Full text of Commercial and Financial Chronicle : May 5, 1955, Vol. 181, No. 5426

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ESTABLISHED 1S39

In 2 Sections

Section 1

—

,t. Office

fVolume 181

Number 5426

New York

7, N. Y., Thursday, May 5, 1955

Price

Cents

Copy

EDITORIAL

Can Be Best Year

We See It

For Motor

Officiating at the laying of the cornerstone of
the new>
Washington headquarters of the Amer¬
ican Federation of Labor late last

By LESTER L. COLBERT*

week, President

Mr. Colbert gives

the

American
;

Federation

"If you come at me with
your fist doubled up,
will find that I will double mine no less

you

swiftly than
in the

you do yours. But if you come to
spirit of friendliness and negotiation,

will find that I will say, 'Come let us sit
down together and
there, I assure you, we shall
our

differences

are

fax

moderate,

business

exceeded

have been

most

our

tion

of those

earlier

The

year.

day

looks

While

the

are

answer

asked

problems of the trust

numerous

improvements
in

any

different

funds

why

our

amount

the

;

way

ple

are

purchasing

come.

Trust

erally

not
of

the

future.

Dinner

PICTURES
of

the

Hotel,

address

Peo¬

business

business acting with
postwar years they have

the

investments in

see

plant and equipment

new

Within

the

past
on

page

and,

consequently

ments

must

tread

SECOND

April 29,

Government^';

the

Conference
Lawn

New

in the SECOND

York, Inc., at

SECTION

the

19th

paper

Club,

are

insurance

accounts

must

not

True, the trust depart¬

lightly and adroitly between the

Continued
♦A

po¬

Mr.
the

April

Flaxman

delivered

Connecticut
27,

before

Bankers

the

page

Annual

Association,

New

Trust

Haven

1955.

Annual

Waldorf-Astoria

today's

issue.

Municipal

NATIONAL BANK
of INDIA, LIMITED
Bankers

HAoover 2-3700 ;

chemical
CORN EXCHANGE

bank
BOND DEPARTMENT

N.Y.

the

Government

STATE

AND

Office:

COPIES OF OUR NEW

Bishopsgate,

India,

land

£4,562,500
£2,851,562
Reserve Fund
£3,104,687
The Bank conducts
every description of
banking and exchange business.

Capital

and

Members New York Stock

Bond

Executorships

Dept. Teletype: NY 1-708

1832

Exchange

STREET, NEW YORK 5

Chase Manhattan

American

Exchange

CANADIAN

BROADWAY

^CUt/wtAt COMPANY

Orders

CANADIAN

DIRECT

WIRES TO

Executed

BONDS & STOCKS

Utilities Co.
COMMON

Analysis

DEPARTMENT

115

NEW

BROADWAY

NEW YORK

Dcwumox Securities

MONTREAL AND TOKONTO

goodbody
MEMBERS

amboy

Iowa Southern

Brokers

Teletype NY 1-2270

NEW YORK 4, N. Y.

BANK

Canadian Exchanges At Regular Rates

Bank and

perth

THE

Maintained

SECURITIES
Commission

New York Stock

•

14 WALL

Exchange

Members

Markets

Dealers, Banks and

CANADIAN

Stock

DEPARTMENT

34 offices from coast to coast

T.L.WATSON&CO.
ESTABLISHED

BOND

REQUEST

HARRIS, UPHAM & C°

OF NEW YORK

undertaken

bridgeport

Bonds and Notes

ENERGY

THE FIRST NATIONAL CITY BANK

Housing Agency

ARE NOW AVAILABLE

Protectorate.

Trusteeships

STUDY

Pakistan, Ceylon,

Authorized Capital

Paid-Up

Public

REVIEW"

Net Active

Dallas

"ATOMIC

Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

also

Insurance Stocks

RESEARCH

BONDS

London, E. C. 2.
West End
(London) Branch:
13, St. James's Square, S. W. 1.
Branches In

and

MUNICIPAL

Kenya Colony and Uganda

Head

FIRST

capital

SECTION—Candid pictures taken at the

Association

appear

the

State, Municipal

Securities

with

markets

beneficiary and the remainderman but here

•

falling

impaired by falling markets.

sition of the

days

Security Traders

in¬
gen¬

casualty insurance com¬
panies. The prime function of these
companies is the insurance business

Barnard Flaxman

way

Mr. Colbert at the First General Session of
the 43rd
Annual
Meeting of the Chamber of Commerce of the
United States, Washington, D.
C., May 2, 1955.

page

STANY

30 BROAD ST.,

that

concerned

remaining

confidence

Continued
♦An

with

looking
increased

are

marked

and

power

departments

and

Throughout

business

prospect,

and

confident because they

confidence.

and

For the

safety of
the greatest

income

impact

soaring to unheard-of levels.

telephone:

and

fire

Buying automobiles is just one
they express that confidence.

Colbert

fire

the future, for
thus seeking the greatest
protection against a possible decline

numbers.
In addition, people
showing confidence in the econ¬

omy
L.

the

utmost

getting

current

hope

ahead

company.

the

and

great

through the turmoil of later years even to
day of monopoly in labor blessed by the poli¬
ticians and sanctioned
by the great rank and file,

D. S.

that

are

may

j income,

product

long

accounts

problem is simply investing

with

principal

this

back—and the public has responded
by buying these new vehicles in

this

State and

from

casualty insurance

•

;

for

year

departments in the

trust

varied, generally speaking the philosophy
governing' such investment problems may not be too

has two parts.

than

emphasis

and

best

high

particular

selectivity.

For immediate port-

handling of investment funds for

now

its

not

have

sales

days, and who since have

In
the first place, competition in the in¬
dustry has never been more intense.
This has forced more changes and

seen

DEALERS

years—if

people

lived

Continued

heights and attractive cheapness.
folio policy, urges caution with

of the motor in¬

one

Also

income.

net

Holds historical perspective suggests common
now
in a middle area between
dangerous

are

common

Many

rather vivid recollec¬

the President's remarks tend to induce

best

automobile

larger unions and certainly not more than a frac¬
tion that exercised
by the amalgamated AFL and
CIO. They were the
days, too, when a man was
quite generally accorded the right to work with¬
out bowing his head to union bosses.
To those who still have

forecasts.

can

rates, and relative

year.

of the

any

if this

dustry's

stocks

doing in recent months has

optimistic
as

reasonable, and broadminded man. Those were the
days of an American
Federation of Labor, with
hardly more than a
shadow cf the power now exercised

formance.

manufacturing community where big
exciting things have been happening. The volume

Samuel
this

Those; of course, were the days of
Gompers, by comparison with those of
time

from

tax

country's economic growth, purchasing power
trends, and government stimuli, will bolster equity per¬

imaginary
"'.J <^ / v "

than real.' "

and

come

and

you

find that

and

maintains

(1) competition

sound investment, and predicts all things
demanded by our civilization can be provided if business
is permitted to do its job in an
atmosphere of competition
gram

•

(

interest

be the best

can

has brought more improvements in autos than ever before; (2) the people have confidence in the future and
are
buying autos. / Supports President's highway pro¬

cording to President Eisenhower, President Wil¬
Labor:

why 1955

as reasons

in history of the motor industry:

year

union. Ac¬

this

Investment expert offers data showing common stocks
more favorable
than bonds on basis of changes in

occasion for a
quotation
from Woodrow Wilson's address
when that earlier
President took part in a^ similar
ceremony for
an earlier
headquarters of the same

said

By BARNARD FLAXMAN*

Vice-President, Hartford Fire Insurance Company

President, Chrysler Corporation

Eisenhower chose the

son

;

Industry!

YORK

STOCK

1 NORTH

CO.

EXCHANGE

GRPORATI071

SALLE ST.

CHICAGO

Members

New

other

111

WHltehaU 4-8161

Boston

York

Stock

Principal

Exchange
Exchanges

Broadway, N. Y. 6

WOrth 4-6000

Teletype NY 1-702-3

request

IRA HAUPT &CO.
and

40 Exchange Place, New York 8, N.Y,

upon

Teletype NY 1-2708

Telephone:

Enterprise

1820

<
i

Commercial and Financial Chronicle

The
2

Thursday, May 5, 1955

(2066)

The Security

Brokers, Dealers

For Banks,

Bethlehem Steel

(When

1, 1980*

General Partner, Walston

AND

Quoted

Bought, Sold and
net

prices

"Competitive Table of

on bequest

New York

Hanseatic

Corporation
Established 1920
Associate

Member

Stock Exchange

American

York 5

Broadway, New

120

Teletype NY 1-40

WOrth 4-2300

PHILADELPHIA

BOSTON

Direct Private

Boston,

Wires

Cleveland,

Chicago,

Houston, Los Angeles,

Philadelphia,
San Francisco

Portland, Me., Providence,

$20

the

York,

San

Since 1917\

fcpONNELL & fO.
Members

York Stock Exchange
Stock Exchange

American

BROADWAY, NEW YORK 5
TEL. REctor 2-7815

Trading Interest In

American Furniture

Bassett Furniture Industries

Camp Manufacturing
Commonwealth Natural Gas
Dan River Mills
Life Insurance Co. of Va.

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

LD 39

saving^

Southern States

Oil

Company

Common Stock

Sold

Bought

Quoted

Eldon

Francisco

Grimm

Western

Western Air's
route network.
Fifty years ago
California was the 21st most pop¬
ulous state in the Union.
Today
it ranks second.
By 1965 Cali¬
fornia will almost surely possess

Exchanges.
(sometimes

Air Lines

spelled "Western Airlines") is a
fast-growing, domestic airline of
medium-size
which operates
north-south routes up and down
the entire length of the Pacific
Coast
and in other far western

New York 4

Air in the West

roughly

America's Senior Airline:

New

York

American

Members

Stock Exchange
Stock Exchange

19 Rooter St., New

Drink water's

York ft, N. Y.
NY 1-1557

HAnover 2-0700

La. - Birmingham, Ala.
Mobile, Ala.

New Orleans,

Direct wires

our

branch offices

JAPANESE
SECURITIES
may

have unusual appeal
with vision—

to investors

Air

Western

Baltimore.

line

Has

Applied

Lines'

experts

West¬

Disneyland, Palm

wood, the new

and St. Paul.
flight from

Springs,

mail

revenue

last year

1957.

via by

All

1956 and seven in

will

group

several

financed

western

banks.

For More Routes:

Western's

Management

Has

"WSX"

Other

Facts:

Ticker

symbol is "WSX". There are 1,864
employees and 6,500 shareholders.
Book value of "WSX" stock has
risen to about $15 a share vs. only
$4.53 in 1945 when the stock made
its all-time peak of 40 V2. Present

A final C.A.B. It pioneered "coach" class flights
matter may be in 1949, and Air Coach now ac¬
counts for about one-third of all
forthcoming this summer or au-/,
revenues.
It has become the first
tumn.
Western is also seeking

8%.

via Salt Lake City.

permission

this

offer

service

be-

airline to feature

4-engine flights

write

•••.;

Yamaichi
Securities Co., Ltd.
V

Established ,1897
Home

111

V'v

Office Tokyo—70 Branches

Brokers

Investment

Bankers

Broadway,N.Y. 6 COrtlandt 7-5680

A Continuing

Interest in

Continental Telephone

Co.

Grinnell Corp.

Kalamazoo Vegetable %
Parchment

price

year's

$20 compares with last
high of 18
and low of

Airline

Shares In

Bull Market:

Airline shares have been

Continued

Keyes Fibre Co.

BOENNING & CO.
Philadelphia 2, Pa.

amounted

Las

be delivered in

knowledge

potentiaL

was

Applications are pending for sev¬ Many New Ideas: Western's alert
eral more routes.
One is a pro¬ management has done a wonder¬
ful job in instituting new services
posed 980-mile run between San
Francisco-Oakland and Denver and ideas for the line's customers.
on

Call

western United States to

Air, now 29 years old, ranks
America's oldest
airline.
It

Angeles to the Twin Cities

of Japanese

Story:
"team" of

headed
by President Terrell C. Drinkwater, who became head of the
company in 1947, after association
transportation

investors with

Success

Vegas, Sun Valley, to only 3% of total operating
Grand Canyon, Yellowstone, revenues.
No
mail
subsidy is
as
Western again in 1954
started flying mail and passengers Grand Teton, Glacier National needed.
in 1926.
In 1928 it became the Park, B r y c e and Zion Parks, had one of the lowest "break¬
famous pioneer of the skies known Canada's Banff and Lake Louise even load factors" in the air trans¬
as
"Western Air Express."
The and Jasper, dude ranches in Mon¬ port industry.
present name was adopted in 1941. tana and Wyoming, the Black
Earnings
For Early
1955 Set
Hills, Mt. Rushmore, etc.
New Record: Western had the best
Subsidy-Free Operation: West¬
Passenger Revenues 44 Times first-quarter results in history in
ern
Air is a subsidy-free opera¬
Level
of
1939:
Aided by
this the initial quarter of 1955 and
tion and has enjoyed that status
"golden" and "radio-active" terri¬ earned 36c a share vs. 24c in the
since 1951.
tory,
the
company's passenger first quarter of 1954. However,
Operates in
Greatest Growth
traffic
has
shown
some
most profit in the first quarter of last
Area: This ambitious carrier oper¬
amazing growth trends. Passenger year was due entirely to capital
ates in the greatest growth area
revenues
last year were almost gain on the sale of assets. Hence,
in the nation. It has a 5,525 mile
4 times the level of ten years ago
the. improvement this year is ac¬
system serving 44 cities located
and were an astonishing 44 times tually greater than it would ap¬
in 12 western states, and in the
what they were in 1939, only 16 pear at first glance. Due to a sea¬
Province of Alberta, Canada. The
sonal trend in traffic, the third
years ago. Looking ahead over the
most
heavily-traveled route, of
next several years, it seems easy quarter is almost always the big¬
course,
covers the whole length
to predict that traffic will double gest earnings quarter of the year.
of
the Pacific Coast from San
from present figures. And, eventu¬ In the first quarter of 1955 oper¬
Diego
on
the south to the
ating revenues soared 30% to an¬
ally, it may triple.
Seattle-Tacoma area on the north
other new peak.
There are now
To Buy 12 More Giant Douglas
with a wide variety of schedules
740,963 shares outstanding.
For
linking such cities as Los Angeles, Transports: Western Air now has
the year 1954, profit was $2.04. a
San Francisco, Oakland and Port¬ a fleet of 32 aircraft, including
share against $1.66 in 1953. Earn¬
land.
This is
known
as
the eight 60-passenger Douglas DCings in 1954 included 52c a share,
"Coastal division." A second route, 6Bs,
six
66-passenger
Douglas
gain on sale of old aircraft, etc.
called
the
"Western
division," DC-4 Coachmasters and 18 me¬
In
1953,
profit included
11c a
dium-sized transports. There is a
runs from Los Angeles and vicin¬
share from the same source.
In¬
ity all the way up to the oil city substantial expansion in the
coming "cash flow" in 1954 (re¬
of
Edmonton, Alberta, via Las works. The company has just an¬
ported earnings plus depreciation)
Vegas,
Salt
Lake City,
Great nounced the largest new equip¬ rose to $4.49 a share.
Falls
and
other
intermediate ment purchase program in its
Dividends At New Peak: Cur¬
It will buy
12 more
points. A third route, the "Inland history.
rent dividend rate is 15c a quarter,
division," connects Rocky Moun¬ Douglas DC-6B four-engine, 60or 60c a year, the best rate in his¬
tain cities in Montana and Wy¬ passenger transports at a cost of
oming with Denver, Colorado, and $1,200,000 each, or a total sum of tory. In addition, a surprise extra
of 15c was paid in March this year.
also goes from Denver to the Twin $14,400,000.
Of the 12, five wiil
ern

decision

Phone Wll 3-2840

Members

population of any state. with American Airlines as a vicethe
Golden
State's president, and with Continental
Mr. Drinkwater was
population has doubled. In less Air Lines.
than the past ten years, the Los once an attorney in Denver, spe¬
Angeles metropolitan area alone cializing in air transportation mat¬
has absorbed a migration equal to ters. He has done an outstanding
the combined population of the job at Western Air. When he took
Eastern cities of Pittsburgh and over at Western 8 years ago the

Salt Lake City.

30 Broad Street,

Steiner, Rouse & Co.

visit doz¬ thanks to a lot of hard work, new
parallels that of Eastern Air Lines ens of fabulous vacation areas ideas and more efficient equip •
or
National Airlines in the East. there. Western Air boasts that it ment, Western Air is a subsidyHowever, out West, flying is es¬ reaches several dozen big-name free, profitable, dividend paying
pecially important because dis¬ vacation spots such as Puget line that is growing by leaps and
tances between major cities are Sound Playgrounds,
Mt. Rainier bounds.
so much greater than they are in
Mail Pay Only 3% Of Revenues:
National Park, Olympic National
the East. Western people are ex¬
Park, Columbia River Gorge, Red¬ As another measure of the extra¬
tremely air-minded.
wood Empire, Golden Gate, Holly¬
ordinary progress at Western Air,
Western

Los

Gordon Graves & Co., Inc.

Antonio, Texas.

government-subsidized,
areas
of the United States. Be¬
Serves Dozens
of Vacation it wasn't making money, no divi¬
cause
of its north-south patterns Spots: People from all over the dends were being paid and the
of flight, the basic position of free
world
travel
through the treasury was rather low. Today,

Cities of Minneapolis

on request

Co., Inc., San

(Page 9)

1933

Since

There is also a direct

Prospectus

the largest

An¬

Los

geles Stock

Rights & Scrip

Hobbs, Jr., Vice-President, Russ

resents the "hub" of

stock sells

and

'"s

and

—

Potentials: Well,

whose

Lines,

Specialists in

Bought—Sold—Quoted
Inc.

Industries,

Texas

New

120

Portland

between

—

let's take a brief exclusively along the Pacific
look
at the tremendous growth Coast. And, last year, Western Air
Out
West
in
California they
have a slogan which reads: "Bring potentials in this territory. There inaugurated its now-famous "Calis a huge amount of industrial de¬ ifornian" service on several of its
Me
Men
To Match My Moun¬
velopment and new building. top runs, offering free California
tains!"
Population growth is of mush¬ champagne, filet mignon dinners
In the rap:
v
room
proportions.
There is the and reserved seats to passengers,
idly - expand¬
feverish search for uranium in the plus vanda orchids for the ladies.
ing airline in¬
Rocky Mountain states. And don't Men receive select cigars on dedustry, one of
forget those giant atomic energy planning. All this de-luxe, "redthe major air¬
installations out West plus the big carpet" service is at no extra fare.
lines which is
atomic testing grounds such as the Western also has a new "Chargeout
matching
one near Las Vegas, Nevada.
A-Flight" credit card plan. West¬
the mighty
California To Be Most Popu¬ ern, along with other lines, has
mountains o f
with transporting
lous State: Take the case of just experimented
the
West is
one
state, California, which rep¬ first-class mail by air.
Western
A i r

around

New

Phoenix;

& Co.

Lines

Air

(Page 2)

Denver via

Calgary, Canada via Spokane; and
City
between Los Angeles and Mexico
Members of New York Stock Exchange
City. There are some others too.
and other leading exchanges
Tremendous
Further
Growth
Western Air Lines

♦prospectus on request

Values"

San Diego and

•

New York

RIGHTS

intended to be, nor *
sell the securities discussed.)

tween

ELDON A. GRIMM

Issued)

they to be regarded, as an offer to

are

Louisiana Securities

Eldon A.
Grimm, General Partner, Walston
&
Co., New York City.

Western

(The articles contained in this forum are not

31/4% Conv. Debentures
due May

particular security.

Alabama &

Their Selections

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

for favoring

Week's

Participants and

Forum

A continuous foram in which,

participate and give their reasons

Corporation

This

I Like Best

de-

John

B. Stetson Pfd.

Public Service Coordinated

4s, 1990
Pocono Hotels Units

Leeds & Lippincott

Units'

Cambridge Bldg. 4s, 1963
Pratt Read Co. Common

Samuel K. Phillips &
Members

Co.

Phila.-Balt. Stock Exchange

Pennsylvania Bldg., Philadelphia
Teletype
PH 37S

N. Y. Phone
COrtlandt 7-6814

Volume

Number 5426

181

The Commercial and Financial Chronicle

We Are Not

tion and

1955 Can Be Best Year for Motor Industry!
—Lester L. Colbert
I

home construction, assert¬

Interest Rates and the Money Supply—Robert B.
Blyth

Says

home construc¬

new

growth in child population is the result of

revolution

The Political

families, the increased marriage rate

bankers

with current building. Calls on mortgage
provide funds for needs of construction industry.

Scene

■

catch up

soon

,\A '

—S.

Clark

shall devote

most

income tax would be on $280,000.

talk

'x -—Dexter

v'.r-'V

;•

Beise

HELPS!

WALL STREET,

Telephone:

Keezer

these ads

Obsolete Securities Dept.

A'..'',V":A

write

BUT

Washington—Arthur Krock

•./,

The Outlook for Investment in New Plants and
I

Cobleigh

New Industrial Techniques and Their. Benefits

will

TO BE CRAZY

Competition: Old and New in Gas Industry—E. H. Collins-

income, and although annual rate of home construction
new

Notes—Ira

Metal

AND COMPANY

YOU DON'T HAVE

Cover

satisfying the enormously increased

merely

exceeds increase in

;___Cover

\,We Are Not Overbuilding New Homes—L. M. Cassidy

demand of people for better living.
in

Page

Investment Portfolios Today—Barnard Flaxman

Chairman of the Board, Johns-Manville Corporation

excess

LicHTfnsTfiri

Articles and News

By L. M. CASSIDY*

Mr. Cassidy decries fear of

INDEX

Overbuilding

New Homes

ing country is

(2067)

NEW

YORK

WHitehall 4-6551

Equipment
13

"to the

important contribution the Again the tax collector gave her
industry in all like¬ rthe answer. EnC he wa* curias
lihood will make to our economy -and he said: "Madam, I do not
in the future. -want to be prying into your afr
v •
Before
do- fairs, but would you mind telling
i n g
so,
I me why you want this informa¬
tion?" She replied: "l m trying 'to
,.v would like to
point out that make up my mind whether to buy
we
in Johns- .one
or
two * Irish Sweepstakes

Our. Commerce, Both Domestic and

construction

Must Be Expanded—President

/.....

The Businessman's Social

Foreign,

Maule Industries

Eisenhower

Responsibilities—Harry A. Bullis__ 15

Holly Corp.

•

Automation Is Here: So Adjust Your Sights"—Cledo Brunetti
A Look Abroad—Sen.

Economic Tasks Confronting Us—Leon H.

Margaret Chase Smith

Keyserling__

^Holly Uranium

•

\ Manville have

always
tained

tickets."

main¬

sure

1
cannot.'

■ -

'.-c" A The Real

anticipate

Toward

deep .coming events'as closely as that
interest in or with any .such degree of cock- |
>

about

L. M.

the

that,

c0Pe

Cassidy

fact

many

you

recall

may

'that Lewis H. Brown, then Presi¬
dent of Johns-Manville, played a

Jkey role in the formulation of the
mew

concept of

mortgage financ¬
ing brought about by the Na¬
tional Housing Act of 1934.
Today there are a great many
of short-term moderniza¬

sources

new

depres¬
pioneered in 1931

.home modernization.

Also,

reduced

sion years, we
>a new t.ype of time payment plan
•of our own for home
repairs and
>*.

of the

power

sion.

firmly

will

have

the

try.

-and

country's largest
exceeds

even

indus¬

When

consider

the

wide

our
economy
that is
by the industry, it is not
surprising that roughly well over

one-seventh

lor

goods

West

all

and

money

services

spent
1954

this

And

that

the

•contribution
■close

year

estimated

industry's
for

account

may

one-sixth

construction

of the

nation's

total output.

Currently, it is

ibillion

ihaving

some

industry. We are
big innings now, but

what

dustry

about

the

attempt
tions.
;■

Perhaps I
the

$60

year

woman

construction

in¬

future?

I hesitate
specific predic¬

any

not

certain

called

who

the

Collector of Internal Revenue and
asked what the income tax would
be

He told her and

$140,000.

•then she wanted to know what the
*An

address

Cassidy at the
Eastern
Conference
of
the
Mortgage
©ankers
Association
of
America,
New
York City, May 2, 1955.

»•'

Mr.

the

vacated

Says

into

new

There

Trust

Guaranty

Industrial

homes

Construction

specialized in

••:

yy;v::.

■

As We
Bank

See It

and

the

live.

can

been

income

Albany

•

Nashville

•

Philadelphia <fi

Lake

City

CorpusChristi Refining Co.
Cover

Stocks

Cutter Lab.

Gulf Coast Leaseholds
8

Dealer-Broker Investment Recommendations

Einzig—"Is

Higher Bank Rate in Britain Coming?"

From Washington Ahead of the News—Carlisle

older

And

afford to

Riddle Airlines
*Prospectus

Bargeron

•

Indications of Current Business Activity.

what

•

than

NSTA

Funds

true

the

Notes

—

News About Banks and Bankers.

Observations—A.
Our Reporter on

Our

Wilfred

May—

Governments

securities

Philadelphia.. Chicago.. Los Angeles

25
46

Securities

Railroad

Direct Wires

Reporter's Report

Public Utility

;

$10,000

which today is a reason¬
ably satisfactory one.
In 1939, only a quarter of these
families could afford the equiva¬
lent house, then about $5,000. That
constitutes a revolutionary change
of the most far-reaching impor¬
tance in
the matter of housing
demand,
it is a change that few
people have fully grasped. And
today considerably over half of

over-the-counter

40 Exchange PI., N. Y.
Teletype NY 1-1825 & NY 1-1826

United

rule-of-thumb

Request

HA 2-0270

revolu¬

250

trading markets

Singer, Bean
& MACKIE, Inc.

maintain

Mutual

move

Corporation*

Coming Events in the Investment Field__

are getting over $4,000 a
and therefore can afford—
according to the standard bank¬

NEW ENGLAND

—

house,

New York

Continued,

page

Securities

Registration

Now

Prospective

Offerings—

Security

Stock Exchange

The Market

TELETYPE N. Y. 1-5

Chicago

Schenectady

•

Glens Falls

r__L

L~.

and You—By Wallace Streete..

The

State

Trade

Washington

and
'

■

and

Industry..

You

___

Drapers'

Gardens.

London,

■

; -

Eng-

ore

Company

ttttt t tam
WILLIAM r niiuA COMPANY PUbUalieri
B. DANA COMPANY, Publisher!

2-9570

WILLIAM

1942,

v..

Pr«ld«t

SEIBERT,

ruf™™ ?tcT
.).

and city news, e

ClearlIle!,•

Worcester
Chicago

Offices:

3, 111.

135

depend

New

fluoride by

ex¬

uranium from crude
on

uranium fluoride

office at

metallic

all techniques for

pure

the
or

reduction

uranium tetra-

calcium."

March

Subscriptions
Possessions,

South

(Telephone

United

17.

Members

States,

Territories ' and

DAYTON HAIGNEY & CO.

Domln^of

Incorporated

Other Countries, $62.00 per year.

Thursday "(general news and advertising issue) and every Monday (complete statistical issue — market quotation

Other

the post

Subscription Rates
«

Thursday, May 5, 1955

bta.e

to 9576

SEIBERT, Editor & Publisher
DANA

25,

high purity
Company

producer

York 7, N. Y.

HERBERT D.

ary
y

sole

"At present

tracting

second-class matter Pebru-

and

magnesium.

calcium in the U. S. A.

calcium

free

the

land, c/o Edwards & Smith.

Reg. XT. S. Patent Office

has

boron

___

—.

CHRONICLE

FINANCIAL

—

■

owned,

contract with

Energy Commission to
enlarge the facilities of the $5,000,.
000 plant for the manufacture of
metallic

■

100%

additional

the Atomic

Security I Like Best

The

Metals,

signed

Salle

St.,

STate 2-0613);

75 FEDERAL STREET

Other Publications

Every

•

LIME COMPANY

44
Nelco

CTDPIlfC

H H L U JlUUAO

—

Securities Salesman's Corner

;

ST., NEW YORK 4, N. Y.

•

Teletype: NY 1-4643

Dover

the

year

» II L I L

Boston

request

Chesapeake Industries

...

Business Man's Bookshelf-

families

D D C C C D D C

TELEPHONE HAnover 2-4300

-v-

■

(Editorial)

Insurance

REctor

Members

•■■■

generation

Spencer Trask & Co*
BROAD

.;v,

Regular Features

25 Park Place, New

,
.'I

/•

Published Twice Weekly

have

r'.

Sharply, According to

The COMMERCIAL and

For many years we

Broadway, New York 4
Direct wires to

somewhere

homes.

has

•*

(

"Survey"

George Cline Smith

States, not merely a marking up
of wages and prices through in¬
flation. Today nearly three-quar¬
ters of our 37,000,000
non-farm

er's

;j__ 23

Salt

old

they

more,

Prospectus

••

•>.

or
where

not

Guaranteed Wage Requires Guaranteed Markets,

homes

suburbs

South,

the

J. F. REILLY & CO.

Hear! Hear! (Boxed)

new

into

move

the

satisfied

were

tion
'

else—but

■

year,

newly-built

own

folks

into construction.

;went

into

ing

Wilson

mostly obsolete in de¬

are

'}.

DIgby 4-4970

sign and equipment, and are gen¬
erally in the olders sections of
cities and, also, in the older parts
of the nation. They insist on mov¬

sector

•covered

that

fact

1,600,000

old

into

their

the

•"

Motherhood—Alexander

;

buildings. But today, these young
couples do not want to

agriculture

defense.

Tribute

Recommendations of Cabinet Group on Rail Regulation

married
which

when

•

war, two-thirds of
families would
have

new

satisfied

move

.now

._.

Rand, McNally & Co. Issues New 1955 Bank Directory

the
seen

the

Before

Moreover, sound and adequate
financing in the construction inadded importance
bear in mind that it is

about

marriages this
r

es¬

assumes

Corpus Christ! Refining
'

read

This

cance.

:in the mortgage field.

'dustry

:}i

permanent pattern

A A Danger of Competition—Roger W. Babson__

that, although we
are building at an annual rate of
1,400,000 homes, net increase t in
families this year will only be
about 650,000.
While this is true,
another
figure
which
is > often
overlooked is of greater signifi¬

self-liquidating

become

"Modern" Monetary Policy Contributes to National Progress
A-M. S. Szymczak
^______

the

You

been

tablished

will

published figures
might lead to this conclu¬

these

imortgage has

which

others

some

which

irates.

the

immediate

may be overbuilding in
home field.
You have

tion, loans available at reasonable
And

our economy v

during the next decade.
Currently, as you know,-the
question is being raised whether

wi*h

the

..purchasing

and

having

American States Oil

Upgren__i_ 21

felt

quite proud of
-

are

effect

trends in

some

which

nancing.
W

Favorable Business Climate—Arthur R.

Main Street's Stake in World Trade—Eugene E. Holman

But I would like to talk

sureness.

conf i -

struction

,/•

sound

Estate Outlook—Leffert Holz

Bank

and

Quotation

$37.00 per year.

Record

—

Monthly,

Note—On account ol the fluctuation. In

the

,-ate

BOSTON

10, MASS.

(Foreign postage, extra.)

exchange, remittances for for-

elgn subscriptions and

advertisements must

be made in New York fund*.

Telephone

Liberty 2-6190

A. T. & T.

Teletype BS 596

V-.

' \

The Commercial and Financial Chronicle

(2068)

and

Interest Rates and
The

Money Supply
I

reviewing role of interest payments in the economy.
a two-edged
(2) it is income

Treasury spokesman points out the interest rate is
sword, viz: (1) it is

cost to borrowers, and

of interest rates

monetary

policy, because of impact

"flexible" monetary
The interest rate is close to the

in payments to
government investment accounts
(largely Social Security and Un¬
employment
Compensation
re¬
serves). In addition, $300 million
more
interest
was
paid to the
Federal Reserve Banks, who, as
you
know, return most of their
excess
earnings to the Govern¬

Praises

such issues.

policy.

prise
system.
Our
commercial
banking
system,
life
insurance

dustry and agriculture, but it is
only the accumulation of capital
brought about through the efforts
of the financial community that

companies,

makes

mutual

system

heart of

American free enter¬

our

sav¬

possible.

ings banks,
savings
and

terest

rate.

loan associa¬

tion

exist

not

tions,

are

built
the

banking

The

companes
without the in¬

utiliza¬

superior

interest rate mechan¬

of the

million

$600

ment. Commercial banks received
the

amount

same

1954

1946.

This
our

the constructive side of

While the

national debt.

tional

the

either

that

citizens

many

many,
own

share of

small

this country, both to at¬ it
directly or have an interest in
capital and put it to work, public or private insurance and
has been a major force working
pension plans. Our E bonds en¬
toward widespread home owner¬
courage thrift, enabling the citi¬
ship and higher standards of liv¬ zens of the country to accumulate
ing.
funds for the future, for emer¬
tract

interest

These

organizations
c
o m p e t e
strongly for

retirement. The pay¬
to
private pension
payments that are made funds, and to our Social Security
and Unemployment funds help in¬
by the United States Government
dividuals plan their futures with
on its debt to see who receives the
interest that we pay out. Last year less fear of employment and being
to
work
as
the
United
States
Government unable
they grow
In

looking

interest

public —
offering

into

the

matter

gencies

interest

the

dollars

the

interest
Robert B.

inducements
for

Blyth

savings

rates

let

examine the

made

ments

sword.

dividual

the

Sword

who

and

the

borrows

home.

ment.

two-edged

hand, it is

one

business

cost

build

in¬

capital

On the other hand,

income

represents

the

in¬

and

brokers

—

mort¬

and

also
work hard at some aspects of this
job of bringing users of capital
.and-suppliers of capital together.
No other country in the world has
such
an
effective
and
fiercely
competitive financial community
bankers

gage

which

brokers,

and

first

works

accumulate

capital and then to put it to work.
Our

ever

rising standard of living

is properly attributed to the pro¬

ductive

genius

American

in-

million
and

address

Blyth

Mr.

Conference

Bankers

Association

York

City,

May 3,

before the
Mortgage
America,
New

Changes in interest rates affect
the

willingness
the

individuals to
on the

hand, and

one

they

affect the ability of
business to use capital profitably,
considering the interest cost. In
addition, changes in interest rates
other,

set in

play other forces. For
ample, when interest rates go
which results in

prices,

ex¬

up,

decline in bond

affects

willingness

the

of insurance companies and banks

to accept this loss when they con¬

sider

transferring

ments into other

invest¬

these

activities.

new

Specifically; in the- case of
company, if a loss

insurance

portfolio,
make

they

may

such

sell

and

loans. This
lending activi¬
ties of insurance companies to the
tends

mortgage

new

limit

the

amount of their cash flow.

In the

this should be regarded
as
a
normal
situation.
Thus, a
higher interest rate level not only
produces some reluctance of bor¬
rowers to
use capital, but it also
instills caution on the part of the
long

run

lenders.

certain

times in

Constructive Job

our

economic development this is de¬

sirable.

Our Economy
In

just

the

citizens of this country. It

same

terest that is

rent income to
our

owners

cur¬

of most of

securities; it is future income

holders of E bonds and

to the

paid

the in¬
home mort¬

way,

and on other debt instru¬
ments, is doing a constructive job
in our economy. It is making it

possible for insurance

companies

beneficiaries of insurance policies

to offer individuals insurance pro¬

and

tection

pension plans.

Many of these dollars paid to
banks
and
savings
institutions
to

in turn, paid out
savings depositors.

more,

some

banks,

interest

Further¬
of the dollars paid to

insurance

companies

attractive

rates.

making it possible for pension
funds, for charitable foundations
hospitals, college endowment
funds, etc., to accumulate capital
and use it effectively not only to
provide for the future, but to help
meet current operating
require¬
ments in an orderly fashion.
The

level

interest

rates

year-end dividend for 1954 of 8%,

equal to about $21

per

country, based on our government
bond

Fl. 1000 share, and about

$1.05 per Fl. 50 share. Payable on or

1955, against coupon No. 63.

when

adds

its

loans

buys

supply is
created.
Monetary policy is con¬
cerned primarily with this process
of
creating money supply.
At
times, policy is directed toward
encouraging the creation of
money supply in orders to add to
the spending stream and stimulate
the economy.
At other times it
securities,

seeks

new

money

restrain

creation

the

supply which
could
only result
in excessive
stimulation to the economy and
perhaps to unstable conditions and

exceess

money

inflation and the usual later defla¬

held at reasonable
There is, however, another form
rapid growth of sav¬
of money supply in which you as
ings, by the strong competition
bankers are primarly
within our financial community, mortgage
This is the "Pool of
and by the wholesome influence interested.
of the Federal
Reserve System. Long Term Capital Funds." This
Actually, interest rates in this pool of savings is steadily being

Philips' Gloeilampenfabrieken

...declared

bank

levels by the

Banks, Brokers and Dealers

N. V.

speaking,

tion.

this country is

For

immediate
Generally
commercial

for

form

spending requirements.

gages,

and individuals keep on hand

liquid

market,

are

low

compared savings

with other countries. Our 3% rate

after April 27,

governments

long

compares

with current rates of about 3V4%

accumulated.

Canada, and about 4% in Eng¬
a matter of fact, the only

shares,

deposits,

companies, pension profit
sharing and endowment funds. It
includes the direct investment of

free

country
rate

with

Europe

Switzerland

new

are

understand

between

money

that
monetary
policy
diametrically opposite im¬
pact on these two forms of money
supply. Restraints on the creation
of bank credit inevitably tend, in
the long run, to encourage addi¬
tions to the Pool of Long Term
Capital.
The present Administration be¬
lieves
strongly in
the flexible
monetary policies that the Fed¬
eral Reserve System has followed
in the last two years. These poli¬
cies were designed to discourage

has

the

excess

credit

bank

use

Today, the excess reserves that

designed

were

of credit

use

to
the

banking
discount rate

the

tem,

and

been

raised

the

encourage

last year have been

from

removed

from

1%%

sys¬

has

1%%.

Basically, these actions have been
taken because the economy is so
healthy that it no longer needs
the stimulus of the

excess reserves

and the lower discount rate. There
are

reserves today, but
shortage of credit for

excess

there

legitimate business purposes. Un¬
der these conditions, future de¬
velopments in the economy itself
will
primarly determine the
course
of the money market.
If
the
economy
moves
ahead too
rapidly, credit restraints will de¬
velop
largely
through
natural
forces, although ample credit
be

should

available

normal

for

growth. The underlying objective
of monetary policy is to promote
the sound, long-term growth of
the country, and we believe that
the flexible monetary policies of
the last few years have had a
constructive impact.
As I said, the interest rate af¬
fects the supply
of bank credit
and the availability of long-term
credit for business and individuals
from non-bank sources in

directions.

opposite

A rise in interest rates

increases the incentive to save on
the

part of individuals: it permits
companies to offer more
attractive terms on insurance; it
insurance

permits savings banks and savings
and loan associations, as well as
commercial banks to offer higher
interest rates to their depositors
to encourage

savings; it forces the
such as busi¬

borrowers of money,

and states and local subdivi¬

ness

sions to

pay

higher rate to at¬
savings.
As a

individual

tract
matter

of fact,

vigorous sound

normally can

advance in business

sustained

with

only

back¬

ground
of
interest rates high
enough to attract a large volume
of long-term
capital from nonbank sources.

industry

Record

The
I
for

would
a

1953
a

like to

Since

take

1953
you

back

moment to the first half of
which has been described as

period of credit restraint.

Continued

govern¬

Sold

Quoted

have

seeking

The

where

New York Hanseatig

Corporation
Established 1920
Associate, Member American Stock Exchange

120 BROADWAY

•

Telephone: WOrth 4-2300

NEW YORK

5, N. Y.

•

PHILADELPHIA

has

TRADERS

the

country. At times, this means en¬
couraging banks to lend money;
at other times, it means restrain¬
ing the excessive use of credit
which
could
only produce eco¬
nomic instability and perhaps in¬
flation. The Federal Reserve Sys¬
years

CAGE HELP
Are you

Boston, Chicago, Cleveland, Los Angeles,
Houston, Philadelphia, Portland, Me., Providence, San Francisco.

with living in the East?

We have openings in our

proposed

new

offices

experimenting for many

at the request of the Treas¬

Rocky Mountain country.

Call

write

—

pegged markets and
price-supporting purchase of gov¬

John F.

ernment
Direct Private Wires to

fed

with

ury,

BOSTON

Reserve

important responsibility for influ¬
encing the flow of credit in this

tem after

Teletype: NY 1-40-1-2

investment.

