $15,000,0€0 of subordinated deben¬

an

program.

the

*4o

was

construction

& Co.

•

reported

was

Utah Power & Light Co. (10/1)
was also announced company plans to offer

reported company plans to issue and sell
$10,000,000 of debentures this summer. Proceeds—

about

43

March 12 it

Southern Union Gas Co.

May 16 it

Registration—Expected in the latter

Principal Retail Plazas of Canada, Ltd.
Feb.

equipment trust certificates. Probable bidders: Halsey,
Inc.; Salomon Bros. & Hutzler.

Stuart & Co.

1980.

Proceeds—To repay advances from parent and for im¬
provements and additions to property.- Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders; Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.

Bids—Tentatively

(2547)

of

Boston

of

Week

Ahead

Edison Co.'s $25 million

bonds, due

up

for bias on Tues¬

taking bids

on

$8,125,000 of new

bonds to provide for
an

refunding of

issue maturing July 1 next.

Chronicle

The Commercial and Financial

44

(2548)

Thursday, May 30, 1957

.

Sponsor Tax Exempt Shares

Funds Ready to

Income Fund's

.

.

:

t

>■

-f

^

Mutual Funds

Three investment company groups are now ready to offer to
investors shares in a new type of mutual fund—a tax-exempt
bond mutual fund—as soon as
Congress passes the necessary

By ROBERT R. RICH

legislation, amending the Internal Revenue Code of 1954.
In
a
Lehman
Brothers underwriting, Keystone Custodian

v

Assets Grow to

§67 Million

/

Income Fund, in
quarterly report, shows
net assets at a new high of $67,907,041, compared to $40,204,648
a

half years

4,116,000

from

the past
to 7,851,000

of

stockholders

number

the

and

earlier.

increased

standing
year

and
Shares out¬

and $10,249,040 two

year

in

13,000 to 22,800.

from

Income

Incorporated

of

Assets

which is designed primar¬
income, are invested in
80 securities representing 20

Fund,

ily

for

over

industries.

'

;

Purchases for the

portfolio dur¬
ing the past three months Included
A.C.F., Allied Stores, American
Investment
Louisiana

Co., of 111., Arkansas
Gas, Atchison, Borg-

Warner, Bridgeport Brass, Colum¬
bia Gas, Commercial Credit, Con¬
tinental Baking, Equitable Gas,
Federal-Mogul - Bower Bearings,
Heller

Southern

Pacific, Southern Railway, Texas

United Fruit.

Gulf Sulphur,

included

Sales

Allis-Chalmers,

and

Grumman

Briggs,

Miami

will

investors

with

join

industry

American

to

promote tremendous economic expansion in the next quarter cen¬
tury," predicted S. L. Snolley, President of Keystone Custodian
Funds, Inc., which celebrated its 25th anniversary

May 28.

to another

$89,899,992.

are

we

practically all of
nearly all of their

investors'; FetferaVincome taxes.?
by-;it. ♦
On the contrary, it has the support of statd and kx;al govern-/;
ment officials who recognize the great need .fdr ,an" expanding
market for tax-exempt bond issues, which ;ar^rurihing^af anv

which would be exempt from their

concept contained in the bill has; beenl endorsed
President Eisenhower, and there is no known- opposition tfc>
The

"While
was a

annual

25

"If

follow

we

our

same

in 1957.

as

/

;

:

.

'

Z

Series A.

j\.>w:; Vl'.j

:•/

,

to $10,000,000 company will be the
trust.
Its portfolio;.cannot

This $5,000,000

<

Ira

*

- : ■->*'«■ '•>
old-fashioned y

: be
changed, >
when necessary,.with the,cash, obtained tobe distributed to shareholders.
^
Ay
')
The trustee fee for this trust, whose income payments will be.,
of the tax-exempt variety, will be twoytenths of.one per cent. Sales^
charge will .be. 4%. of offering £rice.
Price a share'.will be,;
about $1,000.
J.'/'• "Z".;;,. V/*. v'.
-■%.(.v.:-.l.r:
;
; The mutual funds will have a sales charge of about 4%, and •;

investment

fixed

unit

except to sell bonds

_

million,
National

billion from the present $430 billion
Significant to investors is the fact that in 1957, the
rise to $1,170

rate.

annual

wait'utitil; the bill a

is: that they will

& Co., by obtaining a special ruling from the Treasury-'.
Department, has in registration with the Securities and Exchange;)
Commission the shares of Municipal Investment,. Trust Fund, "

will remain the

of which 95

Product will

^

Haupt

\

1982, Keystone foresees a U. S. population of 257
million will be gainfully employed. Gross

In

offer

passed, in order to see precisely how the law reads. V'Z ^
Meanwhile, the underwriting and brokerage house,, of

is

traditional pattern of free enterprise and

tionships among other segments of the economy

mutual fund groups ready -now to

however, among these groups,

projections are based on the assumption that Gross Na¬
tional Product will grow at an annual rate of. 4%, that population
will continue to grow at an annual rate of l1/2%, and that rela¬

FUND

-'-Vi."»V"

..

shares, there are six and possibly seven other groups which have 1
the idea under various stages of consideration., TypicalZ attitude^.,

next 25 weeks. Over the

The

INVESTMENT

thgl billf Will be' p&ssed V

Some observei^ heUeve
'v.;
three

the

Besides

private ownership of American business, the value of securities
representing ownership of industry will be three times what it >
is today."

A MUTUAL

billion dollars,
J-w".
; /.
j
in Congress in; this session are

six

over

considered good.
a month.'

long range—and basing projections on an increasing population
and rising standard of living, plus scientific progress in the fields
of automation and power—Keystone feels confident in predicting
a tremendous economic expansion in which more and more people
will share.
I.

Copper. '. :

of

within

is not nearly so perilous as pre¬

years

rate

Chances for the bill's passage

professional management as offered by investment companies
will be even more important as the American Economy continues
to expand in the next quarter century.
that

"Looking ahead

:—i--'»

-11—

1J

T*

promising.

most

the

is

,

introduced in the Congress; this. year,. H.R. 1222 I

Of all the bills

pioneer in providing a specialized 'class of securities' investment
service and similar innovations for the public, we are confident

dicting the state of the economy for the

^ ;

local governments.

•

pointing out these figures, Mr. Sholley continued,
proud of our record and. the fact that Keystone

After

-

»

and in the inter¬
vening years has helped pioneer many new developments in the
investment company field.
The total net asset value at the end J
of the first year was $358,000; currently the total net asset value
of Keystone's 10 domestic funds and Keystone Fund of Canada,
Ltd., is $344,088,000.. The funds now have 71,750 shareholders. In
the 25-year period,, Keystone has never missed a regular net
investment
income; distribution.,- having paid its shareholders
$141,222,166. In addition, capital gains distributions have amounted
Keystone sold its first share on May 28, 1932,

Marshall

E.),

(Walter

Field; N.Y.C. & S.L. RR.,

dealer network, shares in Bond Fund';
of Boston, which will be converted to a tax-exempt status.
' ;
And, Equitable Securities Corp; will underwrite a group
offering shares in a proposed sister fund of'Atomi6 Development:
Mutual Fund, Inc.—Tax Exempt Bond Fund, Inc.
' Z V
t V
As matters stand now, a mutual fund cannot pass through to
its stockholders the tax-exempt interest on bonds of state and '
offer, through its own

to
"American

Vance, Sanders & Co. plans

to investors.

and offer these shares

Gross Product to Cross Trillion Dollars

10th

one

"B-l" Bond Fund wholly to tax-exempts

Funds will convert their

Incorporated

its

gross expense

a

of

Va

exceed

to

investment per new manufacturing job is $17,000—but it
will just about double by 1982.
"In the new economy, the machine is multiplying the man,"

fee, including management fee, in some cases not;'
1%. Price a share will range from $10 to $40.

average

WRITE FOR

FREE INFORMATION
FOLDER AND PROSPECTUS TO
YOUR INVESTMENT DEALER OR

NATIONAL SECURITIES &
RESEARCH CORPORATION
Established 1930

120

Broadway, New York 5, N. Y.

pointed out Mr. Sholley. "With every new industrial job requiring
an investment of approximately $35,000 in 1982, American industry
will be constantly seeking new capital.
For the investor, to get
a fair return for his working dollars, productivity must increase
at

rate that will

a

for

months

Has Assets of

?

combination

The

the

of

working

the investor."

and

dollars should

rewards for both the

revised edition of its organizational manual outlining

a

invest in

Keystone's| modern method of investing.

ATOMIC SCIENCE

was

through

and

principle is exactly the same as that on which Keystone
founded," said Mr. Sholley. "While investment companies have

"The

FUND, INC.
>

GET THE FACTS AND FREE

PROSPECTUS

taken their place besides savings banks
American financial institutions, the
mutual fund industry was in its formative years in 1932.
"Mutual funds were designed
to t offer investors low-cost
diversification and professional management for their investment
capital. Until the advent of Keystone, however, a mutual fund
provided equal results for all its shareholders regardless of differ¬
now come

Development Securities Co., Inc.

1033 THIRTIETH

STREET, N. W., WASHINGTON 7, O. C.