Federal

ing
In

securities, is now follow¬
flexible monetary policy.

reality, this means flexible in¬

terest

rates.

That

monetary policy

what

effective.

makes

ReilEy, J. F. Reilly & Co.

Broadway, New York 4

The

'puge

their capital needs are well below
the volume of capital that they

Bought

of credit in 1954.

use

individuals in mortgages, in stocks

lower

distinction

create

basically

inflationary.
is important

and

land. As

foreign securities

not

and

It takes the form of

ance

supply

derstand

accumulations of dollars by insur¬

bonds

of Long

supplied
by
bank
credit
and
money supplied by genuine sav¬
ings. It is also important to un¬

re¬

issues

from

Pool

the

is early 1953, and to encourage the

present in their government bond
luctant

Capital Savings in the hands

this

ness

business

$400 million

payments go to the direct or in¬
direct benefit of the great mass of

the

1955.

over

the Federal Reserve Banks. These

are

*An
Eastern

non-financial

little

not

loans made

individuals

institutions

to savings institutions,
banking system.

company,

and the

money

deposits, conveniences, and bank¬ paid $6.6 billion in interest, in¬ older.
The Impact of Interest Rates
ing services for bank deposits and cluding accrual of interest on our
It is a real source of gratifica¬
On Monetary Supply
all forms of protection for insur¬
Savings Bonds. Of this total, an tion that these interest dollars we
ance
dollars. They work hard to estimated
Interest rates are important in
$1.9 billion went to in¬ are paying out are helping pro¬
accumulate the dollars of the pub¬
dividuals, and $1.3 billion to gov¬ vide jobs; that they are helping monetary policy because of the
lic, and then work just as hard to ernment
investment
accounts; encourage habits of thrift; and impact they have on money sup¬
place these dollars with users of $600 million was paid to insurance that they are helping our people ply.
The common definition of
capital — perhaps an individual companies and savings banks, $300 provide for the future. In this money supply is the currency in
building a home or buying a car, million to miscellaneous investors way, the interest cost to the Gov¬ circulation outside the banks, and
a
business that needs additionl which includes
the adjusted demand deposits of
pension funds and ernment on our national debt is
productive facilities, or a mer¬ endowment funds, and $300 mil¬ doing much to bring economic se¬ the banking system. This money
chant that needs to add to his in¬
is in effect, the active
lion to state and local funds. Other curity to our citizens which pro¬ supply,
ventories. Other members of the interest
payments
include
$1.4 vides a solid base for sound eco¬ working capital of the country—
financial community—investment billion to commercial
the reservoir of funds that busi¬
banks, $400 nomic progress.
dealers

Investments
added

Term
of

Thursday, May 5, 1955

directly
funds

dividual investor, to the insurance

na¬

liability on our
balance sheet, it is an

national
asset

debt

ism

all

around

rate.

Our

insurance

and

could

the

principal beneficiary of
payments, receiving
$700 million more in 1954 than
in the earlier year, all of the in¬
crease
going to Savings Bonds
holders. Individuals also received
of

genuine market for long-term government securities so as to
enable institutional investors to acquire

Individuals

1946.

Two-Edged

The interest rate is

save

supply, and reveals aim of Treasury is to establish

money

the indirect benefit of an increase

Stresses importance

institutional and individual investors.

than

1954

the increased

Assistant to the Secretary of the Treasury

After

were

By ROBERT B. BLYTII*

to many other organizations
owning our securities go toward
paying the salaries of employees.
The Treasury paid $1.6 billion
more
interest on the public debt

Dlgby 4-4970

Volume 181

Number 5426

The Commercial and Financial Chronicle

(2069)

status

The

Production

State of Trade

Retail

Food Price

and

The

Trade

Commodity Price Index
Auto

Industry

Index

TJe trendall-time
of over-all
an

industrial output

peak

week as indicators of

manufacturing activity

Tonnage output in
the
corresponding year ago level.

most

industries

well

was

gains in those four

were

declined

week

ended

Employment Security put the total
drawing unemployment com¬
1,499,000, a drop of 4,300 from the week before and

2,206,200

s^eel

industry labor will

take

year

ago.

tough attitude in wage
steel prosperity has
placed labor in the best
bargaining position in years, "The Iron
■Age, national metalworking weekly, states this week.
/ 'yr'ti
Wages are the only issue, so the steel union will

^negotiations which will

•

the rolls the like week

soon

80 to 100

relationship

pressure to

now

exists

they

Producers
were

last

when a 12^ wage package brought a $3 a ton
price increase.
Other operating costs have risen and the
mills feel they have to
recover these costs to maintain a
good earning position, declares
this trade authority.
$4

per

ton average price increase if

the wage raise follows the pattern.

Many customers are finding their inventories out of balance.
They are still struggling with the problem of delayed deliveries.
But

even

and

analyses

-will also

when

deliveries

may

occur

are

schedule, urgently needed sizes
This is happening in bars and
important products.

For

practical purposes, most steel products are now booked
through the second quarter, concludes "The Iron Age."
In the automotive industry, five new
weekly United States
and Canadian production records were in the
offing last week as
car

and truck

building continued to

roar.

"Ward's Automotive

Reports" forecast the April 25-30 week
car-truck output at 219,212 units, with cars alone at
187,060, and
combined United States and Canadian production at
232,705, all of
them new highs.
■'.
The new peaks toppled records of
180,647; 211,998 and 225,074,
,

respectively, set just

week earlier.

Canadian production, "Ward's" said, will also take individual
honors with new high counts of 13,493 cars and trucks and
10,488
cars
alone on tap.
The record volumes top previous crests of

13,076 and 10,241 logged the week before.
The scorching building tempo brings total April United States
car-truck output to an estimated 883,000. Cars will tally 755,000
and trucks 128,000.
United
at

32,152,

which

States

truck

construction

two-year peak.

the past

week

was

pegged

The cumulative 1955 truck erecting,

week earlier passed the year-ago stage for the first time

this year by a
to 3% lor

slim 0.7% edge, was slated to increase the margin
the past week—392,950 as compared with 381,196.

Virtually all assembly lines
on

Saturday last.

search disclos-

ing

were

scheduled to be in operation

Elsewhere, daily overtime and six- and

seven-

day work weeks were in order at plants producing engines, trans¬
missions and other "hot" components, a shortage of which might
cool the current blistering pace.
According to the statistical agency, Canada's combined April

Continued

the

page

the

purchasers

anticipations,
and

Moreover,
of

A. Wilfred

and

characterize

lag

->/■. Value

May

three

And that

during that long
cyclical troughs stock

period, at
prices varied

from

lag of

lead

month.

one

Divergence Even Greater

tion—as

World

Manager of

our

there

barometer

mometer of

business

nor a

was

indicators, as
building contracts,

orders for durable

ther¬

measured

statistical

dential

goodsj

resi¬
new

gross na¬

tional

product, corporate profits,
bank debits, or price indexes. And
in 1953-'55 the stock

certainly,
served

timing

neither

General

price advance
and degree,

barometer

economic

which

investors

aging

business

liabilities
new

nor

upturns

Broadway

•

New York 5, N. Y.

considered

in¬

fur¬

Rand, McNalfy&Co. \
Issues Its New 1955
Bank

stock-market

Directory

judging

vs.

Resources

1929

the

does

banks

Study

all time high.

the

were

year

lion.

Nearly half, or $5.3 billion, went
loans; $4.9 billion went into

stock

into

Government

tion

billion into other securities.

than

the

was

case

1929;

speculation is less rampant, credit
for trading purposes is smaller,
stock prices as measured against

1955

up $11.9 billion
earlier to $234.1 bil¬
lion; deposits were up $10.1 billion
to $213.1 billion and capital funds
were
up $1.4 billion to $18.5 bil¬

from

steer

listed

edition, is at

the realities of the business situa¬

and

other

securities,

assets

and

decreased

$2.3
Cash

$0.6

billion.

either

American

history

measuring
present

(P-

the

state

the

for

norm

soundness

the
ST.

Such
because
wealth

middle-of-the-roadism,
it

combined

supporting

with

data

GEORGE, S. I., N. Y.—Tal¬

mage

& Co., members of the New

volume

contribution

York Stock Exchange, have

and
a

commentary throughout, makes
this

Talmage Branch

market."

39)

highly valuable
clarifying the is¬

under the management of Eugene

Rosenfield

and

Edward

May 2,1955

failures,

Bonner & Gregory

announce a

is also pointed out that in the fore¬

change of firm name to

casting of future business activity,,
consideration is given to the in¬
fluences
sumer

ing

likely to determine con¬
spending, business spend¬
investment goods, and gov¬

ernment

Members New York Stock Exchange

goods

the

and

Treasury's

and the admission of

fiscal

debt management policies.

expenditures

services, the volume of bank

indicators do

some

GEORGE M. GREGORY

seem

serviceable, the "forecasting

business"

surely

still

National

Bureau's

FRANCIS X. COLEMAN

remains

non

correlation

event

cited

F. OAKLEY CRAWFORD

stock

price

before-the-

added

thereto

appreciated that it is

difficult

The

must

be
to

prises

admitted
some

inferences

stock

that

our

this
com¬

WaWOfM

jteutMoJ

.J. M.

objectivity

Telephone:
WHitehall 3-7600

Corporate Teletype: NY 1-865

Municipal Teletype: NY 1-1691

own

previous convictions, rather than
being
wholly validated by the
Study. The latter's general mid¬

dle-of-the-road

& Gregory effective

April 29, 1955. All the remaining partners of Bonner &
Gregory will continue as partners in Gregory & Sons.

Neutrality

extent

fit

Peter E. Follar retired from Bonner

even

forecast

Study's Olympian

conclusion

general partners of the linn

Then, with the

barometer and at-the-event
—

Sta¬

Private Wire System to all

opened

branch office at 27 Hyatt Street

pres¬

orders, construction contracts,

120

institutional

and

will

include

prices than business activity.

Exchange

policies

indicators

watch

business

thermometer

Members New York Stock

indicated recently, shortly follow.

use¬

market behavior is much closer to

hours worked, new incorporations
and sensitive wholesale prices.. It

must be

Stern, Lauer & Co.

proper,

its Hearings, will, as we

thermometer.

the

Bond Department

in sounder

neither

War

less

movements—both
as

based

con¬

follows:—"Recent

(a fact freely admitted
by Geoffrey Moore, who prepared

firm

findings of the Committee

Last Dec. 31, reports the 1955
earnings or dividends are Blue
Book,
there
were
14,461
relationship, etc. How¬ banks and 6,807 branches in the
regularity between the
ever
United States, Alaska and Hawaii
[sic]
it
is
questionable
turning points of stock prices than
whether it is prudent to use the
in
the
earlier years.
or
140 fewer banks than a year
Certainly
point of culmination of one of the
during the active 1946-'48 period
earlier, but 484 more branches.
the bearish stock market served worst speculative bull markets in

Since

even

tistical Indicators).
our

Ful-

judg¬

are

stock-price trends."

uncertain

associated with

where

future

economic

Likewise

Chairman

vesting,

the trough.
of
a
definite
conclusion
However, accom¬ clear
panying this finding is the re¬ whether the current market level
minder that the cyclical peaks of is determined
by criteria of value
stock prices varied from a lead of or elements of old-time specula¬

Recent

bright's Committee, it contains no
legislative recommendations. The

ther in next week's column.

months to

the market. Submitted

report

rec¬

months

While

now

the

however,

statistical
be only of limited
past

future

months.

tax

these

believed to be relevant in

months

market, the impact of various in¬

current

led

two

credit in the stock market,
workings of the stock ex¬
changes and the over-the-counter
the

Meanwhile, this preliminary fac¬
tual "Bible," so valuable a con¬
tribution in various areas, as in

volume

stock

sellers

and

prospective

prices

credit,

Peter E. Follar

prices presumably
changing anticipations

age,

peak

Rand, McNally & Co., publishers
of the Rand McNally Bankers Di¬
will not readily dismiss such sta¬
rectory, now in its 158th edition,
tistical information as has been
reports that consolidated resources
built up in the past, and which is
deposits and capital funds of the

that,

seven

book¬

staff

behavior,
generated
uncer¬
by
tainties of the future, the analyst

aver-

months

201-page

business, the prospective earn¬
ings and the like. With respect

may

the

how¬

psychological, as distinct
influences, may
play a highly significant role.
However, / despite the waves of
optimism and pessimism which

busi¬

showed
on

behavior,

cerned,

activity

ness

stock

from

1938

those

general

by
of

ments

in¬

with

and

pleasure in announcing that

■'

turning

points

six

and

stock

ords may

comparison of

and

We take

fulness.

that

not be available.

with other

It cites the comprehensive study

the

higher prices.
go easy as

•year,

least

MARKET.

of statistical indicators by the Na¬
tional
Bureau of Economic Re¬

1899

between steel labor and
management.
For steel users, the result will be

STOCK

stock

absorb

The outlook:

Commit¬

from

operating costs, this trade journal notes.
No strike is in sight. Both sides now
seem
willing to settle
.the single issue of wages at the: bargaining table. There will
be'
•sharp words, but the fact is that a good

much

Currency

prices

tions

reflect the

and

dustrial

management is striving to increase stockholder
dividends, which
>have lagged behind other industries and is
in no mood to

•will not be under

one

Banking

for all

fight to keep wages within reasonable
This year's first quarter
earnings were exceptional. But

(pp.

original ever, is peculiarly concerned with
of many con¬
discounting the future. Fluctua¬

tee's just-issued Staff Report, cap¬
tioned
FACTORS AFFECTING

hour, but it

press

will bear. It may settle for
<will put up a stiff fight for more.
Steel companies will

"Stock-market

Committee's

questionnaire—is

Current

open.

•the traffic

.bounds.

the

16, the Department's Bureau of

pensation at

well under the

query

Robert

fluences

structive components of the Senate

THE

April

follows

weather—which, incidentally, 28):—

prompted the final

but

negligible.

the

Fulbright

United States Department of
Labor reported the eleventh
straight weekly drop in the number of idle
workers getting job¬
less pay.
J
For

price movements demon¬

strated

barometer of busi¬

as a

impor¬

bank

relating economic data

to stock

ness

above

all

area

movements

■

unemployment compensation

four states and the

continued

this

structure

the

Wallace, the Com¬
director, contains
tables and charts showing mar¬
ket movements,
explanations of

legendary function of stock price

appeared to be ap¬
the period ended on
Wednesday of

edge higher.

Claims for

The raising of doubt about that

Report,

mittee's

Barometer-Thermometer

—Report from Washington—

J
proaching

Production

Stock Market

highlighting

let, compiled under the direction

By A. WILFRED MAY

Business Failures

concurrent

the

securities

tance of value criteria.

•

the

—as

Observations.

Electric Output

Carloadings

constituting

sues

Steel

Principal Cities in the United

S i at es

Love.

The Commercial and

moreover,

approximately cur¬

COBLEIGII

could create

the

word, "in-

f 1

n."

not

Polly-

the

persua¬

anna

sion,

sions.
may

built

tically

der

econ¬

but

omy

in prac¬

energy"

in the portofolios
trusts devoted to

list, and

investment

As respects quality of invest¬
ceiling over
climb on ment, Kennecott probably takes
escalator at any top billing. A magnificent bal¬

inflation

surely

and

time,
tion

a respected manage-;
long dividend record (un¬
broken since 1934) and a $42 mil¬
lion investment in South African

ment,

the

start

would

prices

moving.

steps

mines,

uranium

and

gold

comment is offered
brief introduction to today's

This capsule
a

sheet,

ance

important

any

in employment, produc¬

Kennecott

both

common

give

invest¬

growth potential.

ment status and

since this All this on 5%%
yield basis (as¬
class of equity has a considerable
suming a $6 dividend).
history and validity as a hedge
For those of a more specula¬
against inflation.
Further, even tive
bent, we suggest a look at
at today's exalted market levels,
Ccrro de Pasco, currently selling
the shopper for yield here, can
shares,

metal

topic,

worthy equities

still tick off some

yielding 5% and more—items

Kennecott, Phelps
Joseph Lead, to be

Anaconda,

Dodge and St.

specific.

the Supreme Court ruling that all natural gas

prevent adequate

dealers to

gas

supplies of natural gas. Urges both oil and
government price regulation on ground

oppose

ings
that.

This

is no longer available. Every
field that has been
"dedicated" to supplying present

gas

individual gas

mative

tak¬

other ways.

find

fluctuates

yields are pretty slim on all
aluminums.
For
example, Alu¬

rent

sells

America

Co.

minum

short

basis

ted reserves will not

on
H.

term

Co.inis

pays

meager

significant current
is the price

most

The

metals

the

that is. Take copper.
A month ago the domestic price
moved from 33c to 36c a pound.
trend—up

This

only

not

impelled

was

high level demand but by a strike
in African mines (Rhodesia) and

Chilean

switching

some

out¬

from U. S. to the higher
prices obtainable in Europe. This
tightness of U. S. price may be
put

moderated

due course, as new

production
capacity,
such as Magma's, and enlarged
ore
finds in the Michigan area
reach the market. At the mo¬
domestic

favorable

ture

price ..struc¬

the

however,

ment,

producers,

to profitability,
mines. But this
sturdy price horse should not be

■nnd

persuasive

oven

at high cost

ridden

can

vigor

for

it have
been the prime reason for offer-?
ing low cash dividends, supple¬
mented by stock dividends in re¬
1954

uses;

many

certainly compete with

ing

night

come,

any

what

inflation

the

are

1955),

how¬

that full flowering of earn¬

resulting

power

from

cited

the

above

additions

could

run

the per

that

$10; and result in most at¬

share figure to

tractive cash dividends in the fu¬

top

This

ture.

You might

companies to look at?

March,

property

favorably placed metal for profit
useful

Analysts feel,

$4.80.

ever,

Very well, if copper is a now

dividend

were

for

earnings (adjusted for 5%

stock

the present 12c differ¬

lb.)

outlays

cent years.

(Aluminum is around 24c

ential.
i\

always

and energetic

an eager

ofr copper

;:nd it

There's

death.

aluminum,
rival

annual

and

estimate

based,

For

across

board

the

coverage

American Metal Co. Ltd.
interesting because of its min¬

in metals,
is

ing interests in Rhodesia, Mexico
and Canada (New Brunswick), its
in

refineries

its extensive potash

and

United

the

holdings

American Metal

Mexico.

New

States

Another

is
American
Smelting
and
Refining «, Co., , a
virtual investment trust through

broad

enterprise

and pay an in¬

sell at 49

dicated

$2.

the

specialty speculator in

metals, a look at Howe Sound
might be worthwhile. This is an

COMPLETE INVESTMENT SERVICE

old

BROKERS

•

DEALERS

•

DISTRIBUTORS,

in the

name

partment but
added

UNDERWRITERS

now

because

de¬

non-ferrous

lustre has been

new

Sound

Howe

the largest

believed to have

Cobalt deposit in

North.America.

The company

mties

•

Municipal Bands

Commodities

had a little trouble
handling this mineral a while
back, but "How has an effective
and low cost metallurgical proc¬
ess for expanded production.
Co¬

•

is worth $2.60 a pound and,
assuming costs in the order of 83c,
Howe Sound can make money for

balt

Dean Witter

Co.

the

Wew York Stock Exchange • San FranttKO Stock Exchange » Los Angeles Stock Exchange
Midwest Stock

Exchange

and other

•

LOS ANGELES

SEATTLE

•

NEW YORK

PORTLAND

•

over

natural gas in

production or gathering of
natural gas and the historv of the
Act gives evidence the Congress
did not intend to regulate inde¬

the

once

under

even

get loose.

have been found have

that

voirs

natural gas reser¬

the

Most

•

CHICAGO

HONOLULU

AND OTHER PACIFIC COAST CITIES

*$0

deliveries
contract

starts

temporary

he may never

incidental to the con¬

been found

oil sup¬
the postwar years, the
risen sharply

tinuing search for more

plies.

of drilling has

cost

and the

vanced

price of crude oil has ad¬
this rising cost and

with

increased demand for

the

petrol¬

necessarily, the prices
of >; heating
oils have followed.
Natural gas has been an incident¬
al
discovery and the prices at
which past sales have been made
reflected this fact. The" increased
and,

eum

demand for natural gas for use as
a

fuel

and

the tremendous post¬

growth of the petro-chemical

war

industry are bringing
ferent

supply

about a dif¬

demand relation¬

that
natural
will attract risk-tak¬

It is most improbable

ship.

present conditions in the

industry

gas

to drill with the

ers

ing gas.
aa

hopes of find¬

Bear in mind that

operation may well cost

such

$100,-

000

pendent

•

ing.

provided by existing contracts or total loss. Only 3.3% found gas.
not, and that no agreement to de-. "This was a normal year as these
liver natural gas to these lines
percentages have not varied by as
could be discontinued.
much as 1% in the last five years;
So far the problems raised by
only thing that will make
this Court decision have caused The
*From

Annual

bury

address by Mr. Collins at the

Convention

tributors

of the Fuel Oil Dis¬
of New Jersey, As-

Association

Park,

J., April 28,

1955.

people assume

few

point

metals

the

way

was

presented
(1)

some

the

CONSULTING*

hope

orous

yields,

(2)

some

ASSOCIATES

ENGINEERS

RIVER

95
Tel.

SWarthmore

ing if inflation resumes.

HOBOKEN.

WOrth 4-6485

glam¬

to be

ST..

2-15QO

at¬

growth stocks and (3) some

rather decent vehicles

which is to say,

obtaining

♦

tractive

such a risk is the

hope of reward,

ROY M. HENWOOD

Perhaps this is

stockholders.

speculation around the 20 level
you ought to get more facts on.
This hop, skip and a jump over

Chicago Board ftjF Trade

leading seivrtty and commodity exchanges

SAN FRANCISCO
BOSTON

American Stock Exchange

•

where

Members

commerce

interstate
commerce for resale, had always
been understood not to apply to

sales

gotiate a price which will reflect
either the prices of fcompetitive
fuels or his replacement costs or

qr more and the risk is great.
production and gather¬
You will get some idea of the
Following this ruling of the
Court the Federal Power Com-: magnitude of this risk when you
mission directed that without its
realize that in 1953 82%% of all
its holdings in mining shares, and
approval no changes could be
operator
of vast
properties in made in
•the-.-exploratory wells drilled in
rates, charges, or serv¬
U. S., Canada and South America.*
the dU. S. were dry holes and a
ices in effect on June 7, whether

sells at 54 and pays $2.

For

interstate

be interested

interstate sales under
where he cannot ne¬

making

conditions

accord¬

$1.60; ing to the demand and available
Kaiser at 80 pays $1.30 plus and supplies, and which may be af¬
at around 45, and offering a $1.50
Reynolds Metal at 162 pays only fected in the long-term by the
cash dividend, which was supple¬
$1.50.
You
buy Aluminums if cost of finding new supplies of
mented by a 5% stock dividend
growth is your goal. In the past crude oil, building and operating
in each of the past four years.
18 months, this growth factor has refining, transportation, and mar¬
Cerro de Pasco started out as a
keting facilities in. competition
paid off with a bang.
copper
company and until
1948
a
fuel
not
susceptible to
Lead and zinc, mentioned above with
that
commodity was the main in
and the
connection
with
Cerro
de short-term fluctuations
producer of revenue.
Copper is Pasco, do not seem to possess the first price of which is fixed by a
still important, and a long range
zing of copper, and lack the drive government commission and not
partnership
with
American of aluminum. Lead prices appear by free interchange of forces in
Smelting, Newmont Mining and quite well stabilized, especially the market place.
Phelps Dodge in the development by government stockpiling.
An
I am referring, of course, to nat¬
of Southern Peru
Copper Corp.
upward price trend, observed in ural gas and to the ruling of the
holds a big profit potential, but
copper,
and
probably in
alu¬ U. S. Supreme Court on last June
that's four or five years off.
minum, does not seem evident 7 that all gas produced which is
The main swing since 1948 has
here.
As a result, domestic lead sold directly or indirectly to in¬
been into expanded zinc and lead
stocks are not especially lively in terstate transmission companies is
production; and at the completion the market, but a number of peo¬
subject to price and other con¬
of the present long range pro¬
ple seem to think that St. Joseph trols by the Federal Power Com¬
gram in 1957, Cerro will be pos¬
Lead, arqund 45 paying $3 is a mission.
Before this interpreta¬
sibly the lowest, cost producer of
good entry, especially by virtue tion, the Natural Gas Act of 1938
lead and zinc in the world. This
of a 5.5% yield.
It is not, how-, which gave the Federal' Power.
plant enlargement (in Peru) in¬
ever,
geared to excite those, in Commission regulatory authority
volves about $45 million in all,
search of market volatility. V
over transportation of natural gas
but

114

con¬

capacity. As
these
reserves
are
usedjT where
will future supplies come^from?
The gas producer with uncommit—

your¬
current .yield T but
selves selling
to please and -to;
a
product the
long-term holder in
The fact is that cur- price of which

the

reward

reservoir

stantly-dwindling

calculated

it's

markets

will

you

continue

seeking

those

f f i

en,

disappoint

will

stock

some

action

$2 out of earn¬
well over twice

running

before it.

Unless

at 92, pays

sells

sion

now

present trunk line transmis¬
system have been harnessed
the market. Distress
natural

our

proposals

o n

factor

oil

Congress

the

prospect of the
lowest
power
and
production
costs in the world,- have assured a
solid and eager following for the
common.
This equity
currently
Here the

vestors.

taken

in¬

fancy of many growth-minded

our

resume

can

produced which is sold directly or indirectly to interstate trans¬
mission companies is subject to price and other controls by the
Federal Power Commission, Mr. Collins says its effect is to

leading

nucleonics.

Commenting

be over¬
somewhere
around
to

appear

Standard Oil Company

it is an invasion of free enterprise. Mr. Collins also expresses
aluminum, as a fairly important
competitor of copper.
It is, of
opposition to limitation on heavy oil imports as
to
course, a great deal more
than
shortages on East Coast.
that. Of major metals, it has been
the fastest growing one working
concern
among consumers
There are some aspects of the little
its way into everything from foil
and
distributing companies who
competition that lie ahead of you
food wraps to skyscrapers. Since
which cannot be seen clearly now. feel that they have at the present
aluminum production thrives onWhat
will
evolve
will depend time an assured source of sup¬
cheap power, the fabulous hydro¬
ply. What they do not realize is
upon
what
electric Kitimat development of
that most of the gas supplies that
action may
Aluminium, Ltd. has caught the
made possible the investment in

haven't built a

slippage

•as

and
added

new

"atomic

every

stock

our

59) is regularly included

few floors un¬
Ira U. Cobleigh

estimate,

this

earning power. In any event,
Anaconda
(now selling
around

Well,
have

quite

very

the largest

among

times 1955 probable earn¬
There is a past history of
liberal dividend declarations.
while
back
we
mentioned

eight
ings.

licked depres¬

among

romantic dimension may be

already

have

doesn't

valued

as
our

and Cerro com¬

is excellent

acreages

fulfills

say

Industiy

By E. II. COLLINS*

South
neighbors. Management
of

stable

mon

of uranium-prone
land
under
a
single corporate
banner—mostly in Arizona and
New Mexico. As and if this land

licked;
economists,

been
as

to hold

many

had

think

here

of the $3 dividend; but that's
all. Anaconda is thought by

age

almost

t i

You'd

regarded

generally

American

position and its large hold¬
ings in Inspiration should create
per share 1955 earnings of $4 or
better
(against $3.25 for 1954).
This would fatten up the cover¬

reference

the

Vice-President and Director

own

18 months, especially
as it relates to the cost of living,
has rather soft pedaled current

en¬

Esso

Its

Anaconda.

with

start

well

keel of our economy

even

for the past

the

Thursday, May 5, 1955

terprise abroad, Cerro de Pc.sco is
an
interesting equity; and Peru

and stressing copper.

ferrous variety,

still

New in Gas

j .

not averse

those

For

ad¬

dramatic addi¬

net earnings.

tion to

shares—particularly those of a non-

metal

Some reflections on

Any

Economist

Enterprise

price

substantial

zinc.
vance

By IRA U.

it.

Competition—Old and

prices for lead, copper and

rent

Metal Notes

The

Financial Chronicle

]

(2070)

rid¬

ENGINEERING
THE

SERVICE

PETROLEUM

INDUSTRY

price

Volume 181- Number

5426

The Commercial and Financial Chronicle V

which, if they are successful, will
justify that risk.

industry,

and

should be.

you

Standard

Oil

why

think

My company, Esso

Company, does not

in .The

contrary, we believe it would be
damaging to our national security

de¬

products that
tneir

and

* v. \

increases

prices.

Industry

I suppose it is natural for
you
to wonder why I am concerned
about the future of the natural
gas

distortion

would result

Concern Regarding Natural
Gas

temporary

mand for other fuel

ly nations who

shore

large proportion of the
users
of
heavy fuel

could not go
of

them

might be able to

aside from this, natural gas is ac¬

tually

available

tion

oil dealer and the home owner for

an important competitor of
heating oil which we sell. I

the

concerned

First,

believe

for

two

concerned

there is

reasons.

because

involved

here

principle of government regula¬
tion important to
everyone who
believes

free

competitive

en¬

terprise, and secondly, because I
believe

that all

compete

given

with

of the

each

market

fuels

other

should

this

not

that

control

head

the

over

will

mean

place.

healthy
us

I do not think

object.

For such

any
a

There

believe

that

other piece of legislation

strongly urge you to take

position

let

and

them, for

those

Congress

These

is, I believe, thoroughly

un¬

family relationships

than all the other

represent you

I think all

—

these

words

men can

women

are

the

and will agree on

this fact: that

flowers of the earth and

are

this

would

We oppose such legislation be¬
it

would

our

ing

any

SAN

affect
business without accomplish¬

cause

adversely

offsetting

Jamieson Adds

Jamieson

On the

good.

FRANCISCO, Calif.—Orel
is

Church

now

with

W., Millburn, N. J.

Co., Inc., Russ Building.

This advertisement is not

The

happen.

transmission

companies pay
the producing areas is
about
10%
of • the
price

offer to sell

solicitation of an offer to buy these securities,

or a

offering is made only by the Prospectus.

NEW ISSUE

gas in

consumer

tributors.

in the

$191,659,000

by the dis¬

reasonable increase

price of

gas in the

produc¬

ing states follows the removal of
restrictive

Bethlehem Steel Corporation

regulations, the effect

the cost to the distant

consum¬

will not be great, but will be a

ZlA% Twenty-five-Year Debentures

substantial item to the producer.
I

one

those

the

who

people

theory that

Due

Convertible into Common Stock

fuels is to be controlled from the

would

substance

the

see

unless called for

home, it certain¬

lend

arguments

those

would

These Debentures

prices of all fuels

scription,

controlled from production to use.

We,

of us, want to

none

controls

and

the

obvious

stop it and to stop it
The

1954

Standard

Jersey)
try

annual

Oil

are

being offered by the Corporation to holders of its Common Stock for sub
the

terms

will expire at 3:30 P.M.,

and

conditions

set

Eastern Daylight

forth

the

Saving Time,

Prospectus.

The

subscription

May 23, 1955. The several

underwriters may offer Debentures pursuant to the terms and conditions
set forth in the Prospectus,

thing is

report
this

subject

now.

Company

comments

offer

such

see

through May 1, 1965,

previous redemption

the

who

May 1,1980

you

can't be just a little bit pregnant.
If the price of one of our major
well head to the

(New
indus¬

SUBSCRIPTION PRICE 100%

problem:

"Moreover, because
oil, as it comes from the
ground, almost always has natural
gas mixed with it, such regulation
crude

might lead to
oil
be

Federal

control

Copies of the Prospectus

production itself, which would
a

blow to the

severe

the

United

States

named in the

present law."

interpretation of
There is pres¬

pending before the Con¬
legislation intended to cor¬

ently
gress

be obtained in

efficiency

industry, and could endanger the
of the private en¬
terprise system. It is hoped that
suitable legislation will be enact¬
the

may

Prospectus and others

any

as may

Kuhn, Loeb & Co.
Dillon, Read & Co. Inc.

The First Boston Corporation

Blyth & Co., Inc.

Eastman, Dillon & Co.

Hemphill, Noyes & Co.

Acts

closing I would like to

few

minutes

mention

Harriman

Glore, Forgan & Co.

Lehman Brothers

Merrill

Kidder, Peabody & Co.

problem which may be
affected by legislation, and which
the oil industry

whole

American

Lynch, Pierce, Fenner & Beane

much.

is the

efforts

Stone & Webster Securities

and the

economy

that

Salomon Bros. & Hutzler

have

made, and will continue to
be
made, to amend the Trade
Agreements Act to place quota
heavy

fuel

the

oil

importation of
into the U. S.

Should the ultimate

action of the

Congress be to adopt

amend¬

ment similar to that sponsored

Senator
and

White, Weld & Co.

Neely of West Virginia,
Senators, it would re¬

which

have

estimated

for

this

A. G. Becker & Co.
•

Clark, Dodge & Co.

Hallgarten & Co.

come

into

the

W. C.

Seaboard, by 210,000 bar¬
day. Actually, in view of

Bear, Stearns & Co.

Incorporated

Dominick & Dominick

Alex. Brown & Sons

Incorporated

Drexel & Co.

Equitable Securities Corporation

Hornblower & Weeks

W. E. Hutton & Co.

Ladenburg, Thalmann & Co.

heavy fuel oil, all

Eastern
rels

A. C. Allyn and Company

Dean Witter & Co.

other

duce imports of

Union Securities Corporation

very

been

limitations

Corporation

Goldman, Sachs & Co.

Lazard Freres & Co.

another

concerns

Ripley & Co.

Incorporated

Amending the Trade Agreements

take

Smith, Barney & Co.

rect this situation.

Before

State only from such of the several underwriters

lawfully offer these securities in such State.

petroleum

fundamentals

ed to correct the

increased

requirements
further re¬

product and

F. S.

Langley & Co.

Moseley & Co.

Lee Higginson Corporation

Carl M. Loeb, Rhoades & Co.

Paine, Webber, Jackson & Curtis

L. F. Rothschild & Co.

duced production by the domestic

industry,
created

shortage
the

280,000 barrels
lieve

that

you

would

neighborhood
day.

Shields &

I do not be¬

could

back

this

vqlume of fuel out of the market
without bringing about at least

God's

Angels of Love, Mercy, Sympathy, Understanding,
Compassion, Romance, and Life itself.

(Special to The Financial Chronicle)

cus¬

reason

are:

Federal

to the

men

mean more to most men

relationships in life.

know how you feel

about them.

sound.

dictionary which

others

mother!

of helping another competi¬

pose

any

substantially
or

little

only
charged the

who

con¬

than

Mother, Sweetheart, Wife, Sister, Aunt and Grand¬

against,

8, 1955

iihitljri-lnuiM

six words in the

are

matter of fact, the price the

gas

revere

this matter than they have

dition to be created by legislation
which is proposed for the pur¬

tor,

There

interest in both of these measures,
learn all you can about them, take

supplies. If such com¬
about in a normal,

way,

A Mttbuie fn

being considered by the Congress.

came

could

any

put

them in competition with the fuel

petition

gas prices at the well

result

tomer.

for

would

truth

imply from

removal

higher prices there

any

subject

to the action of the market

that

which

The

customers.

MAY

good

very

is, I believe, pointed up by
the fact that the State Depart¬
ment has taken a stronger posi¬

gas.
Most of them, we
feel, would have to purchase the
lighter
domestically
produced

fuels

MOTHER'S DAY

good potential

are

ture

natural

distillate

are

who

this and its importance to our fu¬

secure

produce it.
We
have
affiliates
which produce gas with the
pro¬
duction of crude
petroleum, but

relationships with friend¬

and

present

on¬

oil
Some

to solid fuels.

our

allies

Our surveys have shown that a
very

(2071)

May 3, 1955

Company

Spencer Trask & Co.

Wertheim & Co.

Wood, Struthers & Co.

The Commercial and Financial Chronicle

Thursday, May 5, 1955

8/(2072)
State

California

■

Calif.

Dealer-Broker

Wall

mentioned will he pleased

Review—Study—Harris,

Energy

Upham

ton

Atomic

Canadian

Tidelands

Ticker,

similar

monthly

bulletin

the

Through

Salle

6, N.

York

Also available

Don G. Miefals

Haupt & Co., Ill Broad¬

bulletins

are

Service Co.

—

Memorandum

Wall

committee ap¬
pointed by the board of directors

—

of the club announces the follow¬

ing nominees:
OFFICERS
President—Don G.

Lewis &

Japanese Petrochemical Industry-r-Discussibn in current issue

Riverside

Co., Ltd.,

Office

Secretary

City Bank Stocks—Quarterly analysis of 14 banks

Wall

cago.

views—Lerner

Co.,

Post

man,

Company

—

Analysis

—

South

Western Precipitation Corporation—Bulletin—Reynolds &
120

Inc., 26 Broadway, Room 1620, New York 4, N. Y.

Kehoe, Stern
William N; Mur¬
ray,
Jr., TheJ Illinois Company;
Clarke
J.
Robertson, > Fairman,
Harris & Company, Inc.; Charles
R. Wilson, Smith, Barney ,8c Co.

Jones Averages and

yield

and

National

market

Quotation

June 8,

the 35 over-the-counter industrial stocks

used in the National

COMING

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

performance

cial

cializing in uranium securities — $30.00 per year — sample
copies on request — Western Trader and Investor, Beacon
Building, Salt Lake City, Utah.

and Beach

Societies at

th«

June

Baltimore

now in or planning to enter
industry—National Securities & Research
Corporation, 120 Broadway, New York 5, N. Y.—$10.00 per

annual

McKinnon, 11 Wall

side

Bulletin

Standard

Investing Cor¬
poration, 40 Exchange Place, New York 5, N. Y.
"
—

Barber Oil Co.—Memorandum—Walston &
New York

Bethlehem

:/•-<

5, N.'Y.

Steel

values—New

Corporation

York

New York 5, N.

Bettinger Corp.

—

Hanseatic

June

—

Analysis

Street, Philadelphia 2, Pa.

—

Board

Dealers

Association

Brook-

Competitive table of related
Corporation, 120 Broadway.

Smith

Monarch

June 3, 1955

Uranium

Company

Sept.. 11-14, 1955
land, Mich.)

(Maekinae

Bulletin

Country

Club,
"

n. y.

(C-5)

Rejoins
Amolf, Baker & Go.
S.

Robert

National Security Traders Asso¬
ciation annual convention, p.

rejoined
Incorporated,
New York City,

Rhodes has

Amott. Baker & Co.,
150

Broadway,

members of

Exchange.

Sept 21-23, 1955
.

v;.

Association

ernors.

the New York Stock

Mr.

Rhodes

has

re¬

cently been with Ira Haupt & Co.

Stock

Thomson & McKinnon

summer

Hollow

golf
Golf

Detroit

outing
Club.

Nov. 16-18 (New York, N. Y.)

annual

Plum

Association

Stock

Exchange

Firms meeting of Board of Governors.

DEPENDABLE MARKETS

•••.

Open Branch

LONG BRANCH, N. J

—Thom¬
McKinnon, members of the
New York Stock Exchange* have
son

June 7,1955 (Detroit, Mich.)
Bond. Club

Street, New York City.

Rob!. Rhodes

fa-

(Denver, Colo.)
Exchange
Scarborough, ....Firms meeting of Board,of Gov¬

field day at the Sleepy Hollow

-v

—

& Sons.

(New York City)

Bond Club of New York annual

Boenning & Co., 1529 Walnut

Company, 15 William Street, New York 5, N. Y.

ef¬

29.

The firm's offices are located at

annual

Bonanza Oil &

Bullion

April

72 Wall

outing at the Weston Golf Club.

(Memphis, Tenti.)

re¬

ernors.

;

Mine—Report—L. D. Friedman & Co., Inc., 52
Broadway, New York 4, N. Y.

Foliar

(Boston, Mass.)

Boston Investment Club

Country

2-3, 1955

gory

Manoir

June 24, 1955

;

outing at the
Club.

All remaining
partners of Bonner & Gregory
will continue as partners in Gre¬

meeting
Richelieu, Mur¬
Bay, Quebec.

the

ray

F. Oak¬

general, partners

Peter

firm.

the

fective

(Canada)

Memphis Securities Dealers As¬ Sept. 16-17 (Chicago, DL)
/
sociation, annual outing at the
Investment Bankers Association
Chickasaw Country Club..
/
Fall meeting of Board of Gov¬

Co., 120 Broadway,

Y.;

meeting

May 26, 1955 (Columbus, O.)
Columbus Stock and Bond Club

Street, New York 5, N. Y.
—

ley Crawford
of

firm

Gregory,

X. Coleman and

Francis

outing

.Country

their

Gregory & Sons and the

tired from Bonner & Gregory

June 15-18, 1955

(White Sulphur

Governors.

Co.—Analysis—J. A. Hogle & Co., 507
West Sixth Street, Los Angeles 14, Calif.

Stores

Whitemarsh

Investment

18-21, 1955
Springs)

Spring

—

Archer Daniels Midland

Food

summer

change

admission of George M.

(Philadelphia, Pa.)

Club.

Investment Bankers Association

Analytical brochure — A. C.
Allyn & Co., 122 South La Salle Street, Chicago 3, 111.

Associated

nounce

name

of Canada 39th annual

Arvin Industries, Inc.—Report—Thomson &

Gregory, members of
the New York Stock Exchnge, an¬
Bonner &

land.

May

-copy.

Company

the

Traders Association

Philadelphia

Security Traders As¬

sociation Annual Spring Outing
at the Country Club of Mary¬

fund

10, 1955

Investment

Commodore.

training information for those

American Marietta

Club, Rye, N. Y.

Finan¬

Club

City

New
York 22nd Annual
Outing at
the Westchester Country Club

May 13, 1955 (Baltimore, Md.)

—

Analysts

Hotel

What Every Salesman Should Know About Mutual Investment
Funds
Leather-bound, loose-leaf manual containing sales

Federation

National

Bond

will hold

club

the

p.m.,

cocktail hour followed by dinner.

In New York

(New York City)

Municipal

May 8-10, 1955 (New York City;

Western Trader & Investor—Investment advisory service spe¬

mutual

June 10, 1955

Field

giving current Federal and State

Stock Original issue and Transfer Tax Rates—Registrar and
Transfer Company, 50 Church Street, New York 7, N. Y.

the

Investment

1955 (New York City)
Municipal Forum of New York
conference on highway financ¬
ing.

EVENTS

York 4, N. Y.
Transfer Tax Rates—Booklet

5:30

Over-the-Counter Index—Folder showing

meeting,

scheduled to commence

which

business

the

After

Co.,,

Broadway, New York 5, N. Y.

an up-to-date com¬
parison between the listed industrial stocks used in the Dow-

John

Brothers & Co.;

Cohu & Co., I

— Analysis — Gerstley,
Sunstein & Co., 121
Street, Philadelphia 7, Pa.
f

Broad

Hass-

A. G. Becker & Co., Incor¬

porated;

Square, Boston 9, Mass.
Freight

Elmer

DIRECTORS:

Company

Warner

Jennings of Socony Mobil Oil Company before the Cleve¬
land Society of Security Analysts—Spcony Mobil Oil Co.,

Co.—New

First National

Airlines, :ine.—Bulletin—$2.00 per copy—John
Co., 63 Wall Street, New York 5, N. Y.
Cement

Alden Bergquist,
Bank of Chi¬

Treasurer—P.
The

Street, New York 5, N. Y.

120 Broadway, New York 5, N. Y.

Oil Problems and Prospects—Reprint of a talk by B. Brewster

James G. Brophy,

—

Blyth & Co., Inc.

Uranium—Report—General Investing Corp., 80

States

United

Miehls, Wil¬

liam Blair & Company.

Street, New York 5, N. Y.

Northwest

New York 7, N. Y.

Thurs¬

day, May 5, 1955.
The nominating

Street, Chicago 4, 111.

Mid Continent

Road

Sheridan

North

York 5, N. Y,

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

Laird, Bissell & Meeds,

South

Loew's—Data—Bruns, Nordeman & Co., 52 Wall Street, New

Investment Opportunities in Japan—Circular—Yamaichi Secu¬

Securities

& Co., Inc., 39

Corporation—Report—William R. Staats

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

Research—"Highlights" No. 30—Troster, Singer

"Monthly Stock Digest" — Nomura
Broadway, New York 6, N. Y.

& Co., 120

Lindly & Company, Inc.—Analysis—Aetna Securities Corpora¬

$50; free sample page on re¬

rities Co., Ltd., Ill Broadway,

120

Company—Analysis—Cruttenden & Co., 209 South La

Kirsch

quest—F. W. Stephens, 87 Nassau Street, New York 38, N. Y.
Investment in

Meeds,

Bacon, Whipple & Co.,
135 South La Salle Street, Chicago 3, 111.

ear/lings and dividends, latest capitaliza¬
tion and 50 group averages for 12 years up to date on
virtually every stock listed on New York Stock Exchange
and American Stock Exchange—single copy (spiral bound)
(6 revised books)

Bissell

Service.

Public
Johnson

volume of trading,

New York

Laird,

—

Holeproof Hosiery, American Machine & Foundry and Maine

Graphic Stocks—1001 charts showing monthly highs and lows,

$10; yearly

Hill

—

Street, Chicago 3, 111.

Electronics

New

way,

Stock Market —Bulletin"—Nikko Securi¬

Japanese

ties Co., Ltd., 6, 1-chome, Kabuto-cho, Nihonbashi, Chuo-ku,
Tokyo, Japan.

Analysis

Iowa Southern Utilities—Review—Ira

Investment

Analysis

—

Co., 640 South Spring Street, Los Angeles 14, Calif.

Co., 21 West 44th Street, New York

In current issue of "Weekly Stock

Salle

36, N. Y.

—

Iliggins Incorporated—Analysis—Leason
Hoffman

Letter—Fortnightly review of the Canadian Securi¬

ties Market—Newling &

Foreign

Corp.

Broadway, New York 5, N.

Gulf Coast tidelands.

the

Chicago will be held at
and Cycle Club, 5201

Co., 621 S. Spring Street, Los Angeles 14, Calif.

Ilarshaw Chemical Company—Review—Sutro Bros.

on the uranium market—
Building, Houston 2, Texas." Also

bulletin

Electric

Co.,

available

Alden

Glen

Saddle

Corp.-—-Memorandum—Auchincloss, Parker
Wall Street, New York 5, N. Y.

Broadway, New York 5, N. Y.

Ticker—Monthly

Crerie

Richards

7, D. C.

the

Haupt & Co., Ill Broad Street,

Giddings & Lewis Machine Tool Company

of 97 different companies—Atomic Develop¬
Securities Co., 1033 Thirtieth Street, N. W., Washing¬

atomic activity
ment

CHICAGO, 111. — The annual
meeting of the Municipal Bond
Club

5, N. Y.

& Redpath, 52

in four colors (revised)—Describing and locating

Atomic Map,

Canada,'and

Pictures

Columbia

Street, New York 5, N. Y.

Chicago Municipal
Bond Glob Meeting

Analysis—James Richardson .& ;*

Clark Equipment—Review—Ira

Co.,

•

issue of "Glean¬
ings"—Francis I. du Pont & Co., 1 Wall Street, New York
5, N. Y. In the same issue is a discussion of Oil and Gas
Reserves. Also available is a comparative tabulation of Rails.
New York

Atomic

J—Cir-

Mills Company—Analysis in current

Cannon

parties the following literature:

send interested

—

portage~ Avenue, East, Winnipeg,
Royal Bank Building, Toronto, Canada.
173

Sons,

understood that the firms
to

Series

Bonds

sstf Co., Mills Tower, San Francisco 4,
•;/
;v;

Canners Limited

Canadian

Recommendations & Literature
It is

'-r::•

;

Aid

Building

School

r cular—Heller, Bruce

opened

branch

office

at -279

Broadway under the management
of Charles H. Thompson.

Bonanza Oil & Mine
Producing Quicksilver Mine

Trading Markets Maintained

Report

request

L.D. FRIEDMAN & CO. Inc.
52

DEMPSEY-TEGELER & CO.

Broadway, New York City 4, N. Y.
Telephone DIgby 4-0860

Volume 181

Number 5426

The Commercial and Financial Chronicle

(2073)

now

Continued

from

page

should
this

product

Security I Like Best

weight aggregate
sity, materialize.

new

The

Texas Industries
larger share of

sight.
obtain

market

intensive

1955

because

developments and
merchandising ef¬
also favorable

Oklahoma

for

upturn in/ airline [earnings, etc.
Air traffic is way above a year

weight of concrete poured in the
U. S. exceeded by far the total

operations.

and at all-time highs. In fact,
the rate of expansion of airline

lightweight

traffic is little short of sensational.

consumption of iron and steel .
.
plus all the copper, lead, zinc,
aluminum, and other non-ferrous

Vast

metals

Use of Haydite concrete results in

ago

further

Quite
it

that

seems

and

airline

Wings Over The West: Western
continue

should

reflect

the

uptrend in airline
is going places

Western

with the West.
G. HOBBS, JR.

last

six

investment

as
those
the clients

well

period

Texas

$8,468,000 as of Feb. 28,
Sales during this period in¬

Our

approximately

Since the stock went

market

dividend

paying basis in 1952,
of $1,000 in June,

investment

here in the

central

1952, now has a market value of

tion
is

sec¬

Texas

primarily

equity market,
therefore

and

com¬

stocks,

mon

preferably

dividend

with

solid

tial.

For

these

reasons,

I like

the

stock of Texas Indus¬

common

tries,

Inc.

Th;s

record

company

"Which has achieved

remarkable

performance

past

ratio

dend

Texas Industries, Inc. is

the

and

substantial weight and

duction

lower

are

re¬

reinforcing steel in
construction.
Labor

building
costs

lighter.
cost

less

manhours

required to handle the light¬
weight concrete. Many of the re¬

are

commercial

cent

and

Parker

in¬

industrial

residential

market

Corporation

been
negligible. The
recently introduced Holiday Hill
stone, produced in 10 colors, three
face heights and 16 and 24 inch
lengths, has outstanding poten¬

order

the
to

cement

Texas
of

residential

and

underwriting
in

Washburn, who

housing

lightweight

the

company's
The
new

Consequently, for its long-term
potential, I like best

concrete.

Hilton-Statler

Hotel

building

Dallas

contains
the
company's
lightweight concrete and masonry
units, permitting a weight saving
of 29 million pounds.
Texas Industries

duces

currently

Texas,

aggregate
and

Oklahoma

75%

and

Louisiana
than

all

lightweight masonry
multi-plant operations
permit marketing in all of the im¬
portant trade areas with a mini¬
units.

The

of transportation costs. The
sand, gravel and ready-mix plants
have a practical marketing radius

common

stock

Texas

war,

In¬

the-Counter

Market.

joining

D., Murphy,

New

curities

York

investment

organization,

elected

Director

has

approximately
company

factor
sand

and

such

miles

the

areas.

and

dominant

choice

gravel deposits become
greater

use

light¬

crete

Kidder,

Peabody

Detroit

J. Walter

Mr.
Murphy has been with A. W. Ben¬

Walter

kert & Co., Inc. since

Lexington

1940.

Robert

Thompson

National Bank Building under the

Graff,

joins

offer to sell nor a solicitation

dent.

* ,ra"c

atirn

nartiw

ern

management

techniques

neering

department

^assigned to

permanently

new product develop-

ment, market analysis and day-to¬
day checking on products in use.

git is my conviction that Texas In¬
dustries, Inc., will continue to

re-

tain a leadership position in the
incidentally,

try,

April 26.

of an offer to buy any of these

is made only by the Prospectus.

$15,000,000 Twenty-five Year 33A% Sinking
Dated

located in
Louisiana and Oklahoma.
Major units
include six light¬
weight aggregate plants, contain¬
ing 15 rotary kilns, having an an¬
nual
capacity of 595,000 cubic
yards.
Four
sand
and
gravel
plants have an annual potential
Texas,

863,000

plant

tons,

has

tons. The

moving to¬
changes in its

Today in he United States
of

tons

two

concrete

crete

and child.

seven

plants

734,000
en

is" by

Thus, from the

the

far

biggest

190,960 Shares Common Stock
($10 Par Value)

stone

the

and

of 416,000
ready-mixed con¬

have

cubic

yards

Rights, evidenced by subscription warrants, to subscribe for these shares
at $23 a share have been issued by the Company to its Common Stock¬
holders, which rights will expire at 3:30 P.M., Eastern Daylight Saving
Time, on May 18, 1955, as more fully set forth in the Prospectus.

capacity

of
concrete

'Fortune"

magazine

August,

"Cheap¬

1951, stated;

ence

durability
thave made concrete the founda¬
simplicity

ness,

and

material of the

tion

civilization.

trial

U. S.

growth.

Texas

indus¬

Ordinary

aluminum,

The several underwriters may
less than the

offer shares of Common Stock at prices not

Subscription Price set forth above

(less, in the case of sales to

allowed to dealers) and not more than the highest
known price at which the Common Stock is being offered concurrently
in the over-the-counter market by other security dealers, plus an amount
equal to any concessions allowed to dealers.
>

dealers, the concession

can

further industrial and popu¬

lation

con¬

crete, with about the same specific

gravity

masonry

The company's marketing ter¬
ritory should continue to experi¬

of the field,
in its issue

a survey

bags of Sakrete. Sev¬
plants are operated.

shares.

[business in the nation.

Following

York City

Price 100% and Accrued Interest

Capitalization, Feb. 28, 1955 —
15-year Sinking Fund Debentures,
6%, 1968, $3,266,000; 5% Cum.
Preferred
($10 par) 212 shares;
Common Stock ($1 par) 384,947

are

standpoint of volume in weight,
concrete

payable November 1 and May 1 in New

capacity

and 312,000

poured each year for every man,
woman

Due May 1, 1080 •

subsidi¬

and

•

than

Fund Debentures

May 1, 1055

aries operate 30 plants

; methods of doing business, and in
the development of new products.

also

Interest

Industries

Texas

gigantic concrete industry and the
allied products field. The indus¬
ward revolutionary

windows.

in-

eludes the supporting efforts of a
hard working research and engi¬

Hill

Holiday

and

Industries

Texas

stone.

hardly

$1.1

imately
and

likely

billion
to

billion

$1.4

Construction

estimated

for

1954

in the

range

$1.5

Copies of the Prospectus may be obtained from only such of the under¬
signed as may legally offer these Securities in compliance with
the securities laws of the respective States.

approx¬

billion

1955, based upon contract awards

MORGAN STANLEY & CO.
INDUSTRIES, INC.

TEXAS

Year Ended
T"

Total

Net

Current

Net

$356,000
Assets

Sales

Income

29,000

May 31

1952

7,341,000

7,033,000

597,000

466.000

803.000

329,000

296,000

467,000

1,906,000

3,807,000

5,773,000

57,000

321,000

386,000

35,000

taxes

1955

1954

1953

$2,005,000 $4,774,000 $7,097,000 $7,210,000 $8,498,000
378,000
826,000
1,715,000
1,786.000
2.670.000

217,000

before

minority
Net

1951

1950

Assets

9 Months

127,000

169,000

GOLDMAN, SACHS & CO.

BLYTH & CO., INC.
MERRILL LYNCH, PIERCE,

SMITH, BARNEY & CO.

FENNER & BEANE

and

interest

Profit

STONE & WEBSTER

SECURITIES CORPORATION

CLARK, DODGE & CO.

Preferred Stock

Issued and Outstanding
.

None

258

18.155

18,155

18.155

212

None

(shares t

At par value ($10)

$2,580

$181,550

Issued and

95.420

121.052

*280,454

311.804

Book

Value

taxes

per

Equity
per

1 $316,517 $1,334,241 $1,796,762 $2,618,962 $2,991,650 $4,262,374

t$5.75

t$6.99

t.63

t.65

f$7.42

$9.33

t.68

1.14

$9.59

HUTTON & CO.

and

pfd.
stock

divs.

split 2-for-l in February,

February, 1953.

1953.

.92

TUCKER,

$11.07

share after

"Common

W. E.
27.500

Stockholders'

HORNBLOWER & WEEKS

384,947

Outstanding

(shares)

Earns,

DOMINICK & DOMINICK

$2,120

Com. Stock (par value $1)

1.20

tAdJusted for 2-for-l stock split

May 4,1955.

ANTHONY & CO.

PAINE, WEBBER,

WERTHEIM & CO.

Lauro, partner in

Whitehause., & Co., passed away

distributor of steel and aluminum

His aggressive use of mod¬

glazed cement block,

brick

masonry

Francis X. Lauro
Franri<?

products, and con¬
pines; ready-mixed, mixed-

and Tex-Tile

the

Company, 420
New
York

in-transit, and dry-mixed concrete;
has

Co.

Director.

DALLAS, Tex.—Salomon Bros.
Hutzler, members of the New
York Stock Exchange, have opened a branch office in the Republic

The offer

Vice-President and Mar¬

kets

Securities.

the

Avenue,

City,

New Salomon Bros. Branch

This announcement is neither an

Thompson

Urban

concrete

forged
ahead under the dynamic leader¬
ship - of- Ralph B.- Rogers, Presi¬

-Industries

Texas

served

Robf. Urban V.-P. of

se¬

Mackinac Railway Company.

management of Joseph C.

Commander

1949.

been

mum

the

in charge

Vice-

President of A. W. Benkert & Co.,

Inc.,

was

Navy. After the war he worked
with Eastman, Dillon & Co. until

C. D. Murphy Director
Charles

which

Lieutenant

dustries, Inc., traded in the Over-

pro¬

half of all lightweight

over

investment
the

Investors
Income Fund.

He graduated from New York
University in 1936 and was asso¬
ciated with the Guaranty Trust
Company of New York until the

marketing

with

built

Incorporated

department, will cover New York
City, Long Island, New Jersey,
Philadelphia and Delaware.

areas.

buildings in the Southwest have
been

the

of Kidder Peabody's mutual fund

program

few

key

Incorporated

Mr.

products,
a

for

and

has

The Parker

—

announced

tive

masonry

Industries

subdivisions

field.

interest

stimulate

has

appointment of George Washburn,
formerly with Kidder, Peabody &
Co. in New York, as Vice-Presi¬
dent and Wholesale Representa¬

has

heretofore

tials

Corporation

BOSTON, Mass.

units, lintels, joists and other pre¬
cast

ing.

concrete, but is 40%

and

na¬

leading producer of light¬
weight expanded clay or shale
aggregate, sold under the name
"Haydite." The company is also
a
manufacturer
of heavyweight
natural aggregates such as sand,
gravel and stone; Haydite and
heavyweight
concrete
masonry

opment appear unusually promis¬

ate

commercial

tion's

yet its prospects for future devel¬

"Haydite"

concrete

develops
strengths equal to natural aggreg¬

depleted,

ther below.

pay¬

growth poten¬
W. la. ftC/OOS, jr.

current market'levels
5%-to-l, plus divi¬
payments amounting to
$406.82.
The 5%-year record of growth
to Feb. 28, 1955, is detailed fur¬
$5,550,

—a

Industries

the

construction

dollar

Texas

times

from $217,000 in 1950 to an
estimated $9,500,000 for the year
ending May 31, 1955. The Texas
Industries, Inc.
common
stock¬
holder has received corresponding
over,

benefits.

firm.

our

six-year

than 20 fold—from $356,000

creased

personal

isfying <my

objectives* as

the

in 1950 to

Texas

which meets the test of sat¬

one

within

has

become

years

this

of security I like best

The type

leading
factor in the business of supply¬
ing builders with better concrete
and better concrete products.

1955.

Texas Industries, Inc.

Industries has increased its assets

Vice-President, Russ & Co., Inc.
San Antonio,

Industries

In
W.

plus all the brick, tile

glass

Texas

Air Lines, the West's own airline,

shares.

rubber and

potentials exist for the long-term.

long-range

plus all the lumber,
plastics."
In the Southwest, which con¬
tinues to show greater economic
growth than the national average,

money

made

lies ahead.
has already
stocks, but
further wide gain

growth

lot of

been

Geo, Washburn With <]

field,
but
participation in the multi-million

Louisiana

and

dustrial

be called

the

neces¬

strong demand for Texas In¬

oped

cided bull market due to the sharp

year

...

dustries products has been devel¬

forts. Prospects are

heavy/ But last

will,

JACKSON & CURTIS
DEAN WITTER & CO.

The Commercial and Financial Chronicle

(2074)

Thursday, May 5, 1955

Reserved Ladies Use OHiV/

jr. A. Hogle & Co. Team—Second Place:

Inman

Larry

(not

Jerry Bachar; Cully Mayer;
picture)

K.
Mullen
Investment
Co.
"Champs"—First Place Winners:
Lascor, J. K. • Mullen Investment Co.; Andy Beasley, J.' A.
Hogle &
Co.; Roscoe Ayres,fJ. K. Mullen Investment Co.

Denver Bond Club

tional

Keglers Complete Season

and

session

afternoon and evening, April, 22, with the usual final
and banquet for members and
alternates at > the Re¬

publican Club.
Prizes and

trophies

were

successful that

awarded

winners for the

,,ron

J. A.

Hogle & Co

the weekend
<

Colorado Grain

Bosvvorth Sullivan

36"

Garrets

3.6

Bromfields

——

■

-35%

Harris Upham

42%

Boettcher

:car

High

won High Team Game 604 and Team Series 1690.
Hasselgren (Colorado Grain Corp.) won High Game 268.
Cully Mayer (J. A. Hogle & Co.) won High Series 631.
' s,
League Committee members for the season were Oscar Hassel¬

Municipal

Bond

Corp.,

■:

•

LOS

ANGELES-SAN

FRANCISCO

JOINT

OUTING

Spring Outing of the San Francisco Secu¬

Leone

rity, Traders Association and the Security Traders Association of
Los Angeles is scheduled for Friday, May 20 to Sunday, May
22,

Points:

Bean

Meyer
Kaiser

(Gap..),

(Capt.),
Patrick

Krisam

Hunt,

Werkmeister,

Brown,

Corby,

Kullman,

200

Weseman,

Point

Club

5
212

—__

O'Neii

Robert

John

Green

Chicago

Jack Manson

200

Charles

Chicago
Miami

Exchange,
of

„

Hollywood, Fla.
Geneva,

•

summer

outing which will be

the Financial Committee.

Pittsburgh

Coral

Gables

Holland

John

Hack

was

Committee and will

retiring club President, is Chairman of
"

chosen

handle

Publicity and will

charge of the annual January Party.

Henry Perenon

inclusive.

Rudolph
was

the

T. Sandell

case

Hacienda, Fresno, Calif.

Ralph E. Brown

last year,
,

G. B. Tuttle

it is to be held at the Fresno
.

Peter Foliar Joins

■

vivi

Transportation is available from

either

viiui

Ilave announced that Peter
lar
is

now

associated

E-

with

F°'-|

thel

Cat

Switzerland

Chairmanship of the Membership Com¬

Kipp is Chairman of the Bowling
have charge of the November
Party.

Exchange

Beverly Hills,

Amsterdam,

the

Girard Schoettler, the

Inc.
Trade

Exchange Bldg,
4, N. Y.
•

assumes

mittee and will be in charge of the
held June 25, at Nordic Hills

exchanges

•

Company, John D. Kipp of A. G. Becker and
Company and F. Girard Schoettler of Wayne Hummer and Com¬
pany have been appointed directors of the Bond Traders
Club of
Chicago, Inc., fcr the current year.

Exchange

Detroit

Corooration, John J. Hack

John

YORK
•

■'• " ' V-

CLUB OF CHICAGO

Paul J. Bax of The First Boston
S. Moseley and

Exchange

Beach

1'yf>'-

Exchange

Stock

New Orleans Cotton

NEW

Kaiser

Growney

Country Club.

Cotton

H. Y. Cotton

Contact Sid Jacobs

BOND TRADERS

1858

Stock

other

Mike

—

Board

and

Club

Nevins

Members

Commodity

Point

Bowling Dinner June 2, 1955 at the Antlers
R.

Paul Bax

York

Fitz-

Demaye

Dacey

H. Hentz & Co,
American

Whiting,

Gronick, Stevenson, Weissman

Krumholz, Wechsler, Gersten, Gold-

Ray Forbes

Conn.
Joseph
joined the staff of
Dacey & Associates,

Established

New

•

McCloud
Serlen (Capt.), Rogers,

has

York

McGovan,

(Capt.), Clemence,

John

114 State Street.

New

;

Barker

Richard

(Capt.),

(Special to The Financial Chronicle)

Norman

Frankel, Swenson, Dawson-Smith

iviurpny,

O'Connor

Manager.-

Aiello

Kuehner

California

BRIDGEPORT.

*
37

(Capt.), Nieman, O'Mara, Forbes, Greenberg, Murphy
(Capt.), Jacobs, Siegel, Topol, Frankel, Tisch
(Capt.), Meyer, Dies, Pollack, Lienhardt Weiler____

44
37

Manson

Company in Los Angeles in the
trading department, of which Mr.

With Norman

NEW YORK

__________

Co.,
453
South
Spring
Street, members of the Los An¬
geles Stock Exchange. Both were

was

(Capt.), Hunter, Fredericks, Demaye, Saijas, Kelly
(Capt.), Rappa, Farrell, Vcccolli, Strauss, Cohen__^_
Growney (Capt.), Alexander, Eiger,
Valentine, Burian,
Craig
Mewing (Capt.), Define, Gavin, Montanye, Bradley, Huff__

Engle

ASSOCIATION

Klein

(Special to The Financial Chronicle)

First

airman

Team:

LOS ANGELES, Calif. — Ralph
M. Dahl and
Edward
P.
Engle
have become associated with Fe¬

with

O'Neii, f

Donadio

Fewel & Go.

formerly

•

-Security Traders Association of New York, Inc.
(STANY)
Bowling League standing as of April 28, 1955 is as follows:

Notes

NSTA

The Annual Joint

wel

■

with

Ingle, Dab! WHS?

Security Traders Association of Los Angeles
are Richard R.
O'Neii, Fairman & Co., PresidentpRobert Green,
Pledger & Company, Vice-President; J. R. Nevins, Lester, Ryons
Co., Secretary.
' •
<
»

SECURITY TRADERS
•

South

Mr. Kluesing has
Hugh V. Duggan as
Manager of the sales department.

■'7T;.^-v

the

group held May 2, obtained 75 registrations for the
joint Fresno
party to be held May 20 through 22 with the San Francisco Secu¬
rity Traders group. At the close of the speech six
monkeys ap¬
peared on the speakers table and applauded Dick's efforts with
cymbals. Guest appearances of these appreciative primates could

La Salle Street.

Been

probably be arranged through Dick.

Kluesing Joins
[Municipal Bond Corp.
(Special to The Financial Chronicle)

Officers

& Co., President of the Security
Traders Association of Los
Angeles, at the dinner meeting of the

/ilvin

CHICAGO, 111.—AlvinV. Klues¬
ing has become associated with

by the Los Angeles-San Francisco Joint Committee

Richara R.

gren

Game

scheduled

are

•

(Colorado Grain Corp.), Jimmy Powell (Boettcher & Com¬
pany) and Jim Struthers (Garrett-Bromfield & Co.).

Hasselgren, Colorado Grain Corp.

than 200

Any members of affili¬
Spring Outing should arrange
as last year's party was so
members have already made reser¬
VB-Vr:vL Vn
possible

SIX CYMBALING SIMIANS PROMOTE
PACIFIC PARTY

Oscar

J. K. Mullen

attend

are

45%

; 29

;

The registra¬

Officers of the San Francisco
Security Traders Association
Henry Perenon, Henry F. Swift & Co., President; Rudolph T.
Sandell, Vice-President.
'

32V2

Kirchner

42;

soon

charge.
-

Mutual Funds

cordially invited.

by the Entertainment Committee
and the facilities of the Fresno
Hacienda, which incidentally is the
largest motel in the United States, include two swimming
pools,
an aquacade that
may be viewed from the under-water bar, and
other surprise events.
Naturally, good weather is guaranteed for

Lost

Many events

by Robert L. Mitton who was Master
of Ceremonies and contributor of liquid refreshments for the
evening. Guest of honor was Ed L. Beck of the "Chronicle."
Final standing of the teams for the season was:
»
•
J. K. Mullen Inv.__

are

vations for this year.

season

and final team sweepstakes

Carroll

Security Traders Association have been invited

all members of affiliates

for accommodations

L.
Beck, Commercial <6
Financial
Chronicle, New York;l
Struthers, Garrett-Bromfield & Co.; Jim Powell, Boettcher & Co.1

Jim

tion fee for the weekend is $30 for
guests.
ates interested in coming to this

The Denver Bond Club Keglers completed the 1954-55 season

Friday

Edwin

Leon

Los

Angeles

Stern, Lauer & Go.

San

Francisco. In charge of transportation and reservations for San
Francisco is Ralph E. Brown of Stone & Youngberg and for Los
Angeles, Gordon B. Tuttle of Gross, Rogers, Barbour, Smith & Co.
All presidents of affiliates and national officers of the Na¬

Stern, Lauer & Co., 120 Broadway,

the

New York City, members of

New

York

Stock

Exchange,

firm as Manager of the

Partment-

was

de-|

bond

mer*ly

Gregory.

M*". Foliar
Fartner
.

in
-

for-

Bonner

Number 5426

181

Volume

The Commercial and Financial Chronicle

(2075)
JC,.

A
j

;

field- of* foreign

The Political Scene in Washington
7,:
7

7. '7

By ARTHUR KROCK*

Well-known Washington political observer reviews
7

•

the

whole has failed to

complete accomplishments.
prove

der the voting

has

suffered

from

campaigners

all

the

means

But when

oust the

party

One

easily

can

led

against

they

has

"just

for

province

all

President Eisenhower

has; made special diplomatic '

Jhave

signments to
ants,

grievances,1,

regime play upon to the limit of
vocal and other facilities.
vIn

1952,
to

.sensible

Republicans

citizen

this

pass

•expect

the

expected them to

miracle.
of

some

were

everything.

correct

But
these

did
achieve¬

The end of the bloody stalemate

disorder

Administration and in the making
and

presentation of policy.

The

toughest
the

balance

efficient

and

reduce

the

public debt.
Economy,
without

weakening

confess

most

government

controls of the economy.
The

re-ascendancy

•

wisdom

see

speecn

President

the

make

the hostile A.

F. of L.

en¬

Both

outfits

of his most cherished

oppose some

the

Administra¬

tion to balance the budget and re¬

the

duce

been
we

public
to

led

were

have

debt

stout-hearted

group

integrity among

little

was

didn't

New

Deal

ac¬

for

the

Constitution.

realize

of the program

better

working

arrange-,

ments between the Executive and
the members of his party in Con¬

gress.

policy, candidly

But the Administration had
to

forced

Byrd to make

Senator

ceil¬
the
1952
campaign promises and the rela¬
tion
of
Secretary Humphrey to
try

live

this issue,
lot

The

ex¬

the

under

debt

considering

and,

that

security system

tight¬

was

that it could be adjusted to events.

sometimes enforced the system in

Improvements

The Eisenhower

Administration

impressive number of

In my opinion,
President and his "team" have

these expectations.

about

brought

major

ments over the recent

Democratic

7.7'.

regimes.
They

improve¬

stabilized the

have

pur¬

Reserve

eral

cushioned

adjustment

they

has

have

guided the economy to its current
—-I may say, to me, dizzy—heights.

promise.

has

give

lic.

The

President

confront
mental

the

accuser

this

country.

then

ministration
and

announces

conferences that the right to

tells

funda¬

His

Ad¬

Congress

courts that to grant this

government

would

lay

us/bare

V In Stxhae

people
the

war,

feel

political mine-field of public

And I think the standard
by Mr. Krock, before the
New York City, April 27,

any

the disunity

war,

the\irne'heinff0m ^ SUrfaCe ^

the time being.

A third

war

dissent

of the United

world

which

power

States

only

can

will continue, to be shooting from
;.

licans

lost

Some

•

for

the

States in the world by

have

place.
Mr.

tough

talked

.'77

Repub¬
Secretary

complain

influence

They

;

prominent

critical

are

Dulles.

'k'7"7

77;

many

and
say

contribute

the

wealth

and

The

skills.

employment
these at home are necessarily

and

duced to that extent.

repeatedly

political issues with

the

domestic

first

now

commenting

mem-

Armand G.

.The

Republican

factor.

But this

large,

But

origin

-7

me
7

been

1936

for

This announcement is neither an offer to

Shares. The offer is

sell

nor a

except

for

which

was

-' -"7

•

awarded
7

solicitation of an offer to buy any of these

165,945 Shares

Incorporated

4.48% Cumulative Preferred Stock, Series A
Convertible

on or

Value)

prior to May 1, 1965

Uiyhls, evidenced by subscription warrants, to subscribe for these shares
have been issued by the Company to its Common stockholders, which
rights will expire at 3:50 P.M., Eastern Daylight Saving Time, on
1955, as more fully set forth in I he Prospectus.

Subscription Price $25

The several underwriters may offer shares of

May 19,

more fit to
Democrats.
On

being

Series A Preferred Stock at

prices not less than the Subscription Price set forth above {less, in the
case of sales to dealers, the concession allowed to dealers) and not more
than the highest known

price at which the Series A Preferred Stock is
market by other secur¬

being offered concurrently in the over-the-counter

ity dealers plus an amount equal to any concessions

allowed to dealers.

Copies of the Prospectus may be obtained from only such of
t,
signed us may legally offer these Shares in compliance
the securities laws of the respective States.

govern

the underwith

than
great

many

issues, forecast, together with the

publican platform
dent:

world

economic

notably,

policy.

basic

MERRILL LYNCH, PIERCE,

foreign

CLARK, DODGE & CO.

Its

Own

May 3, 1955.

Troubles

The Administration has created
many

WHITE, WELD & CO.

HORNBLOWER & WEEKS

PAINE, WEBBER, JACKSON & CURTIS

Administration Has Created Much
of

FENNER & BEANE

sys¬

tem, qn foreign aid, on taxes and,
most

MORGAN STANLEY & CO.

1952, party
opposed the Presi¬

have

leaders

of its own troubles

in the

1942-1946

made only by the Prospectus.

25 Par

partner

service

the

im- Legion of Merit.

a
vast
7' 7

Texas Instruments

Co. since 1933.
general

colonel in the Army

Administration, by and

seems

has

since

has been with Carl M.

Loeb, Rhoades &

important He

their

„

^r-

This evokes
an

Party

•

Erpf

member of the

Company of New York,

ance

of
re-

is in foreign policy.

His directorships include: Phil-

possession

United

Fund

Canada,

consequence,

human

has

advisory board, Wall Street Investing Corp. ; 7

complex, makes
the remainder of the account-

then backing
he should not

tough

re-

those which Russia's allies

satellites

Capital
of

York

the United ippine-Long Distance Telephone
States is to have and keep allies, Company; National-U. S. Radiator
it must give and loan abroad a Corporation;
Conservative * Gas
large measure of its material and Corporation; and Jefferson Insur-;

Others suspect that, though

Dulles

their

and

Director

New

Corp.

ber of the executive
committee and a,
director of ¬
Seaboard Air
kibe Railroad
Company, and. a

the

challenge -accounts
part for the change. The indispensable need by the United States

shooting from without, there^ 7 In

within.

1,1

Utilities '
vesting
a

°77v £

Ltd.,

ing.

masked in silence. But when there

The -rise

world Bolshevist

largely-

President

reason

director

phT:*sana ® ?

t7a'7,"d °J

why no American foreign policy, or its conduct,
can unite the
people in these times
is the paramount effect of foreign
policy on the result of elections,
:

and

when most

that

sure

verge,

policies to meet them, in the Re¬

1955.

shooting

fer allies, to match with

anomalous?

take the President's
expert judgment that in so doing
they have not weakened our se¬
curity.
They have wrought re¬
markably in restoring the free
enterprise system by curbing the
invasion of government—even in
to

Club,

If the event is

the

Could anything be

enemy.

the

Bond

security

address

resolve it.

Corpbration, Mr.

pro-Communists
bad name to a good and

phrey.) They have cut down the
military bill, and I for one am

*An

bi-partisan disunity on
foreign policy. Only the event can
scale

ner of Carl M. Loeb, Rhoades &

sources

■

Foreign

either.

whole has failed to prove its claim

power.

■

ArfflSnU fcrRf OfTGClOr

7777-;';77.7- Co., has been elected

(okeh,; national unity isn't possible

opportunity to

<For this, all tribute to Secretary
the
Treasury George
Hum¬

the

■

sincere liberals, and

willing

This

believe ;that

ship

the

his power.7

bitter protest
of the Con¬

essential safeguard of the Repub¬

cases

They

Disunity

7 Policy

Soviets

durable bi-partisan¬
possible. 7 By the
same

whip his

makes

fake liberals and

extraordinary

skill.

friends

afforded

right

with

and

wisdom

Board

arouse

true

stitution and

economic downward

way

Administration

the

among

news

chasing power of the dollar. With
the sound cooperation of the Fed¬

according

think

Major

the

partisan

Armand G. Erpf, a general part-

politics, and in the absence of war
its certain imminence, I don't

disappointing

was

ened,

can

,7.77

his

anti-interven-

line

people.

and professionally con¬
ducted; firm, but not rigid — so

satisfied

nurtured; only

system

yielded

into

ahd

required pse of his prestige and

changed his counsels

to the President.

party

fumbling

better and longer

plained

Eisenhower

two-party

has

the

stop

and maintain

twice

foreign

;

household'

restore order in his

can

all

aoprehend

angrily

Dulles

tionists and

the .op-

subjugate

•

how

gress.

ing;

Much

over¬

•

others

Mr.

convictions

spending would

working arrangements with Con¬

regard

due

believes

will

rest

security system against

with

of this

And

facts of
national

with the hard
Federal system and

politics.

not

gov¬

Communist spies and fellow-trav¬

elers,

the

Still

predecessors

Eisenhower

quainted

much

oversold.

policy

shevism.-

that

its

over

defend

1952

That

expect.

the

because

being

while

while
be ;!

because

proper

Communist tactics
and targets remain what they are,

policies.
efforts

must

have to be retained to protect the

ernment officials.
A better

7 But,

but

and

shining and much applauded.

down.

777

jiess.

Personal

are

talking

the

natural

"bi-partisanship in for¬
eign' policy" • and • "national unity
in foreign policy."
The phrases

Convention and snub the Conven¬
of

are

7-7:7 7 Now

consistency in the counsellors who

the

of free

terprise over government-in-busi-

neither

I should think

can't

campaign
end

wise.

Secretary Dulles.

partly

Stabilization of the dollar.
The

seems

nor

essential defenses.

our

it would make real difficulties for

The

kiqd of effort to

budget

peace,

diplo¬
diplomacy is the

our

assure

provement

the^he

President, being
the
sole
them, means whereby the Republican
if necessary—not
only to Party, can hold .the White House
the security of Formosa,/ in 1956 for another
four years
States

Bi-Partisan

the slogans

selling

tion

77; 777

instead

Order

•

object of

This

advise

in Korea.

Depart¬

responsibility of the State Depart¬
ment.

they

ments:

State

the' pursuit

But

macy.

existing

going

the

which is the

Arthur Krock

•challengers of
the

ment,

the

which

outside

as¬

of assist¬

number

won¬

that

was

chanted. They

special

was.

majority reveals

complaints ideal
Republic.

responsibility

executive

But

macy.

disen¬

been

lot, yet at the same time
on
giving 7 operational

insisted

have

people

there

functions to the State Department
instead of confining it to diplo¬

the

too

Both evoke ideal practices of an

the^ Democrats

same

over

That

happened.

Some

the

scattered

the

the sub¬

from

ex¬

pect too much
stitute.

hand,

instances

repeated

the

reaction" to
among

other

the

been

been lamentable;

long in power

they

But

disorder in the making of policy,
and the presentation at times has

voters

the

high indeed.
have

party majorities.

of Administration integrity is very

them¬

oversell

selves and their party.

that

fact

But

lack of confidence in both parties
and, in twice shifting control of
Congress, has returned only bare

7 This 7s

I The Eisenhower Administration

and

convinced

Asia to Chinese and Russian Bol-

conducted.

Democratic record

fit to

of holding the 7
because of his prestige and power. ;

White House in 1956,

executive

promised

instances, the record is as
of " these
pledges as
the

short

predecessors. Says Eisenhower is sole

its

the
It

posite

many

than the Democrats, but concludes the t Eisenhower
Administration, by and large, seems a vast improvement over
govern

alone

within

themselves.

United

sionally

cam-

dissensions

Quemoy,

foreign policy, adjustable yet firm,
candidly explained and - profes¬

States the Republican Party
its claim of being

guardedly about the Matsus

ranks

paign promises of the present Administration and the lack of
their

,7r

'7":".