Tel. FEderal 3-1000

Dipt. C

of age and have

insurance

companies

as

and investment objectives.

circumstances

in their financial

ences

the

adapt the general program to the specific needs of

"To

Atomic

series of specialized funds

individual Investor, Keystone set up a

singly or in combination of solving a wide variety of
investment problems.
"In creating a corporate trustee and 10 individual trust funds,

capable

Keystone made it possible for any investor to select the type and
class of securities best suited to his purpose and, by combining

create an investment
which could be as conservative or as aggressive as he
might individually desire."
Keystone has four bond funds, four common stock funds, and
two special purpose and fully managed funds for income and
growth. In addition to the 10 domestic funds, Keystone instituted
the Keystone Fund of Canada, Ltd., in October 1954.
Keystone now employs 163 in its Boston home office, which
includes one of the largest investment research and supervisory
these classes in any desired proportions, to
program

FOUNDED 1928

110

departments in the country under the direction of Vice-President
Ora C. Roehl. The operations division is headed by Vice-President
Wilfred Godfrey.
Keystone Funds are sold by more than 1,300

th

franchised dealers.

ment

share from net invest¬

income,

payable

June

29, 1957 to stock of record
June 7, 1957.

Securities

stocks
assets.

devoted exclusively to investments

made in the

in over-the-counter securities, re¬

tional

ports that its net asset value per

Steel

share

-

the

MORGAN

President




-

to

rose

Counter

$10.24

as

of March

31, 1957, compared to $10.13 at the
end of the

WALTER L.

Three
stocks

while

thg

at

April, 1956, the proportion
- •
* -'

69.3%.

was

;?K.

Fund, one of the largest
in the country, re¬

present fiscal year

its

of

ter

*

■

This

share.

Account Record

with total
$135,440,283, equal

■

$15.25 per share, at the close of
its previous fiscal year last Jan.
31. During the quarter, the num¬

818.

from

'

On

.

-

*

(

.

NOW

i\,

—

a

new

^

Keystone Service to

iA/V

dealtff ond"open account"clients
rtducet THIS

„

for

$148,885,679

were

'

total

April 30 of last year,

assets

net

outstanding in8,879,447 to 9,245,'' '
~

shares

of

creased

Keepingft

'

to

ber

.*

in Periodic Investment

on

compares

of

assets

,

;

Something Really New y

■

April 30. amounting to $15.90 per
net

-if

funds

outstanding.

8,854,919 shares then

share of $16.81

The asset value per

with a corresponding
figure of $16.71 on April 30, 1957,
when adjustment is made for the
capital gains distribution of 81
cents a share paid last Feb. 28.
In the current quarterly report,
compares

Henry T. Vance, President, com¬
menting on the income dividend

paid on May 27, observes that;
"Although this dividend is at the
same
rate per share as that de¬
clared for the corresponding pe¬

it represents an

riod of last year,

increase in income of over
the

more

tact

their capital in¬

by receiving the recent

capital

of

bution

distri¬
addi¬

of cash."

that

noted

also

Vance

in

gains

shares instead

tional

5% to

of the share¬

than 70%

holders who kept

Mr.

Fund, Inc., the only mutual fund

Over

quarterly dividend
a

63.8%

to

66.9 %.

common

Henry R. Guild, formerly a mem¬

consecutive

11c

end of

ports total net assets of $147,033,758 at the close of the first quar¬

•

;

,

working

Boston

mutual

anniversary celebration, Keystone is re¬

Coincident with its

leasing

men

with corresponding

answer,

'

MUTUAL

earlier

amounted

§147 Million

satisfy the needs of an expanding population

improving standard of living.
"Population growth means that the nation's industries must
provide food, clothing, shelter, transportation, and the thousands
of other items that constitute the American standard of living.

worker and

DEVELOPMENT

stocks

common

an

provide

ATOMIC

17.1%, preferred stocks 16.0% and

Boston Fund

:

preceding quarter.

its

holdings

of

73%

New

common

80%

to

of

commitments

net

ber

of the Fund's

were

has

been

common

stocks of Na¬

Aeronautical

Corp.,
and
& Forge Co.

Improvement
No sales of securities

cf

made

1957 net asset value

Over-the-Counter

$10.53.

-

and

Robert

S.

..

a

advisory board,

Swain,*
of

member

and

director;

a

committee,

has

a

director

"The most convenient recerd system »

executive

the

joined

time management

Fund shares reached
of

that

elected

yet

developed.','
-

were

during the period.
On May 6,

-

During the quarter the fund in¬
creased

from

Securities
record high

The

Fund's
bonds

report

-

full-

that

shows

notes

on
-

of

April

For

particulars, write

Tlie "Keystone

organization.

investments
and

the

30,

represented

Company

of Boston

the
-

50

Confrcjj Sr.; Boston, Mill.

,

.

Volume

185

Number 5642

.

.

.

The Commercial and Financial
Chronicle

(2549)

National Securities Series

ed

assets,

shareowners

pled

with statements from the
President of the National Secu¬

shares outstanding for the Nation¬
al
Securities
Series
of
mutual

rity

funds set record highs for the fis¬
cal year ended April

tion

ac¬

cording to the 17th Annual Rep6rt just released by- National

funds

seven

assets"

totaled

of

•

In

$303,488,299

Company, The Travel¬
Company, Vana¬
Corporation of America, and
Westinghouse Electric Corpora¬

there

of

the

is

role

dium

broad

a

played

has

Insurance

ers

by

tion.

Rohr

Aircraft

convertible
added.

contained

reduced

were

Corporation

debentures

also

were

Among the holdings which

Keystone Fund B-4
Now Yields 5.4%

/

y

y

■

./V

»

Paige Corp. rose to a
high of $10,457,233,

new

;

A

regular semi-annual distribu¬
tion of 27 cents per share has been
declared
by Keystone Discount
Bond Fund, B-4,
bringing the an¬
nual rate for the last 12 months
to 5.4%, based on the net asset

Pittston Co.; and Republic of Chile
and Republic of Peru.

value for the period
31.

Total

ending March

March 31,
1956
net

Shares
No.

Oil

and

\ ST.

,

R^ Raymer

Wickham
&

and Albert

\.'v

B-4

S.

end

of

the

Campeau

26,638

26,839

$10.12

$10.31

$0.27

$0.23

Joins Harris, Upham

-'y/v

—

•

E.

become*

has

con¬

*

.

■

half-year

foreigns.

Was invested

Holan

Harris, Upham & Co.,
j
* Pepper Building. y'yv

With Lloyd Canady
;

"

railroads, eight utilities, 24 indus¬
14

,

nected with

Keystone Discount Bond
Fund's portfolio had 75 issues—29

and

•

,

WINSTON-SALEM, N. C.^rWil-

period,

trials

6,381,731

t__

ac¬

/y

the

1956

6,422,891

val. per sh.—

approximately 20% of liam

.

At

outstanding

(Special to The Financial Chronicle)

the combined assets in
Keystone's
10 domestic funds.

Company, 110 Second Avenue,

North.

million.

Sept. 30,

$65,010,613 $65,780,708

shareholders

:

with R. F.

are

$65

counted for

PETERSBURG, Fla.—

Donald

than

more

assets

Inc. per sh.(6 mos.)

Asset

during calendar year 1956,
bringing, total net assets of B-4 to

Can

With R. F. Campeau 5

a

prospects for the year ahead,
miral
John
J.
Bergen,
USNR,
Henry J. Simonson, Jr., President
Chairman of the closed-end in¬
of
National? Securities ^and Re¬
vestment
comply,
and
Irving
search
Corporation,, concluded:1 Mitchell
Felt, President. This com¬
"Earnings and dividends ^ of all
pares with $9,094,677, or $1.49 a
U,' S. •; Corporations will surpass
share a year earlier, and
$10,235,those of 1956 by a moderate de¬

R.;

Paul and Pacific R.
R.;

fund

were

Standard

all-time

share, in the quarter ended March
31, it is announced by Rear Ad¬

on

Largest

Radio

&

;

,

-$1.72

or

holdings include Erie
Chicago, Milwaukee, St.
Cleveland,
Cincinnati, Chicago and St. Louis
Ry.; America and Foreign Power;

11% in utilities.
R.

Sanitary
Corporation,
Interna¬
tional
Paper-' Company,
Collins

eliminated

or

Radiator

Company, Continental
Company^ Inc., Halliburton
Well
Graham-Paige Reports
r
Cementing Company,
Stockholders' equity in Graham- Thompson Products, Inc. "
ny

industrials, 19% in foreigns, and

In his report to
shareholders,
President S. L. Sholley said that
investors
placed more than $5
million of net new
capital in the

American

the United States and Hawaii,
y

to shareowners

message

Chemical

Quota¬

photographs
and
statements
,by
Stock
Ex¬
change
Presidents
located
not
only in New York, but throughout

the

39,633,792 to 48,466,Vv-yv"'.';

.phis

Bureau,

port

April compared with
year's figure of $283,786,512.
During this same period, shareowners increased from
107,182 to
129,727
and
shares
outstanding

,

the National

these institutions. This is the first
time any mutual fund annual re¬

at the end of

334.

of

panorama

last

climbed from

of

Company, Jones & LaughSteel
Corporation, Stauffer

lin

Traders Association and the

President

Securities and Research Corpora¬
tion which sponsors and
manages
the funds.
V'*:

Combinednet

stocks

vester

and

30, 1957,

common

Caterpillar Tractor Co., Cerro de
Pasco
Corporation, General Elec¬
tric Company, International Har¬

Reports Highs in Assets, Holders
Total

include

45

(Special to The Financial Chronicle)

•

*
'

,

RALEIGH, N. C.—David C. Har-

The fund

shaw is

49% in rails, 21% in

ady

&

now with
Lloyd E;;CanCo., Commercial Bldg.

-

659,

although there will be wide

gree

variations

industries

among

companies."
New

highs

months

are

monson

in

trend

by

employment,

and

of

slowdown

some

business

in

plants and
likely develop,"

new

equipment will
the President's
message anticipates that "two ma¬
jor influences in addition to con¬

ing, will in

opinion, outweigh

our

the decline in the residential field.

Sepond, a steady uptrend
is
planned for government spending
by Federal, state and local units."
During the past fiscal year, four
quarterly distributions of net in¬
vestment

income

shareowners

of

paid

were

each

of

the

to

profits

$14,697,465,

year's

figure

Net

total

of

75%

of

the

share-

record

figure—accept¬
ed securities profits distributions
additional

ash. for the

shares
1957

rather

than

fiscal

year end
istributions. New highs were also

Ot in

the

total number

of share-

who have established open
cOounts providing for future pewners

iodic

investments

irected

the

re

-

or

who

have

investment

of

uarterly
of

s

distributions in shares,
April 30, 1957, 37,343 sharehad created such accounts.

wners

The

illustration

cover

nnual- Report

for

the

reproduces

a

ainting of the floor of the New
ork Stock

Exchange executed by
Moodie. The original paintng is owned by National Securiies and Research Corporation and
ohn

he

report marks its first publica-

ion.
he

The

pace

illustration

cover

sets

for the Annual Report's

heme, which features the facilies

f

available

the

shed
r

for

National

hrough
on

the

valuing shares

Securities

Series

of

prices estabnational stock exchanges
or brokers in secuuse

by dealers

ities throughout the country.
Included
in
the
Report

hotographs
e

and

Presidents

tock

of

are

statements
the

New

by

York

Exchange, the American
tock
Exchange and stock exhanges located in Boston, Cin-

to

op¬

income

of

the

corporation

its

and

Stockholders of the Lackawanna
have received two bad
jolts in the
recent past.

First

was

impression

that

there

distribution

no

had

earlier

been

i.N/V

o

Net

the first half of the
year

was

month

history

of

current fiscal

the highest for any six

period

in

the

company's
Jonathan
B.

President

Lovelace

announced.

assets of the Fund

Total

were

net

also at

all-time

high at the close
period on April 30, 1957.

an

of the

income, excluding realized
gains on sales of securities, in the
six months ended April 30, 1957
was
$971,304, equal to 12.9 cents
share

on

the

7,505,969

average

number
of
shares
outstanding
during the period. Net income for

the
ago

corresponding
was $598,709,

share

on

number

the

period a year
or 12.8 cents a

4,674,821

of

shares

net

assets

average

then outstand¬

in

addition

The

cents

the

end

of

the

current fiscal

of

first

year

the Fund
half

were

100

to

shares

the

cash

blow

second

of

only

for

this

^ear.

of

DL

payment.
the

share

per

of

was

declaration

quarter

the

more

12 Vz

second

When^the

brav&ly

of

at

the

$67,276,-

456,

equivalent to $8.45 for each
of the 7,960,457 shares of capital
stock outstanding.
This compares

larger Class I roads. In
low level of maintenance

a

quarterly dividend at 37y2
share

per

it

was

generally

that the annual rate
at

$1.50

was

share.

per

though 1957

as

over

a

year, and which
countenanced indefi¬

be

Ratio

has continued to rise. For
the first three months of this
year
it was 84.3% of gross revenues as

against 82.4%
ter

announced

that, beginning this year, divi¬
dends would be placed on a
quar¬
terly basis and then declared the

of

for the first quar¬

affliction

of

First
all

up

The rise in this total

Detroit,

Honolulu,

Los

n^ele5?, Chicago,
hi!adel]bhia
and

-

San

New Orleans,
Baltimore,
PittsFrancisco.

Cou¬




Operating

a

Lackawanna is among the highest
and was 51.3%

ter

of

this

for the first quar¬

against 49.6%
for the first 1956
quarter,

to

few

very

roads, and particularly of those in
the East, in that revenues have
failed to keep pace with
mounting
despite the freight rate

expenses

As

year

as

the

to

which

Maintenance Ratio
made to bend with the

was

wind, it

was stated in the road's
1956 report that the
general level
of maintenance is
good and that

there

increase of last Dec. 29. The more
recent
passenger
fare increases

budget limita¬

no

tion

have

has been

can

been

not

rate

increase

nullified

a

effect

long
factor. The freight

has
far

as

in

been

as

virtually

earnings

to
create
deferred
main¬
tenance. Thus, as long as the road
live on the "fat" of previous

there may be no imminent
threat to increase this allocation
years

at

the

are

of

expense

concerned by the decline in traffic
that began to be evidenced im¬

Nevertheless,
first

quarter

mediately
which, in

rate

net

income.

that

of

the

began

year

and

most

cases
including
Lackawanna,
has

the

grown
year

progressively worse as the
advances. Carloadings of the

Lackawanna
the first

down

were

19 weeks

compared

as

6.3%

of the

with

the

cor¬

While

the

fact

Class

this

so

I

by itself would not
frightening in view of

that

the

decline

total

for

the

for

the

of

this

year

at

with

a

aggre¬

That

there

gating 13 cents per share were
paid
during
the
period
ended
April 30, 1957.

after

the

investment

income

certain

has

amount

of

no

calm.

rebound

settlement

strikes has been the

of

these
of real

cause

concern.
.

.

,

Several

portfolio changes were
during the quarter ended
April 30, last, Mr. Lovelace re¬
ported. Holdings that were add¬
made

A

factor

traffic

for

the

that

has

made

the

net

income
is

tax

such
net

an

of

source

wanna

in

of

the

threat

the

Lackawanna

is

that

it

is

the

and'

over-all

total

other

any

only

a

source

It

some.

that

counts

thinking

has
Lackawanna stock

costly.

proven

has

declined

25 V2

this year to the present low
of the range around 16Vz.

end

Another

from

the

of

source

high

of

optimism, of

course, has-been the consolida¬
tion with the Erie of passenger

and

the

unification of

of

which

paid

the

were

important factor in

income.

After
on

1956

Largely due to 1955
was

a

refund of

in

providing for sinking funds

bonds

issued

in

the

1947

re¬

vamp,
available earnings would
have been only 60 cents
per share
without this tax credit as against

calculated

$2.05

out

of

1956

which

tribution

of

made

that

for

service to

trains

$1

available
the

per

year.

cash

share

New

York

entirely until March 25 of
The full impact of any

this year.

economies

from

this

source

con¬

sequently will not be clearly evi¬
denced prior to the publication of ?
the April income statement.
The
March

statement

does

reflect

improvement, however,

some

in
operating expenses were up
only 2Vz%
for
the
month
as
against March, 1956, while the in¬
that

for

crease

3.7%

the

first

quarter

was

compared with the first
quarter of 1956. Correspondingly,
as

March net income made the rela¬

tively better showing of
against the

the

first

the

net

not

for

53.9%

a

was

credit.

of

d'swas

benefit
the

bolstered

'

for

of

by

tax

any

March,

1956,

$207,000

a

~

summarize,

reduce

decline

Furthermore,
this year did

March

the

whereas

net

To

74.9%

quarter.

have

credit

to

Lacka¬

erosion

credits

flood losses there

the
the

slump particularly serious

is
the

was

is

tax

Another

taxes

been

which

temporary comfort to

as

prior years in the
period was
5.9%, whgt is disturbing is that amount of $2,456,000 and which
31, last, of the Lackawanna showed an above was taken into 1956 income. This
$60,097,647, equal to $8.13 a share average drop in recent weeks. tax credit amounted to
481/2% of
on the
7,393,016 shares outstand¬ Since the Lackawanna, along with the
$5,082,000
net
income
re¬
ing at that date, and with assets other roads serving the New York ported for
1956, or putting it an¬
of $58,652,651, or $8.55 for each
Harbor was adversely affected
other
way,
net
income
would
by
of the 6,857,155 shares outstand¬ the
protracted
tug
and
dock have been only $1.55 per share
ing at Oct. 31, 1956.
strikes, the decline in loadings in without this tax credit instead of
A capital gain distribution of 43
the earlier weeks was
reported
regarded the
$3.01
per
share.

from

Lackawanna share

"statistic"
of

decline from that of March, 1956,

with net assets at Jan.

cents per share and two dividends

Plate holding amounts to 78 cents
per

the

charge for

only 24.9% of gross is
reassuring in comparison with

road's

responding 1956 period.

appear

not

the

the 25.3% rate for the first
quar¬
ter of last year, 26.3% for all the
full 1956 year, and 31.1% for 1955.

for

current

The

the

of

as

disappointment.

the ferry
City all of
which is expected to produce an
portation Ratio, a: factor which
annual saying of
about'$l?m^lidn
can not be
tampered with to meet for each road, this shift"
began
exigencies. Like its Wage Ratio, last
Oct.
13 on a
limited basis,
the Transportation Ratio of the
but did not include "rush hour"

Ratio has been due
mostly to the
similar
increase in the
Trans¬

is the current

but

to

fact that the dividend received by
the Lackawanna from its Nickel

terminal^ operations-e^sthe NeW
Jersey side of the Hudson River

1956...