•

Washington Columnist, The New York "Times"

policy--troubles
Republicans
in
Congress,
troubles with our allies, and open

twith

(2076)

The Commercial and Financial Chronicle

matic business machines and

New Indnstoial

Techniques

And Their Benefits
By S. CLARK BEISE*

Executive of

demand for workers.

producing

Stresses need for

of another industrial
evolution

that

higher education.

revolution,

word

from

driven

Concludes, instead

machinery,

what

see

the

hub

going

the modern

We stand

on.

of every kind
nomic

ity.

«,

activ-

take

problems
tion

its

bound to
brain, at least

and

have

•

much that
and

p'ain V1off,

that

well

new

kind

on.

ucators

those

edu-

fear

introduction

Only two decades
through a blizzard
that

depression

the

Industrial

tries

mediocre

until

cries

the

In
b

its

had

accom-

chines.

less

mercial enterprise, deluged as it
is with paper work, automation
has come like a life raft to half-

But every time the human race
to a point where it is to
march
en
masse
into
a
new

Promised

Land,

doom

rise

the

prophets

thunder their

+in<!

what

CpasT making

caDabie

long pio^ress"to"5e cannot
before, and

halted--^when goeswhistles
blow and the word the
out to

forward,

the

com

ers,

inventors,

them

are

and

thrown

that

been

against

them

who

are

this

always

must be

for

Federal

and

everdng and burst into tears.
His anxious wife asked what the

find

wh*

myself

Qne

trouble

was.

told her he had just read
article about
(.Quid

dig

machine that

new

ditch, lay pipe, weld

^by he should
f"sv^r

who

while

even

see

cry about that.

was retired.

And his

Jts Just the
\ °uble. Without being able to
loaf a™UI?d bf.re aad tb^nk aboat
^s,:,

old

backs

buddies breaking

and
and

their

sweating over their
shovels, I cant enjoy

his

was

son

not

helped much when
home

came

expected

from

school

predictions, and of
are

career as an automation engineer,
Rey *° *be developments which

and

have engendered the Second Industrial Revolution are Automatlon'. or autom.atlc electronic operation> in which radioactivity is
more and more being used as a
1001 • • ' and atomic enerSy as a

book

prophets
"There is

United

faborer
laborer

the

applauded

there

vears

whirh

States

recent

statementat which

nav

Sck-and-shovel
which
which

live

can

this

rate

dnnm

is
is

low

enough to compete with the work
of

steam

shovel

exca¬

vator."
I

wonder

isn't

better

above

chines
to

man

that
uidi,

duuve

give

him

from
less arduous
ducins a living.
ducing a livine.
progress

the

The
that
tion

versity
mg

the

address
of

the

and
ana

rise
mama

menial

pro■

after saying
Industrial Revolu-

devaluation

by Mr. Beise

Minnesota

the

Uni-

upon
the occasion
the University's OutstandAchievement Award, St.
Paul, Minn„

receiving

April 21, 1955.

In some other
circles
it has
been built into
something abhor-

Chairman
less

Iess, °*
made

Benjamin

United

Umted

the

States
states

no+hina

Fair-

Steel
Steel

well-quoted
ic

has
has

comment

ppw

^tthere isexcepc thenew about
n^hing word itautomation

self. He added that the facts
mechanics

are

older

and
than

RePubbcj

Wldely installed in recent years,
yet the Federal census shows that
^niicrcuciaucusussiiuwsuiai
between 1940 and 1950 the num-

be^ofQemployed telepnone
employed teleohone11^^"
,

op-

crators increased 75%. And m
spite of the development of auto-

for

bank

handle

and

Ninety-seven
percent
peQple of my state use
oPrv;Pf><.

when

tndav

clOTks

^Xrs

Fiftv

ev^n

and

kave

invested

ye3rS' 1S
close

Continued

regional groups to

President's

program.

This

"Highways for Survival Committee," in¬
of

States

and

publishers

Senator

and

Gore.

The

Senate

proposals of the Clay Committee plan have
controversy. Nearly everywhere there is agree¬
something heroic has got to be done about the nation's

was

President stepped away frorii this
controversy and
to Congress to work out the

financing.

bonds

would

The Clay

highway system, some 40,000 miles,
over a 30-year period from

payable

tax.

gas

relationships

the final

analysis

you come to the proposition of whether
needs to be modernized to
prevent a

and

economy

can

afford to

whether

make the

stifling

not

national

investment.

continue to give away billions
abroad.

Anyway, the
come

President's

seems

powerful

to be

able to

highway program, far from being

to be very much alive.

With Bruns, Nordeman

aeo

ont-mricp
io

jUSt ^ ^

the

ours

x>L-

enemy

nrlwat0

and

banking

vears

used banks.
Awopipan

the

cooperation with the present State Governors who

highway system

our

Bruns, Nordeman & Co.,

the

interested

truck operators and the
cognizant of -highway

financing

these

typewnter
of employment, only privileged people
regarded

the

caUed

were

dead, has
,

being changed.

a year,

'
-

Senator Byrd contends this is a
clever scheme to add to the
Federal debt without
having it show in that debt. Well, there is
going to be so much debate on the subject that the
public will
unquestionably be quite informed and there can't be
any skull¬
duggery about it. Furthermore, there are
ample precedents for
this kind of capital investment
on the part of the
government.
It is a fact also that if
the project is to be financed within
the budget it would exceed
the present
statutory national debt
limit which Senator
Byrd has dedicated himself to
protect. The
Senator is mistaken about
existing Federal—State

dividend

State

the Federal

accuracv

b*^5.u °I1U dLLUldLy-

the

Committee report recommended that a Federal
Highway Corpora¬
tion be established authorized to
issue bonds to finance most of
the work on the interstate

our bo°ks' a daily mountain of
accounting has to be moved with
SDeed

interest

the

Governors

Even the

5,700,000 deposit accounts

of them vitally

some

awakening has been profund

said

checks, and we are by no means
stopping there. With 20,000 payr°n checks twice a month, 200,000

dividend checks four times

from

highway system.

automation to

we use

P^™11

and

ment that

has become more
mechanized there has

need

former

The

banking
more

been

was

* dia* telephones have been

and

opportunity

the

means

decided

rent.

book,

First

was

♦An
of

same

the

aspires

certainlv
certainly,

had

of industrial power_

source

help the ditch digger out of his
ditch?

control

over

aroused the most

working force because reduced
unit cost has broadened the market; a trend which will continue.

said

take

the national highway proponents will
accept
adequate but the fact is that it does mark a considerable
step towards what the President wants.

turning to automation,

and

Wisdom is needed to make that
progress safe.

roots

grass

It is doubtful

plans

he fears it.

his bill

banks

course

would

which he has headed has
reported out a bill
greatly advanced from the one he originally sponsored. It takes
long strides, in fact, towards the Federal
financing proposed in
the Clay Committee plan for the interstate
highway system.

it to produce better weather

Bureau

•'

;'v"

some

manufacturers,

The

and handle
passenger reserva-

Weather

'-r:

sub-Committee

priceSj and ]ess speculation.
Automation will help railroads
keep track of their thousands of
the

de¬

Tennessee

supporting the program. The Committee is headed by Arthur
O. Dietz, Chairman of Commercial
Investment Trust.
Already Congress is awakening from the do-nothing attitude.

and

use

others

work

tions;

are

yield
employment, less changeover
in the
factory) lower fixed
C0StS) more regular raw materials
buying, better averaging of costs

cars

Government

and

cludes

steadier

my retirement any more.
He

Democratic

Gore

down

*■

stir

?ord sales but aid the control of
inventory And management
agrees that inventory control and

control

The wife replied she didnt

Senator

and

Bargeron

high¬
that, indeed, if there was any legislation
nothing like the ambitious program of the

Committee, called

cyclical instability; more effective

Nation

ball

watered

just prominent people
needs, have been organized into national

commissions to thousands of
agents. Retail stores are getting
cash registers which not only re-

Carlisle

passed.

of bills to cushandle paycheck

the

grab

group of citizens,
automobile and rubber

to
with

cope

the

study the subject of

held up at the White House
months.
In the meantime,
the

Secondly,

turning

processes

floods

reason

which

40,000 miles of "our most important highNow, however, the President's program has been
put
back on the road, so to speak. Far from
being dead, it is again a
very lively issue before Congress.
First, slightly more than a week ago, the President told
his Congressional leaders that he wanted the
legislation

accounting and automatic figuring

It is instinctive

it,

machine
monthly

Committee

con¬

ways."

the

laid down his newspaper

ger

After all, he

and

progress

desire

for

liv-

tomers

point

the

among

educators

accepted.

man

are

unaccountable

some

Clay

much

governments

writing.
Insurance
firms
are
adapting electronics to mortgage

picks

will

possible

of the retired

the

are

behind.

There

and

used

was

substantially

very near future,
Public utilities

ditch' dig—

thinking

step with progress, who
permit themselves to be

not

man

hi/standard

raise

;

risk

and

ones,

those

are

keep
do

pioneers.

leaders

progress

making

exoeri—

ago

Byrd, the Treasury watchdog, was supposed to have
given it the death knell when he attacked it as
being deceptive
financing and as disruptive of the present Federal-state
highway
relationships. The President's program, he said, meant that the

r
^
the 3°inls and fm the earth back forecastH^
becomes more and
we find jn ad jn one untended operation, more vital to our economy. Inexplordirected by radar from a distan{ ventories have been a source of

Guarding the flanks

enlightened

left

the

many

business

attacks

new.

moves,

ageous

industry
the

mass

tbose in the lead
ones
the

the

With

the

have

purchasing

•

move

therefore
him

omens.

That, of course, is just a form of
fear, and the man who has feai
always wants to share it with
somebody else. But the push bed
started

ment

weeks

legislation

program:

Senator

Ever-expanding
w0rking
force
have
been
improvjng their status with the aid

highways

created

they would

President.

than there were 14 years ago.
cated, is to keep step with it, to
That new electronic brain machine
match with their own contributhe increased production made 1 mentioned a minute ago is being
tions the imagination and the inpossible ' by
modern
machine Quite extensively
used now by
ventiveness
that
is
moving
us
methods. Today's onset of auto- more than two score companies,
forward into a whole world of
niation is only a further develop- and we are going to see it even
new creations and
techniques.
comes

this

they could not meet it.

since that
has

his

The story went around
Washington that the President's

drowned business. In American
offices, with lotsiof new office
accomplishments, machines to help them, there are
segments of the three million more clerks today
years

trade

also

way program was dead,
at all it would be

com-

and

bill, one which in the first
instance did not come near to
meeting the highway needs as
outlined in the Clay Committee
report, and in the second instance,
imposed such an additional burden upon the States that more
than the majority of them said

the

To the world of modern

For

two

introduced

who

man

dead.

some

cided

indus-

fear from

three

report of the

for

development and man's advance"takings ment, than he does from the ma-

man

new

The
to

reciprocal

he will get
he wants it.

his national

overall needs

people who would delay machine

on,

to buy."

few short

themselves.

President had

Second."

attainments

money

electronic

now

two

sidered

works has

has nothing to sell that it is worth

anyone's

the

appears

pretty much

ago we lived

caused

his
wants

by the skin of its teeth. Then it looked as
though the opponents, and they are multiple
and well organized and
have, I think, a good
argument, might move in on him in the Senate.

the

Take

was

highways program.
His reciprocal
legislation got through the House only

trade

ma-

loud

point

which

national

typesetting

case

legislation

delayed

textile

automatic
railroads,

and

was

that

chinery,

piished, the average human being

being
And the challenge, to ed-

the

sabotage.

administrator

skilled

survive

degree

some

"However," it goes

—

old has been put

much

put

view

Beise

fear-

threw

skilled scien-

the

First

the

Revolution,
may

point

own

workmen

machines

point of view the Second Revolution

man

forms

how those

plastics and

our

from

French

throwing men out of
work.
That
philosophy
would
have held back air transportation,
television, radar, atomic energy,

fist and

living.

identi¬

dressmaker

--and certain-

routine

..."

survived

and

From

simpler

course," it continues, "just
as
the
skilled
carpenter,
the
skilled
mechanic,
the
skilled

con-

business

similarly

«Of

tributes to the

fullness

decisions

occupa-

that

devalue the human

the

every

industrial revolution:

of eco-

Our iunc-

tions
in

by the competition of
goes on to say that

arm

know

word:

new

human

By CARLISLE BARGERON
This writer has long since learned not
to kiss Mr. Eisenhower
off when he has asked
something of Congress.
Too often his
requests have seemed not to have the slightest chance in the world
but
somehow, out of the "stubbornness of the man, he
got
what he wanted in the
end, without much
fanfare either.

their wooden shoes into machines
of
the
First Industrial
Revolu¬
tion and
gave
birth to another

having a fast-moving
living and demanding

same

We people in the banking busiare
in a unique position to

ntss

should

because

monotonous

some

labor.

skills.

automation

pleasing

fies the machines which free

we are

better

providing

Be¬

The magazine Nation's Business

activities, and predicts within
will be in widespread industrial use.

born.

was

1953, he said, our
increased 22%; jobs

believes

marketing

and

75%
in Detroit, where the

35%.

Cites progress of automation in various

25 years, atomic energy

Washington
Ahead
of the News

1939 and

population

have increased rather than diminished the

seems

From

repairmen increased

years

Thursday, May 5, 1955

that

increased

Automation

tween

regarding the advance of "automation" and points out its

advance

machine

71%
in
the
period. Automobile mechan¬

and

largest banking institution deplores fears

our

has

same

word

Francisco, Calif.

brain"

that plays whole symphonies in
statistics, the number of account¬
ants

ics

President, Bank of America National Trust & Savings Ass'n,
San

''electronic

new

^
$170
'

page

bers of the New York

New S. F. Exch. Member

Stock

Ex¬

change,

announce that Paul Peers

associated

now

Manager of

with

the

Department at their 323
Peers will specialize

counts.

firm

Commodity

way office in New York

SAN

mem¬

FRANCISCO, CaL—Fran¬

cis

K. Bottomley,
Vice-President
Eastland, Douglass & Co., Inc.,
has been elected to
membership
of

the

San

Broad¬

City.

in trade

Mr.
ac¬
5

change, it
ald

Francisco

Stock

was announced

Kaehler, President

Exchange.

Ex¬

by Ron¬
of

the
.

Volume 181

Number 5426

The Commercial and Financial
Chronicle

(2077)

The Outlook ioz Investment

Equipment

By DEXTER MERRIAM KEEZER*

excellent short-run outlook for

sees

incentive
sumer

the

form of

half

high-level

subject
for

plant

new

the

United

short

short-run

and

equipment
I

look

for

year

so.

the

word,

outlook

for

this

sector

key

our

economy

excellent, and
getting better
right along. I
anticipate

the

expansion

business

in¬

vestment

Dexter

Keezer

new

plant and
equipment later this
to

offset

is going

year

substantial

measure

declines in the production of au¬

tomobiles
are

and

dwellings which
The net result will

expected.

that,

will

roil

gear.

our

1956

economy

known

term

than

rolling

far

most

come

readjust¬

those

the

pending disaster, by now a rather
tattered crew, will again be frus¬
trated, but — happily — not si¬
lenced.
Contrary to what seems
the rather widely held view that
it

traitorous

they

seem

pessimistic,

perform

useful role.

very

above
next

ning

those

outlook

vestment in
ment

business

in¬

plant and equip¬
primarily from the
survey of plans for

new

stems

results

for

this type of investment just

com¬

pleted by my department at Mc¬
Graw-Hill.
However,
there
is
much

otier

evidence

optimism

shall

make reference.
r

Our survey, the best by all odds
we have brought off in. our
years

eight
surveying job, es¬

this

tablished two facts about the out¬
look for business investment in

plant

new

provide

optimism.
a

can

over

recent

business

spend

equipment which
foundations
for

One fact is that, after
of upward revision of

process

plans

and

strong

months, Ameri¬
whole

for

plans
plant and

1955

year

new

been

spent in

total figure is

year

ever

before.

The

$29,391,000,000. That

exceeds by a small margin
the
previous record-breaking total for
1953, and is 5% more than was
actually spent in 1954.

paper

Fourth

ference,

Annua!

The

Dr.

Keezer

before

the

Business Economists Con¬
School
of
Business, The

University cf Chicago, April 28,

1955.

plan¬

now

expendi¬

and

giving

establishing

record

That,

year.

another

expenditure

far

the

are concerned,
adds up to
excellent short-run outlook for

range

expenditure.
in

far

concerned, also shows

The

the fol¬
as

plans

bright

prospect for the years 1957 and
1958. If you want to explore our

results

survey
our

mine

greater

material

it, and

table
It

with

manufacturing companies, his¬
torically far less given to forward

planning than utility enterprises,

all

off

investment

new

while

others.

equalled

plant

fluctuations

Historically
elements

sales.

of the greatest

one

instability

in
provided

our

economy
has been
by
the violent ups and downs of
capi¬
tal
investment
by business.
It

that

example,
industry depreciation
about

short-run

some

In 1954, for

alone

And they
are
not only
making the plans; they are in
steadily increasing measure stick¬
ing to the plans regardless of

may

industries

than

ahead.

ig¬

relative

some

and

companies

very

well develop, however,

case

if,

even

the

arrangement
the

lifetime

lose

its

elements

the economy while consumer
purchasing, traditionally regarded
the much

element,
principal eco¬

the

payment,
—begins to
is also to be

sure,
these wage and
salary increases will in consider¬

able

part

later

prices,

showing

increases

and

that

tend

leave

the

Summary

you.

thing, of course, to
it is something else

plans;

fhem to

carry

completion.

requisites

mand

the

assessing the long-

increases

which

going

outstrip

wage

parently

wide

It is geared
and

the growth of

and

obviously

this critical

there

little

Thus

ican economy

side,

and

the constructive

the significance

one

which is only slowly, very

When

our

could

provide
of

even

their

surveys

the

Outlook

the

companies

survey,

larger

and
than

the

years

matic

much

And

This

announcement is not to

cated,

year.

the total

As I

porations.

expenditure

allowances

Even after

continued

uptrend

to
at

sustain

porated

in retained

estimate

business

Increases

consumer

high level

over

mediately ahead.

that

firms

con¬

from Harvard University
1950, he joined the Chemical
Corn Exchange Bank and in Jan¬
uary,
1954,
became
associated
with S. D. Fuller & Co.

B. C. Morton Adds Three
(Special to The Financial Chronicle)

DETROIT, Mich.—Gene E. Koh-

purchasing

the period im¬

This will be the

ler, Mary H. Kollida and Phillis J.
Lawlor
B.

are

now

Morton

associated

Co.,

Building.

as an
offer to sell or as an offer to buy the securities herein mentioned.
offering is made only by the Prospectus.

400,000 Shares Common Stock
$1 Par Value

now

The O. A. Sutton Corporation, Inc.

cor¬

"T/cVHtwio'

new
con¬

unincor¬
have

Price $12 per

1955

Percent

Preliminary Plans

Planned

Change

1956

1957

1958

$8,915

$9,226

$8,237

$8,037

4,900

4.913

$8,561
4,961

4,921

—2

298

237

812

795

754

Transportat'n
& Communications

2,975

2.969

3.032

3,026

2,743

Elec. & Gas Utilities

4.219

4.430

3.766

3,544

3,987

+ 15

7,556

7,629

6,9-39

may be obtained from the undersigned only
undersigned are qualified to act as dealers in
may legally be distributed.

the

find in which the Prospectus

251

—4

securities

4,920

387

820

Copies of the Prospectus
in states in which

Other

Commercial
All

Business

6,379

$27,888

7,336
$29,391

$28,380

$27,802

$27,143

F. EbERSTADT

Co.

SlIILLlNGLAW, BOLCER
,

May 4, 1955.

{

with

Penobscot

earn¬

will

named

firm.

be construed

dividend

ings with which to pay for
plant and equipment. It is a
servative

the

allowing for
in

added impetus that is needed

any

payments, corporations will have
$9 to $10 billion

indi¬

planned is
about
$29.4 billion.
Almost half of this
amount, about
$14 billion, will be available in
depreciation

Partner

access

have

James Roosevelt has been

about.

have

plenty of money to carry out
its plans for new
plant and equip¬
this

fashion.

income,
now
flowing
through the economy in the form
of substantial
wage,
salary and
dividend
increases, will provide

expenditures

1956-58.

firm

Co., 39 Broadway, New
City,
announces
that
P.

sumer

cooperating
we
had
eight
able to give us

ago, were
estimates
of
their

for

York

investment
&

uation

number

companies

was

Fuller

Mr.
Roosevelt, a well-known
yachtsman, is a resident of Oyster
Bay, Long Island. Upon his grad¬

Consumer

Expenditure

ex¬

cooperating
it

for

in the interest of being
tolerably short winded, I propose
to do in highly summary and dog¬

penditures beyond the! period im¬
mediately ahead. This year, 87%
our

S. D. Fuller Partner
The

however,

worry

going to

854

ap¬

P. J. Roosevelt Now

This,

haziest

probable

fully a report
capital invest¬

business it is necessary
with the outlook for con¬

business

estimates

out

expenditure.

sumer

started

round

to deal

plans for investment
in new plant and equipment
eight
years ago, only a small number
of
the
cooperating
companies

ment

slowly,

being grasped.
of

plant and equipment back
shelf, and thus thwart the

the outlook for

The

score,

the

attainment of the record-breaking
level of investment now planned.

con¬

of the most far reach¬

one

new

business

ing postwar changes in the Amer¬

longer-range plan¬

execution

plans for capital investment
stitutes

larly smaller companies, would
put their plans for the purchase

fact

out the plans.

Business

ment

program.

com¬

required

money

long-range sales

production

one

396

by a
compensating

1954-1955

Railroads

else

range effects of the current round

successful

this

Actual

Manufacturing.
Petroleum IndustryMining

that

short-run

someone

(Millions of Dollars)

All

nullified.
fact

another occasion the less cheer¬

ful problem of

BUSINESS' PLANS FOR CAPITAL
SPENDING

1954

consump¬

that

their

extent

mind

little
and

costs,

upon

dealing with
I

stimulating effect

stable

producing

pay

glamour,

outlook.

stable

down

increasingly shaped by longrange programs, will prove to be
more

ex¬

anticipated.

will

the

euphoniously known

negative

and

bear

less

tion

one

opportunity to buy a house
than nothing down — an

But

ness,

pected, the rate of automobile
buying subsides substantially, and

in
the
years
immediately
ahead capital investment by busi¬

other industries

years

one

again to

carry

which

would be delighted

with

below.
is

have

the

detail,
report of them provides a gold

now

equipment in 1955 than has

the

plant and equipment

new

high

this

supporting

which

steel

equipment
some

plans
an

are

the

that

better

allowances

just made

requirements

and

much

ning

record-breaking

promise
next

year

have business

this

new

this

arrives.

year

ture for

for

lowing table which,

My confidence in the brightness
of

fact

capital

This is true.
in

have

companies,

outlook is summarized

Survey Results

the

nores

their

clear prospect that
next
year's
expenditures
will
shoot
well

devised

prophets

enough
out its plans for
new
plant
and

carry

calculation

con¬

the

margin any
were rather
nomic
gyrations. ' If
so,
that
increase
in
labor
desperately scrambling arourid in strange
productivity.
rattling you hear will
the
The assessment is one, of course,
public money
prospect is that business invest¬
markets
for
probably
be
John
M a y n a r d
more
which runs primarily in terms of
ment in new plant and
capital
funds.
However, Keynes turning over in his grave.
equipment
next year will establish a new these variations from industry to
For in his extremely influential price inflation and, I suspect, in
increased concentration in busi¬
industry and company to company economic
high record.
thinking he banked on
do not invalidate the
Here
is how
our
proposition the inherent stability of consumer ness and industry.
survey un¬
folded
that
prospect.
It found that, on the whole, financing will expenditure
So in summary, American busi¬
and
the
inherent
not be a barrier to
that in 1956 business is now
carrying out instability of private capital in¬ ness as a whole is planning a
plan¬
ning to spend within 3% as much plans for business investment in vestment
which, in the interest of record-breaking expenditure for
new
for new plant and
plant and equipment this general
equipment next
stability, he proposed to new plant and equipment in the
year as
it is planning to spend year.
+.7+V*;supplement
systematically
with period immedately ahead, it can
this
year.
What might conceivably become public investment in capital readily command the
Usually there is a
money nec¬
sharp drop off in the expenditure a barrier of imposing
proportions, equipment.
essary to make this expenditure,
planned a year ahead, and for of
and will have the requisite in¬
course, is a contraction in con¬
obvious reasons.
Contraction in Consumer
It is impossible sumption
of
the
products
for
centive, in the form of a high
to anticipate a year ahead all the which it is
Purchasing
planned to install new
level of consumer expenditure, to
expenditures which will prove to plant and equipment. To be
The fact remains,
sure,
however, that carry through. That adds up to
be necessary.
So if business is a great deal of the planned ex¬ if there were to be a
sharp con¬ the excellent short-run outlook
now
planning to spend almost as penditure
on
new
traction in consumer purchasing for business investment
plant
and
in new
much next year as it is
planning equipment is not geared directly in the period immediately ahead plant and equipment which I pro¬
to spend this
to
short-run
year, there is the
sales
performance. a good many companies, particu¬ claimed at the outset.

ingratiating

economists,

high

very

Thus, by what has

ment,

whole,

into

provide

with

point
can
be
properly
made, of course, that the sort of

high rate in the years immedi¬
ately ahead. In fact, the present

the

year

whole

The

very

the out¬

mean

this
a

equipment.

The other
key fact established
by our survey is that business
plans to continue buying new
plant and equipment at a

money

New High Record
Expected

interpret

well

investment

expenditure.

investment

States.

run

the

business

They will only have to do

business

key economic

are

outlook

about half reported that that they
billion, leaving only $3 billion to have
capital, investment programs
be
raised
in
the
public money extending
two ^or
more
years

billion.

hc3sing production. Concludes business is planning recordbreaking expenditures; it can command the necessary funds,
and will have the

earnings.

Last year these markets
supplied business with about $6.5

sector comprised by expansion of business investment in new
plant and equipment. Expects this will limit to a
rolling read¬
justment the impact of expected declines in automobile and

depreciation allow¬

retained

markets.

and

Director, Department of Economics,
McGraw-Hill Publishing Company, Inc.

Dr. Keezer

and

arithmetic is correct that adds
to something more than $26

In New Plants and
Vice-President

billion

ances

Co.
■

)•

The Commercial and Financial Chronicle

(2078)

what you

Oui Commerce, Both Domestic
And Foreign, Must Be Expanded
By DWIGHT D.
President

EISENHOWER*

of progress,

tion

domestic

and

what

says

propaga¬

The

filled

with

that

connotations

characteristic

Commerce—it

"commerce" is

word

very

are

tion

Commerce,
productivity,
the energies

organism,

upon

that
has

were

like¬

men,

wise

material

base to

still

ten.

satisfy

hundred years

the

that in

believe

aggregate the initiative of the in¬

physical

dividual, his aspirations, his hope
of bettering himself and his fam¬

wants of man,

and

ily,
his
ambitions,
if directed
equallyJoward the common good
as
toward his own betterment,

which

built those

are

opportunities

will produce

cultural

for

arid

all of

spiritual

advancement
Pres.
s o

Liaennowt-r

well-

lationships

made

what

driving

there

ago,

As I

are.

here

over

today, Franklin Pierce
dent.

Had

body

with

was

functions,

the

purposes as yours,
what would he have talked about?

in, and

come

knew

thing of steamships.
even

some¬

such

had

not

at¬

things

and

man

wheii

The

every

community

every

specialists.

almost
is

man

are

machin¬

have

prin¬

here

these

proved

life

Government

that

in inter¬
Federal

our

takes

our

own

But think of the

and

everybody does something
produces something in the

things you
do by cooperation and by working
together. That is the kind of thing

way

of services

else

someone

value

and

that

they

bring

must

have

want

our

existence

system

holds

by President Eisenhower et
opening General Session op the 43rd
Annual Meeting of the Chamber of Com¬

IJ.

the

C.,

May

United

international

us'

is that

by
to

ish

States, Washington,

system of
On

our

released

way

"You

for

ourselves, we are as certain
defeating Communism as we

the

prise

that

all

are

this

are

international

world for the United States

only this: We
a

bridge,

will

growing,

increasing

and

there

some

them,

there, will
if

concessions. And

for

here
bit painful.

people

things most self¬

boast

that

you

fol-

Wet; Its

tremendous

But

The

opportunities

our

Within

And

all local or

will

nessed

say,

this

country

^elf-sacrifice

the

individual

ourselves

home

its

fear from

dispel
we

can, as we

success,

happy and full lives in

per¬

serenity and security.i I feel
that
global
peace
based on justice, on de-

"the"^'SpSonr to'?
and

cency

respect

that

sav

means

say

prosper

continue

must

at home.

others

for

Those two goals

highway,

American.

any

In
"

When it Comes to

that the "Big Winners" of

going

concerns

of today.

1955 will be found

Company
Admits L, Kolodny

...

Hourwich

among

the

That's why we're bullish about the

become

was

last

the

June,

company's

$200,000 in

ore.

VANADIUM

pit operation

open

uranium

claims

CORPORATION

part

yielded

This claim and three others

Kolodny

has

General Partner in

Arthur Vare

has retired

General Partner.

of just

one

have

shippers, the taxpayer,

pipelines, coastal and intercoastal

tion,

the rapidly developing air

cargo services.
In

major

has played
fast

Outing;

now

leased

The annual meeting of The Mu¬

nicipal
will

1955 at

Bond
held

Club

New

York

Friday, June 10,
at the Westches-

1:00 p.m.

ter Country Clul>. ^ New York,
Jt "» enounced today,
v

The nominating committee has

Presented the following slate for

moving and dynamic changes
organization, financing, and

DeHaven

Monarch Uranium offers

one

developments,
of the finest

believe Bullion

growth opportunities

1955.

Bodine,

write

today for

free

copy

of Bulletin C 5

York

Stock

that

his

15 William
Telephone:

Seaver

Teletype:

has

Seaver

with
been

investment

has

the

be¬

conducting
business

role

NY 1-1318

PINEHURST, N. C.
Bowker

has

been

—

added

John R.
to

the

Heartfield,

670 Southwest Broad Street.

dominant

ex¬

panding and modernized highway
system, although aided by the Fed¬
Government

eral

through
has

Government

the

pro¬

The Fed¬

grants-in-aid.

gram

spent

general

harbors.

and

vast

taxpayers'

More recently

the financing

management of

system

aids

nationwide

air navigation,

and has advanced substantial
of

money

the

form

sums

direct

financial assistance for the devel¬

opment of air transportation.
The' net result

system
all

competitive

transportation that for

practical

purposes

has

nated the monopoly element

elimi¬
which

characterized this segment of our
some

this

During
ernment

years

ago.

period, gov¬

with this

Inc.;

Philip

President

Vice

for

Hiss,
First

President:

Assistant
National

Vice-

Bank

Chicago; for Secretary, Richard N.
Rand, partner of Rand & Co.; and

T^jjurer Ma,rUn J McAndrews
Hemphill, Noyes & Co.
Joins Harris,

failed

keep

derlying concept of this regulation
has continued to

based

tation is monopolistic,

the

despite the

that the* power of individual
-

transportation enterprises to

Upham

pace

change and has, in fact,
regulation of trans¬
portation. Paradoxically, the un¬

exer¬

cise

monopoly control has been
rapidly eliminated bv the growth

(Special to The Financial Chronicle)

LOS ANGELES, Calif.—Thomas
W. McCausland is now with Har¬

from

pervasive competition.
which

locations
this

the

have

intensified

The dis¬

emerged

competition,

hand, and the restrain¬
ing efrects of public regulation on
the other, have borne heavily on
on

King Merritt Adds
ANGELES, Calif.

—

one

the

(Special to The Financial Ch-onicle)

LOS

has

same

intensified its

fact

Mar-

guerite H. Whyte has been added
f° the staff of King Merritt & Co.,
Inc., 1151 South Broadway.

common carrier segment of the
transportation industry. The ship¬
per and ultimately the consuming

nublic pay the

costs of this dislo¬

cation.

The consequent loss to the

public,

while

estimate,

incapable

believed

exact

amount

to billions of dollars per year, and
calls

Basye and Eckard Now
With Hall & Hall

staff of Dietenhofer &

played
provision

the

For,President: Monroe V. Poole,
President of Geo. B. Gibbons &

City.

(Special to The Financial Chbonicle)

participated.;

have

government

The states have

n*.

firm.

With Dietenhofer Firm

Street, New York 5, N. Y.

DIgby 4-4740

associated

own

Crou'er

Street, New
of the New

Exchange, announced

Charles

New York

E. E. SMITH COMPANY

Broad

City, members

Mr.
or

York

come

Phone

& Townsend,

All levels

transportation services.
of

economy

r>he year 1955-56:

DeHaven & Town send

AMERICA.

government

decisive role in these

in the

and

New Slate Announced

approximately

are

respects,

has aided materially in the devel¬

Street.

Chas. H. Seaver With

common

transportation by railroad,

To Hold

ie
as

services, inland water, transporta¬

ris, Upham & Co., 523 West Sixth

&
Because of these
encouraging

Leo

the first company in the State of Utah to
produce uranium.

Prior
of

through private subscription, Bullion Monarch

that

carriers

continental and physi¬

opment of airports,

firm.
1948

Co., 27 William
Street, New York City, dealers
and brokers specializing in" tele¬
phone company
securities,
an¬
nounced

shares of Bullion Monarch Uranium Company, Inc.
formed in

;

Hourwich &

URANIUM,

IT MAKES GOOD SENSE

trucks,

own

contract

cally integrated system of
carrier

Co.

worthy of the best efforts of

are

his

use
or

ers

and

minds,

our

achieve

wit¬

distribution,

regions,

travel.

N. Y. Mun, Bond Club

tackling of our relation-',
ships with our friends abroad, we
and

pri¬
bus

funds for the improvement of riv¬

our

can

the

sums

together, in their respect for
another, if we apply those
to

has

country

was

railroad

eral

work

today

one

transportation revolution.

all, including those tempora¬
rily inconvenienced.
I

this

geographic

for

the

intercity

operation of the nation's domestic
of

span

profoundly affeeted-inves
?
inn
nmnort,
in transportation property,

Wc
tors

painful experiences of
a greater benefit

the moment into

short

All elements of the economy

adjust

soon

Introduction

the

generation

We » can-

not lose.

com-

text

that

of individual

cause

ios.

cann°t

one

of the report contain¬
ing the recommendations follows:

liberty, as long as we cooperate
together for the common good,
we

reliance

petitive forces rather than regulation.

ing aspiration of all America, to
continue to grow under the bless¬
ings of Almighty God, with the
have been

purposes,

between

automobile,

common

carrier regulation

common

choice

elect
Sinclair

is ion of

and

fect

act

which

keep in sight that underly¬

business

transportation,
The shipper,
distributing finished products to
a
nationwide market, is free to

should

from
econ¬

transportation, air

some

make

others.

move¬

people

and

place to another with

and

must

goods

recreation

and control is largely obsolete and

velopments

expedition, and safety. The
individual, whether traveling for

excessively rigid, and that in
transportation rate-making there

economic

our

by
striking contrast, there

omy,

with

devel-

with

served

areas

transport methods for the

one

opment and in the economic de-

locations

transportation

exception of

ment

Federal transportation policy 011
the grounds that the present set-

kind of dis-

some

intercity

has

rev

wisely,
here
and
going to uncover

are

goods
1920, the

virtual monopoly

is available today a wide selection

lows, strongly
recommends a

Here and there to do this intel-

what have been

vate

shared prosper¬
with international

and

railroads held

port;' the text

and that is all there is to it.

ligently

As late

The introduction to the re-

means

widely

home

services.

the Director of

trying to build

are

and

consumers

the Budget.

permanent bridge, that

connect

com¬

Eisenhower's

enlightened

the

policy of

ultimate

water.

several

gether

the

Cabinet, to¬

friends,

trade

and

President

this

hall

House

Policy

financially strong

carrier transportation.

members

morning.

are

that

White

on
Transport
Organization,

values, and in trade,
have among

common

ccmmon

report prepared by
Presidential Advisory Com¬

the

in commerce, that we

We
and

the

18,

modernized and

the

of which

lead

The Communists

man..

people

April

competitive forces in rate-making.

Calls for maintenance of

mittee

our

doctrine

appeal

under all of those

1955.

and increased reliance

in the world, the independent na¬
tions,
the
same
principles
in
thinking, in cooperation, respect

and

challenged.

are

challenged
^Remarks

Ifie

merce

the

world, where the central fact

profit to the

producer.

dictatorship

born

lives.

But

obsolete and recommends less rigidity in rate-making control

patriots in their determinations to

will take the place

national

Kansas.

of Secy.

convic¬

our

Almighty,

Rail Regulation

Imreport to President, special committee under Chairmanship
Sinclair Weeks, finds present transportation regulation

the

make

that

Abilene,

have

only the ruler but they

accept, and need not accept, any
over-all
governmental structure

ist, the steel is a steel city, such as
Gary, or Pittsburgh, or an auto¬
mobile city such as Detroit, or an
agricultural town such

this vital

home; we under¬
stand them thoroughly. The point
I want to make is they are just as
vital internationally as they are
nationally. It is true we do not

for people the tremendous
significance that it has in this

day,

this:

tained

modern

surrender

means

The point I should like to make

communities

Commerce

regimentation,

accept it if it

tellectually and spiritually.

But, largely,

farms, and certainly our
were self-supporting.

our

never

ciple of living by our own initia¬
tive, and in individual freedom to
develop ourselves physically, in¬

beginning

were
we

kind

any

must

as¬

pirations, and

Well, railroads

in¬
and

various"

our

peace,

way
of advantage from govern¬
Presi¬ mental regulation or direction, or

was

invited

been

similar

private

business

Croup

ap¬

say

seeking to
life.
If we
then will apply among our friends

localities, yet we
forget that basic principle at our
peril, and we must not ever, no
matter what we hope foi in the

minutes

few

with

and

with

crossed my mind a
A hundred years ago

speculation.

talk about

the

with

dividual

Commerce here at home has

ness.

us.

Recommendations of Cabinet

'Forget your¬
the state.'" But to

they

not

destroy

ity

greater need for governmental re¬

necessary

his

the greatest good for

Though today

being, his progress, and his happi¬

applicable

that

principles

material

the
and

basic

ago, and 177 years ago, when our
foundation
document was writ¬

provides

that

country

this

that without the deser¬

the

tion

propaga¬

this

done

and the brains

free

great institution
call modern America. It

that,

tional

brought today the great

that has

based

today.

progress

problems of

our

self, build

man.

Thursday, May 5, 1955

all

to re¬
ligious faith, they have to substi¬
tute likewise, that state organism,
and that we flatly reject.
In any
event, that communistic interna¬

Points out an enlightened trade policy will
bridge to international peace and world prosperity.

foreign trade.
a

is idealistic in

peal to him and

tions

have done to promote

that

"We appeal

say,

have to substitute for

the

should be extended to the expansion of

commerce

earn

they

state

President Eisenhower extols role of commerce in

you think what
worship as you
as you please."

you

And

States.

United

the

please,

please,
please, you
you

PORTERVILLE, Calif. —Allen
G. Basye and Boyd S. Eckard ha ve
associated

Hall

Fresno.

merly

local

with

Both

Hall

were

representatives

Paul C. Rudolph & Company.

prompt and decisive

No economy

(Special to The Financial Ch-onicle)

become

for

for-

ac¬

tion.

mentally

distribution

that is based funda¬

mass

production and

products through¬

out a continental market can con¬

tinue

prosper

without

trans-

for

Continued

page

Volume 181

Number 5426

The Commercial and Financial Chronicle

(2079)

IIILa

IE—

—1

- -

and with pride: Is industry plan- While business drives forward

;

1116 DllSlZlGSSIllall S

Social

;

•

■

sorb

BULLIS*

Chairman of the Board,

General Mills, Inc.

changes such

absorb future

job-hunters, adjusting to meeting problems
of automation,
helping handicapped employees, and plowing
back profits for research to make better
products and services

from

business

those

are

The

degree,

life?

and

relations d

suppliers,
'to

stretch

the

•

the

across

A. Bullis

way

threat

war

I16 ®ve.r-a.n defense
ab?uJj funds and

re-

it - is

eduction.
These

are

difficult questions to

and,

answer

m e n

t. At this

nation

not

from

business volume
over

„

our

prob-

not

and

public

relations.

organized

perhaps

gional stockholders'meetings

con-

ducted every other year in ten

wonderful
he

was

drive to

J4~

made

possible

social

units of

~i4

4i__

the

_.-4__

twelve

cities where, we have a
goodly number of stockholders. I
believe that if the informal re-

direct

ratio

climate

made

specialized

and

the

who

Business operates by permission
of

the

issue

thinking of the country. I

not.only from

free
a

market.