...

things have led

this set-back.

year

ing.
Total

spite of
not

enough to be

Net

a

est among

pay¬
ments may not be more than half
this amount.

Fund, Inc., for

high¬

as

in

can

Now it looks

income

Mutual

position.

nitely, the road's total Operating

Several

investment

for

comfortable

a

each

for

assumed

New Peak
American

hoped

in

tributing

initial

at

road's

stock

be

Plate

established

Assets Now

the

to

The 1956 wage ratio of the Lacka¬
wanna of 56.7 % of
gross revenues,
for instance, was the third

well

cents

American Fund

of

any

high cost road and requires a
high level of operation in order
a

for

Lackawanna

vestments;

of

year

be

doomed

year's action in dis¬
six
shares
of
Nickel

vestments. ffihis compares with net
income in the three months ended

31, 1956, of $149,290, in¬
net realized gain on in¬

growing

would

view of last

recent

cluding

this

of the balance

part

the

holding of Nickel Plate

wholly-owned subsidiary,
Whitney-Appollo Corp., for
the first quarter was $675,060, in¬
cluding net realized gain on in¬

March

payment this year could be fore¬

Delaware, Lackawanna & Western Railroad

.

innati,

urgh

subject

are

The

compared to
of $12,786,914

securities
profits reached
15,037,856 compared to $10,659,29 in the previous year.
A

shares

Na¬

diile

wners—a

of

credit, the assump¬
$1.50 dividend rate
suggested by the first quarterly

By GERALD D. McKEEVER

purchased

,

shares

25,000

also paid by each of
the funds. Net investment income
distributions of the seven funds
last

were

tions to the operating management
of United Supply.

were

totaled

shares

Botany
common
stock, and a
4%
note
in
the
amount of $950,000. Of the stock,

tional Securities Series of mutual
funds.
Distribution of securities

earned

the

combined

public and private
account, exclusive of home build¬

n;

that

000

sumer

on

payment was

tax

tion

Graham-Paige sold on March 28
all the outstanding stock of United
Supply & Manufacturing Co. to
Botany Mills, Inc., receiving 225,-

in

outlays should expand the
aggregate of national spending.
First, construction expenditures

fact that only half of last

cash
the

standing.

the

investment

the

year's
"ex"

ditional

families.

"While

of

to

163,572 three
During April ad¬

bringing the total held to 200,000
shares, or 24% of the number out¬

in

rate

increased

were

clarity of hindsight it
quite plain that, in view

now

months earlier.

disposable income and
personal spending among individ¬
uals

With the

is

171,372 shares from

salary disburse¬
consequent upward

a

Dec. 31, 1956.

on

stock

common

coming
Mr. Si-,

and

with

ments

the

average

rates

wage

in

foreseen

$1.69

or

During the quarter, the com¬
pany's holdings of Thermoid Co.

and

the decision to

the Lackawanna

dividend

has had ample justification in the

difficult

more

the

road

which
current

to

circumstances
had

has

includes

.

to

finances.'

Cash

$3,479,000 as of Feb. 28
as against $4,321,000 a
and

net

and

of

amounted

year

earlier

that

face

erosion

some

current

this
year

assets

correspondingly were down $1,629,000.
The recently announced
decision to replace the mainline
drawbridge over the Hackensack
River at the cost of some $5 mil¬
lion
probably has little if any
bearing since it has been stated
that
special
financing
will be
needed for this project. The road's
Nickel Plate holding, worth al¬
most $17 million at the current
market, is regarded as the log'cal
collateral.
been
no

The

trusteed

barr^i*

to

this purpose.

fact

is
its

that

believed

it
to

availability

has

be

for

Commercial and Financial Chronicle

The
46

.

.

Thursday, May 30, 1957

.

(2550)

Indications of Current

latest week
week

Business Activity
INSTITUTE:
operations (percent of capacity)

Indicated steel

Equivalent to—

Crude

§87.8

*86.4

June

2

§2,246,000

*2,212,000

2,226,000

output (bbls.)
Kerosene output (bbls.)
Distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)

May
May
May
May
May

;

;

.

pipe lines—

refineries, bulk terminals, in transit, in
and unfinished gasoline_(bbls.) at
(bbls.) at
—
Distillate fuel oil (bbls.) at—_
Residual fuel oil (bbls.) at

Stocks at

Finished

;

Kerosene

AMERICAN RAILROADS:
freight loaded (number of cars)———May
freight received from connections (no. of cars)—May

Revenue

CONSTRUCTION

ENGINEERING

CIVIL

—

Private construction

construction
and municipal

Federal

186,856,000

86,830,000

68,495,000

39,426,000

38,745,000

36,943,000

33,414,000

722,521

723,392

686,950

778,997

(U. S. BUREAU OF MINES):
coal and lignite (tons).
Pennsylvania anthracite (tons)--—.i—i—.-

615,799

616,468

613,805

659,051

$338,914,000

$357,673,000

193,873,000

123,455,000
234,218,000

$439,627,000
258,720,000
130,907,000
136,704,000
44,203,000

$310,263,000
150,293,000
159,970,000

INDUSTRIAL)

(COMMERCIAL AND

—

DUN &

COMPOSITE PRICES:
steel (per lb.)

IRON AGE

Finished
Scrap

Electrolytic copper—
Domestic refinery

at

—

Lead

(delivered) at—
.—————
Louis) at—
———
(primary pig. 99% ) at
Straits tin (New York) at_
tZinc

AVERAGES:

PRICES DAILY
u. S. Government Bonds
Average corporate
•

MOODY'S BOND

66,193,000

G~roup

21,839,000

u.

S.

420,000

12,475

$1,670,700

$707,100

$466,000

$489,CC0

$503,000

$81.80

•$82.21

88.51

'■'88.73

72.74

73.30

39.9

•>40.1

BRADSTREET,

&

(000',s omitted)

goods
Nondurable goods

$78.99
85.49

-

70.17

t

Hours-

263

264

309

manufacturing

/

:

273

Durable

38.9

goods

40.3
41.1

4G.7

40.6

____:

goods

Nondurable

-

33:.2

39.2

.

*

5.670c

5.670c

5.179C

Hourly

$64.56

$60.29

All

$64.56

$64.56

$45.83

$42.17

$49.67

Durable

$47.17

5.670c

earnings—
manufacturing

$2.05

31.100c

31.375C

29.300c

30.775c

15.500c

16.000c

16.000c

15.800c

15.800c

14.800c

15.300c
12.000c

14.000c

14.000c

12.000c

11.500c

13.500c

13.500c

11.500c

2.03

1.87

1.79

145

146

143

146

148

144

$207,900,000
55,000,000

PRODUCTION—BOARD OF GOVMt'OHS
OF
THE
FEDERAL
RESERVE
SYSTEM—1947-49=100—Month
of
April:

44.150c

15.000c

2.18

INDUSTRIAL

45.650c

29.200c

$1.96

2.18

j

_

$2.C5

1.87

goods
goods

Nondurable

31.105C

Seasonally adjusted

__

.

:!/; Unadjusted
INSURANCE—BENEFIT PAYMENTS TO
POLICYHOLDERS — INSTITUTE OF LIFE
INSURANCE—Month of March:

LIFE

25.000c

25.000c

24.000c

25.000c

98.000c

98.500c

99.750C

96.875c

89.55

90.17

95.44

88.61

95.62

96.23

104.83

Disability

100.16

100.65

108.16

Annuity

98.57

99.04

106.74

Surrender values

96.23

96.54

104.48

95.77

Policy

88.27

89.23

100.32

93.97

103.47

93.97

94.41

96.23

96.69

105.17

96.07

96.85

97.47

105.86

95.77

95.16
99.36

„

$223,800,000

$207,400,000

endowments

68,500,000

56,400.000

payments

10,000,000

8,900.000

9,300,000

45,800,000

41,900,000

40,000.000

108,300,000

94.400.000

83,700,000

benefits

Death

Matured

___

payments
.2;

—_______

119,400,000

$503,200,000

$2,820,197

of

EXCHANGE—A$

1000's omitted):

30

112,300,000

$495,000,000

$2,741,225

$2,820,776

.

STOCK

YORK

NEW

86,000,000

$575,800,000

dividends

Total

April

\'•'■WV'

'

margin accounts—

Member firms carrying
3.38

3.32

2.85

Total

4.03

3.99

3.46

Credit

3.74

3.27

3.79

3.71

Cash

3.81

3.35

in banks in U. S
Total of customers' free credit balances.

28

V-

4.06

.May 23

,

'

:

customers'

debit balances

net

to

extended

27,802

28,064

33,012

318,625

313 4=0

360,516

807,352

*820,829

895.710

customers.—

and

hand

cn

3.85

3.84

Market

212.328.639

224,681.678

3.73

Member

value

100,657,111

101,604,819

102,898,554

4.54

4.47

May 23

4.56

shares
;___
bonds____________

221,595,121

4.02

3.99

3.48

.May 28

4.11

Member

borrowings on U. S. Govt, issues..

67,583

59,802

76,341

—May 28

4.14

3.54

4.14

3.44

Member

borrowings

2,204,675

2,109,411

2,334,849

3.99

3.96

3.40

r

.May 28

—

.Tr-^„,.Trr.i,1)1 —

__

4.00

Group

Railroad

Group

Industrials

'

ASSOCIATION:

received (tons)
Production (tons)
Orders

*

4.92

3.95

3.91

415.8

412.5

407.3

257,884

229,036

239,754

Savings

255,800

291,074

-282,574

285,921

95

94

97

403,901

536,619

95 <

V

423,348

May 18

purchases

1,600,480
287,560

4

Total sales

j

_i——

—

——May

—-————

the floor—

transactions Initiated on
purchases

Other

May
———May

Total

Short sales ———
Other sales
Total sales
Other

—

—

—

floor—

transactions initiated off the

purchases
Short sales

—.May
May

—

——

———

MaY
-May

Total

—

———

May
——May

sales

Other

Total sales

—„—..—.—

round-lot transactions for
Total purchases

Total

account of members—

May
May
—May

sales

Short

sales

Other

May

Total sales
«TO

•

4

330,700

219,350

1,755,010

1,301,700

1,400,690

4

1,589,260

1,731,390

1,197,240

339,970

392,230

283,670

351,740

4

19,550

34,300

31,300

305,850
325,400

427,860

283,310

462,160

314,610

312,230

|

299,684

$1,936,502

$1,749,322

$2,270,996

$65,734,212

$58,266,220

$67,047,929

DEALERS

EXCHANGE

139,650

4

635,268

886,548

4

754,108

1,026,198

730,402

2,522,754

2,681,849
*

4

425,950

504,650

4

2,242,818

2,715,098

4

2,668,768

3,219,743

63,540
•

567,932

4

651,931

162,470
"•

769,823

of

Number

—

2,093,050

2,773,171

413,120

421,380

1,829,132
2,242,252

Total

after fixed

Dollar value

by dealers (customers' sales)—
Number of orders—Customers' total sales

$69,649,842
1,174,170

Odd-lot purchases
Customers'

May

other sales

Dollar value
Round-lot
Number
Short

1,303,949

12,817

5,958

1,239,840

934,018

$59,467,289

$44,008,703

1,214,707
$63,540,360

1

sales

Other

dealers—

Round-lot purchases by
Number of shares

.May

14,109

233,340

274,080

307~,750

354,640

233~340

454,620

4

518,200

417,490

Total

Short sales

May
May
May

_

sales

Other

Total sales
WHOLESALE
LABOR

PRICES, NEW SERIES
(1947-49 = 100):

—

13,932,690

10,194,070

13,300,590
13,807,100

117.3

114.4

89.6

•89.7

90.7

105.3

•105.0

104.8

102.3

91.7

90.8

88.0

81.3

125.2

125.3

121.7

.May 21

125.4

All commodities other thMi farm

and foods-

OF

as

of Jan.

1,

figure.
1957,

as

([Includes

of

—As

Total
at

face

against Jan.

Monthly Investment Plan.

one-half

cent

a

pound.




JPrime

'

foreign crude runs.

*

13,441,936

2.56

2.73

,

1

public debt

gross
Guaranteed

obligations

not

owned

by the

Treasury
Total

gross

under

public

debt

and

guaran¬

obligations

outstanding

-

public

debt

Net

of obligations, issuable
authority-!

276,344,537

102,728

109,348

59,205

$274,110,669 $275,108,008 $276,403,742

4,337,833

$268,579,109
__

RYE

468,947

450,765

2.725%

rate—

CONDITION—CROP

BOARD

U.

S.

of May 1

DEPT.

3,342,756

5,065,204

$274,110,669 $275,108,008 $275,844,912
5,531.560
7,673,283
5,711,817

OF

$267,434,725

$270,133,095
2.537%

2.726%

REPORT¬
AGRICUL¬

88-:

80%

£4%

—

PRODUCTION—CROP RE¬
PORTING BOARD U. S. DEPT. OF AGRI
CULTURE—As of May 1 (bushels)—

WINTER

$281,000,000

274,998,660

AND

balances

Computed annual
WINTER

$278,000,000

443,503

30

funds

debt

$278,000,000

amount

above

of April

1,102,100

$273,662,166 $274,657,243 $275,934,795

STATES

General

$1,582,300

1,004,000

obli¬

to debt limitation

total outstanding

Balance lace

$1,583,000

-—

not subject

Grand

$46,717,700

1,130,300

—

.

■

,

Total

$13,403,450

274,007,941

time

any

ING

SBased on new annual capacity of 133,459,150 tons
1, 1956 basis of 128,363,090 tons. tNumber of orders not reported since introduction of
Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds

1,064,000 barrels of

35,654,593

7,800,594

$2,142,700

STATUTORY DEBT LIMITATION
April 30 (000's omitted):
amount that may be outstanding

TURE—As

•Revised

29.673.781

$35,384,000

91.3

.May 21

Meats

:

;

GOVT.

S.

As

117.2

.May 21

foods

charges..

GROSS DEBT DIRECT
GUARANTEED—(000's omitted):

.May 21

Processed

fixed

-

UNITED

117.1

.May 21

products.

Farm

33,275,630

12,414,720

U. 8. DEPT. OF

commodities

U.

506,510

—

Commodity Group—
All

11,890,590

594,510
9,599,560

24,371,175

41,277,590
8,457,015

.

(000's omitted):

gations

657,060

23,849,675

EXPORTS AND IMPORTS
CENSUS —Month of March

STATES

teed

524,130

45.287,791

2.68

w.

purchases

Deduct—other

round-lot sales—

4,396,128
47,009,896

47,324 231

25,555,400

equipment)

stock
to

4.383,197

43,123,515

47,624,478

MARKET TRANSACTIONS IN .DI¬
RECT
AND
GUARANTEED
SECURITIES
OF U. S. A.—Month of April:

590,860

STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS
(SHARES):

51,406,024

TREASURY

274,080

TOTAL ROUND-LOT

81,194,675

47,506,712

4,342.131
47,009.689

stock______u_

income

ni

4 463.881

77,959,326

51,351,820

.

Outstanding—
354,640

307,750

May
May
May

sales

1,220,665

85.663,556

4,213,768

81,854,584

taxes

preferred

Imports

946,835

13,615.627

82,173,094

appropriations:

On common

Ratio

-

,

:

income

Dividend

:

(way & structure &

Depreciation
Federal

1,505,610

$66,219,250

7,406

sales by dealers—
of shares—Total sales

income

charges

23,906,864

4,001,408

$82,759,993

1,166,764

May
May
May

short sales

Customers'

deductions

Other

2,479,279
2,900,659

1,130,815
$52,823,642

for fixed

available

Income

income_„__
charges

from

deductions

Income

BUREAU

1,474,328
$74,561,794

1,356,428

20,121,780

85,855,992

income

Miscellaneous

Net

May
—May

L

operating income__

Other income

UNIT^n

(customers' purchases)—t

Commerce Commission)—

Month of February:

On

ODD-LOT ACCOUNT OF ODDSPECIALISTS ON N. Y. STOCK
SECURITIES EXCHANGE COMMISSION:
:

__

U. S. CLASS I

ITEMS OF

(Interstate

RYS.

833,369

AND

by dealers
shares

sales

Odd-lot

institutions

lending

INCOME

Net railway

Net

559,720

594,739

118,840

127.796

407,791

288,680

4

582,304

95,945
271,203

23,600

4

4

151,870
468,006

99,048

.-

.

104,879
308,348

324,897

334,240

1.420,770

4

$815,849

115,207
334.410

351,136

1,769,500

1,249,660

1,694,880

977,890

4

8644.050

293,188

K TRANSACTIONS FOR

LOT

$743,513

Total '

4

sales

Other

savings banks

SELECTED

May

ft-

:

Miscellaneous

108.94

110.61

110.44

110.35

TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—

t'1
,

(000's omitted):

of March

and loan associations—.
companies
._
trust companies
_L;

Mutual

May 24

1949

•

U.