Some

will

Others will call it

only

market

cite

various

controls.

government

But

the

overpowering
fact seems to
that in almost every instance

which

the

free

been
ties

social

our

All

'round." I think that

carry

the

people,

achievement

it affects

which

•

attitude which assumed that

Importance of Motivation

lic

■

;

have

learned,

paigns

have

these dis¬

if business had shouldered volun

tinguished public relations spokes¬
men
here today have helped us
learn, that only when a company

tarily

the great ledger of public
opinion
must make our entries each

of .the

—we

campaign? What results
hoped for? What motives did

were

the

must have.

Qf public
and

what

that

assume

shelf

responsibility.

And

must ask ourselves-

social

several

decades

responsibility
would

ago

have had these controls?

know.

But

businesses

lead

can

which

have

adapting

all

do not

think

taken

the

themselves

&.flSIS"social reformers
"?5 ^l±±aV"
been cited by
as

examples

what

should

of consumer needs, when it has

^r;esearc}l
plant expansion policies, and

J0, \ tH?nkine about
public relations6

...

„

have

"What's It

by all business on a
basis.
And in
almost

voluntary
every

these

case

businesses

have

continued to accept additional

continue
ment's

ahead

so-

govern¬

compulsory legislation..

Formalized Public Relations

have gained a

shed some light on the
relati°pship between the ability

favored

place

the

and wllllnSness of business to accept and. honor social responsipilities, and the result of these
^"tfiiiL'' Ttepif
busines.s attitudes upon the pub°ir indilitHai 3 tnthen»hs °P\n.10? of industry generally.
^/allknow 'The preliminary research indicates
started
rrbe
eoal
toward
k
?or ?e ™ost pai? we baYe
Whilp

hnsin^

shall

Hnin?

nnw

The

that

one—a

The

^but
uul

that

s^ruck

rlngs

better stand.

living
UVing

few
lew,

goal

with

-th.ose

self-interest

being.

u"13!1

failed,

somehow,

every uuuy.

anVit formalized public
p ace,in tbe rec~
hTfaCChePhnC-e
responsibility by business. I

rplfltiBnc
nunitinn

cial

♦An address

JjIc1

Meeting

merce

the

by Mr. Bullis

other achievements

Opportunities for Social Service

Business

Must

Keep

Its

The

House

But in

ent
zeal to tell the

our

0f businesstothe

public,

overlook

one

must keep its

own

social

business, large

in Order

fact.

story
shall
^

because
Now

are.
can

Business

responsibilities
cf
small, are exist¬

the

public

about

focus

Here

States, Washington,

C., May 3, 1955.

are

SOme

it to me?" questions
';
.

the
we

answer

"What's

in induscases are,

forthrightly

How

can

business brmodesrW'exten-

our

efforts,

whether

difficult prob- No amount of money or eftort sive_ s0 that we will get credit in
such spent in a campaign will accorn- the'nublic ledger for doing some-

create

new

product and the

jobs at satis_

service

socfety'Sbo^*

|
How
th

must be

the
can

sale

cement and reinforce

^hich

operation with
.

productivity

its

employees,

service—good service. There is

This announcement is neither
'securities.

offer to sell

The offering is

nor

how

further condone and accept us?
The

answer

j
b

th t

br00m

for

and

Continued

dealers

who

may

May 3, 1955

Corporation

be obtained from the undersigned and

lawfully offer these securities in this State.

D. GLEICH CO.
40 EXCHANGE PLACE

take

waIk

on page

solicitation of an offer to buy these

Sy2% Cumulative Convertible Preferred Stock

other

the

swe
_

(A Delaware Corporation)

Copies of the Prospectus

busi.

eve

sman, to get out its

118,000 Shares

Anchor Precision

en-

are

by society? In other words,
can
we
motivate people to

'•

dowed

made only by the Prospectus.

NEW ISSUE

Z-

product?

franchise of quasi free market

genuine

Price $5.00 per

try must be, and in most

prepared

them?

to me9"

is—what

aar

house in order

($5 Par Value)

and tbe women wbo make up the
public ask is based on that strongest of a11 motivations—"What's it

they

says

question

advance the general
public's understanding of the basic
economic principles of our com-

the

business to

individual, be

manner

have

affects the people

q°°e ti™® bbbllj fndaasVryg
clearly and intelligently and in

girdling

relate

otherwise.

comPany must have to its credit,

the Pub-

Lurnc.ueonr-uf l?e 43,rd_Anof the Chamber of ComUnited

are

concentric

evervbodv* the mterest of the of
social consciousness

for
xui

truth.

not

mark m

* W

;0,f thlS.u?f£or.u We have P?4

betto

job is to convince the public it
selfish
this simple statement is the

Me?"

7"%^^
!n7LZTn

£*

eested

There

^afion has launched a penetrating
stu?y °f motivation, that may

the

been achieved

that

proud
accomplished

we are so

public mind for all. time

retom'to"?^^stockholders"iTu
broader aspects of

public

I he Advertising Research Foun-

the

es-

and

the

balances

all

have

and

secure

drtl OI
chosen
i-iiu&oii

play its cards

away

that

in Rg favor. If

aj*g

opinion

assume

consumer

Would be to the company's bene-

Business cannot stow this ledger

has perfected its product in terms

cial

cam-

been

unsuccessful,
you will find that they had pot
been carefully thought out in advance. Motivation had not been
considered. What was the purpose

over-night. And it can never be
written on the books so that it
subsequent

shou)d

be fooled'

so¬

Wherever public relations

noise,

'ntellectual sleight of hand, fancy
advertising and big h ea d lin.es
could st?mPede the man in the
street'
aU know that the pub~

sell itself

aims, its achievements, and
understanding of its problems,

ctemicarexhaustPara%Lnt

wish

Businessmen are learning
industry cannot live by simoperating its plants and sell-

ing its products. It must
an

Phsh lasting results if we conit should tell the public what it is done practices within our own
doinS to correct the condition. It ranks which we know are wrong.
.g a major responsibility 0f busi- ^ any selling campaign, (The
nesg

cannot

man

did.

them.

fade

that

alone—though

—its

em-

\ye know that public good will
cannot be written on the books

keep

public
speak, and

General Mills sometimes

that

ployees, to our stockholders, the
story of industrial progress and

public in the role it really
occupies so that its importance to
the
nation
may
be thoroughly

Business

our

know

bread

and

thev

must

all

wheels, ply

,y y^re b^ed on ari almost cyn'cal attitude toward the public, an

welfare

laws.

wage

the

attempts to legislate

are

anti-trust kws

our

"see

known

public into their
confidence and let their customers

the

understood.

live

those

are

been

.*4

as a

companies

jb(, average man

Business should be presented to

com-

tlievmost

the

stockholders

that

wh/t t
PnHonvnvin^ tn
factory wages with good working right.
>nh^7_l
Lrthp7 nVmal conditions. It is also a major
We know that the profit motive
nn^rin thPiHpT nfp nrnir^m responsibility of business to do is not purely a mercenary force,
IrZbUc relations itself even everything possible to reduce the - since profits are the reward which
^houP"h%Creat sums of money are ^°sts °f Vr™ucil0n< and distnbu- come to those who furnish the
fnlo it we ha ™ all seen tion so as to lower the price of its public with what it wants in the
too many programs Ml because P''oducts }? tha consumer and at most
efficient and economical
Ju
^ ,p
°
ueudubv- the same time help to increase the manner. Business renders

resnonsfbili

sodal

minimum

these

?omp"r business ?o

added

Consider

legislation
our

has

rfnTrrvv-e.w./->^i4

done

market

market.

free

and

name,

say

He did that
teachers

take

mac

publics.

axiomatic

^andard of living
bSSnSs ifidmtteal

business. &nouia uxpiam its.
UDjectives

face UP- " « has

r e

which

naToi
^]1^evS nTdofn% businL fs h^
^SedW?^r °Lree
four salesmen
id
f<^ a^ree d()i both operations
four salesmem
He
g
d

economic

seriously abridged free

;n7hf
I hS
^T°.ing- and he usually got there,

lunction.

Business in this country still operates, for the most part, under a

does not guarantee the success of
the enterprise. It can
prosper only
as it
gains the confidence of the

public and performs

wOTking is

this
stockholders'
say

-.c

Wis time and effort to his

people. Government may
charter, but the charter

rumbling by the school, and students to eventually buy from and
work for him. He contributed of

the

markets

•

„

audiences and

facts

Business must
continue to speak,

understand the need for his trucks

economic

possible
mass

the nation.

of his little factory.
because he wanted

tt-

cover

constantly

mind.

™

gional stockholders' meeting idea

schools and parents alike by conducting economic educational tours

combined

families.

similar manner, society
expects
and more of business, almost

ii-i-

many

the

them

not

be sadly disillusioned.

the .standpoint, but from the standof the
individual, as he benefits scar left by an abandoned gravel point of informing the public
4
'r
4?Lonmnonu'e
nffnvfe
from the fruits of our
onrl
dynamic pit near a residential section of about the company's efforts and
promote
economy
and
the
group
living the city. He endeared himself to projects.
more

make

neglect to explain its
motives, its aims and its policies
to
its
many
large and varied

should

only

$100,000 a year. He did were universally adopted, it would
a
»
public relations de-have a tremendous impact on the

partment-but he had

Society Expects More of Business
Society expects

have

was

need to allow the public to learn
this truth for
itself, when we can

self-confidence, * it

attempting to and every day if we are to create fhe campaign endeavor to arouse
in industry and hold the good will which we *n the stockholder, the employee,

value.

p a r

self-re-

scholarships trom industry to help can stay there without
iuoserving^ youth secure a better entries. All ink tends

man-

not—if

His

not

„

does

the

40 employees and a few trucks,

Harry

may

coast to coast.
C

value

and

point, I am reminded about the
proprietor of a small plant in a
midwestern city. The man had 30

cities in which
it
operates,

which

thinkingf of
If

of public

activates

the

employees, its
stockholders,
its
customers,
and

face

Plainly, it is processes of manufacture, through
hypocrisy, and the sooner it is >• 'open houses
and otherwise, but
dispensed with, the better.
we should also acquaint the pubWhat I am trying to say is that lie' with decisions that must > be
the recognition of social
respon- made.
We in General Mills have
sibility and doing something about been fortunate to witness positive
it, does not depend, on a public results through our informal re-

ty;

busi¬

its

the

then it has

to its

are

today. Is industry just striving for
profits, or is it really thinking of

merely a "Jiminy Cricket'' type of.answer them, we
thinking like the conscience of the should let the public see
little wooden
puppet Pinochio— lems. We should show

those of the'
ness

any

both

agement.

group
to
his

modern

has

fleets

to the

communi

concrete

unless

social
responsibili¬
are

constantly improving

formalized

relations

in-

mary

ties

that

name

cept perhaps in
dividual's pri¬

family

believe

rot

department by the

individual—ex-

different

and

irt

Basically, the social responsibila

providing

spect

progressive

our

in the future..

ities of

our

try turning back into research, so
that the public can have better
products and better services in

planning ahead

environment

How much of its profits, is indus-

mounting government controls. Praises businesses which have
to social

hunters

30b

such

opportunities for
our handicapped citizens who are
capable of limited employment?

responsibility and thus head off the trend of

adapted themselves

Prominent industrialist urges American business to
voluntarily
increase social

future

rapidly increasing population? Is
it
giving equal opportunity to
everyone who is willing to pay
the price in intelligent hard
work,
regardless of color, race, or creed?

Responsibilities

By HARRY A

nm^ wellahead to be able to ab-

NEW YORK 5, N. Y.

3'J

The Commercial and Financial Chronicle

(2080)

Thursday, May 5, 1955

...

this month, plus more general promises of higher dividends, to put a couple of wider
gains
a sizable cor¬ stock
splits and calls for together right in the face of

expectations of

THE MARKET..

AND YOU

rection
after
posting r new
peakst last; week.' Offsetting
this

STREETE

By WALLACE

the

market

axiom

seldom

that

does

tenders

the

what

;

being bandied

were

about.

❖

least

couple of little
bear markets showed up in
the stock trading this week
when
notably the aircrafts
made themselves prominent
by plunging through their
previous lows for the year
a

dozen and
its

♦

American

have
*

note.

had

The

school of

from

more'fodder

the market's action

Telephone struck

different

generally expected. Neverthe¬
ipate in a growing confidence
the bearish arguments
over the outlook for the stores

half points under less,

year's high.

week's

contrary opinion.

stock

❖

stocks

and

was
among the
lows. But it didn't

than the
new

had had

bound
of

abnormally errat¬
Hard-Hit Issues
speculative pet has been less
life earlier this
Quite a few of the issues than distinguished in recent
with some of the trims from
year when the perennial
that have been in persistent years and even in the enthusi¬
the peaks rather drastic.
rumors of a stock split were
recently at least asm of earlier this year. So
much more active than usual. uptrends
v-y'
%
%
$
paused this week. Among far for the four months that
But with that out of the way
them were
Western Union, have elapsed Woolworth has
Douglas Aircraft, which earlier
again a case of no
which was able to make the built up the rather narrow
sold above 91 recently, had
split at this time — the most
backed up to below 70 for its
company of the harder-hit is¬ range of a shade over four
widely-held American stock
new
low. Boeing has come
sues
under selling pressure, points.
settled
down to
some
real
*
*
*
from above 88 to below 60
Foster Wheeler, Zenith Radio,
against-the-trend action and
and United Aircraft from 94
.

70 to

provide

of the

some

the lows 20s and Martin also

had

sizable fall from

peak

of 44 to the middle 20s.
/*

Even

the

that had

The situation
Excuses

for

Reaction

the paper

issues

excessive

some

Apart from the special situ¬

im¬

was

pronounced weak¬
their lows,
took a beating. ness, the market showed
General Dynamics which sold somewhat definite signs of
at 80
for a gain from the wanting a good excuse for a
correction. The1 few dour
year's previous low of more
than 30 points gave back two- earnings reports, or annual
thirds of it at the dour stand¬ meeting statements that indi¬
cated spots of trouble, were
ing this week. Newport News
far more powerful as market
lost a dozen of the three

and

still

were

well

above

ations that took

light

over

similar in

was

stocks

well

from

distinguished

Texas

TXL

Airlines

Nor

were

aircraft-de-

the

iense issues the only ones that

combination

Oil

the

cose,

cases

of Anaconda

has

been

erratic

far

present news and fol¬

lowing warrants. They
swayed with the general
ket

mar¬

although

consequently

mostly by slim margins that
indicated
tion

phase

than

consolida¬
new

any

tinctly contrary and

able

was

hail

the

not

necessarily at

coincide

time

d i

was

with

those

any

the

Chronicle.

They are presented
of the author only.]

those

was

new

half

hundred

the

make

longest such list posted
year in the casualty side.

this

❖

Chemicals

Gulf, Mobile & Ohio

;i /

The

bit better

were a

bile

in moments of pressure,

tion

and American Vis¬ to change their old way of
the market was able to life of easing while other sec¬

good news at least
momentarily. And Anaconda's
times than not ever since the
report came just in time to
.quarterly meeting of directors
help the stock buck a rather
VWas held last week, what with broad
selling wave. But even
Steel

their

run

prominent in reaching
lows which jumped to

Copper

.had rough

times. Bethlehem

had

string of better actions

article

t'f

Johns-Manville

common

Ohio,

stock of

which

Gulf, Mo¬
had been

acting than the market gen¬ pretty much neglected for some
points improvement
from the low, and Combus¬ reports and management pre¬ erally. While no important time, has recently been attracting
dictions.
progress was made, neverthe¬ considerable attention at advanc¬
tion Engineering was halfway
$
$
*
less it was a change that they ing prices. Probably this reflects
down its 25-point range.
at least in part the consummation
Where profits were sizable were able to stand their
#
:\i
i'fi
a
couple of weeks ago of a com¬
over last
year's first quarter, ground with grim determina¬ prehensive refunding operation.

rather

influences than the favorable

dozen

Pacific Land-

far
the

ije.

the

rubber issues. The oil section

the spot¬

provements early in the year

speculative

Tobacco stocks had a bit of chagrin. Similarly the lift
was
able
to
make
minor
cluding Penn-Dixie and Gen¬ popularity as all the reports that disclosure of a planned
progress occasionally while
eral Telephone.
indicated the first upturn in merger with General Dynam¬
successfully resisting selling
*
*
*
consumption in some time but ics had given Stromberg Carl¬
drives. Overall it has made
The auto shares were also
they, too, like most other son
steady uphill progress ever
briefly was over for at
halted rather obviously from
groups were
caught in the
since it last went ex-dividend
least awhile.
continuing to celebrate the selling and eased in sympathy
two months ago.
*
*
*
splendid first quarter results. with the market.
[The views expressed in this

defense

re¬

indication

of the cement stocks in¬

some

larger declines. Northrop
sank into new low ground on
a
retreat from nearly 40 to

nature
as

possible

any

—-

the

than

excesses.

trading

previous high for the
the performance was

year so

take too much to put the stock
the list since this old-time

irregularity. The stock

from its

^Woolworth failed to partic¬

all the

had been rather well cutback

tions

were

Rails Irregular

new

Refunding Mortgage 3%s,
use the proceeds to

this

1953

and

ratio

With

28.6%.

the

was

down

economic

adjustment of 1954 the ratio did
increase

somewhat

still

was

but

average.

Another
the

30.9%

below the industry

well

constructive

Gulf, Mobile

aspect

is the favorable long term traffic

The

main

Pacific

Canadian

trend.

line

Gulf of Mexico
Mobile and New Orleans, with

consolidation

all

the

non-equipment fixed interest debt
into one package and the saving
in interest costs through the low¬

& Ohio picture

1980 and will

previously outstand¬
ing issues in the aggregate amount

to
re¬

redeem four

the

Among the rails the stand¬
was

$25,211,500, carrying coupons
ranging from 3%% to 5%. While

out

1st

tion ratios below 30% and in 1952

jubilant.

sfs

The road sold $25 million

of railroad with transporta¬

group

Chi¬

from

the

cago

segment of the

north-south

runs

important

route

east-west

at
an

going

City.

Kansas

Thus, the com¬
pany
has been a' major benefi¬
ciary of the industrial growth of

the south and the sharp increase
doubts over the good reports from other com¬ which was able to
shrug off er coupon are in themselves de¬ in import-export business through
earnings improve¬ panies constituted merely the heaviness elsewhere. sirable ends, the major benefit to Mobile and New Orleans. In this
one-day rejoicing with easing Southern Pacific and Santa stockholders lies in the reduction connection, the importation of
ment, the possibilities of a from the best
in cash outlay through the change Venezuelan iron ore through Mo¬
prices subse¬ Fe favored the
.stock split, which didn't come,
casualty sec¬
quently. The market has been tion with some determination. in sinking fund requirements. The bile for shipment to Birmingham,
which only got under way last
new bonds will have a fixed sink¬
and the weight of a large fi¬
hounded by rather wide¬
The persistent strength in the ing fund of $300,000 annually and year, promises to be particularly
nancing operation. It sold a spread predictions of trouble
a
contingent
sinking
fund
of lucrative to the road. As with the
speculative eastern roads,
$143,504, if earned. This is $183,- operating efficiency, the traffic
Central
and
Pennsylvania, 000 less than on the old bonds and growth trend is expected to be a

.hopes

and

size of the

was

This advertisement is not, and is under no circumstances to be construed

offering

buy

any

of these securities for sale

solicitation

offer to

of such securities. The offering is made only by the Prospectus.

for.

over

sold

earlier
mism

this

over
#

Price $4.00 per share

those States in

ties

which

compliance

■

with

the

undersigned
securities

may

laws

the

than

would

have

$540,000
been

less
than
required start¬

ing in 1959 under the old inden¬
This is equivalent to $0.59
share on the outstanding com¬

tures.
a

tindersigned

only

respective

States.

;

the territory.
Last year earnings on the com¬
mon stock slipped
to $5.09, com¬

with $7.07 earned in 1953,
year the
company has

pared

this

and

been

off

earlier
strict

lower

the

slow

start.

opening quarter

somewhat

and,

from

year

continued
expenses, net

despite

control

income

rather

Revenues
were

over

$1,595,735

than

for

months of 1954.

the

was

first

$30,729
three

On the favorable

uncertain

market

shade under the

high
posted when all the glowing
course a

side, the transportation ratio

necessity of

Montgomery Ward, ap¬
parently anticipating little
from the partial victory for
the management forces in the
proxy fight still in the hands
of the tellers, had run out of
speculative steam and pur¬
sued

In¬

continuing favorable factor.

dustrial growth is still going on in

management was faced
♦

Van Alstyne, Noel & Co.
April 29, 1955

group.

legally offer these securi¬
of

rampant.

Aside from the recent financ¬
utility - pattern was
nondescript. This group ing, most analysts consider that
the long range prospects for this
which, on average, has yet to road are quite bright. For one
confirm the push to new highs thing, it is a highly efficient oper¬
by the other indices. The ation. Having been set up as a
consolidation
of
four
separate
March 4 peak, bettered by the
railroads, three of which were in
others, still stands for this bankruptcy or receivership, the

Common Stock

be obtained from the

highs
when opti¬

year
them was
*

and both

their

The

Astron Corporation

may

bit

mon.

250,000 Shares

Copies of the Prospectus

from

off

again reduced below 30% for the
period and by March, even though
revenues were still lagging, there
was
a
modest year-to-year
in¬

rehabilitation
now

with the
complete property
program which is

completed, and with the fur¬

ther necessity for

replacing

near¬

ly all of the rolling stock and mo¬
tive
power
of
the
constituent

companies. As
first

achieve

the

result, it was the

"major

complete

and the average age
cars

is well below that of the in¬

whole. Reflecting the
capital expenditures the
in 1951
joined that select

dustry

heavy
road

railroads to
dieselization
of its freight

crease

in net

income.

was

Wider im¬

1954 results is
looked for in coming months and
provement
at

over

this point

the

full

earnings
$6.50.

it, seems likely that
1955 will witness

year

in
so,

the neighborhood of
analysts expect that

as a

the

$0.50 year-end

resumed this

year.

extra will be

Number 5426

Volume 181

The Commercial and Financial Chronicle

(2081)
-•

.....

It will

"Automation Is Here—

mean

and better

cational

schools

citizens,

develop

emphasis

Adjust You Sights"

By CLEDO BRUNETTI*

Director, Engineering Research and Development,
<

General Mills,

Power

Engineering

research

director

service

certain

requirements. Those re¬
quirements are rather clean-cut.
industries

Future

will

cerned

con¬

not

with

much

this

y,';

fewer

people,
Cledo

that
of the
may even run short
to come. I feel sin¬
we
will have more
tries,

will

the

years

cerely

all

needing

people, and
in

that
production
necessities
will

have

indus¬

Brunetti

but

will

there

than

them.
The types of employee skills that
we
need are represented by the
fact

people

that

have

make

have

de¬

signers for the machines, drafts¬
men, tool makers, parts makers,
assemblers,
testers,
troubleshooters,
supervisors,
and
pro¬
grammers to present the informa¬
tion for the computers to use. We
need

people to classify documents.
We will need more people in sales
and
installation
and
servicing.
These are the kind of people that
industries will be looking for.
The effect on labor, then is to
upgrade it. Automation redistrib¬
utes

but

does

reduce

not

man¬

requirements. We are very
short of engineers. We are very
short of trained people of the type
power

mentioned

above.

need

this

and

for

only.

education

will

that

people,
college
will
need

mean

vocational

type

have

educated

doesn't

graduates

will

allow

unskilled

workers to take higher type jobs.
And the skilled workers in gen¬
eral
will
be
wanting
better

libraries; they will be wanting
good technical schools for edu¬
cating their children. They will
want better programs in the pub¬
lic schools, and higher classes of
entertainment. The point behind
all of this is that, first, to get
industry we will have to have
the
types of labor they need.
Second, to get that type of labor,
if you don't already have it, you
will

have

tions

provide

bring

start

you

way

the

attrac¬

the labor in.
So
back in that direc¬

tion.

possibilities,

interregion

activity in main offices, taking
daily records from branch offices
and shipping it to a central office
for

reduction

effect

automation

Automation will

mean

the

space.

space

employee. Each employee will
turning out more work, more
products. It will mean more in¬
per

dustries

that there will be

spread

zontally.
future,
dence
more

The

industry

there

and

now,

measure

in attractive

space.

there

the

results

ping

will

one-

over more
a

defense
a

The

the

shipping

Bureau

in ship¬
information

had

that

tapes

Univac at Philadel¬

phia where the big computer did
all the calculating.
believe

forces

will

there

centralization

for

than

decentralization

for

Reasons for these

now

individual automatic

and the

ma¬

chines will allow the smaller men
to compete with

the larger

manu¬

facturers. Automation will lead to
more

and

cause

the

have

be¬

manu¬

have

experience. They will
machine and the machine

will

smaller

don't

years

buy

competition

new

facturers

build

for

them

well

They do need capital, but that is
where

banks

the

come

Then

in.

be attracting to their
supporting industries
for components, for cabinets, for

they

will

the

areas

chasis, and so forth. This will
bring dollars into the community
and build up the tax reserve.
situation

would
of

raw

ideal

for

where

one

material

are

industry

the

sources
manu¬

near

facturing areas, so that industry
would ship only finished products.

many
more

and

materials,

Watch

of reduction and
to

remote

for

This

areas.

antee

how

them

does

one

annual

mind,
of Min¬

these problems can be worked out
if the facts are faced squarely and
turned

not

around.

Let,

board

active

civic

Mr.

and

leader,

Dahlberg
and

Sweden

Tuc¬

came

son

1929

1 i

waiting for. I am reminded of the
story that Harry Bullis, Chair¬
man
of our Board, told. A girl
was sitting in her car at an inter¬
section. Se had been waiting for
the lights to change, and change
they did, from red to green and

lected

from

red.

green

Finally

behind her became

man

asperated, got out of his
and

better

This

on.

green

you

ridden

his
on

only
going to

there

touch
be

on.

labor

have

far

concerned.

was

final point
point one has
careful about,

one

extremely

justments

create

machine

new

jobs. They
tween

plenty

jobs.

But there
When

area.

comes

some

may

jobs, and

have periods be¬
no one

likes this.

many

these

have

come

comes
or

REDWOOD

they
had a

in, such
on

machine

itself-, or for other
jobs within the plant. The respon¬
sibility for aiding workers to learn
new tasks is not only
that of in¬
dustry, it is also the job of the
community

itself

traffic

Avery

(Special to The Financial Chronicle)

and

over

man

liam

develop

the

has

(Special to The Financial Chronicle)

SAN
S.

FRANCISCO, Calif.-rHoit

Brown

300

has

become

connected

California

First

with

Company,

Montgomery Street.

Joins Carr & Co.
Joins Hannaford Talbot

(Special to The Financial Chronicle)

DETROIT,
K.

Mich.

Richardson

Cornelius

—

(Special to The Financial Chronicle)

affiliated

now

SAN

with Carr &

Company, Penobscot
Building, members of the Detroit
Stock Exchange. Mr. Richardson
in
the
past was with
Gordon
Macklin
Elmer

Co.

Powell

Cleveland

Co.

FRANCISCO,

Boris P. Martynow
staff of

Hannaford

California

Street.

Calif.

previously

was

Pitts¬

Talbot, 519

Mr.

Martynow

with

Rudolph & Co.

time
have

other

sources

Business

Most successful firms

tising

The conclusion

will

for

advertise
But all

will

new

will

make

business all

for

the

attract

present

will

want

the

industries

and the »future,
recognize that

has

in¬

have what it takes to attract these

people

and

to keep

adopt consistent adver¬
younger

and

seems to

more suc¬

advertise.

them

is clear; you

don't have

be successful.

things being equal, good advertising

bring

success

faster. We call it "Time

our

clients for

over

years.

AF-GL

automation.

demands

ing

in¬

around.

I would like to close by saying
to

The

Insurance"—and that's what we've been.sell¬

this is somewhat the heartbeat of

industry,

programs.

cessful the firm, the

equipment will increase, and since

creased

large companies

advertised. A few, but not
many.

energy

spending

insurance—A few

never

there.

Albert Frank-Guenther Law, Inc.
Advertising

Public-Financial Relations

•

131 Cedar Street, New York 6,
PHn.ADFJ.PHIA

•

BOSTON

♦

WASHINGTON

•

N. Y.

CHICAGO

•

—

has joined the

and

burgh.

to the East to get coal, if you
time atomic

Wil¬

added

With First California

too."

all the

ore

—

been

ciates, 1903 Capitol Avenue.

dead

was

Wilson

to the staff of Mutual Fund Asso¬

got his head

Calif.

SACRAMENTO,

The

they both killed?" asked the of¬
ficer. "No," replied the leader, "as
a matter
of fact, the second man
was
living when we got there,

out,

Company, 1839

Eppler

With Mutual Fund Assoc.

officers

the motorcycle
around a curve too

straightened

CITY, Calif.—

Broadway.

men on

Eppler

Richard E. Cummings is now with

motorcycle

crowd

by the time

fraternity

Sigma

(Special to The Financial Chronicle)

road

they

The

the

With Avery

took

from

service

bank director is also a mem¬

and the American Legion.

fast and went off the road." "Were

but

would

happened.

going

were
.

unions, requests more
on-the-job training. Industry is
heeding this suggestion, by train¬
ing people for new assignments
for maintenance

the

said, "The

labor

before the machine

Company and Director and
of Cal-Ray Bak¬

One of them called the

what

exchange.

wind¬

the

soon

up.

asked

One of the best suggestions, and

the

said

the road, and the driver
killed. A crowd collected, and

leader

read¬

workers may have to shift to new

but

have

Down

accident.

pretty

automation is

There

readjustment

the

sort

Unfortunately

came

evidence to show that automation
will

agreed

went off

feel

ber

riding with

jacket off and put it
backwards, which made a fine

serious

Tucson

eries, Inc., in Glendale, Calif. The

never

leather

went.

Better

the

and

Vice-President

had

new

have

windbreak.

you

Service

Social

Tucson

the

also Director of the Arizona Land
Title

could

some

Bureau

who

friend

would

Dahlberg

motorcycle acci¬

get pretty cold. The fellow

ex¬

get."
to

His

col¬

motorcycle asked his

if he

break .of

the

are

the

Let
that

crowd

fellow

friend

the

him.

economically.

like
after

dent.

went

car,

not

the

bit

said, "Lady, I think

move

shade

sustained

cannot

Henry

the

Henry Dahlberg firm.
He is currently President and
Business

that

* In

1933 he estab-

Director

Uinversity
Arizona.

not

conditions

the

attend

strangle the industry by imposing

isn't new,

born

was

it's been
here a long, long time. Its require¬
ments are something we must get
acquainted with. What are we

Automation

head of

the

business

market.

are things that have to
be
considered because of the compet¬
itive picture. But we believe that

directors.

guar¬

These

change this picture and save you
from having to ship a lot of use¬
less dirt? In the sea products in¬
dustry, it will be to work nearer
the ocean cities and even on ships.

the

that

and

skilled, less of the unskilled.
means
your community must

by Mr. Brunetti at
Development
Council, Washington, D. C., April 5, 1955.

and

elected

guaranteed
is only one

There
thing that bothers most industries,
wage.

bank's

includes

workers.

Industrial

annual

Dahlberg &
Co., has been

But

the

address

and

shift

lumber

Why ship iron

know that in
and

sources

pensions

E. Dahlberg,

cerely, the idea of

won't

State

that Henry

remember, com¬
thing that keeps
industry from shortening its
working hours too much. I be¬
lieve industry is examining sin¬
petition

processing plants

chemicals,

metals,
way

near

Automation demands certain skills

American

his

are

workweeks.

is second from the top.

nesota

vo¬

they
can.
considering
shorter

for

*From

since

guess,

also

So. Arizona Bank

not
lot of

materials.

raw

dustry

the

Sam.

training.

interested
in
unusable raw
time goes on,
industries will try to locate
is

Industry
shipping

working atmosphere.
We will need less space per plant
we

from

civic

and

TUCSON, Ariz.—The Southern
Arizona Bank and Trust
Company,
of Tucson, Ariz, has
announced

Naturally, it also depends on the
market, and there may have to be
a
compromise between the two.

ant and safer

plant, but

chart

it for somebody else.

it will build

small

parking in any one
will see more plants.

State

the other hand,
cooperating by providing

They

have

the

jobs, better
increasing wages

a
civic program to en¬
people to take advantage
them. Maybe you can get a

because

will not have to

to concentrated labor markets

schools

industries,
development

better

and

tion systems; we
go

stands

Management,

courage

industry.

that

are

ought

you

vocational

that

offstreet

maybe

have better power and transporta¬

plants, well
lighted
and
ventilated. Modern
plants will provide a more pleas¬

trend to underground

data

then

and

back.

them to

the

did this recently

Census

the

is ample evi¬
will be housed

story plants, spread out
acres

out of industry hori¬

computations

others.
Just quickly I will mention

buy

Dahlberg Director of

the

industrial

cational

study it

state

your

pro¬

train¬

groups pay more attention

what problems exist for you. Your
state may have a l«t of people,

area

that

the

where

qualification

well to

the

members

picture. If may not be com¬
plementary to your state, but if
it isn't it will help to point out

(David G. Osborn).

is, the shifting of industry
one
commu¬
between regions, automation will
nity, but types act in two ways. In one way, it
of
skills, will act towards centralization of
experience industrial activity, in another way
and
training towards decentralization. In the
of the people. centralization
direction, for ex¬
For a given
ample, in the business machine
output an in- operations, there will be a ten¬
d u stry m ay
dency towards centralizing the
use

see

Forces

vocational

members

but

in this

subject is Osborn's recent book
published by the University of
Chicago, Geographical Features of
the
Automation
of
ilndustry.

people in

It would

and

One of the best references on

any

numbers

Armed

test.

ment

in¬

rejections for failures

the

by it. Looks for more decentralization
rather than centralization through development of automation.
Automated industries will have

chart

shows the percentage of selective

labor will be upgraded

,/.■

Company

States

Department of Labor. This chart

effects of automation, pointing out that

Northern

formation from the United States

discusses requirements and
future industries will
be concerned with new types of skill, experience and training.
Decries idea automation will reduce total employment, and holds

the

additional

ing. It is important, therefore, that
not only the industrial develop¬

are

higher IQ people and are an at¬
traction to industry, it will be of
value to conduct your own inven¬
tory. I received from Sam McGowan

Inc.

vide

trade

schools. Since skilled workers

spirit and feeling for, and to

vo¬

your

■

SAN FRANCISCO

Paul

The Commercial and Financial Chronicle

(2082)

Egypt; to

A Look Abroad

will

(Republican)

U. S. Senator from Maine

have

Smith, recently retained from a trip around the world,
policies. Advises changes from negative,

Spain is
our

Russian colonial¬
hands-:about' Communists
exploitation of Asians'hate of colonialism.

of strength to
the Western end of

a source

about Spain being op¬
posed to Communism. But pre¬
judice against Spain's neutrality
in World War II has blocked her
to

■

During my October trip abroad great mass of Russian people is
summed up simply in two words
people repeatedly said to me that
"internal coexistence."
they
wished
President
Eisen¬
hower would give the world more
JAPAN

worry

admission to NATO because Some
believe her neutrality was benev¬

olently

and

Hitler

favor

Mussolini.

During

trip

cousin,

cultural

her

and

Russia

can

with

that

enemies like

active

former

Germany and Italy,

China, for trade.
then why can't we do the same
Japan is clearly the industrial
in the interest of real mutual se¬
attitude. Now pearl of the Orient most coveted
curity with a Spain that was not
people in the by agricultural Red China and an active enemy but rather a
found

various

greater degree.
I, too have my

points of im¬
patience—justified or not—based
vpon what I saw and heard on my
nips. But before I get to those, I
would like to give you some of
Jny capsule comments on some of
the nations.

GERMANY

brightest

for

spot

i.mazing "comeback" job. Western
Germany will steadily become the
backbone
of our
resistance
to
communism in Europe.

trusted ally*

tired ally whose shrinking

mpire creates an economic weak¬
ness
that makes her more vul¬
e

economic compromises

nerable to

with that modern colonial power,

communist Russia, and all of her
satellite colonies.
FRANCE

France's heart is

good—but her

will is weak. She has not tough¬
ened

adversity

under

Western Germany has.
ITALY

people are perhaps the
friendly of all to us. But

Italy's Government is not learning
last enough how to throw away
the economic crutch of American
aid and stand on her own feet.
RUSSIA
If

there

perceptible

any

Austria Peace Treaty—

indication that Russia feels we

strong in Europe
tough talk, bluffs and
dilatory tactics
will no longer
produce the results she desires—
have
that

hope of the free Chinese is
In some respects the biggest in¬
pulse beat of Chiang Kai
all their spiration of all that I saw and
on
my
trips
came
in
hopes go for retaking the Main¬ heard
land. But Chiang will never have Turkey. That tough little country
the chance to retake China unless that neighbors on to Russia and
the Chinese Communists attempt lives under the very threatening
to take Formosa and the United shadow of the giant Russian Bear.
States is drawn into an expanded The Turks have refused to let the
conflict. The question is what will Russian
Communist frighten
or
happen to Formosa when Chiang intimidate them. They have defied
is gone—and more pointedly what Communist threats.
will happen to our personalized
Our past aid to Turkey was one
foreign
policy
on
Nationalist of the wisest foreign policy in¬
China?
vestments we ever made in Mu¬
in

the

Shek. When Chiang goes,

INDIA

tual

India is Nehru—at least for the

gotten so

her

giving

little

the

The most important

thing about

distinguish between
the Russian common people and
Russia

their

rulers in the

Russia

munist

—

and

admires Communism but

neither

for

munism

—

Russia

nor

they

says he nations like Turkey and less
deplores nations like Yugoslavia.

Communist colonies of Rus¬

than

Russia

that

sia—and

seeks

Communist colony out

Asian country and every
country in the world.
I am impatient with the man¬
which we seem to be un¬

Tri

ner

coexist¬

able to cope with talk of

We could throw

ence.

such

talk

back at the Communists
simple ooservatk n. We
could observe that the lit Je peo¬

right
with

one

Russia

ple

most about

knew

since their own atti¬

coexistence

at home

communism

about

tude

inter¬

past negative basis

confidence

nations

of fear—
positive basis

ourselves

and

friendly to us. We have
reason
for confidence in

every

We should start acting
instead of indulging in
pessimism.
We
must
start
charting our
ourselves.
that

way

confident

the

course

that

are

the

world

—

the

realism

nation

greatest

and

the

world's

greatest hope for peace—that

through

are

Ucare

letting

with

Russia

—.that we are plenty
of taking care of our¬

capable

selves—and

that

positive

fear-minded,

strive

must

for

instead

construction

negative

de-

fensiveness that stresses counterinstead of

moves

maintaining the

too

vacillated

have

between the extremes

much

of lavishly

Ambassadorial

would cooperate

level, I feel he
more with us.

Now

of impa¬
First, I am impatient with
all the talk of gloom and pessi¬

either

I have listed

smaller

edition, the

same

can be said about U Nu of
Burma that are said about Nehru.

things

has

fought

and

defeated

inside

Communists

the

Burma

—

despite his relatively friendly at¬
titude

Russia.

Some

people

mistake of considering

pet and disciple

and

China

Red

toward

make the
him a pup¬

of Nehru. He is

not.
He is

—just

independent little

man

the greatest

ments

internal- strife of

any

growing strength and with having
rejected Communism.

the

time

Egypt

connivance in

Actually the position
of the
common
people
of
Russia
on
Communism is. a policy of. co¬
.

disparaging form

—for surely

his internal conniving
has been for the great improve¬
ment of Egypt, j:
*
-

Conference

Asian

Bandung.

Instead of muddling

the

in pessimism
c0iiierex.ee, let us look

tnat

aooui

opportunities

tries

actually

After all

this conference.

do have

few friendly coun¬

attending that conference—

Thailand, Turkey, The Philip¬
pines, Viet Nam, Iraq, Pakistan,
Ethiopia and Japan.
They will not be mere mutes
there.

They will talk realistically
constructively. They may be

and

outnumbered—but

they

will

heard.

should

We
ance

with reli¬
them to carry the re¬

upon

not

free half

for the

sponsibility

world.

the

The point is that we
not
be trembling mutes

should

We should seize upon

ourselves.

golden opportunity of taking
advantage of this conference.

We should broadcast

message

beamed

directly at Bandung that
approve of the conference in
the objective of raising the world
prestige and position of the peo¬
ple of Asia and Africa, that we

in full accord with their oppo¬
to colonialism; and

that

their aspirations for in¬
dependence and self-reliance.
Yes,
instead of pouting and
fretting with a negative attitude,

should

with

such

seize

initiative

the

positive and direct
approach. We should show them
that we are the opponents of co¬
lonialism,; that the communists
are the present day advocates of
colonialism; and that such Rus¬
sian

colonialism

wo j

have

de¬

cisions

concerning New Delhi,
Rangoon, Cairo, Jakarta, Saigon,
Addis

Ababa

made

the

and

Moscow

Johannesburg
by the men in

instead

Kremlin

each

those cities.
..

Edward

duuel

i_.

Rubin

and distributor of Selected Amer¬
ican Shares, $42 million mutual
fund, has been announced.
Mr. Sebel also was admitted to

partnership in Security Super¬
visors, the investment counsel or¬
ganization
which
manages
the
investments of .Selected American

institutional

other

and

and individual accounts.

Widely known among securities
Mr. Sebel is a graduate
of the Northwestern
University
dealers,

School

ganize

and

Hughes

or¬

Vice-Presi¬

became

fund:

helped

1933

dis¬

investment

shares.

was

wholesale

the

tribution

dent

and

Commerce

pioneer

Co.

Chicago, which later was ab¬
by Lord, Abbett & Co. of

sorbed

Since

York.

New

1942

has.

Chicago resident Vice-Presi¬
dent of Hugh W. Long & Co., in.
charge of its midwestern opera¬
been

tion.

He has made many appear¬

the

ances

before

midwest

forums

In his

lecturer

south

and

finance

bank-sponsored

ments and

invest¬

securities.

new

affiliation, Mr. Sebel

will direct the wholesale distribu¬

of Selected American

tion

W3 should warn them that at¬
tempts
by
the
Communists
to
have
this fconference
result
in

in,

nation

our

banding

A.arry

stop

registered v; investment
dealers, with emphasis on firms
through

situated

in mid-America,

together to
Edward P. Rubin, former Pres¬
white men are ident
and our allies.
In our adherence
of
Selected
Investments;
but another step in the Commun¬
to realism, it is only realistic to
Company, has been elected Chair¬
ist
evil
design and pattern of man of the
remember the causes for optim¬
Board; Alvin H. Baum
divide, and conquer." is the
ism as well as the causes for pes¬ "confuse,
newly elected ExecutiveFor proof we need only to point
simism. For pessimism is not the
Vice-President; and Mrs. Eva B.
out the obvious fact that through
synonym for realism.
:
v
*
Kind, Secretary of the company,,
the
"confuse, divide
and
con¬
To put it one way, realism is
was
elected
Vice-President and
quer" pattern, Moscow now makes
nothing more than a proper bal¬
Secretary.
the decisions for Prague, Buda¬
ance between optimism and pessi¬
Mr. Rubin is a founder of Se¬
pest, Warsaw, Hanoi and Peiping. lected American
mism.
But
Shares, Director
today there is too
I am impatient with the con¬
much of a misconception of real¬
of the fund and its President since
tinued blocking of the admission
ism
not
enough
consideration
1942, to which positions he has
of Spain to NATO. When we take
been re-elected.
given to justified optimism for a
Western Germany and Italy, who
proper balance.
confidence

great

hate

brown
fight

men

and

—

ner

being

which

areas

achievements which should create

impatient with

which

For

accomplish¬

some

overseas

justify considerable optimism
our
part.
I have
spoken

EGYPT

Com¬

to resist it or defend it.

points

politically or journalisti¬
to be excessively pessi¬

cally,

Nasser, an alert, intelligent young
simply re¬ soldier who has had a successful
enthusiasm career of conniving. I do not mean

mistic?

BURMA
In

support

catering to Nehru and bluntly
offending him. Neither approach
It is true that in these
will win his respect or friendship. mism.
He aspires to be the leader of troubled times we must be real¬
Southeast Asia and he has real¬ istic and face unpleasant facts.
ized his aspiration to a certain But should we permit such real¬
degree—at least enough for us to ism to degenerate into a phobia
be
smart
enough to seek his of pessimism? Should we permit
opinion and device about Asian such realism to blind us to justi¬
matters. If we should show him fied optimism?
Have we reached
that courtesy on the Presidential the point where it is fashionable,
well

are

tience.

dictate? '
Director of Selected Investments
impatient with the greatly Company,
national underwriter
professed fears about the Afro-

you

sition

GLOOM

WITH

IMPATIENT

are

concentrate

better

hands

against
are

signed to it—with

had

its methods.

Kremlin.' The

people

common

of the world

of the Southeast Asia nations with

future.

neutralist policy on
is confusing. Nehru where Europe meets Asia. It is
successfully fights and defeats the in sharp contrast to the uncertain
Communists internally in India. results with countries like Yugo¬
In our foreign loans we
But externally he is quite friendly slavia.

Burma is an independent
but rather that she will have to little nation that has come through
start

It paid off real
combatting Com¬

Security.

dividends

munism in that part

present. His
Communism

change in Russia, it may be in her
recent reversal of stand on the
proposed

TURKEY

The

level

Italy's
most

fear of Russia—to a

Czechoslovakia, Hungary, Bul¬
garia,
Albania, Estonia,
Latvia
and Red China are nothing less

have

with Communist China and Com¬

BRITAIN

While Britain

neutralist?

FORMOSA

JIurope is Western Germany. The
free German people have done an

she is

Russia.

countries are

Smitn

encouraged-by
the manner in which President
Kisenhower
has
been
asserting
world leadership. They want him
to continue to do it and in even

The

the

Poland,

Harry Sebel Pres. of

change in this

WESTERN

modern

that

Coming out of the

leadership and
that they were
almost hungry

February

the

is
—

Thursday, May 5, 1955

This doesn't make sense. It is
initiative.
nal coexistence.
occupation
not realism on Mutual Security.
We could say to them, as Menstatus, Japan is like the teen¬ Western
Germany under Hitler deres of
Turkey has said, "if you
ager
anxious to show his in¬
and Italy under Mussolini were
from his foster
really believe in coexistence, why
for him to do dependence
active enemies in World War II
don't you stop trying to grab off
parents. Unless Japan sells her
so and that
against us and our Western allies
Selected Investments
country after country? Why don't
they would goods to us at the sacrifice of our —but
that
has
not
prevented
higher-waged labor and indus¬
you let them coexist instead of
quickly
CHICAGO, 111—The election of
Western Germany and Italy from
tries, she will turn to her his¬
follow.
demanding that they exist only as Harry L. Sebel as President and a
being admitted to NATO. If we
torical
and
traditional
enemy,

<* "

Margaret

colonialism

in Russia is merely one of

vigorous

•/

Communism

every

the Mediterranean. We never have

Urges positive action in showing up

instead of just wringing ■'bur

side

that

day

make

SPAIN

pessimistic, defensive attitude based on fear of Russia, to one
of initiative based on confidence in ourselves and friendly
ism

colonialism.

calls for sterner U. S.

nations.

off

leaves

Britain

where

Senator

his '! people

lead

gradually away from their sus¬
picions about American foreign
policy being designed to take over

MARGARET CHASE SMITH*

By IION.

with .the

aligned

United States but that he feels he

and

fret

the

Asian

and

nialism

the

about

the

African
of

hate

our

way

Communists

instead

were

man¬

just wring

exploit
of

colo¬

doing the ob¬

viously most effective thing in
combatting Communism in Asia.

II,

active enemies in World

our

War

and exclude
Spain, a bitter enemy of Com¬
munism, one wonders if NATO
really is for the purpose of mu¬
tual security and defense against
aggressive communism.
The

With Hooker Fay Staff

into NATO

time

has

come

when

(Special to The Financial Chronicle)

SAN
Gwenn

with

COLONIALISM

increase

what

ness

boldness

and

Street.

is now affiliated
Fay, 221 Mont¬
.

With Shuman, Agnew

leadership in world affairs must
RUSSIAN

Dodge

Hooker

gomery

our

FRANCISCO, Calif.—Mrs.

firm¬

(Special to The Financial

Chronicle)

existence

—

they "merely

coexist

with Communism. In other words,
the status of Communism with the
•From

the

Overseas

address
Press

by Senator Smith
Club

Annua!

Awards

Dinner, New York City, April 19, 1955.

But

now

finds

himself in

You

move

larger than Egypt
—he can be a powerful leader in
the Middle East but not through

external connivance.

political

arena

think

ultimately

know

that

obvious

is—merely to show to the

Asians
stated

that

Maine

wants actually

Communism

last month in

is,

report
Newspapers,
my

Weekly
Russian
Colonialism

—

with

the

of the

The

are

to cope

threat

the

freedom

has

very

basis

must

change.

Philip

FRANCISCO,
D.

affiliated

world.

time

SAN

successfully

come

our

when

the

foreign policy

It must shift from

with

Calif.

—

has

become

Shuman,

Agnew

Chapman

Co., 155 Sansome Street, mem¬
bers of the New York and San
&

Francisco

Stock

Exchanges.

Volume

181

Number 5426

The Commercial and Financial Chronicle

(2083)

serve

•

■

•

♦

•

people

more
m

better

^xiwiw^yx»>>wx\vxv

mmntm

■

^iTAVWAwIwi

-j.

Richfield Reports on 1954...
BALANCE SHEET AT DECEMBER

Assets
1954

Current Assets

1953

'&.

31, 1954 AND DECEMBER 31, 1953

Liabilities and
Current Liabilities

Capital

1954

1953

Cash

$ 12,743,038

United States Government securities, at cost

$ 11,581,891

23,294,171

12,385,340

Accounts

Federal taxes

$ 10,834,209

$509,724 in 1953

31,482,947

$12,700,000 in 1954 and $23,600,000 in 1953
held for payment thereof

28,251,390

24,071

•

Instalments dues within

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

27,461,171

6,459,162

$101,416,329
and

Capital Assets—Oil and gas

$ 88,860,255

Advances

year on

long term debt

4,245,053

Long Term Debt

(due after

one

year):

payable to banks (3.25%), due in equal annual in¬
stalments to 1963...

$ 20,000,000

Thirty

year

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

Reserve

135,642,159

$165,645,132

depletion

39,000,000

Contingencies

;

Other

4,215,328 ;
504,578

788,656

202,647

Capital stock:

Authorized-7,500,000 shares without
Outstanding-4,000,000 shares

3,267,188
-

23,500,000

$ 71,000,000

Stockholders' Equity:

Taxes, insurance and rents

for

$301,287,291

153,654,572

$179,523,089
Deferred Charges

$ 25,000,000

2.85% sinking fund debentures, due

$ 84,000,000

$333,177,661

Less—Reserves for depreciation and

$ 22,500,000

25,000,000

year

1974

at amounts established

retirements

2,041,786
$ 26,827,515

Notes

Twenty-five

equipment, refineries, marketing facilities, transportation
equipment and facilities, terminals, office buildings, etc.,
by the Board of Directors as at
March 13, 1937, plus subsequent additions at cost, less

3,000,000

3,249,118
$ 24,904,413

3,145,547

lands and leases, oil wells and

6,788,113

3,000,000

Other liabilities

30,182,472

6,435,002

Materials and supplies, at or below cost

one

90,708

7,797,015

Other taxes...

Inventories:

$ 14,906,908

income less United States Government

securities of

Accounts receivable, less reserves of $840,159 in 1954 and

Investments

payable

par

value
$ 74,496,630

Earnings employed in the business........

$ 74,496,630

106,300,687

89,179,986

4,055,844

$180,797,317

$163,676,616

$261,706,778

$289,904,377

$261,706,778

4,719,906

$289,904,377

INCOME ACCOUNTS FOR THE YEARS 1954 AND 1953
1954

Cross operating income

1953

$223,310,969
$130,205,210

Depreciation and depletion

Dry hole losses and abandonments

$108,572,187
23,742,528
15,171,533

7,671,135

expense

25,772,250
20,633,985

Cost of sales and services

Selling, general and administrative

$202,039,003

8,846,286

$184,282,580.

•

$156,332,534

$ 39,028,389

Interest

bank loans and debentures

1,416,918

Production of crude

■

Net income

income

12,u00,000

20,809,000

20,603,000

41,137,000

40,751,000

40,122,000

37,752,000

$31,736,557

$28,650,000

5,520

5,196

refinery

Sales of refined products
Employees

and

Payroll

Payroll and employee benefits.
Number of employees at year end

•••••••••••••••••••••••••••••••»•«••*•••#•««««#•

1,964,924

$ 25,570,701

WE WILL BE PLEASED TO SEND YOU A COPY OF OUR
1954

$ 45,325,486
'

16,450,000

ANNUAL REPORT. WRITE:

$ 28,875,486

$6.39

RICHFIE LD
Executive

SECRETARY, RICHFIELD OIL C0RP0-

RATION, 555 SO. FLOWER ST., LOS ANGELES 17, CALIFORNIA.
Net income per share

OIL

1953

26,499,000

Crude oil processed at

$ 47,290,410

2,874,606

$ 37,570,701
on

26,746,000

Production of crude oil-net

Provision for Federal taxes

1954

oil-gross

1,583,941

$ 40,445,307

Nonoperating income

$ 45,706,469

Operatinc Statistics-Barrels

CORPORATION

offices: 555 South Flower Street, Los Angeles 17, California

■jir'Ss IvXvlviv

iwwwlw

The Commercial and Financial Chronicle

(2084)

has

Economic Tasks Confronting Us
By LEOxX II. KEYSERLING*

After
Mr.

should be

there

indicating

Keyserling lists

big

new

loss in output;

The Real Estate Outlook

when

families

By LEFFERT IIOLZ*

Superintendent of Insurance, State of New Ycrk

million

several
have

inade¬

Contending New York City real estate is still

the bare
standards of the nutrition expert,
diets

rife

translate

investment

Well

over

rural

urban

and

fifth

families

slums.

Juvenile

delinquency and gangsterism, and

real estate

(1) supply and demand; (2) the utility and

are:

has

my lot to be ac¬
tively identified with real estate

and

for

surge and
then there
period of unprecedented
building, to the point where not
only is saturation reached but
the danger of overproduction be¬
comes very real.
So great is this
sometimes
unwarranted
optim¬
ism that the minus factors, which
must always be seriously consid¬
ered when
trying to determine
the future trends of real estate,
are
frequently minimized if not
actually totally disregarded.
I suggest that three basic fac¬
tors should be carefully studied
and weighed
in considering the
evaluation of real estate.
They
are supply and demand, the util¬
ity and adequacy of the buildings

been

than 39 years and,

there has devel¬ an economic slack which even the other malodorous manifesta¬ I hasten to add that I
oped a majority viewpoint that now is resulting in a $30 billion tions of slum living, cannot be
expert on real
downswings of depressionary mag¬ annual loss of national product cured by men in blue uniforms estate values,
nitude in the American economy and a true level of unemployment patrolling
the
streets
nor
by my long ex¬
at least twice as high as it ought women in white uniforms at re¬
are a thing of
perience and
the past. This to be. And if we should continue formatories for girls. At a time
study of the
to countenance these so-called mi¬ when we have so much unused
view I share.
problems
af¬
The
stabiliz¬ nor inroads upon our economic resources of manpower and facili¬
fecting
real
ers
already health, we might achieve a $500 ties begging To be used, and when estate have
built into our billion annual output by 1960 but technology threatens to displace
given
me
an
economy,
the nonetheless suffer cumulatively workers in some industries, we unusual op¬
advance
of during the intervening years ah should be on our way with the
portunity
to
economic aggregate loss of more than $200 training programs and the finan¬ become famil¬
cial backing required to replace
billion
in
our
national
product.
iar
with
the
knowledge,
We

changes in the

salubrious climate of full employ¬
ment all of the time, and not just

popular

psy¬

must, therefore, strive for the

the

chology, m'ake

part

quackery of the

unlikely

that
Keyserling

Leon

\will

counte¬

again

nance

of forces which

cumulation

ac¬

could

downward to depression¬

carry us

This profound change

ary depths.
should
be

cine

rejecting

economic

the

medi¬

who say that small dis¬

men

eases

time,

are

landmarks

necessary

the road to economic health.

Second. We must recognize that
excessive
unemployment cannot
be

justified

-r

spurious

the

ground that it promotes efficiency,

home, and sustaining to other peo¬

develops discipline, or is neces¬
sary to fight to
avoid inflation.

comforting

ples in the free world.
is

there

But

unfortunate

tendency in many quarters to
jump from the tenable assumption
that

economic

misfortune

de¬

pressionary magnitude is unlikely,
the

to
we

untenable
be

can

the

that

conclusion

complacent in the face

large

economic

problems

tasks which still confront

and

us.

This

resting
on
gains
already
achieved does not do justice to the
restless

spirit of progress which is
of our prime national assets.

one

When

conquered

such

smallpox,
fraction

dence

medical

our

the

death-dealing

the

forts to find

killers

great

and then reduced

inci¬

great white plague,

did not then

science

relinquish

our

ef¬

antidote for polio,

the ground that in the number

of its victims this

minor evil. And
to be

vention

our

was

now

relatively

that

seem

toward the

way

polio,

if not

its

pre¬

cure,

nobody

proposes
that we
slow
down the further support of medi¬
cal research and health services

toward further improvements in
the public's health. Quite similarly,
the conquest of the great scourge
of denression, if it be a

fait

compli, merely creates
which

can

greater

ac¬

base from

forward

with

toward

move

confidence

the

eradication of lesser but nonethe¬
less

serious

very

threats in
There

immediate

number of vital and

economic

confronting
summarized

First.

economic system.

our

are

deficiencies and

tasks

which

us,

now

may

follows:

now

the

nology and skills to lift

our

tech¬
total

"f rictional"

nomic
To

and social injustice.
unemployed breadwinner,

our

general stand¬

living by about 25%.

But

this

are those
who, enamored of
nrospect, do not care enough

take

their

may

not

toll

six

of three

million

one

million

jobless; in either
event, he is an outcast from an
economic system which is strong

intelligent enough, and should
righteous enough, to draw him

back

into

the

ranks

useful

employment.
Third. The accelerated pace of
productivity under the impact of
"automation"

logical

progress

defended
the

long

threatens

with

creasingly
ployment,

other

and

random

which
on

the

techno¬
us

unem¬

cannot
ground

in¬

that

this kind of progress
jobs for all. Unem¬
ployed workers do not live for the

makes

run

epi¬
demic proportions* Since the mid¬
dle of

1953,

have experienced

.TiT0riVa,n, address by Mr.
the
Golden

Keyserling

Anniversary Meeting
League for Industrial
Democracy, New
Vork City, April
22, 1955.

also

New

have

Leffert Holz

the

forms of financial leger¬

new

demain which hold out the glitter¬

Eighth.

Millions

our

senior

years

many

fraternity
generally—they
are
either
extremely pessimistic
or

revise

new

machine.

Despite the highest gen¬
living standards in the world,
and enormous progress during the
past generation, there' are
still
on

levels

than half the

income

less

requirements for an
of living. The

American standard

elimination of unmerited poverty
in a land of rapidly advancing

-Fifth.

Despite a long-term shift
urban -living, about 14%
population still de. We their
basic livelihood from agiiculture,
and have been subjected during
the last few years to an over-all
21% drop in their income^-whichtoward

our

buyers

good

real

Last

but

scale

not

least, we
international

our

efforts, both by way of economic
programs and by way of offensive
and defensive deterrent military
implements, not to the inadequate

of the best

York is still one

New

media

for

investment funds.

city

conviction that
in the City of

firm
estate

greatest

Ninth.

de¬

our

the

town

Not
the

The

world.

City of New York is the finan¬
cial, residential and cultural cap¬
ital

the

world—and

that

dis¬

will continue
The preeminence
as
a
commercial,

tinguished position
to be enhanced.

New

York

residential
not

and

cultural

center

dependent upon its geograph¬

ical

location

harbor

alone.

and

its

matchless

Its

industries, fi¬
institutions, universities,

nancial

theatres, hotels, depart¬
ment stores, as well as its ship¬
ping and transportation facilities,
materially add to the City's un¬
rivaled position.
New York pro¬
vides the most diversified pool of

aster. Defense alone will not win
the

estate

our

stead of contenting ourselves with

building
to

ward

economic Maginot lines
off depression and dis¬

battles

everywhere
the

which

are

economic front

our

vision

endowments,
vances

ahead

in
can

as
our

match

exceed

treme

our

innate

ad¬

the

great

prqvide

increasing
terial

and

this

protection,

vital front

both

have

estate

gains of the past generation, and
thus

immediately

years

far

leadership

well

economic

our

the

people

engaged,

now

other fronts. But if
and

free

sound

investment.

already pointed out, real
people generally are ex¬
in their thinking.
During

period
of
depression when
is cheap and building costs
are
very
low, nobody ventures

into the construction field.

Years

without a single major
construction project.
I dare say
that
when
construction
begins
can

go by

a
long lull in the building
industry,
many
eyebrows
are
raised and the oldtimers shake
their heads in disapproval.
But
no sooner are the jobs completed

tremendous

during

amount

the

last

both of office build¬
ings and apartment houses, we are
still far from reaching the satura¬
tion point in either type of struc¬
years,

ture.

attention

has

been

called to the fact that since World
War

there

constructed

have

residential

structed
1918

not

yet been
commercial

many

units

during

were

con¬

the

period from
1945.
It is persuasively
that in view of the fact

argued
that

our
population, our product-,
tivity and our per capita wealth
and purchasing power have tre¬
mendously
increased
since
the

World

War 11, we have a

way

the

before

saturation

reaching

point.

furthermore, commercial build¬
ings and apartment houses alike
which
were
constructed
during
the last few years have been

tre¬

improved in utility
and design and undoubtedly will
compare
favorably
with
any
buildings
which
may
be con¬
mendously

structed

the

ture.

foreseeable

-'v''

■

fu¬

//::/.

As to the economic condition of
the

country, business conditions
generally are good; our per capita

weqlth

is great; our purchasing
is tremendous. These all

power

spell

out

There

tinue

continued
doubt

long

these

the

prosperity.

whatever

that

conditions

future

of real

con¬

estate

excellent.
But

there

to the

another

also

picture.

side

Our national debt

is increasing; our taxes remain
high; our economy is influenced
by inflationary conditions, and, to
say
the least, world conditions
unsettled.

are

should

act

ence on our

ing

the

These

factors

sobering influ¬
thinking when weigh¬
as

economic

condition

nation.

our

What

the

estate in
and

outlook

1955?

fair

exercised,

for

common

real
sense

degree of caution

say

are

unhesitatingly

that the outlook is good.

land

after

ma¬

moral, against the ag¬

few

that notwith¬

told

been

the

construction

museums,

skills, talents and intelligence of
any community in the world.
It
attracts people from all parts of
the country and. for that matter,
from
the entire world.
Indeed,
the City of New York has and
always will have the greatest la¬
bor market of any community.
However, I cannot overempha¬
size
the
frequently
overlooked
fact that not every parcel of real

affirmatively to actualize
true economic potentials, in¬

long

only in
order to do justice to these senior
citizens, but also to enable them
as consumers to
buy their neces¬
sary share of goods and services
in support of our rapidly accel¬
erating productive power.

social security system, not

have

end

reason

need

standing

riods of inflation.

without

our

during

pression and the frenzied demand
acquiring property during pe¬
It

country.

for

whole

and

about

eral

absence

starts

and the economic condition of the

those

during

successfully rented when the
optimism ot real estate people

begins

water,

long run; they are forced to exist
from day to day. Workable com¬ levels that the unrealistic say we
binations of public
and private can "afford," but rather to the
levels
that
we
economic
cannot
policy
must
be
de¬ realistic
veloped, so that any short-term afford to do without.
cost of long-term gains may be
These are the urgent and out¬
borne by the society which in the
standing
tasks
of
the
current
long run benefits from these gains American economy. These tasks
and not shifted inequitably to that we
have the resources and the
hapless portion of the working brains to carry forward success¬
population that gets run over by a fully, provided only that we set

even

reach

the

soil, been, privileged to meet many
highways—have been pressed far prominent real estate people and
below the levels required for a to discuss varied real estate prob¬
thing
I
growing population and an ex¬ lems with them. One
panding economy. We must reject have learned about the real estate
development—power,

examine

one

though they

City
York.

shortages of basic resources
undoubtedly
alarmist,
our
fundamental programs of resource

reach this 1960 goal productivity requires not only a
through continuous full employ¬ general full employment policy,
but
also
a
variety of specific
ment over the
intervening years,
measures—for example, minimum
or instead
remain acquiescent in
wage laws adjusted to the second
the so-called minor
ups and downs
of
the
Twentieth
Century
in our economy which like small half
rather than to the first half.
diseases

whether

about

and

estate

and

it makes little difference whether
he

and

there

of the talk

some

citizens, the so-called retired, are
living at a level of old age insur¬
ance
benefits
or
pensions
no
higher than one-quarter of- the
modern
requirements for
an
American standard of living. We
need drastically and boldly to re¬

subsist

ard

trends of real

waste

the

millions of American families who

growth, to lift

not

unemployment
flexible
labor

national product to an annual rate
of at least $500 billion
by 1960,

thus, allowing for population

values

while

ing magician's promise that such extremely optimistic.
During a
national developments as are es¬ period of depression there is no
sentially public in character can doubt in their minds that there is
necessary
for
a
expanded
without spending no bottom to the market.
During
force
is
not
more
than
about be
2V2%,
or
somewhere
in
the money, or at least without spend¬ a period of inflation they are ab¬
neighborhood of IV2 million in ing public money. The Federal solutely sure that real estate val¬
view of the current size of the Budget is an instrument of the ues can only go to higher and still
economy;
the
Budget higher levels. Undoubtedly, this
labor force. Pious extenuation of national
cannot be truly protected without thinking on the part of real estate
unemployment of more than three
accounts
for
the complete
million is sheer defense of eco¬ protecting the national economy. men

The

Fourth.

have

at least three million slum dwell¬

ings with good housing by 1960.
Seventh. While

some

of the country.
It

In recent years,

and, above all,

adequacy of the buildings; and (3) the economic condition

all

live

still

of the best

one

indications

factors which

farm families.

Sixth.

despite

of unwarranted optimism, and suggests that basic
should carefully be weighed in evaluation of

ever, warns

agricultural
abundance into an adequate food
supply, plus parity of income for
potential

American

funds,

quarters that the country is being overbuilt, Mr. Holz, bow-

world.

free

for

media

underdeveloped parts of the
We need a policy to

many

even

starvation

when

and

(2) reduction in unemployment;

international efforts.

in¬

"sur¬

farm

so-called

American

$30 billion annual
(3) provid¬
ing for workers unemployed because of "automation"; (4)
raising living standards of lower income groups; (5) raising
farm income; (6) increasing basic resources; (7) upward
revision of pension benefits, and (8) intensification of our
nating the economic slack which results in

capita

per

level only about
the
nonfarm

population. This should not be at¬

quate

depression,

immediate economic tasks: (1) elimi¬

that

pluses,"

President, Conference oh Economic Progress

down

one-third

tributed

Council of Economic Advisers

Chairman,

Former

brought their

come

Thursday, May 5, 1955

Jamiescn Adds

(Special to The Financial Chronicle)

SAN

FRANCISCO,

Calif.

—

Robert P. Rothrock has joined the
staff of H. L. Jamieson Co., Inc.,
Russ

Building.

Two With

Sutro Co.

(Special to The FiNANcfAL Chronccle)

„

gressions

barbarians and
blandishments

the

international

their" brutality
among

peoples who still need
ance.

other "free
our

assist-*

SAN
bert

FRANCISCO,

Massa,

Wolkow
♦An

address

by Mr. Holz before the
Mortgage
Conference
of
tbe
Mortgage Bankers Association of Amer¬
ica, New York City, May 2, 1955.
Eastern

Co.,

407

members

are

Jr.

now

Calif.—Al¬
Arthur

and

with

Sutro

MontgomeryStreet,
o£

the

San Francisco

New

Stock

York

and

Exchanges.

Volume

131

Number 5426

The Commercial and Financial Chronicle

(2085)

Toward

rather been the other way

Favorable

witii

when

come

and

Business Climate

today's

tion

Dean

for

Upgren, on the basis of two years' experience in Europe
study of domestic business progress, expresses view

that (he trend toward

and in the eyes

Reviews

economic

our

holds, indicates

Controls

Says American businessman's
recognized in Western Europe,

of the people there "we

doing

are

the

in recent years, which, he
from direct controls and liberal

progress

a move

away

hopeful that

our

favorable

progress

climate

for

business is going to be extremely

can

rapid.

regard

hope

flows

from

people

business

Europe

from

and

ago

the

progress

business
made

has

here

promoting the
general
fare

w e

and

mestic

do¬

tran¬

1952.

study and interviews

with

economists,
publicser-

vants,

have

high

achievements

and

newspapermen

result

their

busi-

three

great

envies

the United States.
First, they envy
us: for having the American businessman. The

American business-

l?n ?aS± ^

and

security. Though I do not in-

'h.em.

y°u

nw/4

1™°"
envy

possibly
the
two
are
synonymous.
Our
debts
they
envy
because
they
i

#nr
for

those

and

horse-power
evidences of prosperity that re¬
lieve us of human
drudgery. Ac¬
cording to the famous definition
of

Bane, the late General Wil-

crease

than

Leon^Henderson
to go ; an in-

place

liquid savings of more
billion; and a starved

$200

1953

tree

have

now

That

economy.

our

by a remarkable
prices since 1948 or

since April

1951. Thus in the last

seven

high

very

formation

which

house

has

and

equate

modest

The

economic

amount

pay.

Then

the

came

and

war

im¬

outburst in production. The
members of the Armed Services
the

saw

magnificent

equipment

which flowed forth for their use,

though perhaps not every GI was
supplied with a jeep. We produced
enough to meet our needs and

soon

hostilities ceased.

1946, industry was

By May

the road to

^ec0JlvY.efsicmh_
iuS^naL
needed to overcome the inertia
„

the stagnant

job

1930's and it did the

well that

got full

eco¬

nomic expansion and moderate in¬

flation.

1930's,
mum
a

light of the depressed
era of admitted mini-

expansion, the rise in prices

te^946

certain

wa^

forgivable

tional

terms
was

and

gross

Moreover, those who worked in
factories and who

formerly

may

argued that

Sso"me wh'a t °lori g'e r'°than^they

makes

freedom

that

great

progress,

to do

so7which

use

in-

turned

the

economy

present

son,

program

awarded

tions

in output has been recovered. This

accomplished in face of
declining total government ex¬
penditures for all goods and serv-

during

Week"

Los

29th.
The firm's broadcast is

ices

(chiefly due to a substantial
$12 billion cut in Federal outlays

ly feature

$12 billion cut in Federal outlays

weekW»

The

Radio KABC.

series

current

face

disposable

was;

"Invest inAngeles.*
Rupert C. King, Resident Man-ager for
the firm, received the?
plaque at a luncheon held April

has been

consumers

Wire"

prize in Class I of;

contest,

America

the jogj. ground 0f the recession

"Private

first

the first annual Alexander Hamil-f;
ton Free Enterprise Public Rela-1

period of economic expansion. All

crease

ANGELES, Calif.—Shear-'j
Hammill & Co.'s weekly raaio

liberal

upward and
remarkable

for national security) and

features

out¬

one

standing Southern California busi¬
ness

enterprise each Sunday

eve¬

ning at 5:45.

With Bankers Bond & Sees,

in-

(Special to The Financial Chronicle)

HANNIBAL, Mo.—Mrs. Opal F.

-me during every quarter of the

hav^ worked Tor° WPA s^wThe would

Ealum

improved organization ofproduc|ion and appreciated the increased

seem to be needed-" How" modest recession. The resulting
ever' Congress decided that we enlargement of personal consumpwould abandon these controls be- tion expenditures and housing ex-

Bankers Bond & Securities Co.,

incomes which flowed

fore

In fact, from

therefrom,

their

ineffectiveness

was

has

penditures

total

turned

pro-

with

connected

now
»

•

B. & L. Building, members of the
Midwest

Stock Exchange.

1939 to the present

'in

"^CTn. tccl

states has increased by $160 billion

while

the

dividends

paid by
corporations have increased by $6
billion. Here is a payoff to laboi

than 25 to 1 and this,

-for*

expectations
the

Krnm

poker table

RESULTS

OF OPERATIONS

racetrack

slot

corpora¬

tions do not account for

For the three months

machine.

that

all labor

It is

true, of

income

but

course,

they

COMPANY

"payoff'

any

the

COLUMBUS AND SOUTHERN OHIO ELECTRIC

"rvoxr/rff

onxr

is far above

course,

account

For the twelve months
ended March 31

ended March 31

\
1955

1954

$9,852,051
15,502

$8,597,089
15,489

$36,007,904
30,480

$32,190,535
29,515

$9,867,553

$8,612,578

$36,038,384

$32,220,050

$1,457,164
1,987,553
723,812

$1,341,107
1,949,687
601,118

$ 5,495,414

$ 5,385,931

7,864,932

7,193,243

3,116,743

3,893,859
2,853,340

2,183,120
3,403,850
2,371,844

5,205,000

4,310,000

1955

1954

for

l™S:J"Udsenl thCSe,
fine

-nven- Harge part ofVConsequently,
i?°n
c?s
~ with the smallest amount ot primbetter
halves

" 5?
Our

ting

down."

ing of corporate income,

*5ressLire

*or

productivity, encouraging all who
work to

improve personal produc¬
tivity and incomes in order to se¬
cure the better
things of life.
Recognition
.

rnan

tion

that

•

America

the

world

I have
Western Eu-

is,

said, widespread in
rope. We
see
evidences of that
envy
in
the efforts that many

C(T!?eSV Sf ,1CUi y -^n^and
and the Netherlands, are
making
to uncover the secrets of

productivity. They
establish

schools

ministration such

our

great

planning to

are

business

ad¬

the Graduate

School of Business Administration

?ftcVf

are

recepuve

1C«arin
d

/11TYerJ y ft

? Dartmouth. They
to

displays of Amer-

I^hmques

manufacturing

techniques.

purchase large

the ingenious

amounts

machines which

managements

tool

primary

enlargmg
^abor
therefore, labor

are
for

productivity and
incomes.

.IMS in the eyes of the people
Europe, we are doing

of Western
very

well. How

home?

The

are

impetus

doing at

toward

favorable

income.

tary

rewards

same

President's

absolu.te

the

capitalist

Dean

Up?rcn

RelaSns
Mass.,

April

before

19S5.

—

Total

Fuel used in

Other

Advisory
we have
toware

distribution

electric production

operation

Maintenance

„

—

Provisions for depreciation ancj amortization
General taxes.

1,043,215

Federal

1,631,000

968,715
652,957
1,301,000

$7,626,151

$6,812,584

$28,429,343

$25,443,052

$2,241,402

$1,789,994

$ 7,609,641

$ 6,771,993

783.407

income

taxes

greatest

States.

Karl

Total

Marx

What

ha.1

happened is that the rich
relatively less rich and the

are
poor

As Dr. Burns

prosperous.

Operating income

Other Income
Rentals and interest income from
less

subsidiary,
$

expenses..

Provision for deficit of

subsidiary (loss*)--

Other

1940's

the

income

our

the

richest

Total

$8,994 while the

come—the
since

capita in-

per

incomes

all

one

the

siioe

that

con-

1,014

30,922
20,300
12,591

63,813

127,293
*12,653

88,138

25,121
139,761

12.9,487
136,676

354,301

$1,863,807
461,427

$ 7,748,802
2,148,300

$ 7,126,299

$1,402,380
214,471

$ 5,600,502

$ 5,473,228

214,471

Gross income

859,824

$1,514,585

$1,187,909

$ 4,740.678

$ 4,613,404

2,401,360

2,201,360

$0.63

$0.54

2,401,360
$1.97

$2,242,418

Net income

513,360

$1,729.0"6

Preferred Dividends

Earnings
Common

progress

1,653,071

Earnings

common

Outstanding at End of Period
per common

$2.10

advantage

distribution of in-

that contributed most

to the advance of the

served

that

rapid

had

even

when

most

have

income

——

Interest and Otiier Income Deductions

United States have had the great
advantage of an uneven distribution

really poor—increased from about $600 to $1,600.
Someone has said that we in the
no

—U

receivers

dedined from approximately
$13,50C

30,059
*37,617
8,572

pointed out, from 1929 to the late

^re. The
22,

—

the

way

exploitation.

Dr.

had asserted that the
rich would get richer and the poor
would get poorer as the result of

are more

re¬

essentially

come

address

the

The

United

♦An

socia'
revolution of all has taken pJace

Gov-

equality

income.

and

Former

period,
Chairman

Economic

60%

II.

workers

Council, has ponted out,
moved

Electric
Heat

efficiency oi
grind out mone¬

Burns,

tributed

War

Operating Expenses

the

Arthur

reappraisal of the important role of business in promoting the general welfare came
World

increase

Operating Revenues

The

markable.

tremendous

this machine to

business-

great contriou-

had
labor

have

general wel-

authority has obEngland

has

This is

statements

interim statement.
are

examined

The Company's fiscal year

ends

by independent public accountants.

LOS

mone-

Wins Coast Award

na-

3%%. An

for financing homes, have

means

there

product

we can now see

economists

climate

Shearson, Hammiil

understandable.
of no inCreased investment in mWith the benefit of hindsight, ventories until the moderate in-

Some

direct

wiffTontinue

recession

*bat the decision crease of March 1955.
ConseThus
did
the
members
of
the of
the Congress, then led by quently it has been the remarkable
Armed Services observe the high Senator Taft, still stands as a re- tax adjustments of a year and a
productive
achievements of
in- markably
courageous decision, quarter ago which served to industry.

'
and

—

enternrise system,

recession.

the

policy,

strictly highclass nor would it stand rigorous
inspection. The jobs themselves
were,
perhaps unavoidably, low

controls

^ary

not

poiicy

direct

productivity advances.

policy. Wise

was

w^ch now are wjp wjn pUbijc esteem and a recoming, thanks to the apprecia- newed franchise for the private

tion of the fact by labor, closely to

fiscal

production

eeneml'ronirnlq

monetary

increases

was

$o0

as-

™h

financing policy

created

ness

possible the continuous rounds of

demand for durable goods <which
between

means

for business. In that climate busi¬

productivity and therefore makes

JYas "ien variously estimated at

nrnprp^

regulation of prices and wages—

contributes

By the end of — — in the
1953 and
first three-quarters of 1954 there

policy

against

heavily to the rise in worker

wage

for the

measures

in favor of

_fiscai

price stability, and expansion of employment and capiso

kesj. generai

made

advance,

productive

progress

"SICrrojff

had

yqars we have

made

understanding of

c]]rinp- pconnmir

reasonable

tal

better

economy has ^een sc- ^lirect controls

have

of the economy and we
}lavG moved away from the use of

companied both

six

upward direction.

control

free-

telligent set of tax reductions and

nnnrco

200

having,
it

and

Thus

towards

decisions

the

business would be profitable
anc* economic expansion would
become the order of the day as

^1S ther.means of
domestic con-

securing

veniences

for

built up

were

1946
more

trols produced the loudest signal

4L/\

envy wives—and and the
of our debts
cur

(and

wages,
abandoned
in

postwar period

result

rnent attempted to organize both
jobs and production. The resulting

abila y

intheir view, our greatest
single
contribution to the culture of the
world and to the world's welfare

forces

duction, incomes and total welfare
in

large

inflation.

excessive

not

stability

business,

powerful

expansion at the price of
but

pro-

remarkable economic

measured

that, in the economic more than $50 billion more which
area, the people of Western Eu- spilled out abroad in
lend-lease
have

most

billion. The release of these
powerful forces and of price con-

nessmen

rope

prices

ex-

mense

I found after

Upgren

duced

in the 1940's compared
to their experiences in the 1930's.
In the earlier period the govern-

quility since

the

perience

than two years

Arthur

out that the Ameri-

would

for

experiences in

decision

for

were

Three

put

then pointed

tt
•+
a
United

the

cause

over

lars

Harold Stassen of Minnesota

ernor

fv»

eco-

during the war—a doubled monetaiy income with many of the dol-

policy toward enterprise.
toward

fateful

climate

course)

1946.

well."

very

capital for-

'
in

proved. We did just that and

biake

vital

are

essential

favorable

going to be extremely rapid.

contribution to the world is

«»

producing that
remarkable
in production which is

tne

favorable climate for business

good
distribu-

progress

and his

acts

1946

made

least

even

processes ot

n0,nhC ^
Then
States

the

which

mation

Beaji, Amos Tuck School of Business
Administration,
Dartmouth College

did

income

the

upon

By ARTHUR R. UPGREN*

'round

distribution of in-

uneven

December 31, at which time its financial

Main Street's Stake in World Trade

sued

in Paris.
and

play

By EUGENE E. HOLMAN*

than
Chairman

of the

Board

Standard Oil Company of New Jersey

Stressing the need of world-wide prosperity, Mr. Holman

international bodies.