OF

Individuals

ROUND-LOT

Total

AREAS

BOARD—Month

—May 18

period-.
DRUG REPORTER PRICE INDEX—

PAINT AND
AVERAGE

OIL,

other collateral

on

Bank and

456,700

listed

of

financing
in
non-farm
S. —HOME
LOAN BANK

Estate

real

412.5

*

(tons) at end of

Unfilled orders

listed

of

Insurance

286,720

of activity

Percentage

value

May 18

INDEX

PAPERBOARD

NATIONAL

3.97

-May 18

—

MOODY'S COMMODITY

V-.jV

JJay28
Ma^ 28
May 28

Group—I——I

Utilities

Public

~

*****

•

PAPER OUTSTANDING — FED¬
RESERVE BANK OF NEW YORK—

manufacturing

AU

10,927,000

11,310,000

11,519,000

3.47

corporate

Average

11,815

<

EARNINGS AND HOURS—WEEKLY
AVERAGE
ESTIMATE —U. S. .DEPT. OF
LABOR—Month of April:

All

May 23

"May

Government Bonds

12,078

STATES—DUN

Durable

11,574,000

AVERAGES:

DAILY

BOND YIELD

MOODY'S

490,639,579

INCORPORATIONS (NEW) IN THE

As of April 30

f,

122

M*y25
JJay
May 28
-May 28

—

—

Utilities Group
Industrials Group

Public

81,243,150

462,745,001

INC.—Month of April

ERAL

138,131,000

129

May 28
—May 28

~

Railroad

33 453,589

-83,437,287

504,794,406

COMMERCIAL

133

May 28

£

$524,093,168

DIVIDENDS—PUBLICLY REPORTED BY
17. S. CORPORATIONS—U. S, DEPT.
OF
COMMERCE
Month of April
(000's

9,649,000

.

Aa

$543,988,151

York City

98.41

—-—

Aluminum

94.737,762

$586,231,693

;

Ciiy_

87.99

(East St.

Zinc

22.036,024

104.979,391

'{■ Weekly earnings—

May 22
MaY 22
May 22
May 22
—May 22
—May 22
— Jay 22
May 22

——

refinery at
(New York) at
(St. Louis)

38.165,613

24,470.972

CASH

10,200,000
482,000

May 21
May 21

Export
Lead

168,020,000

J. QUOTATIONS):

PRICES (E. & M.

METAL

83,340,551

23,950 990

—

New

BUSINESS

Sf'v

•9,685,000
479,000

May 21

gross ton)
steel (per gross ton)

Pig iron (per

Outside

120

May 25

BRADSTREET, INC

78,652,140

$762,000

York

New

19,931,000

9,640,000
509,000

..May 13
DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE
SYSTEM—1947-49 AVERAGE = 100
May 18
EDISON ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)

32,445,303

i_i_.

—

FACTORY

May 18

Bituminous

Central

UNITED

96,003,000
49,038,000

127,056.628

___

___

Total United States

19,779,000
72,801,000

145,041,000

110,198,083

—£

,

__

8,220,000

201,945,000

<

42,741,264

114,140,048

128.291,173

82,260,000

13
18

82,912,848

42,706,227

36,470,442

Atlantic

West

21,907,000

COAL OUTPUT

FAILURES

8,345,000

$34,202,468

$37,866,038
121,164, 319

51,427,300

SouthCentral

197,402,006

196,383,000 '
22,854,000

——.—.—May 23
May 23

—

11,942,000

2,055,000
11,630,000

8.370,000

13,003,000
7,798,000

26,370,000
2,156,000

$23,422,601

131,698.857

_

20,335.961

7,848,000
25,653,000

12,772.000

1,875,000

■

-

——

.East Central

■■

8,050,000
26,019,000
2,080,000

;
—

Atlantic

South

7,071,200

7,550,850
7,630,000

7,433,800

27,057,000

May 23
—————May 23
May 23

State

April:
England

New

ENGINEERING

NEWS-RECORD:
U. S. constructioa

Total

Public

17
17
17
17
17

May 17
May 17
May 17
May 17

ASSOCIATION OF
Revenue

of

2,370,009

1

stills—daily average (bbls.)

to

runs

Gasoline

Ago

INC.—215

BRADSTREET,

Middle

May 17

Year

Month

VALUATION — DUN &
CITIES—Month

PERMIT

BUILDING

96.3

87.0

7,511,100
118,131,000

Previous

Month

Ago

2

output—daily average (bbls. of

oil and condensate
gallons each)

Crude

or,

Latest

Ago

PETROLEUM INSTITUTE:

AMERICAN
42

—

castings (net tons)

that date,

on

Year

Wepk

Latest

Month

June

IRON AND STEEL

Steel ingots and

month ended

either for the
in cases of quotations, are as of that date:

Dates shown in first column are

month available.

or

Previous

Week

AMERICAN

or

and other figures for the

statistical tabulations cover production

The following

WHEAT

__

'

703,208.000

669,080,000

995,000

Number 5642

185

Volume

.

.

The Commercial and Financial Chronicle

.

(Special to The Financial Chronicle)

\vith'Bennett

&

Street.

Bennett

Philip J. McArdle.

the

BEVERLY

North

404
a

David

SAN

offices

opened

holders

offices

at

the investment

firm

dowsky Inc., passed
at the age of 52.

in

engage

Ed

are

to

business.

Zella

Dillon,

K.

Charles

Wilbert

ment

books

will

E.

F.

July
6,

the

open.

May 22, 1957

:

\

-

of

record

/•

business

EARLE MORAN

.C.

Page, Secretary and Treasurer

dividend

Secretary

twenty-five cents

share has today been de¬

per

the

on

outstanding

common

of

this

Corporation, payable

June

on

28,

1957, to stockholders

of record at the close of business

May 27, 1957.

on

A. R. BERGEN,

Secretory.

359th Dividend and
91st Consecutive Year

541h Dividend
A

-

of

Quarterly Cash Dividends

of

SIXTY

CENTS

able

28,

June

the

for

quarter of 1957,

on

regular quarterly dividend of
seventy-five cents (750) per

share

per

declared

been

has

second

A

DIVIDEND

QUARTERLY

paid on June 14,
1957, to stockholders of record

to

May 31, 1957.

CUP

shareholders of record on June

at

share will be

DIXIE

pay¬

1957.

CHAMP CARRY

12, 1957.

President

on

COMPANY

,

.

25 Broadway, New York 4, N. Y.

The

r—.

DIVIDEND

•

I
•

the

on

to

stockholders

10,

Common

New York, N.

H.

R.

June

25,

record

of

Weckerley, Secretary

Dated: May 27,

Y.

98—500

1957.

COMPANY

share in cash has been

declared

payable

—

1957
June

quarterly dividend of $0.60

per

•

STOCK—No.

share

per

ELECTRIC BOND AND SHARE
A

ROBERTSHAW

1957.

Stock of C. I. T. Financial

.

•

ord

at

the close of business

The transfer

June 10, 1957.

•

books

FINANCIAL
.

will

'

•

•

not

"

The Board of Directors has

declared

quarterly dividend
thirty-five cents (35^) per
share on the Common Stock,

C.

a

payable
John Kuiin,
Treasurer

.

PREFERRED

Irving Trust

;

of

close. Checks

will be mailed.

Green sburg, Pe.

,'h

1957, to stockholders of rec-

June

shareholders of
:

1957.-

May 23, 1957.

record

of business

close

•

1957,

28,

\

;

a

STOCK-

regular quarterly

dividend of $0.34375
per

Company

to
the

One Wall

share has been de¬

clared
par

Street, New York

the >$25.00

on

value 5

percent

Cumulative

June 7,

on

•

at

FIILTON

-

CONTROLS COMPANY

Notice of Dividend

h-Corporation; payable July 1,

•

TRAILM0BILE

following dividend has been

declared:
COMMON

•

C O RP O RATION

of

Secretary and Treasurer

w.

141ST

1957.
Carl M. Anderson,

DIVIDEND No. 90

June 3, 1957.

^

.

of

close

1,

June 7, 1957.

Both dividends

1957 to holders of
1957. The stock transfer

de¬

July

on

May 28,1957

'

METALS, INC.

capital stock of

stockholders

to

10,

1957

value of $50 per share,
payable June 27, 1957,

1.

remain

COMMERCIAL SOLVENTS

MACHINE AND

the par

ending June 30, 1957 and a divi¬
30j per share on the Common

have been declared.

its

payable

pre¬

been

the close of business June

at

clared

,

on

have

stock,

COMPANY

ANACONDA

share

share on the

a

H.

has today declared a dividend
of One Dollar
($1.00)
per

quarterly dividend of 75<i per share
(IV2V0) on the Preferred Stock for the

on

1957, to stockholders of record

been

DIVIDEND NOTICES

The Board of Directors of

a

payable
record June

have

clared,

Corporation

:

196

NO.

May 23,

195

are

Moehrke

J.

stock,

share

a

the $3.50 cumulative preferred

ferred

and

Company, Mile High Center.

AnacondA

205

of

Ingraham

AMERICAN

THE

No.

Secretary

■

share on

a

common

87%^

McCASKEY, JR.

A.

stock

Company

dend

E.

W.

(25c)

DIVIDEND

quarter

Berry,

.

Fletcher, Secretary-Treasurer.

Bank Note

the

$4.00 convertible second

A

Sa¬

MERCKB of 254-

the

added to the staff of Allen Invest¬

Fletcher,

Willis

and

|

1957.

Louis A.

—

DIVIDEND NOTflCES

Common

A.

at

record

7,

.

May 28

Preferred Dividend No.

of

June

on

S.

Stephen G. FFetcher,

Vice-President,

American

Stock

A.

Floyd

DIVIDEND NOTICES

Dividend

business

.

officer

of R.

away

securities

a

President;

Sadowsky
an

—

Ninth Avenue,

1020

at

Officers

Sadowsky,

of

J.