The way world political affairs
affect all of us is not difficult to
see.

However, when

consider

come

specifically the sub-

"World

Affairs

and

You" from the

economic

an¬

gle.

the

ture

may

seem

pic¬

not

clear.

This is partic¬

ularly the
if

you

case
a

are

man

who

has

picJiis

in-

contributions

intangible

far larger part in our lives

most

realize

first

not

mean

give

im¬

"not

exports

just

one

our

customers—Venezuela—

overseas

another.

are

though not of tre¬
shows that country bought more
mendous economic significance by
than $500 million worth of goods
themselves, illustrate the close re¬
from us during 1954.
The goods lationship of one national economy
included laundry equipment from to another.
I'm not qualified to
Central Falls, R. I.; glassware from
judge all the pros and cons, but
Pa.;

from

which,

ples

field, Ohio; pencils from Nashville, on the importation of foreign
Trnn.; motorcycles from LincoJn. cheese throws light on this prob¬
Neb.;
wallboard
from
Forest lem.
Because we made it more
Grove, Ore.; and textiles from difficult for European countries to

and

exports

'"mpnrfc
ucts

materials.

raw

nessmen—who

nor

prod¬

Such busi¬

Lanett,

many

how

can

economic

decisions

actions in the world at

and

large affeet

me?"

great

effect

know

how

and

all

upon

modern

us.

communication

have

brought
closer to¬

parts

of the globe
They have increased the

gether.

and

speed

events

intensity

have impact

with
of

part

one

thousands

and

you

begin

can

that Main Street, U.S.A..

The

exports,

have to be paid for.

peopTe

that

agree

this

for

does

large stake in world trade.

course,

I think most

giving

dollars

other

nations

purpose

through
large - scale loans
and
grants-in-aid on a governmentstitute

for

their

lars

the

best

is_

sub¬

poor

earning the dol¬

themselves.

though this point has been made
times before, it is perhaps
worth repeating here. The
English
poet, John Donne, said "No man

healthier

many

the

for

way

long

run,

customers

other nations to get dollars to pay
for

exports is through private
It is always

our

It is, I might
inot to

add,

American

good thing

economic island. Be¬

ing

attached to one's neighbors
through trade can have an excel¬
lent effect upon the
political rela¬

tionships of nations.
structive

side,

in close touch with

the

commerce

con¬

brings

our

neigh¬

bors.

To know people is to under¬
stand them. Wider

understanding

can

dividends in world

pay

well

peace

in world
prosperity.
Moreover, economic isolation¬
ism is not profitable. Our
as

tourist

does

pretty

good job cf keeping our currency
in circulation abroad.
Last year
U.

tourists

billion

spent

dollars

tenth

all

foreign
dollars paid for

These

ported

from

farms.

In the

$70

visiting

countries.
a

than

the

products

ex¬

factories

and

case

France, the

million

spent by American
there paid for 20% of

travelers

large and wealthy
from

tant

these

exports

are

last

us,

year—excluding all military items
—they amounted in value to more
than $12 billion. This was a sum
almost

spent

equal

during

all

the

money

time

same

for

residential

equal

construction.

than

the

total

personal income of all the families
an Texas or the
combined personal
incomes of families in the states
cf Colorado.
tana,

Idaho, Kansas, Men-

Nebraska,

North

South Dakota, Utah and

Prosperity

Dakota,
Wyoming.

depression in

country—oarticularly

one

country of

substantial size—can well have
effect upon the

prosperity

cf it in other countries.

the
an

matter

down

individual

pose

you

/♦tore

any

the

business,

have

Ihis country.

retail

lack

bring

scope

let's

sup¬

hardware

agricultural

area

You don't, yourself,

export

business.

incomes of farmers in

But

your local-

address

Luncheon

Mr.
of

Holman

the

43rd

the

Annual

.•Meeting of the Chamber of Commerce of
United
States, Washington, D. C.,
-lay 2, 1955.
khe

fruit.

The

from

"Overseas" Investments

overseas

also

are

ments have the

advantage of help¬
ing develop our neighbor's inter¬

nal

economies

well.

Since the

war, $11 billion of American r>rivate funds
one-third of which

represent

the

investment

oil

companies—has been put to work
to accomplish these two excellent
aims.

The

aims

same

through

vanced

can

sound

loans by Americans

who

ad¬

private
are

now

bankers for the world.

materials

without which
tain

our

these

items

tin,

own

chrome.

ideas

trade.

with

esses,

the

you

judge
your

such

their

we-

Among

necessities

give

and

What people
minds—new

influence

products
want

what

wife's

small

get
cre¬

proc¬

well

their

just
the

hands.

example

mean,

wardrobe

These

prices.

Soviet

offers with demands for strategic

When

items.
our

free-world

cess

the

tactics.

Then

security

cus¬

adversely affect
pushing our

friends toward the Russian's camp.

Similar effects follow whenever
are

raised—in

other

country

our
—

and other restrictions

These

lead

actions

measures

own

when

are

any

quotas

applied.
counter-

by other nations either

matter of

necessity

re¬

taliation. A backward step

by taken
prosperity.

is there¬
the road 'to world
The volume of world

trade—which

has

increasing—slows

steadily

slow-down

this

immediately

.been

down.
be

can

not, it can¬
not help but have a harmful in¬
fluence eventually on American
or

ican workers and

watch
next

swept

imports.
faith in

a flood of
should
have

away

But

ability to meet
and thrive on competition.
And
let's not forget that the present

PeriL

our

proven

Point

provisions

and

Escape
the Trade

Amer¬

mestic industry from any possible
threat from excessive imports.
Business

Should

Make

world

businessmen,

Foreign Trade

what

The first thing we
do, it seems to me, is to
keep informed. Public opinion in
should

the

United States

eign

policies which
the interests of

upon

ing

our

resulting stagnation that took
Then, in 1934,

place behind them.
the

United

Trade

States

blocks in

road

adopted

the

Agreements Act and thus
actively to remove these

started

the

path of world
commerce.
At the same time, our
government set up the ExportImport Bank. Within its properly

Amer¬

S. representatives

international

can

bodies,

each

constructive force. We

also effectively work together

can

government

own

our

and to those U.

such

associations

and

merce

to be

Chamber

natkmal

sure

local

our

that what

Com¬
we

be¬

lieve is heard.

individuals, it*

that in this

same

businessmen
tion

have

great obliga¬
opportunity
right
at

and

home.

to me
respect American
seems

Today there is apparent in
of our country evi¬
impatience and discour¬

many

parts

dence

agement about relations with peo¬
ple of other nations. Much of it
stem's, understandably, from hav¬
ing our own expression of good¬
will misunderstood.

When

see

people in cither lands apparently
disliking us in spite of the money
and technical' skill

helo

them

times hard to hide
ment.

final

The

have given

rebuild, it is

some¬

disappoint¬

our

result

may be a
feeling to let the other people "go
fly their own kites."

Such
the

attitude

American

contrary to

character

and

unhappiness for
If

familiar

are

can

our¬
as

with

in¬

the

true
import of world economic
developments, it will help us ex¬

tions

neighbors

our

other

that

Main

free-world

na¬

really

not unfriendly.
prosperity are, in gen¬
eral, international aims. Only by
are

Peace and

patience
sides

tolerance

and
the

can

minor

tions be resolved.
tues

both

dissatisfac¬

And these vir¬

already showing results.
A trip I took to Europe last sum¬
mer convinced me that people are
are

activity it is stim¬
ulating the sale of American goods
abroad.
Our membership in the

another's problems. This is in con¬
trast to their attitude immediately

World

after the

Bank, which

joined af¬

increasingly

ter the

war, and our own foreign
aid programs such as the Marshall
Plan have also helped to improve

international

trade.

sympathetic

about

one

is certainly not

without

what

directly
every

affects

that

tariffs.

great debate which

American

have said

not

before,

Our

the
welfare
businessman.
my

should

tariffs,

of
As

opinion is

abolish

with

all

few

that

way

ourselves

bear

economic

our

shall

and

others

to
achieve the things for which men

Morgan Stanley Group
Underwrites Texas

Instruments

Financing

Texas Instruments

Inc., of Dal¬
las, Texas is issuing to holders of
its common stock rights to sub¬
scribe at $25 per share for 165,945
shares

4.48%

new

cumulative

convertible preferred stock, series
A ($25 par value) at the rate of
share

one

for

each

stock

common

held

shares
record

of
on

May 2,
1955.
The
subscription
rights will expire at 3:30 p.m.
(EDT) on May 19,11955. The of¬
fering

being

underwritten

a
group
of
investment
firms
headed by Morgan Stanley & Co.

The

preferred

new

convertible into

time

stock

shares at

common

prior to May 1,
1965, the conversion rate being
V/2 shares of common for each

anv

share of preferred and being sub¬

ject

adjustment upon certain
It
is subject
to re¬
demption at $26.15 per share if
redeemed
on
or
before
May 1,
1957 and thereafter at prices de¬
creasing to $25.25 per share. It is
to

redeemable

also

under a sinking
May 1, 1965.
The company is engaged in the

fund

after

manufacture

electronic

and

electromechanical

equipment
principally for the Armed Forces,
including radar, sonar, transistors
and components. Through whollysubsidiaries

owned

furnishes

contract

geographical services and
is
engaged in the development
and production of geophysical in¬
struments and equipment and op¬
tical
components. Texas Instru¬
ments is currently one of the three
leading companies manufacturing
sales

transistors for

others.

Its

of geophysical subsidiaries
the world's three lar¬

rank among

gest geophysical contracting or¬
ganizations.
Operating revenues of the com¬
pany and consolidated subsidiaries
for the year ended Dec. 31, 1954

approximately $24,000,000 of

were

which

about

50%

sales

from

was

derived
and

electronic

electromechanical
the

equipment

Government, 35%

from

geophysical services and 15% from
its

business.

other

was

income

N.et

$1,200,995.

)

The

approximately
$4,000,000
proceeds from sale will be
used in part to repay outstanding
bank loans amounting to $2,000,net

000

incurred

with

connection

the company's
The

for

expansion program.
of proceeds will be

balance

added

general funds and used

further

exoansion

and

other

Addition of new prod¬
ucts and an expanding program
of research and development re¬

purposes.

investments in plant and
equipment of $3,150,000 in 1953
1954. A further expansion of
quired

and
the

Dallas

plant,

cost

about

$375,000, principally for transistors
and
related
products,
is under
construction. Construction of new
facilities

Technical

Houston

for

Laboratories,

will

subsidiary,

shortly and will cost ap¬
proximately $390,000. Expanding
geophysical
operations also re¬
quire additional investment for
instruments and working capital.
begin

peril to both. For we have
system which helps people get
they need and

(Special to The Financial Chronicle)

our

world which

Trade

off

which

upon

op¬

business system

Now, after nine extensions cov¬
ering the past twenty years, the
more

events

With J. H. Goddard Co.
me say I am
the future of

our

nation and of
a

war.

closing let

timistic

Agreements Act is once
up
for renewal.
This has

helping

groups

dividuals

the

community. By mak¬
views known to repre¬

sentatives in

Street

remember

for¬
touch

may

ican business

plain

be of great

can

weight in framing internal

1930's.

can

them?

about

These walls of excessive tariffs,
quotas, and restrictions reached
staggering heights in the early
All

affect

events

selves and the world.

Hindrances

world

conditions.

Views

Known

only breed

consumers.

Clause

Agree¬
protection to do¬

ments Act offer

divisive Soviet

of these

So, first we lose good

tomers.
our

partners from ac¬
we strengthen

markets,

our

force

abruptly cut off

should, work hard to influ¬

hope.

R. 1 as passed by the House
Representatives is, I believe, a

oioc

to bring pres¬
sure on the free world's strategic
trade
controls
by linking their

inventions, discoveries—are touched

beneficial

are

goods

nickel, uranium ore, and
Perhaps more important

the

ate

and

could not main¬

economy.

are

through

are

per¬

limited field of

We should not overlook the fact
that trade with other nations also

brings

have

governments seek

potent

dollar producers for good custom¬
ers in other lands.
These invest¬

bloc.

made

factories and farms and

Investments of American private

capital

Soviet

Thursday, May 5, 1955

was

alluring offers to
buy the products of many freeworld countries, sometimes at pre¬

sistently

United States.

goods

the

countries

Soviet

and

result

attractiveness

the

within

markets

the

and

1951

flour,

second

increase

seen

'An
general

citrus

—

XJ.

typewriters,

chinery,

ers

materials

restrictions in

cheese to us, those countries
immediately had less dollars to
spend. The first result, was that
they could not buy and pay tor
such American products as ma¬

Whether

They, in

turn, need what we export. To
give you some idea of how impor¬

move

restrictions.

sell

purchases by French custom¬

it is. needs

other lands.

the

country,

much

think

trade and investment.

for nations as well as
an island." If that was -/true in
his day of the 17th
Century, it is (individuals to stand on their own
doubly true today. /Certainly it is feet.
true in the economic
field, and we
There
are
ma"y
methods
by
might paraphrase the poet and say
which other countries get the dol¬
that "In today's world, no nation
lars to pay for our goods.
The
as an economic
island."

mium

to-government basis is

world

But even

multiply by the

which

the

another.

Add

Mans¬

other nations buying Ameri¬

goods

see

transportation

Ala.

the United States,

have

Actually, such decisions have

stoves

other products from towns all over

consider for¬
eign trade as being remote from
their affairs—may well ask, "Well,
may

consistently
tariffs and quota

government

exam¬

abroad

neither

life.

there

But

aeanette,

who

benefit of all U. S. citizens to have
our

importantly

prosperity

overseas,

vestm ents

Eugene E. Holman

ence

constructive step in that direction.
The eyes of our friends through¬
is chiefly a result of
out the world are at this time fo¬
activity in the domestic market.
But just as we have built this vast cused upon what action is now to
known to U. S. representatives
be taken by the U. S. Senate. It
market by fostering the free ex¬
now seems likely that the Senate
optimistic about the future.
change of goods within the wide
will also approve the Bill without
expanse of our own country, so
ity are down because of depressed we can, by enlarging the areas of crippling amendments and I cer¬
world prices for agricultural prod¬ our
trade, strengthen and increase tainly hope such proves to be the
ucts, you will very likely feel the our prosperity still more. It lifts case.
The
result in your own store.
position the Chamber of
the ceiling so that our whole econCommerce of the United States
While farm products make up can
expand.
has taken oh this legislation is an
an important part of our exports,
Trade in the international aspect
there is not a state in the Union
enlightened one and is to be highly
is a pretty complicated affair. Of¬
commended.
that docs not export some raw ma¬
Certainly
no
one
ten it is difficult to point out pre¬
wants any domestic industry, or
terial or manufactured products.
cisely how an action in one coun¬
For example, a recent survey of
any part of a domestic industry,
try has a reaction on the economy
U.

and

exceptions, are certainly not out¬
rageously high. But I firmly be¬
lieve that it is to the long-range

toward reducing

pression here that I think we'd all
go broke if we didn't havg a great
deal of foreign trade. Our nation's

con¬

profitable." Points out
and favors re¬
ducing tariffs and quota restrictions. Urges businessmen keep
as

advantages of American investments
informed and make their views

All of these mate¬

glance.

demns economic isolationism

new

rial

decree is is¬

fashion

time

The Commercial and Financial Chronicle

(2GG3H

want in the

BOSTON,
Laber is

now

Goddard

Mass.

—

John

connected with J. H.

Co., Inc.,

Devon¬

shire Street members of the Bos¬
ton

Stock

Exchange.

most efficient and reasonable way.
Its

strength is not a matter of
theory. It has proven to work well
in

where other
systems have shown clearly that
they do not.
Supported by the
knowledge of that proof we can,
serving

people

Joins McGhee Staff
(Special to The Financial Chronicle)

CHARLOTTE, N. C.—Arthur E.
Spears
McGhee

is
&

now

connected

with

Co., of Cleveland.

Volume

181

Number 5426

The Commercial and Financial Chronicle

(2087)

Hear! Hear!

Public

"I> for one, am highly impatient with the reac¬
tionary thinking of some union leaders who stand
resolutely against progress, who resist the introduc¬
tion

machines

new

and

"partnership program" to develop
the Trinity River irrigation and
power
project.
The government

Utility Securities

would build

and

mean

second

miserly

ranks

now

electric

and

less

just

impatient

revenues

with

for

concern

issue

between

Henry

Ford, II

those

geared to immedi¬
short-range social issues and those who believe
that the great
long-term social gains will come from
letting industry respond to natural economic forces
stimulus of the

in 1945.

and

sup-

natural

gas

total population

about 5,800,000.

the

year

600.000

about

added

company

kw.

steam

generat-

ing facilities, and this

year expects
300,000 kw. steam and 84,hydro. Since the company

to add

000 kw.

profit motive."-—Henry

has

achieved

now

normal

capacity both in electricity
and gas, construction outlays are
declining. Last year $171 million

Without

necessarily endorsing every word, we
heartily commend to pur readers the general tenor

was

these remarks.

Guaranteed Wage Requires Guaranteed Market

spent, bringing to $1.3 billion
the amount expended in the postwar period.
Expenditures in 19551956 are expected to drop to an
.average of $135 million annually.
In

May issue of the "Guaranty Survey," issued by the Guaranty
Trust Company of New York, in editorial
article, points out,
in the final analysis, who must provide
guarantee" of wages.

editorial article published

in the Mav issue of thp "Hnarantv

moXy^ publication

Survey"

V»11Q V'Q nf tf

Tt*l

Guaranty Trust Company of
New York, the question is asked
"Who

will

the

guarantee

producer"

guaranteed
"There

nents
seem

the

objection,!'
"which propo¬

analysis,

it
hires

who
It

wages.

the

not

labor

the

and

consumer.

The employer is merely an
agent,

intermediary. The ultimate

mand

only

for
one

labor

can

source:

product.

termines

what

de¬

from

come

the buyer of tne
alone who de¬

things

shall

produced, and how much of each.
To ask the

employer to guarantee
employment or wages is to hold

him

responsible

for

of consumers, over
no control.
"All the way
ment

behavior

whom he has

through the

argu-

guaranteed

the

for

the

wage

the assumption that it is the

runs

employer's duty to provide stable
employment. The booklet on the
Guaranteed

published

Employment

the

Plan

Education

De¬

partment of the UAW states flatly
that

the

costs

the

InWAv

demand

can

guarantees do not
to have faced. This is
that, in

employer
pays

seven
no

hut

a4 Av»vvn

for

the

i vii Arl

products

in a free society this
guaranteed by on one. Em-

and

their

guarantee? The only way to guarantee final demand would be to
reverse

the whole economic order

and, instead of requiring industry
to produce what consumers want,

...

consumers to buy what in¬
dustry might choose to produce....
r

"Within

the

limits

imposed by
economic realities, the more adequate protection of employees and
their

families

against the hardships due to unemployment is a
worthy objective. It seems very

right approach to it. The causes
of unemployment lie deep within
the structure of the economy, and

problems

problems
whole.

along
among

and

union

their

find

families

employers,
with their employees, .are
its victims, not its au¬

thors."

legitimate. The tend¬
look to the employer for
such
safeguards also is under¬
standable, since the employer is
to

the most accessible party and the
most visible source of funds. Yet
not

for

assume

cause

the

source.

can¬

the full

providing

responsibility
steady work, be¬

decision

does

ST.

not

ask

guaranteed wage, they are
fect

asking for

shown

sharing

the

California,

which would

include the world's highest and
most massive concrete dam. Nor^

$2.88

first

quarter

ply only a certain class of customers. This creates a different
class of citizenship. When private
companies are allowed to generate

compa-

rable basis. Hydro conditions were
not

particularly favorable, but the
outlook

water

the

for

has

year

foot of

The

good

balance

the

snow

range

from

the

improved slightly,
having added about

recent storms

power

sions

treated alike."

mountains,

The stock has been selling recently at 48, and paying $2.20 to
yield 4.6%. Based on current earrcings around $3, it is selling at

hydro conditions
bad now means a

swing in share

earnings of about

15-20 cents.

rp^

rapid

we1j

growth

about 16 times earnings.

sales

gas

ratios conform

^ deterioration in the

Kettleman

Hills

Field

ndustry averages.

industry averages.

reserves,

recently

sold

and

incur

will

$50

•

depreciation,

United States Securities and Ex-

of the

provisions

permit

celerated

sulting

Natural

sion

earningsvincrease
also

con-

Since

1954

Tax

forms

new

Code

ac-

with

re¬

savings.
the

1949

equity ratio has
to 33%.

Capitalization at the end of
was

approximately

1954

follows:

Millions
,

Albert

Ce"tS 8 F^p6 ofhCOmm°n

stock.

...

$763

offsetting rate increase.

322

that

fact

eral

the

both

Commission

Power

being

electric

Pacific's

running

below

Paso

apparently has
tion

The company's electric sales ac-

69%

total

revenues

Stanley

Goldman

real

firm

Inc.

present inten¬

Government

practicing

years,

and

founder

asking for higher electric

Federal

"Sire
real

President

affiliates,

its
of

the

Joseph

Plan"
estate

Glynn,

member

the

Midwest

Stock

«•

method

1955

and

March 29, 1954

•

$25,940,575

2,431,576

7,850,247

.vfcV
•

•

Hydraulic turbines and accessories

3,236,124

1,510,048

Other work and operations

3,447,741

2,421,978

$30,519,556

$37,722,848

i„

'♦

•&"

j„

lotols

•

Estimated balance of

»•

•

At March

major contracts

unbilled at the close of the
Number of

close of the

period

The

unbilled

(Special to The Financial Chronicle)

Colletti

Co., Inc.

Mass.

now

—

Ernest

balances

formerly with

Trusteed Funds, Inc.

At March

29,1954

$155,915,415

$264,873,284
15,937

roll at the

t <»W

it"

.Mf

v»

long-term shipbuilding contracts

period will therefore
are

the percentage-of-completion basis;

from the killings on the contracts. Contract billings and estimated
subject to possible adjustments resulting from statutory and contractual provisions.
vary

By Order of the Board of Directors

with Renyx, Field
was

period

Company reports income from

such income for any

28,1955

12,979

employees

since 1945.

Joins Renyx Field

April 27, 1955

The

the

mutual

investment.

$21,404,115

....

Ship conversions and repairs

■4,

de¬

Exchange, and has been in busi¬

BOSTON,

in ef¬

Shipbuilding contracts

nationally known

activities in its offices at 320

Jr., the
partners, announced. The firm is

ness

March 28,

Billings during the period:

attorney for

Major Contracts and Number of Employees

con¬

No. Fourth St., Clarence F. Blewer

rest

for

guaranteed

Mo.—The

Blewer, Glynn & Co. will

estate

Small Investors Real E:tate Plan,

management

It is contemplating joining

rates.
the

Mintzer,

are

estimated

the

York

Newport News Shipbuilding and Dry Dock Company

tinue its usual investment broker¬

and

office

Broadway,

City, and will
specialize
in
securities,
corporate and

under

earnings

but

base,

dman,

matters.

100

shares.

resigning.

age

New

awaiting

collected

with

The

still before the Fed¬

are

approval,

538

the

increases

Mintzer

„

an(^ * e comPan7 ls seeking another

firm,

will be known

$1,623

for

Mintz¬

The

er.

However, El Paso has again

rajse(j its rates by over $8 million

rate

count

private
practice with

net

.Long-term debt
Preferred stock———
Common stock equity-

«I«,25fif<M>0

enter

ef-

would

1—which

years,
left
to

has

rate

miilion

nine

Commis-

company

about

Dec.

A""

change Commission for the past

Paso

picture is further complicated by

been increased from 25%

„

-fective

iE'l

State

the

gas

from

the

Gas,

allowed

its

purchased

gas

loans;

depreciation,

tax

bonds

whether to take advantage of the
which

Formed in N. Y. G<

day.

per

^ec^r|c
rate

i?*3+*^07

about 5%

earned

bank

retained

'J '

Mintzer & Goldman

none base, and to offset the higher cost

company

and deferred taxes will

Stanley Goldman, senior attor¬
ney
and trial attorney for the
"w

million

some

cubic feet

in such deliveries from 550

700 million

These

fairly closely to the

has made it necessary to bring increased gas from outside the State.

crease

the public utilities comriiisfix the rates and all are

Three Fiscal Months Ended

LOUIS,

the

proposed

Quarterly Statement of Billings, Estimated Unbilled Balance

brokers, has become Blewer,
Glynn & Co., effective May 2.
Norman E. Heitner, a partner in
Blewer, Heitner and Glynn, is

by the market for his product.
employees

year's

last

New Firm Name

with him. His capacity to provide
work is both created and limited

"When

State

creased from $2.16 in 1945 to

development

has also

Feather River Development of the

in-

earnings

aspects

power

iast year, and earnings for the 12
months ended March 31, probably

was

is expected in 1955. The

Blewer, Glpa Co.:

natural and

he is not the real

total

interest

some

Common

power

The

Pacific G.

Av-

kwh.

planned.

arising from it are
the economy as a

ment

safeguards for the welfare of its
members

kw.

million, create
develop 60,000
than currently

would be about 200,000 kw.

domestic

2,424

and

revenue,

Individual

?1al Blewe^Feitaer ,1
&'GlV'nn,Investthe

that

and their families do not

desire

sales

reached

1954.

There

unlikely, however, that the plans
going by the name of wage or em¬
ployment
guarantees
offer
the

the

miscellaneous.

annual

financing

stock

the

suffer.'
"The

1947-53.

years

fstupd^?iT'(omba^nffo ^^for^sppfiHtlpq
lscued in exchange lor securities

require

responsibility to provide

EtKe|i?fyti^0rk' th7 have
obligation
to see
workers

ground that 'when employers fail

ency

tax

guarantee

defended

are

huge

guaTa nte^"market for^their Zmlanv has not yet decided
hT^nZt^ve^decided
company
not
but who is to give such

wares,

essentially penalties for fail¬
ing to provide steady work.' These

penalties

its

Pacific

program

7e- ?f acquired .companies) and

c*1®"
determined by

{

finance

common

'are

the government $50

revenues

equity financing through Last year the transmission system
issuance of rights in each of the was
enlarged to permit an in-

because the

mand for labor is
the

Electric

& E. did

any

imrierstanH

meet

-pAvi

pays

wage?

wage

final

pn-v

labor,

basic

one

article,

Win

market

who

annual

tne

says

the

i<=

oTsibll

order

construction

mand for their labor. The aspiratinn

electricity

large

reserve

and

erage

Last

Ford, 2nd.

it is the
consumer,

generate 60,000
This would save

man R. Sutherland, newly elected
President, thinks the State should
Generating capacity at the end slightly exceeded $3. The company not go into the power business,
of 1954 approximated 4,000,000 kw.
had an excellent first quarter this "We can
do it more efficiently
(about two-thirds steam and oneyear,
with cold winter helping and at less cost," he declared,
third hydro) vs. a peak load of
gas sales.
New gas and electric "when the state and Federal govr
rlightly less than 3.7 million kw. customers increased 56% over last ernments go into it they can sup-

ate,

ties

customers

who hold that business should be

under the

those

Francisco, with

'creeping socialism,'

political

times

the greater part of central and
northern California, including San

that the real American

say

six

now

plies

bad

human and social
progress as com¬
munism or

for

with water
contributing

service

1%.

times

business

'security'

word and to brand all

are

consider

than

of 1929 and nearly two-and-a-half

stereotyped think¬
some

which in 1954 approxi- are nearly 47% residential and
million. The company rural, 20% commercial, 24% inhas enjoyed tremendous growth— dustrial, 5% to sales to other utili-

short, the advocates of

ing which has led
men

the

steam

mated $386

the slavish and

41 Ko

31%,

about

gas

and

revenues,

utilities

gas

guaranteed annual stagnation.

and

the basis of annual

among

where—in

kw. more power.

concept of a
mature
economy that's going no¬

plants

power

preserve

Pacific Gas & Electric

Valley, and the

company woi\Jd buy the water at
$3.5 million a year, building two

Pacific Gas & Electric Company

methods, who seek to

tunnel to divert the

water into Central

By OWEN ELY

obsolete trades and skills,
who
generally are wedded to the

R. I. FLETCHER, Financial Vice President

Financial Chronicle

The Commercial and

Thursday, May 5, 1955

(2088)

Quakertown, Pa. with com¬
of $150,000 and the
Perkasie Trust Company of Per¬
Co. of

"Modem" Monetary Policy
Contributes to National Progress

News About Banks

000)

BRANCHES

OFFICERS, ETC.

effected under date of
4 under the name of the
County
Bank ' &
Trust

Bucks

Bankers

and

REVISED

Federal Reserve Governor says

County, Pa.

The

half

last

in the begin¬

ushered

which

that

ning of the decade five years ago.
Then,
as
now,

the

were

process

recovering

from economic

The

recession.

ability

econ¬

omy

the

civilian

carry

weight

recovery

and

fully
1950.

that

Before

comolete,

wa<?

sudden outbreak of hostilities

Korea,

cies

greatly enlarged military expendi¬
catapulted us into a new
economic peril, inflation.

tures,

Today, whatever the future may
hold,

strength
national

think,

has

economy

the
to carry the burden of
progress. To this strength,
"modern" monetary pol¬
made a substantial con¬

have

does

broad
1955 evi¬

the

civilian

the

that

dence

icy

can

recovery

find

achieved

strength

great

—

four

ago

years

March, 1951, out of the anguish of
a

post-Korean inflation surge—

policy that has since served with

our

success

some

the

front line

defenses against the

economic

dangers of both inflation and de¬
flation.

characteristic of

notable

policy,

administered

this

the

Federal Reserve System,

flexibility,
the

has been
adaptation

prompt

sharply changing financial

needs of

The

our

dynamic

adaptation

economy.

instance

dramatic

most

flexible
and

came

May

June cf

1953, about the mid¬
point of the period we have cov¬
This

ered.

was

time

of marked

deceleration of advance in the

jor indexes that chart the

ma¬

course

of progress in production and em¬

ployment

and

national

output.

The Federal Reserve in these two
months
the

shifted

its

operations

field of credit from
of

tion

restraint

the

what

quently became known

exer¬

subse¬

the pro¬

motion of "active ease."
When

business

quently entered
ward

Offering

of $5 per share
was made on May 3 by D. Gleich
Co. of New York City.
at

The shares

use

activity

one-half

and

City

common

tions,

reserve

market

and

funds wou'd

be readily available,
favorable
terms,
to credit¬

worthy borrowers throughout the
nation.

That these funds aided

cushioning readjustment and fos¬

tering reemployment of
now

until

Nothing

that

episode, how¬
should be allowed to obscure

accomplishment of the pre¬
ceding policy of restraint from

common

Restraint, by helping to
keep credit expansion in line with
productive and consumption ac¬

stability of

*Excerpts from remarks by Mr. Szymc¬
sembly

the

Member

Bank

As¬

of^ the Federal Reserve Bank of

Minneapolis,
25,

Third

Minneapolis,

Minn.,

1955.

the

Tappan

and

manufac¬

Instruments

fasteners.
tured

under

tracts

for

prime and sub-con¬
various agencies of the

Government

devices

both

for

artillery,

defense

civilian

and

needs,

hydraulic valves, main rooters and
controls for helicopters, pilot con¬
trol

sticks

other

for

aircraft

planes

jet

parts.

High

and
speed
made

zipper making machines are
for manufacturers in a number of

foreign countries and the companv believes it is among the 10
leading manufacturers of zipper
in

United

the

Se¬

Corporation in its Phila¬
office, Packard Building.

Prior to

joiping Stone & Webster
Securities, he was a Trust Invest¬
Officer

Corn

Girard

Exchange

Bank.

With

Coburn

(Special

Trust

The

System.
scheduled

Bender

Coburn

—

Edward

associated

with

Middlebrook, Inc., 75
Street.
He was previously

Atherton & Co.

April

With Hanraban & Co.
(Special to The Financial Chronicle)

BOSTON, Mass.

—

of $175,000. Officers
bank are: Henry Hoyle,
and Chairman of the

surplus

of the

new

President

Board; Frederick Palmer, Execu¬
and

Vice-President

tive

Lester

Cashier;
V.

Stillwell and James

Conti, Assistant Cashiers.
ft

William M.

office

ure

Couzens

Mr.

President, the deposits, it is said,
of The Central National have in¬
creased

approximately

from

000,000 to

the

When

proposed

merger

the County Trust
Company will have total assets of
more than $314,000,000. The mer¬
is

completed,

will
increase The
County
Trust Company's number of of¬
fices in Yonkers to six, including
ger

Central National of¬

the proposed

fice at Central

Verona Ave¬

and

When this

nues.

and

merger

one

pending with The Irvington Na¬
tional

and

Bank

Company

Trust

As
of

result of

the

$12,220

tional

Na¬

Hicksville,

director

capi¬

tal, effective April 1, from $611,000 to $623,220.

tal

Feb.

the capital

the First National Bank of Farm-

ingdale,

Island,

Long

be¬

Y.,

Approval was given on Feb. 17
by the New York State Banking
Department
to
the
Patchogue
of

Bank

Patchogue, Long Island,

Y., to a certificate authorizing

increase

bank's capital

the

(in
6,000
shares, par $25), to $180,000 con¬
sisting of 7,200 shares of the same
from

stock

par

$150,000

value.
ft

agreement
National

The

merge

Bank

Yon¬

of White Plains, N.

the

stitution

Y.,

of the latter

has
a

been

reached,

ac¬

statement under date

April 29 from Gerald S. Cou-

zens,

President

the

Yonkers

bank, and Andrew Wilson and
Joseph E. Hughes, Chairman and

$2,000,000 was ab¬
April 15 by the

effective

National
In

1035,

State

issue

our

Bank

the

page

item appeared bearing on

that

announcement

Newark.

March

banks

two

was

announcement states
liquidating bank was

the

operating three local branches.
ft
*

The

and

Trust

Bank

J. by the

increased its capital from $500,000
to

$600,000 by

Company

First

from

of Paterson,

it is
Treasury

April

Bulletin made available April 25.

institution had
a common capital stock of $750,000. Preliminary agreements look¬
ing toward the merger were noted
in our March 3 issue, page 1035.
ft

As of March

County

Trust

directors

members of the Boston Stock Ex¬

Central

change.

28, the merger agreement is still

National

Bank

April

stock dividend of
ft

15, the Peoples Na¬
Norristown, Pa.

added

$10,400 to its capital as a
a stock dividend of that

result of

about

brought

sale

amount, viz.: $62,500.

same

the issuance of a
April 20 to the First

has

institution

The

bank

April 29.

opened for business on

capital

surplus of $30,000.
Charles
C. Willey
is President;
R. S. Barnett Jr., Vice-President;
and Ralph E. Justice, Cashier.

$75,000

and

capital of $1,750,000 was re¬
ported by the Merchants National
Bank of Mobile, Ala., on Feb. 23,
which

date

❖

increased,

was

$1,500,000 as
sale of $250,000 of

result of the
new stock.

has
capital of
Calcasieu-Marine
National

A stock dividend of $508,808
served

the

$1,500,000

the

Charles,

Lake

Bank

increase

La.

from

$2,000,000, effective

March 22.

Western

First

has

Bank

permission

received

the State

and

of San Francisco,

Trust Company

Calif.,

The

Superintendent of

office in the new
regional shopping center
in San Mateo, Calif., it was an¬
nounced
on
April 25 by T. P.

Banks to open an

Hillsdale

Chairman
of

Hillsdale

the

Arkansas,

Coats,

increasing

Aliheimer,

Bank

Altheimer,

Board

the

$62,500 of new stock, and the is¬
suance of a stock dividend of the

the

thereby

its

capital, effective April 19, increas¬
ing it from $125,000 to $250,000.
The addition to the capital was

capital from $520,200 to $530,600.

amount,

Bank,

doubled

has

Miss,

Gulfport,

National

Gulf

The

from

Bank

respectively, of The
County Trust Company. Endorsed

April 27 and by directors of The

tional

President,

Connell, Jr. is now affiliated with
Hanrahan & Co., 332 Main Street,

$100,000.

Bloomingdale,

First National Bank

occurred

learned

the

Columbia

Effective Feb. 24, the

from

absorption

National
N.

National Bank of Kansas City, Mo.

merger

imminent.

The present

in¬

name

cording to

Bank

The Bloomingdale

kers, N. Y. and The County Trust
under

stock

charter

Newark, N. J., with common capi¬
sorbed

Effective

National

Lincoln

Park

Vice-President

and

College, etc.

National

The

and

City Chamber of Commerce; trus¬
tee

organizations

past President of the Kansas

Following

Westchester.

ties throughout

officer of 22 busi¬

civic

and

completed, County Trust will
have 34 officers in 21 communi¬

Long

its

increased

Y„

Island

Long

Bank

Island,

stock dividend

December,

$3,-

capital funds have in¬
creased from $750,000 to $2,662,272.

ness

than $27,000,000,

while the

has

1923, serving as
Assistant Secretary, Actuary and
Secretary. He was named VicePresident in 1931, director in 1934,
Executive Vice-President in 1944,
and President in 1945. Mr. Higdon
is

institution will ex¬
$20,100,000. During the ten¬

No¬

with

associated

been

board
in

Higdon

Mr.

1954.

are

Company

now

open

May 2 with capital of $225,000

Middlebrook

Mass.

Reserve

bank
was
for business

new

became

Federal

to The Financial Chronicle)

BOSTON,

April 27
National

day

same

the

enlarged

that

PHILADELPHIA, Pa.—George
Stadtler, Jr. has become asso¬

ment

the

member

ciated with Stone & Webster

delphia

and

total

since

ceed

Comptroller of
April 26, 1955,

Currency on

vember,

550

are

death

his

the

time

the

May 3.

board,

Chairman
at

the

$550,000, having been in¬
creased from $500,000 as a result
of a stock dividend of $50,000.

Stone, Webster Sees.
curities

the

re¬

1% shares of County Trust

Kan¬

On City
Mr.
Higdon
takes the place of the late W. T.
Grant, founder of B. M. A. and
City, Mo.,

1,178,950 shares of stock outstand¬
ing and upwards of 4,723 stock¬
holders.
Total capital funds of

newly organized

by the

The

will

Bank

shares
in the Yonkers
bank,
which
means
that upon
completion of the merger, The
County Trust Company will have

come

States.

Geo. Stadtler Jeins

charter

for

gauges

Zee

stockholders

was

Company of

Trust

National's

141,000

bank in Nyack, N. Y., was granted

control

fire

include

followed.

before

President, announced

sas

arrangements.

Mo.,

City,

director of City National

shares.
There
stockholders
owning a

through Allan Sproul,

principally in the manu¬
facture of high precision instru¬
ments, zipper machines and re¬
placement
parts
and
zipper
gaged

with Schirmer,

zak

York

New

Higdon, President of the
Men's Assurance Com¬

Business

Bank

National

capital of

$3,240,000.

present

Bank' of

dend Of

Company stock for each of their

was

Reserve

Bank of Nyack, a

proceeds

State

base for the recovery that

Federal

page

Kansas

ceive

branch.

overseas

elected

Central

First National
branch will be the

from the sale of
the preferred stock will be used
by the company to finance the
purchase of additional manufac¬
turing equipment; for the setting
up of an assembling and distrib¬
uting plant in the Midwest, and
for additional working capital.
Anchor Precision Corp., is en¬
Net

viding

60th

The

that

stock.

early 1951 to early 1953 in moder¬
ating the later downturn and pro¬

tivity, contributed

bank's

April

was made to a
local Yonkers pa¬

reports

pany,

agreement,

new

reference

Under the terms of the merger

1957,

April 30,

stock for one
convertible
preferred

branch

Panama

issue

our

Minn,

Paul,

$9,240,000 as of April 18, increased
from $6,000,000 by a stock divi¬

solidation

The

York.

anticipated.

which appear to
have been supplanted by the con¬

National

First

,V':
First National Bank of St.