Quarterly dividends

the

stock, and $1.00

Barella,

Fletcher Co. has been formed with

business.

R.

DIEGO, Calif.

,

Roxbury to engage in

securities

David R.
of

(Special to The Financial Chronicle)

HILLS, Calif.—Jack

has

of

Ed Fletcher Co. Formed

,

;

Stock

Corporation,
payable
June
29, 1957, to Common Stock¬

"

Jack Hartfield Opens

Hartfield

Common

RAH WAY, N.

of fifty cents ($0.50)
share was declared dn

(Special to The Financial Chronicle)

:

(Special to The Financial Chronicle)

dend

close

MERCK & CO. INC.

Steel Corporation held
today, May 16, 1957,, a divi.

per

Allen Inv. Co. Adds

'

Penna.

Ludlum

Midwest Stock Exchanges.

DENVER, Colo.
-

Allegheny

is

Co.

&

Pittsburgh,

meeting of the Board of Directors of

a

was

Department.

Also, with

Mc-

Mr.

formerly with Barclay
Investment Co. in the Municipal

Naney

Co.

&

Salle

La

North

Hollywood Boulevard. Mr. O'Neil
was formerly with Fairman & Co.
and
Gross,
Rogers,
Barbour,
Smith

of

Merrill, Turban & Co.,
111. —Leo F. McNaney has become associated with Inc., Union Commerce Building,
Robert P. Vick & Company, 33 members of the New York and

6253

Co.,

DIVIDEND NOTICES

Allegheny Ludfum Steel Corporation

Bohlander has been added to the
staff

CHICAGO,

HOLLYWOOD, Calif. — Hubert
R. O'Neil, Jr. has become associ¬
ated

CLEVELAND, Ohio—Eugene A.
,

At

'

47

(Special to The Financial Chronicle)

Robert Vick & Co.

With Bennett & Co.
(Special to The Financial Chronicle)

DIVIDEND NOTICES

Merrill, Turben Adds

Leo F.McNaney Joins

H.R.O'Neil,Jr.,Now

(2551)

vertible

May 23, 1957

Con¬

Preferred

tStock,payable

...

"

B. M. Betsch,

.

May 23, 1957.

stockholders

day declared

I

dend of 40
the

quarterly divi¬

a

cents

per

share

INDUSTRY

WITH ESSENTIAL BASIC PRODUCTS

at

the close of business June 3,

1957.

the

at

of

close

of business June 10,
MR.

$10, payable July 1,

par

1957, to stockholders of record
HOME AND

® record

on

capital stock of this Com:

pany,

SERVING

1957 to

June 20,

The Board of Directors has this

Secretary and Treasurer

CONTROLS

1957.

COMMON
a regular quarterly

STOCK

dividend of 37%c

share has been declared

Stock

payable

June

the

on

20,

1957

per

Common

to

stock¬

holders of record at the close of business
RALPH B.

PLAGER, Secretary

June
not

EASTERN

10, 1957.

The

transfer

books will

be closed.

WALTER

H. STEFFLER

Secretary & Treasurer

GAS
May 15, 1957

AND

FUEL

ASSOCIATES

REYNOLDS
METALS

DIVIDENDS
STOCK

COMMON

—

A

COMPANY
regular

shareholders of record June

Declares 277th Dividend

Reynolds Metals Building
Richmond 19, Virginia

quarterly dividend of 40 cents
a share,
payable June 28, 1957
to

yale &towne

Z7Vii

On May

regular quarterly dividend of
fifty-nine and three-eighths cents
(59%*) a share on the outstand¬
ing Cumulative
Preferred Stock,
4%% Series A, has been declared
The

7,

1957.

STOCK

DIVIDEND

—

A

regular

semi-annual stock dividend of

2%

on

the

able June

common

stock

pay¬

1957 to share¬
holders of record June 7, 1957.

AVi%
21 Ith PREFERRED DIVIDEND

STOCK

CUMULATIVE
—

dividend
A

quarterly dividend of 1 Vi%

declared upon the

($1.50 a share) has been

Preferred Stock of The American Tobacco

1957, to stockholders
close of business June 10, 1957. Checks

Company, payable in cash on July 1,
of

record

at

the

28,

A

of

mailed.
Harry

May 28, 1957




L.

Hilyard

Pice President and Treasurer

$1.12j£

quarterly
a

share,

payable July 1, 1957 to share¬
holders of record June 28,1957.

250 Stuart

will be

the

BIRD, President

St., Boston 16, Mass.

May 23, 1957
Our stock Is now listed on the
New York Stock Exchange.

quarter

ending

July

of

31,

dividend

The

June

Transfer

11,

has been
July 1, 1957,
the close of
1957.

stockholders of record
at the close

by

of business

June 7,

will not be
Checks will be
Chase Manhattan

1957.

Books

closed in either case.
mailed

on

July 1, 1957, to

holders of record at

business

earnings,

payable

share on the out¬

payable

declared,

was

of Directors out

of past

DIVIDEND

Common Stock

standing
to

a

share

declared by the Board

of twelve and one-half

(12%*)

cents

thirty-seven

per

payable August 1, 1957, to
of record at the close of
business July 11, 1957.

A

23, 1957,

and one-half cents

1957,

COMMON

Share

dividend No. 277

holders

PREFERRED

regular

E. H.

for

a

DIVIDEND

PREFERRED

The

Bank.

|

F. DUNNING

Executive Vice-President and Secretary

ALLYN DILLARD, Secretary

Dated, May 23, 1957

THE

YALE & TOWNE MFG. CO

Cash dividends paid in every year

Symbol is EFU.

/

since 1899

Financial Chronicle

The Commercial and

48

/V,Thursday};May 30^1957

.

(2552)
practice, Hfiowe^e*£; the agency,
hot\ finance- long-range,'

J/y»

BUSINESS BUZZ

^

Capital

from (he Nation's

/jf

T|

water works or. a sewer

build

f

..

town wanted to

If a small

>

I

system,

a

Uncle Sammy would
come
right along and advance
the cost of hiring somebody to

JL Ult/

jlTlII/VM/

*'

/ general public works programs.

]

Washington.
BeVimMhe-Scene Interpretations

will

plan and figure out the thing.
"Planning advances can cover
cost
of
engineering and

the

architectural

to three areas of
administered by the
Securities and Exchange Com¬

sists

laws

subcommittee.

bank,

consideration currently is

] Committee may be able to agree
upon between now and adjourn■;' ment.

f •~ ; - ,* v';" *. : *,

Senator Homer E.

■'[

■ •

Capehart, of

require the disclosure:
beneficial ownership of
voted by proxy in a'

)

contested, corporation election, j
it seeks to draw i

In other, words,

the

into

out
of

..

foreign

n

by Americans
banks. :-r '' '

the identity;

open

■

...

not mean

t

...

...

.

lation

will

a g a

i list the

In brief, its poseemed, to be that the

sition

*

provisions of the bill as drafted
wouldn't do the trick. It may.
\ be doubted that this bill will
get out of committee.
:y
1
A related proposal also offered by Mr. Capehart is S. 5904

ownership, including
beneficial ownership must be
disclosed to the SEC and thus
whose

the

to

public.
officials

SEC
that

to

-

re¬

in¬

bring within

bill would

This

They did not oppose the
it were, "didn't

no."

securities of any company hav¬

subcom-

and
held
by more than 750 shareholders,
OR
(b) having any class of

and she didn't say

ing $2 million of assets
(a) either equity securities

Foreign Route
Both

securities

the

; mittee of the Banking Commitf' tee and the separate Internal

with a principal
amount of $1 million or more.
security

debt

of Sen- '
interested in
An earlier 1955 version of en¬
trying to figure out some way ;
compassing the unlisteds would
to bring about the disclosure of
have applied to companies with
concealed
ownership obtained
$5 million of assets and 500
by purchases through foreign,

Securities subcommittee

Judiciary are

ate

•

\

■f

especially Swiss
As

Preceding that
applying to

shareholders.

banks.

Internal Security

the

for

J

was

1950 version

a

it has its own
I companies with $3 million ;of
assets Or 300 shareholders.
' /
Under the domestic iaws
SEC said that it would ap-«
gbarding the secrecy of weap-j
ons
and other defense secrets,
prove such a proposal with two
officials of domestic companies
amendments.
The first would
are cleared to be let in on these
/ eliminate the insider trading
subcommittee,

pitch.

.

'

This is

secrets.

so

the compan¬

by

if
small
whose top
employees are cleared to get
this top secret fill-in, the Reds
can
indirectly themselves be¬
come
acquainted
with
what
company

they

shouldn't know and pass

the

information

on

the

to

SEC

is

obviously

much

not

impressed with the Interna! Se¬
curity

committee's

In
it
U. S.

worry.

testimony several weeks ago,

where

emphasized

that

nationals

foreign buyers can

or

identity

conceal

their

chases

through

Swiss

by

pur¬

banks,

frustrates the SEC
administering the
regulatory features of its acts.
Which
is what interests SEC

the

would

registering a new issue
of $2 million or more under
the 1933 act would have to file
\

periodic reports.
J.

.-K

.

of amendments

v

consideration by the se¬

would

the

of

subcommittee

So

$300,000 the "exemption"

der

from

tape,

SEC

said

it

Senate

with

an

House

amendment
of

-

*

7,

-

has

another

bridge, has

That is it

,

local

loans

pamphlet entitled "A Proof Public I Works Plan¬
ning," which is in the nature of
a
"come and get it" appeal.

grant

Committee is un¬

"interest

can

free, loans"

to

scope,

law places no

exhaustive review

agencies
within
its
which are administering
regulatory statutes. The idea is
to

see

any
,

-

to what extent the regu¬

latory agencies are in fact fol¬

in

restriction

on

the

Federal

defining what kind

of plan¬
loan. In

ning

is

of

eligible for

a

as

K. Lasser

$500,000 per

administer.
outside

This
of

would affect
unlisted
169 insurance

•

companies

and
some

of which

other

.

to

'

i

Doll
Intern
tional Finance Section, Depa
ment of Economics & Sociolo
Princeton University, Princet

—Fred H.

N. J.

Klopstock

TRADING MARKETS

Campbell Co. Co:

Engineering

National Co.

Carl Marks & Co. Inc.

Riverside Cement

Flagg Utica
FOREIGN

SECURITIES

20 BROAD STREET
_

•

SPECIALISTS

LERNER S CO.

NEW YORK 5, N. Y.

TELETYPE NY

1-971

Investment Securities

this generally

primarily.




seemed
$500,000 could

10 Post Office Square,

Hence, Mr. Armstrong

all around in

to

indicate,

the

be
spent more profitably ad¬
ministering better some of the

—

(paper) on request.

Morgan

TEL: HANOVER 2-0050

act.

♦-*<"

United States Envelope

provisions of

subject

are

*.

-•

'

Fashion Park'

1,205

companies,

Tax.Rbport—Busine

ReportsIncorporated, 2 ' E
Avenue, j, Larchmont,' *' N."
(paper) $5.00. ';" v.< .

Indian Head Mills

SEC
netting the unlisteds.

pointed out that such a new

less than

You

Botany Mills

Assistant Secretary in¬

cost not
annum to

Save

Can

Estate-^ Gift, Taxes—

come,

A. S.

regulatory power would

the

Trusts

"

officials

discretion

dicated, however, no great

an

How
"

Sinclair Armstrong, who is

ment

York

International Status of the

CFA

that

develops

It

judicial

an

Repo?

Foundation, 47

N. Y.

gram

,

activities of all the quasi-

36, N. Y.

Annual

Foundation

'Madison Avenue, New

n

a

•

'

100 'years-^
Times, Time

York

New

Square, New York
Ford

public works plan¬

ning down to the lowest level,
the town, or government. • Fur- thermore^ the agency has issued

.

and c h a n g i n
financial advertb

/..for 1956—Ford

finance through

can

—

the past

over

The

an¬

local governmental unit it
wants, to plan any kind of a
public work.
In general the

of the

ing

interna¬

toll

tional

Commerce Commit¬
tee, which in the lower cham¬
ber has jurisdiction over SEC
affairs, is pursuing a different
enterprise
from
the
Senate
Banking Committee. It is that
way again this year.
j
r

Crane

character of

Finance
is so broad

nounced it will do, an

it has been

Advertisin

Times—Bui
Book tracing tb

York

New

development

Home

and

Agency whose power
can
finance as it

„

The House

Community

string to its bow.

Enterprise

16, N. Y.

the

in

it

of

33rd Street, Ne\
(cloth) $6.75.

East

49

ers,

York

Get It

wonderful

Housing

steady affair that the House

dertaking

/

Speaker

ton

•

Interstate

—Philip Taft—Harper & Broth

Century of Financial

That

Com¬

Time of Gomper

A. F. of L. in the

Facilities Administration of the

Regulation A.

For several years
a

blessing.
It is
Sam Ray-

House
by

Pursues

Different

the SEC act. This
incidentally, lias the

Come and

which would have the effect

issuers under

modify, or
with

burn.

increasing the civil liability

■*

the

around

play

backed

special

the

v

Business

approve

Business

Small

mittee,

of

expand,

highest

bill, sponsored by Senator
John
J.
Sparkman
(D., Ala.),
Chairman

>

will be in no

in

inquiry,

this

and

to

changes

Usually the

would

good many months,

otherwise

grants the exemption.

SEC

a

mood

cost

and

time

than the full form.

-

.

,

this study is un-

House Committee

much

involves

* •

...

and it is likely to go

way,

for

on

registration. In fact cor¬
porations with an issue of $300,000 or less apply under Regula¬
tion A for a short form regis¬
which

as

*

'

SEC

red

long

.r

vv

•/

rj

intent of Congress,!.

Banking Committee
to $500,000 from

raise

just moving from Chairman of
the
SEC to the Navy Depart¬

lie
J

of

16d of the 1934 act
effect provides that

fervor for

Kremlin.

16b

second

anyone

occasional

the

American

in

which

subcommittee
anonymously buying

Internal Security
into

Sec.

keep

Sec.

The

act.

1934

can

that

of

provisions

intelligently participate
in defense production. ;
It is the apprehension of the

ies

■

area

Senate

tration

companies.

jurisdiction as to the reg¬
istration, reporting, proxy, and
insider trading regulations, the

yes

say

it

SEC

So SEC, as

bill.

third

A

"

••

the intentions of Con¬
gress
as
expressed
in - the
original acts, and to' what ex¬
tent,
by
interpretation,
the
regulatory agencies are depart- '
ing from what the Congressional
students think was the original

Exemption

Business

less

whether S. 5904 did or
pass.

the

for

exemptions

the

surance

say

not much care
did not

did

they

seemed

with

that

except

1955,

gust

moves

Raise Small

under

bill of Au¬

print"

"committee

<

J

bid!"

[This column: is intended to re
fleet, the "behind the scene" iqter
pretation from the nation's Capita
and may or may not coincide witI
the "Chronicle's" own views.]
-

lowing

provisions of law under
the agency's jurisdiction.

curities

identical

is

which

Bridge that's not the way we

.

version of regula¬
tion of the over-the-counter se¬
curities
is
Senate
Bill
1168,

J act of 1934 to lower to 5% from
10% of any class of security,
4

,

This year's

SEC

of the

16

Sec.

amend

to

■

Stock Exchange—■

HOW you do it at the

■

Securities

Unlisted

care

other

Senate subcom-'
conjure cannot be

forecast at this stage.

1

!

only

can

have
like a

.

don't

"I

either

mittee

testified

SEC

Capehart bill.

'!

■y

attached

taxpayer /who refused

Federal

to i>ay- his personal iricome tax
pliability to finance such a sweet
and soft kind of loans.
>

j
r

}

in

;

;t

the owner.

as

■*

:■

.i.■ -•

,

;

I is not listed

it

says

theirproperty

■

or purchases
through foreign

bring
forth productive results by ne¬
gotiation with foreign countries,
and that as to the key country,
Switzerland, it already is holding conversations. What legis¬
SEC

municipality / would

/. the

be

owners,

?.

•

collection, which does
that the; officers of

for

fice

which

disclosure

over

the General Accounting Of-

to

in the way of legis-l
will force some;
of the identity
of

cooked up

lation

beneficial owner where he

a

can't

something

if

see

or

They said

Government collects

the debt would be turned

~

j subcommittee, hovvever, a val->
f iant attempt is going to be made
to

county

or

*

■

Banking subcom¬
mittee and the Internal Security

j

board

//after "getting/at planning adVance/ how • would the Federal

Between the

•

school

or

/ small city gave up the project
t

.■<

>

repaid

started.

officials were asked
if the town

Agency

.

securities

|

-

or

what would happen

domestic

on

v

v

construction is

until

Committee Interested

•

;

to

the

of

SEC

the

undertaken

is

is that they need not be

J

«

■t

construction

started." The obverse, of course,

.

to evade
how the
look at it, the regula¬

securities,

Payments

Furthermore, "advances are
repayable without interest when

give enough informa¬
foreign buyer to

or

lawyers
tions of

;

Indiana, the ranking Republican
/ member of the full committee,
is author of a bill, S. 1601, which
5 aims

the iden¬

folder.

come-on

Easy

tage of his anonymity
or avoid, according to

{

considerable doubt as to
what the full Banking

j just

the

for¬

a

be; sure he is neither (1) an
agent of the Kremlin, or (b) a
foreigner who is taking advan¬

expected to get so far as to be¬
law this year./There is
also

force

can

about the

tion

come

y

S.

way

legislation

tity either of an American na¬
tional buying tnrough a foreign

amendments

these

of

None,

under

practical

no

eign bank to disgorge

1

.

sees

the> U.

in

consideration
in the securities subcommittee
of the Senate Banking Commit¬
tee.
Ohio's
new
conservative
Democratic Senator, Frank J. i
Lausche, is Chairman of this

mission are under

it

which domestic

by

designs,

surveys,

plans, and estimates, working
drawings, and other data essen¬
tial to the construction," says

general, however, SEC in¬

In

Amendments
the

Legislation

Opposes

washington, d. c.-

\~T

Telephone
HUbbard 2-1990

.

Boston 9, Mas
Teletype
'

BS 69