The

statement

branch office in the northeast sec¬

35th

to $200,become ef¬

000, the latter having
fective March 30.

tion of Yonkers,

The branch

New

part

The

Central

the

first

became

City.

the rate of one

thereafter at

tral

opened in 1904 by the Interna¬
tional Banking Corp. which later

resources

familiar story.

stock

ferred

opera¬

requirements,

The

Bank

bank's

for each share of convertible pre¬

vigorous, combined
of the policy instruments at

ever,

scheduled

presently

National Bank of Be-

Wis. from $100,000

loit,

to reports of plans of the Cen¬
National Bank to establish a

per

sec¬

offer the worldwide banking

facilities

made

discount rates—to provide reserves
to
the banking
system so that

the rate of two

in late 1955.

will

subse¬

phase of down¬

disposal—open

stock

common

into

convertible

are

to open

price

City

Arosemena

Justo

Street.

Corp.,
5V2 %
convertible preferred

Precision

cumulative
stock

open

has

the capital of

increase

Second

the

other changes in

are

statement in

city, the branch will
occupy the ground floor and mez¬
zanine of a new building to be
built by Cia Ford S.A., on Ave-

118,000

au¬

The

Committee.

1636,

the Exposicion sec¬

Company and will

Chairman of the bank's Exec¬

personnel

of the

nida

Anchor

Panama

$250,000.

A stock dividend of $100,000
served

by a

■

April

has

The

$1,750,000,

since

Bank

increased

was

stock dividend of

member

directors

board

County Trust
be

Bank

Panama

bank

branch

be located

are

the

thorized
ond

tion

fasteners

adjustment, the Federal Re¬

serve

its

Republic

the

National

Va.

from

$2,000,000

takes

President

become

indicated that

City

announced

of New York

Stock Offered at $5

the

they

Anchor Precision Pfd.

speaking of "modern" mone¬
born

which

applied.

tary policy, I am referring to the

policy

the

National

First

will

1932,

27 that it has received word that

times

the

...

restraint — but
they are appropriate to

whether

and

tribution.

utive

assigned

Couzens,

Central

The

to that end is not
they take—toward

pursues

Mr.

said.

at East Midtown Branch.

The test of the poli¬

direction

for

need

the

with

bank's
its
Central Office, 42nd Street. Rob¬
ert P Fallon, formerly Assistant
Manager, was appointed Manager
will

of the Federal Re¬

recovery

Szymczak

the

appointed

was

Vice-President.

people.

can

April 20 the capital of
National
Bank
of

Central

Richmond,

Such approval is expected
six weeks, the statement

within

economic

expansion

tested in

Branch

consolidation

the

before

East place.

the

and stockholders of the two banks

Personal Credit Department at

deflation, is to foster stable
progress
and a rising
standard of living for the Ameri¬
tion

and

Hashagen,

Manager

Assistant

System, in combating infla¬

serve

John

the approval of State
Federal banking authorities

subject

City Bank of New York

May

Midtown

facilities were cut back.

The purpose

formerly

way, mone¬

policy cushioned the decline
activity that did come when
national defense expenditures and
business commitments for inven¬

the

not

held

tory and

regular

National

tary

movement,
was

In this

consumers.

meeting of the
directors of The First

the

board

however,

♦

Effective
the

mone¬

the 1950's has prices and reduced the dangers of
reminiscent of over-commitment by businessmen

note

of present

policy.

tary

begun

flexibility and prompt adapta¬

changing financial needs is basis

Bucks

Borough,

Perkasie

Co.,

CAPITALIZATIONS

■.

tion

stock $150,-

(common

Pa.
was

April

NEW

Reserve System

of Governors, Federal

Board

Member,

kasie,

CONSOLIDATIONS
NEW

SZYMCZAK*

By M. S.

stock

mon

the

bank's

The

Directors.
office is

the

new

tenth

new

A consolidation of the

tional

Bank

kasie, Pa.

with

First Na¬

Perkasie,
common

Per-

stock of

$90,000; the Dublin National Bank
of Dublin, Pa. with common stock
r\f

<tsn nnn-

tho

On»l-prt.nurn

Trust

office that has been approved for
First

Western

Additionally,

date

has

this

year.

applications

pending for five additional offices
in

many

cities and towns. The

Volume 181

Number 5426

First Western is

now

The Commercial and Financial Chronicle

National

Bank

Our

Reporter

from

sult

sale

$600,000
of

the

$150,000

Advices April 28 from the Citi¬
zens
National
Trust
&
Savings
Bank of

Riverside, Calif,

reaching of

ment

those

Bank,

and

National

Calif, for the

announce

tentative agree¬
by directors of

April

bank

tana

The fifteen-month 2%

for the

ury

note which

the

Fon-

Fontana,
to

are

meet

May 27 to vote on the pro¬
posal.
It is announced that the
provides that:

agreement

(1)

The

banks

two

tion

will

wind

Shareholders

Citizens

Fontana

shall

Bank

Fontana

receive

for

National

each

stock

1.1

share
owned

them.

ligations

change in the

almost

is broad

market

(3)

Citizens

shall

increase

its

outstanding by 11,000 to a
new
total of 236,000.
There will
<be no change in the number or
value of Citizens shares owned

toy

you.

(4) All of the assets and liabil¬
ities of the two banks

provision

Citizens

for

semi-annual
taken into

(except for

dividend)

regular
shall

the consolidated bank.

(5) The consolidated bank will
ihave

capital

structure

fol¬

lows:

•Capital, 236,000 shs. of
$16 par

the

Market

capital

not

was

$9,700,000

<000

stock dividend of $1,875,-

the

National

ington,

Bank

Wash¬

Tacoma,

Washington,
increased its capital from $1,875,'000 to $3,750,000 effective April 1.
*

The

Baker-Boyer

Bank

unexpected

Walla

National

Walla,

Wash,

in-

•creased

its capital, effective March
1, from $400,000 to $500,000 by a

:stock dividend of $100,000.

issues,

000,000.

the other

contrast with

far

the

issue

new

15-month 2%

note

Texas

Municipal
Texas

ment

trial

life

formed

Advisory

the

financial, and indus¬

the

was

offered in

ex¬

value

one-year

State

and

statistical

information

financial

condition

;and

its

of the

about
and

State

the

fiscal
Texas

These

notes

classifications

the

refunding

other ways

There is

which

was

that

Aetna

Casualty

Aetna

(Fire) Insurance

15.19

14.8

9.54

1.60

11.14

20.4

9.74

1.20

10.94

28.3

6.97

1.00

7.97

24.3

American

ecutive

the

and

some

have

and

State

legislative

and

local

advice and counsel

bodies

governments
on

matters

other

will

the

than

such

under

be much

shorter

6.38

21.6

3.25

19.46

21.6

3.00

39.03

35.5

19.5

13.50

22.5

18.74

1.05

19.79

43.3

11.84

1.75

13.59

23.2

17.47

2.00

19.47

23.1

13.06

1.50

14.56

12.77

1.80

14.57

26.90

3.00

29.90

19.4

12.14

2.00

14.14

22.8

24.14

2.50

26.64

33.7

9.30

1.25

10.55

34.2

7.88

1.50'

9.38

22.6

(Newark)
_

Insurance

Falls

30.3
'

-(Hartford Fire_
Home

___

_____

Insurance

Insurance Co. of No. Amer.

Maryland Casualty
Massachusetts Bonding
National

New

Fire__

21.0

20.88

3.00

23.88

17.3

2.00

10.76

17.6

13.72

1.65

15.37

20.4

2.00

10.88

15.4

28.53

—

8.76

8.88

2.80

31.33

33.5

24.4

Hampshire Fire

•(Northern Insurance

1.50

11.18

30.15

3.40

33.55

23.7

19.44

3.40

22.84

20.5

9.68

North River
Pacific Fire

yPhoenix Insurance
Providence Washington

—5.83

1.40

—4.43

St. Paul Fire & Marine

5.15

1.00

6.15

Security Insurance

8.18

1.60

9.78

14.9

14.65

2.00

16.65

19.4

13.33

1.80

15.13

21.0

Springfield Fire

______

Standard Accident

1.80

13.76

21.3

7.52

1.10

8.62

23.1

Westchester Fire

expected

*Data

not

comparable because of

•(•Adjusted to

and the interest rate raising
operations are with the money market, there is not likely to be
very much more than a token demand around for the longer-term
uncertainty of the credit limiting

Dec.

29.0

21.34

2.00

19.34

18.0

11.96

United States Fire

securities,
As long as the

obligations.

0.70

Hanover Fire

demand for government

liquid

most

33.9

5.68

14.36

•(•National Union Fire
_
_
New Amsterdam Casualty-

it is not

33.27

Great American Insurance-

Short-Terms

circumstances,

37.9

3.00

1.35

•(United States Fidel. & Gty.

there

15.17

2.20

Glens

do.

Accordingly,

1.32

12.16

Firemen's Insur.

it seems as though the
feeling is growing in money market circles that the monetary
authorities will eventually accomplish what they have set out

that

22.2

13.85

36.03

•(General Re-Insurance

Also, there

made in mortgage financing,
which

21.7

10.50

12.15

•(Fireman's Fund

it will take time before these or other measures

Demand Centers

23.13

1.40

—

*fFire Association

yet to be adopted will be effective, but

2.40

16.21

•(Fidelity & DepositFidelity Phenix_

intended to slow down some of the excesses

sure,

36.8

30.27

___

Federal Insurance

into the economic picture.

come

To be

14.7

42.70

9.10

Continental Insurance;

apparently

are

15.89

2.00
•

20.73

-(Continental Casualty

of action
1953, holders of and investors
choice or an option in
raising operation.

minor changes have been

3.00

40.70

Bankers & Shippers

of the powers

all of which

12.89

Insurance

Boston Insurance

great demand for long-term

issue would be l7/s%.

Surety

Automobile

no let-down
in the money tightening
that be, and in the past few months the
discount rate has been upped, margins have been increased twice

29.4%

$46.26

2.40

because it
indicated that

Money-Tightening Policy to Continue
There

12/H1/5S

Liq. Value

$3.00

government securities were not given a

movement

Gain

12.79

operation

of the operation of the Treasury. A coupon rate of
being talked about for such an obligation.

refunding and new money

1954

American Re-Insurance

would be part
was

Total

$43.26

following in the money market at one time
one-half year or a two year-nine month issue

and

Dividend

1954

though

two

Ratio of

Total Gafn

Value

not unimportant

for that date and the present, 280.90 and 404.39,

Liquidating

concerned.

that the rate of such an

indication of

Increase In

money

lation

respectively.

the 15-month 2% note was not. a surprise as
market specialists were concerned, there had been
considerable talk about a 13-month note being used, with specu¬
Even

added to since the close of 1954,

be had from the improvement in the Dow-Jones in¬

may

dustrial average

income, in non-government obligations.
Mortgages still
appear to have the inside track as far as most of the large insti¬

far

stocks will be found to have fared better than the units

holdings

has been greatly

tive

are

are more heavily weighted with bonds.
And it
might also be pointed out that this trend in the valuation growth

securities at this time, because there are so many
in which funds can be put to work, with more attrac¬

tutional investors

of capital, surplus, any voluntary reserves and
proportion of the unearned premium reserve, it
reflection of the improvement in the valuations

common

at this time would not attract
no

Tnis week is given the

consists

is made

whose

Ruled Out

choice of offerings or an option

This

1954.

security portfolios of the companies.

decided not to make a "basket deal"

new-money-raising

and

for

Agricultural Insurance
American Insur. (Newark)

reported that a spokesman for the government

substantial subscriptions.

and

.ratings for the investment quality
•of Texas municipal securities; and
to place at the disposal of the ex¬

large part of the country.
at, roughly, one-third of

Naturally, those companies with proportionately large holdings

"Basket Deal"

gain

notes will be

new

17, 1955 and will mature on Aug. 15, 1956.

sub-divisions; to establish

standards

very

Texas.

is to com¬
disseminate

earlier article in this column.

necessarily is

Series "B" tax and saving notes

cash offering rather than directly by an ex¬
change offer. It is also believed that corporations will take sub¬
stantial quantities of the new note in exchange for the certificates
which they own and which come
due on May 17. Non-bank
investors, mainly corporations, owned $1.5 billion of maturing
certificates, with an additional $1.7 billion held by the Federal
Reserve Banks.
The remaining $700 million of the lVs% cer¬
tificates were held chiefly by commercial banks.

This

formularized

ly tax

program

interpret

•operations

develop¬

not

was

at Dec. 31, 1953.
Adjustments have been made for stock
splits and stock dividends, and, also, in two cases where subscrip¬
tion rights of more than nominal value were issued. As liquidating

expected that corporations, the largest holders of the
maturing tax notes, will reinvest their funds in the new 15-month
2% note. It is customary, as in this instance, to refinance indirect¬
It

the

Council
the

promote

The Council's

pile,

have

area

value

market was concerned.

money

coming due during May, June and July.
dated May

Council Is Formed
bonds

This

of the change in his
liquidating value, plus cash dividends for the year. The
total for each company is then related to the stock's liquidating

equity,

and, for the first time since August

HOUSTON, Texas—The invest¬
dealers handling municipal

Carol,

some 200 stock companies showed, according to
Company, investment gains of Well above $1,000,subject as applied to individual companies was

Best

covered in

the market

in the next two months,

due

come

lion of non-marketable Treasury

ment

group

Alfred M.

where the

which will be used for the purpose of paying off $2.5 bil¬

money

2V2%

Advisory

visitations

matter of, in each case, a relatively few hours,

affected

the

But if these misplaced hurricanes can be said to have given
the writers of extended coverage a hard time, certainly our securi¬
ties markets can be said to have far more than made up for this

However, the Treasury decided against such a course

Texas Mun.

from

the figure at $300,000,000.

of this estimate puts it
the entire nation's annual fire losses.

lVs% certificate which matures on May
The balance of about $2.5 billion was put on sale to raise new

change for the

government

Insurance Stocks

Yet the amount

Surprise

Approximately $3.9 billion of the

funds,

billion

$6.4

maturities which

The Treasury evidently

least

Treasury offer of

refinance

was

Total

was

shareholder's

3,776,000
2,148,000

and

Demand for Treasury ob¬

near-term

This

sizable.

•Undivided profits, of at
least

—

damage

of the government market,

course

the defensive.

entirely

and

$3,776,000

Surplus

devastation

thin.

very

17.

the

setback.
There is

which continues to be

The

(2)

National

Edna and Hazel last year has set

which ends June 30.

segments of the list, where the demand is small and

shall

estimate

appears

and there is

Citizens of Riverside.

par

One

to fit well into the current pattern of things
question about it being well received. This opera¬
up the Treasury's financing for the fiscal year

nonetheless,

consolidated under the charter of

foy

This Week

offered by the Treas¬

according to Treasury spokesmen. The money market specialists
as a group appear to have accepted such a conclusion also, because
when there is a bear market in government obligations there isn't
too much one can do about it.
The one issue refunding note,

consolidation of the

two banks. The stockholders

was

of refunding, directly and indirectly, matur¬

purpose

ing certificates and tax saving notes was "right on the market,"
♦

that

By ARTHUR B. WALLACE:

By JOHN T. CHIPPENDALE, JR.

re¬

new

stock.

the

Bank and Insurance Stocks

Governments

Trust

Company of Santa Barbara, Calif.,
reported a capital of $750,000, in¬
creased

As of March 4 the capital of the

County

(2089)

operating 57

offices in 42 communities.
£

capital change.

HI, 1954 capitalization.

Probably never before did this group of

companies show any

gain, either dollarwise or percentagewise. Here we
have eight stocks whose shareholder's gain for the year exceeds
one-third of the equity at the start of 1954, an outstanding per¬

such

government securities.

public finance.

large

formance.
At the

present time membership

limited

resident

dealers

Texas, but it is contemplated to
expand this in the near future to
include
are

out-of-state

dealers

who

interested in Texas municipal

finance.

With Barrett Herrick

With B. C. Morton

KANSAS CITY,

Taylor
has joined the staff of B. C. Morton

Goodspeed,

with

Barrett

1016

Baltimore

Building. Miss
previously with Smith,
Hague, Noble & Co.
Co.,

Taylor

Penobscot

was

'derson,
David

Joseph
C.

McClary

associated with

Co.,

Buhl

Keane

have

and

become

Baker, Simonds &

Building,

the Detroit Stock

members

Exchange.

connected
Herrick & Co., Inc.,

Jr. is

now

Mathes

now

—

KANSAS CITY,

Donald

connected

Lerchen & Co.,
Building, members of the
Watling,
York

and

changes.

Detroit

Stock

Mullin,

Jr.

with

now

14 N. Y.

West¬

City

Bank Stocks

326 Walnut

Eisen

and

Cincinnati

Stock

Bulletin

Exchanges.

Request

(Special to The Financial Chronicle)

Mich.

Ohio—Albert* C.

CINCINNATI,

Street, members of the New York

Watling, Lerchen

DETROIT,

QUARTERLY ANALYSIS

(Special to The Financial Chronicle)

Avenue.

Joins Lucas,

Joins

DETROIT, Mich.—Jack B. An-

Mo.—Manley J.

heimer and Company,

Three With Baker, Simonds
(Special to The Financial Chronicle)

With Westheimer

(Special to The Financial Chronicle)

DETROIT, Mich. —Ann

with

Ford
New
Ex¬

Church, Jr. is
Lucas,
916

the
was

Eisen

Walnut

now

affiliated with

& Waeckerle, Inc.,
Street, members of

Midwest Stock

previously

Reed, Inc.

Mo.—Arthur B.

Exchange.

with

Wadell

Edward Siegler

Joins

(Special to The Financial Chronicle)

Ohio

CLEVELAND,
Lertzman

Edward
TTninn

has

—

Alan

joined The staff of

Siegler

fnmmercp

Company,

Arcade.

Laird, Bissell & Meeds
Members New
Members

120

York Stock Exchange

American Stock Exchange

BROADWAY.

Telephone:
Bell

NEW TORK 5,

N. Y.

BArclay 7-8500

Teletype—NY 1-1248-49

(L. A. Gibbs.

Manager Trading

Specialists

Dept.)

Banh Stocks

The Commercial and Financial Chronicle

(2090)

A Danger

of Competition

Offer Underwritten

By ROGER W. BABSON
em¬

offerings

ployee's loyalty to the business ahead of his loyalty to his
it is

have

country

eating

within

enemy

away

this

from
be

that

destruc-

way

tivc

our

national well|yk

That

being.

'-'4

■

the

competition,
which
to

forces

put

loyee's

emp

loyalty to the

they needed..

his

loyalty to his
family. When

praising

the

tures.

recently

suggested

and

raise

sons

that
plan
for

stated

money

he was

crops,

nearly booed out of the meeting.
"Whoever

heard

idea?

ulous

the

was

all

ridic¬

too

busy,"

not

has serious

Business

each

How

the Home

uting to juvenile delinquency
the

priority it claims on a
and week-ends.
When father should be spending

evenings

with

terical

customers

the

down

pursuit of

evidence
values

busi¬

family life is

decline

of the

that

stranger in
almost hys¬

company

at any cost to

ness

hit

has

work

paper
a

This

home.

own

children

and

entertaining

his desk.

his

wife

his

whittling
on

moral

too

many

business executives.
There

the

across;

where
a jolt

homes

land,

fathers have awakened with
to

find

already

sons

grown

Sons have gotten into

ficulties
ceived

because

kind

the

up.

serious dif¬

they never re¬
guidance and

discipline

they

ther.

plaintive cry from
wife" which ap¬
"Fortune" magazine a

I recall

needed

from

fa¬

"corporation

peared

couple of

larly

She particu¬

years ago.

the

condemned

and

type

amount of entertainment that
as

corporation

pected

wife,

offer to

business

was

ex¬

husband's

her

associates.

she,

this

case,

the corporation left little time for
either

parent

with

spend

the

children.

Constant
It

not

allow

wives

companies
to

managers

place long enough

part of their

They must

three

for

sales

any one

become

nity.

Is Dangerous

mistake

stay in
to

Change

move

years.

commu¬

every

course,

two
the

become

irritable; children
have a hard time in school; and
husbands develop ulcers. Marriage
and
the
family don't
have
a
chance.

Graduates
ness

Colleges of Busi¬

Administration

have

been

criticized

in recent years for be¬
unwilling to be away from
home five nights a week for their
dear old employer; but these grad¬
uates may be justified. The pres¬

heard a
that he

generation

mothers
very
new

and

good
crop

fathers

teen-agers
record.

Perhaps the
prospective fathers

mothers will do

Parental Guidance
A

father

good

tells

prep

school

better

the

which

So he

to?

allowances,

perhaps even subsidies for
This
eases
his con¬
can

say

thing," the children will tell you,
what they really wanted
most—companionship.

except

Such prolonged

wet-nursing can

generation of young
people who are egocentric, emo¬

develop

tionally

immature,

lieve the

ing.

world

Who is to

has

what

In fact,

will

them

be¬
liv¬

I have a

blame?
pace

something

situation.

who

and

owes

hunch that the

business sets
do with
the

when asked as
on the next

bring

depression, I forecast: "Employ¬
executives, wageworkers, and
consumers

will

day get

some

kids at all.

This winter

A Proud

emotionally unstable because

their
them

parents

enough,

never

played

never

gave

is estimated

with
them

of stock

tions.

price

The conversion
of

1957

100%.

The

23, 1955.

million

total

the

Yet

men.

penter's

render

the

amount

cash

payable

conversion will increase $5 per
share on May 2 in each of the
on

1957, 1959, 1961 and 1963.
proceeds derived by Beth¬

years

Net

lehem

from

the

sale

the

de¬

bentures will be added to funds of
the company
rate

and used for

purposes

corpo¬

determined

the

management. In this connec¬
tion Bethlehem pointed out that
during the period
1950-1954 it
expended

than

$500,000,000

for

property additions and im¬
provements and acquisitions of
properties; that during this period
outstanding funded debt deceased
and there

was

broken, both
mation, and

tool to aid auto¬

as a

and major

new

industrial

source

bulldozer

power

45%

stock interest in Erie

Mining. Erie
Mining owns or holds under lease
lands
in
Minnesota
containing
large quantities of taconite, a low
grade iron ore requiring beneLOS ANGELES, Calif. —Frank ficiation and further processing to
F. Hargear is celebrating his 35th make it suitable for use in blast
furnaces. It has under construction
year with Sutro & Co., Van Nuys
a taconite processing plant and re¬
Building. Mr. Hargear joined the
lated
facilities, expenditures on
firm on May 1, 1920 following his
which totalled approximately
graduation from the University of
$57,000,000 prior to April 1, 1955;
California.
He became a partner
estimated cost of completing the
in 1927 and in 1929 opened the
plant
and
related
facilities
is
Los
Angeles office as resident
$243,000,000, not including interest
partner. From 1931 to 1936, from
charges or other financing costs
1937 to
1943
and from
1951
to
during the period of construction.

Frank Hargear 35 Yrs.
With Sutro & Go.

1954

Los

was

Governor

the

The debentures carry a

Angeles Stock Exchange.

PAUL,

Stein has
of

Minn.

—

been added

Smith, LaHue &
Building.

the

staff

tures

of the

(Special to The Financial Chronicle)

and

Mortgage Company, of
New Ulm, Minn.

Goldman, Sachs Adds
(Special to The Financial Chronicle)

ST.

ley

the

before Nov.

years

1965

deben¬
in

each

1979, inclu¬

sive.
On

March 31,

LOUIS, Mo.—Harry E. Corhas become affiliated with

Goldman, Sachs & Co., Boatmen's
Building.

1955 consolidated

long-term debt of the corporation
and
its
subsidiaries was
$149,214.000.
Capital stock comprised
933,887
stock

with

par

preferred

value of $100

share and 9,582,942 shares of com¬
mon

40.

Progress

each

came

there

time

breath

that
pause for
fast

schedule

Already

submarine

one

estimate

was

time

the

shortened.

the

lowered

had

have

successfully

by it,

powered

and new ones on
the way. The nation's first com¬
mercial project to generate elec¬
tricity from an atomic reactor is
right now under construction. Use
of
atomic
power
for airplanes,
trains and surface

1954,

totalled

ships is getting

assets

Dec.

31,
Net

billings in 1954 amounted to $1,-

656,809,455; income
interest,
other

269,290.145:

available for
interest

and

charges, $6,852,991; and net

income, $132,837,154.

becoming domesticated
aid to electronics and autor

mation, and a source of industrial
of a scope to stagger the
imagination.

power

from

exhaustless

the

oceans,

ex¬

tracting the salts and pumping the
pure water long miles at bearable
cost.

now

forecast

that

within

where

conventional

easily

available.

•

be brought to

can

fuels

Also,

are

not

A-power

sources of

raw

material and contribute to lower¬

ing

where

costs

other

factors

assist.
We

these

see

concepts at work

in the activities of the many

other

Britain

is planning

supplement

rising

coal

demapds

it to

use

meeting

management in applying them to

products, operations and sales. An

application of skill is needed as
to
persuade the people at
large to lose their fear of the split
atom
as
domesticated.
Progress
well

its

electing

cost

fully competitive with
Switzerland, whose need for

coal.

electric

power

decade,

doubles

every

specter

The

who won't drive with¬

man

fear

might

for

installation

nuclear

miles

mushroom

blow up, form
scatter

and

cloud

radioactive

fall-out, is not likely
to
enjoy operating with radio¬
activity in the factory where he is
a
skilled
machinist. People are

gaining

some

familiarity with it.

This is apparent from the fact that
well over a thousand industrial

plants in this country

are now em¬

ploying radioactivity as a tool.
According to the Atomic Energy
Commission,
more
than
50,000
shipments of radio-isotopes have
been sent to 2,200 different insti¬
tutions in the United States; and
more
than
3,000
shipments
of
radioactive
sent

materials

have

been

foreign countries.
In
addition,
2,000
scientists
have
been trained in the handling of

radioactive

turn
We

told

are

tools

materials;
these
training others.

are

high-voltage

radioactive

that

dangerous than

lines

toxic

and

chemicals

which

handle

day with ease. As
in this audience know,

skilled

men

every

most of you

the radio-isotope is any chemical
element that has been exposed to

radiation

bombardment in

atomic pile, or
atom

to
smasher,

until it has been made radioactive.

then

can

for

made

into

automatic-machine

tools

use

inspection, quality control,
process control: can be

chemical
"ced

measuring

and

maintain¬

thickness of ma¬
terials in process of manufacture;
also in swiftly and cheaply locat¬
ing leaks in buried piping, and
so
on, and on. These tools work
without
making
your
products
radioactive, and
there
are
no
problems of security.
a

uniform

rushing research with
an atomic pile financed
by indus¬
trial
One type now in use opens and
concerns,
assisted
by the
State. A similar plan is being pre¬ closes pipeline valves automatic¬
pared in West Germany. Sweden ally, and starts and stops pumps.
is speeding
its three-stage pro¬ Another in the hands of chemists
gram, the first of which is already who deal in plastics and rubber
producing power, the second to be results in improvement of quality
tensile
working by 1959, the third by 1965. and
strength.
Even
in
Norway, too, has projects under agriculture it has been used to
study the metabolism of a cow,
way, and France seeks to supple¬
is
now
ment its too scant hydro resources. and
being used in the
Canada has works under construc¬ study of trees.

tion,
the

this

when

faster

can

vanishes.

industrial ing

for

power, and is
a system of
nuclear powerttations to operate
at

of industrial

metals

countries.

engineers and physicists,
and commercial

nicians,
and

And it is easy to foresee the ir¬
rigation of arid lands witn waier

and down in South Africa
plan is to provide cheap A-

power

water

to the mining areas, where
power

far

distant

but

abundant.

India, an
subject, is now
undertaking new work at a plant
in Bombay with some help from
the United States, and with hopes
of further help from other coun¬
enthusiast

$1,613,443,531.

;

the

intimated,

have

A-bomb is
as

close.

uranium

stock.

Consolidated

Bank

purchase, redemD$7,500,000

conversion

amount

Co., Pioneer

ODESSA, Mo.—Robert C. Neubauer has joined the staff of State
Bond

principal

Robert

through

tion

Smith, LaHue Adds
(Special to The Financial Chronicle)

ST.

sinking

fund under which Bethlehem will
retire

roadbuilder.

and

then

expanded

has

And

making its dramatic ap¬ ; The application of the nuclear
on the industrial stage.
sciences to the needs of our every¬
When
these
things were first day world call for the greatest
talked of we were looking for¬ skills
yet developed. These skills
ward in terms of '50 years
.
.
are
demanded alike of the tech¬

increase in out¬

Bethlehem

car¬

already

standing

bonds.

became

hammer;

pearance

price per share
through May 1,

stock

common

The

club

short

The

the battering
became
a
piledriver;
the
employment today is not lower by ram
15 million, but higher by 3% mil¬ sword, of course, became a plow¬
lion workers.
share; powder and dynamite be¬
Automation may play one more came something
with w hich to
important role in actually pro¬ tear out tree stumps and reduce
tecting American employment and hills; the army tank became a
of

—the A-bomb has become house-

held.

happened to many other inven-r

gain in production
equal to the work

the

principal amount for

offer expires on May

School and

college guidance offices are filled
with records of young people who
are

plant and machines.

Papa

the school taught my boy how to
ski and to skate. Saved me a lot
of time and trouble!"

new

Verner Kraft Again

With State Bond & Mtg.

sending his teen-agers. Says he,
"Why I don't have to be bothered
with the

billion in

The consequent

capital stock; and that the next 25 years, half of our in¬
be coming
sales
volume
during dustrial power will
the
period
has
materially
in¬ from atomic plants. By that time
tired and just quit the struggle.
our
creased
the
need
for
present sources of power, at
working
Many parents are now reaching
capital. Further, it will be re¬ least the generating facilities, will
this stage."
be pretty well depreciated, and in
quired to expend in the future
approximately $171,000,000 for ad¬ that part of the economy we will
ditions and improvements author¬ see not revolution but evolution,
ized but not completed at March taking place step by step, normally
31, 1955. Bethlehem will also be and without harmful disruptions.
required to make substantial fu¬ By then, also, we can expect the
higher
cost
of
atomic
expenditures under agree¬ present
LOS ANGELES, Calif.—Verner ture
be more
closely ap¬
H. Kraft, Oscar F. Kraft & Co., is ments to purchase 45% of up to power to
the
proud
father
of
a
second $207,000,000 of bonds of Erie Min¬ proaching that of steam plants, or
Company,
and
to
provide perhaps even bettering them.
daughter, Nolinda, born April 14. ing
One great advantage of A-power
proportionate share
His older daughter is Wendie, who Bethlehem's
of all sums required by Erie Min¬ is that the plants can be estab¬
has attained the ripe age of 14
ing
for
the
completion of
its lished in remote areas, and in
months.
taconite project and for working areas where existing sources are
This
makes
Oscar
Kraft
a
or
exhausted,
and
capital not obtained by the sale at capacity
grandpa four times over.

ers,

very

And Their Beneiits

sub¬

May
to

and

fat

out

job!

Lacking

about

right

debentures

and

haven't

Techniques

living standards
that is to
help us meet that low wage com¬
petition from abroad. And now

com¬

automobiles, expensive education,

he has had

them

ing

ent

of $500
25

the

for

$140;
payable
by
sur¬
$100 principal amount
of
debentures
and
payment
of
$40 in cash. The conversion price

hard

even

millions of sad homes

are

say

doesn't want his children to work

high

time

you

he has given
his children everything — "every¬

Big Business is surely contrib¬

man's

have

executive

often

business

science; he

Wreck

Help

scribe

subscription
Responsibility of "Big Business"

record

receive

rate

marriage.
Can

stock

1955

generation!

the younger

hands

forget that it

dangers.

Under the offer holders of
mon

Don't blame the
the shortcomings

all

for

such

We're

reply.

schools
of

free

enterprise, let
us

stock

common

ing certain garden

fathers

Way"

Roger W. Babson

into

together by planting and market¬

friend

"American

convertible

through May 1, 1965. Kuhn, Loeb
& Co. and Smith, Barney & Co.
jointly head of an underwriting
group of 234 members which will
purchase any unsubscribed deben¬

when

business,
ahead

the

guidance

and

debt se¬
record is being made

...

understanding

page

corporate

Bethlehem Steel Corp. with
offering to its common stock¬
holders of the right to subscribe
for $191,659,000 of 3 V4% 25-year
debentures, due May 1, 1980 and

Thursday, May 5, 1955

our

may

very

curities

national well-being. Says
responsibility of "Big Business" to see that employees
spend more time with wives and children.
destructive force to

from

New Industrial

One of the largest underwritten

Mr. Babson contends that competition which forces the

family is

Continued

Bethlehem Steel Corp.

the

tries.
It

presently in the de¬
a method cf food
treatment, designed to kill bac¬
teria and
prevent new bacteria
from appearing, and thus promis¬
ing to solve problems of food
preservation
without
refrigera¬
tion

such

the field and

disaster

confronts
mass

armies

movements out

areas.

The

Atomic

Energy Commission has estimated

is interesting to

thing

see

that the

is happening to the
split atom, first-devoted to war,

same

There

velopment stage

that radioactive tools
duction

are now sav¬

in pro¬
costs, and may reach the

ing 100 million

per

year

olume

•ate

181

Number 5426

billion

the

The Commercial

eeade.

attention to

hases of this
rial

the

rown

business

has

and complexity,
burdens and pres-

scope

demand,

ures

management

evolutionary indus-

revolution.

Business

share of

must^ itself

courses,

ncreased

ion, and

activity in adult educaand

•ending

promising

ttend

short

firms

are

employees

courses,

summer

chools and the like.
These
raduate

lied

the value of post-

prove

work

which

can

es-

ecially in the post-graduate area,
nd for teachers equipped to
give
he advanced,
practical instrucion required. To be sure, there is

ap-

vould welcome facilities and will-

ngly

bear

vanced

the

enants

cale.

expense

training

ad¬

their

Many
lave

audience

along

ultillying

this

with

problems

our

have

and

earned about them the hard
way,
y, trial and error.
The younger

ellow

finds

himself

against

he total accumulation of all these

hings,
hat

plus

ere

lustrial

velop

the

problems

new

coming

his

way

advances continue

liim.

around

in-

de¬

Among

his

help of

of conclusion, now, let's

but

skills in

re¬

turn for less manual effort—skills
from

individual

workers

ev¬

line of gainful activity; skills
from
the
scientists,
from
the
managers of business, and from
never

such

were

have

with

peace

not

always

each

might

been

for

ments

resolved

are

which

charter

rest

not

nent

which

than

pefore.

wishes,

but

needs.

could

seems

mankind's

this

greatest

portunity—an

gories of society and

kind

shaping

are

penetrating

and

capitalism.

area

increasingly recoglized, that known as "corporate
conscience," he must realize and
vork

out

the

dawn

time.

his

relation-

proper

New

visit

ters.

for

three-week

European

financial

pose of his

officials

financial

tate

and

operates; realize and

national

ffairs; accept the

governmental

the

responsi-

newer

>ilities of business in

ndueed

philanthropy,

present-day

tax

ituation which has made personal
•hiJanth ropy less and less possible

the

>art

and

larger

institu-

making generous cHholtotal

less

annual

but

than

value,

these

$10

and

mil-

much

Here

hich

another

have

education

een

each

and

tie

be-

business, in

help

can

the

ith susbtance and with

ith

institutions

business

can

the

middle

exible

and

eir
nd

keep

forward,

students

design

into

their

ave

the

problem

business

life

supplementary

loaded,

The

advances

simi¬

on a

last year.

Italy.

New

May.

York

will

Phillip L.

extend

the
his

tional
to

itsel£

the

Exchange,

visit

in¬

Belgium, France and Eng¬

tion

"le fad that
already

release

financial
It

the

public
we

ST.

LOUIS,/Mo.

—

Ralph

Zoernig-&

North

Seventh

formerly

was

staff

Loewi

Street,

Midwest Stock

roduced

of
h

be_

writing
the

ad.

effects attributed to it. There

feeen

ing,
that

t
he

was

C S
by the

Budget,

austerity

refrained

even

from

tax concessions, the

some

impending

election

general

.wea^ene<? .COn/l?Qq1"
the crisis o

Wkde

Conservative

Party

able

was

appeal to the electorate with a
of austerity, in 1955 the

program

difficulties

economic

for

calling

unpopular measures are neither
nor sufficient y

sufficiently acute
obvious

the

for

electorate

re-

them

Most firms

ever.

become

And!f

power

pursuing

assumed

they

more,

once

depended

Socialists

could

good

prices

and

are

^ jbe buyers the addi-

pagg Qn

them

than the one repby Mr. Butlers Budget.
was

between

much

case

Those who

inflation

advanced

Socialist

and

cto y.

bond
m

bigber

taxation

would

show

vacuum,

situations
have

and

purist

be
of

that

has been head

political

ceeded

The

ance

Bank

rate

cre(jjt

Unless
accompanied by

the

reduce

^nd

demand

volume

cannot

(jeman(j>

—

pany.

Boston Inv. Glub to

Hold Annual Outing
outing

Co.,

225

members

Exchange.

the

East

the

He flatly rejected the modern

fiscal

conception

which

business

according ' to

trends

must

managed with the aid of budgetary

of
was

be obtained from Lowell A.

surpluses
the

the

deficits

monetary

policy

instead

weapon.

pursued

That

the

Dominion Securities
Publicity Chairman.

Security Supervision
To Be Formed in NY
Effective

Su¬

May 14, Security

bank

Officers

City.
which

consumer

the

York

New

will

the

hold

will

Alfred

new

firm,

membership in
Stock Exchange,

Cornell, Presi¬

dent; and Otto Fuerst, SecretaryTreasurer.
Mr. Fuerst holds the

Exchange membership.

mak
b

authorities

gimilar

will

can

have

credit

thsat

there

h Bank rate effective

enforcing

squeeze

1952

Possibly

rate .g raiged high
may produce such effect
any direct

A. C. Allyn & Co. Opens
New Branch in Tulsa

.f ^ Bank
enougb

autorfiaticall/ ^ithout
Mr

TULSA,

Okla.—A. C. Allyn, &

Co., member of the principal stock

intervention to reduce the exchanges, announced the opening
credit

Butler

Thig

what

-g

has

presumably

mjnd

office

Tulsa,

John L. Rowe

with

Oklahoma,
Registered

Representative. The firm and its
Mr. Butler.s poIicy in affiliated investment banking or¬
Budget by the Bank ganization, A. C. Allyn and Com¬
the
principal monetary pany, Incorporated, now has of¬
;
hi ^,
orthodox, in a fices in 24 cities in addition to

Alt'hough

replacingsthe
£
.

di££erent

sen8se y£he

taxation

icit

not

reduction

£ime

of
£he

when

large overall def-

exactly

difference

real

amount

spent

buildings

(which

be-

the
office

Government

erection

appears

cur-

rent expenditure) and an identical
spent

amount

financing

housing scheme (which appears as

capital expenditure). Their effect
is identical from a fiscal, monetary and economic point of view,
For

this
no

reason

there appears

justification

Chicago.

headquarters

The

Tulsa office is located at 11 E. 5th
Street.

tal items has been carried too far.
an

theoretical

Golf

Weston
may

consumer

unless

reduced

annual

Boston Investment
June 24 at the
Club.
Information

no improvement in the balance of
payments. So sooner or later the

sue-

Mass. —The

the

Brjush

tween

has

will be held

Club

dent; O.Donald Noble,Vice-Presi¬

There

Butler

Com¬

•

consid-

foundations for his budgetary pol-

William

a:'dcd

for

Kirtland

pervision, Inc. will be formed with
the offices at 1 Wall Street, New York

payments?

decline

Fred

own

Hermitage Securities

firm,

question is, can this "dear

expediency,

producing

icy.

his

money without tears" produce the
^sired effect on the British bal-

expenditure
incurred - in
given -connection with current and capi-

considerations

sacrificed

Mr.

for
years

many

Theis

"electioneer-

Mr.

cost. There can be no doubt

Albert

his

Budget shows

inclined to blame

are

for

departn

Kirtland

tween

Butler

charge of the
municipal

overwhelming preference for the

rela-

now

Vice-

President

Warren, Jr.,
QapUp poB on the choice Corporation,
between
higher Bank rate and

less

even

'sound" pohcies

with

BOSTON,

sufficiently high to enable them

volume

the

asso¬

ciated

well

can

their bank loans, because

business

ir}
? rig
JS
asaresuUof anorthodox official

Budget,

has

credi£

™on
rates

tbat

two^evils. Had he in-

had

Mr.

Fred

Kirtland

stringency, and
empi0yment has remained as overfull

Build¬

announces

rate

Bank

o£

Smith

MILWAUKEE,- Wis.

Mason

£h

This

American

former.

erations

been

against

feeling

ra£e

£h

prac-

Mr.

(Special to The Financial Chronicle)

has

was

ing" Budget should remember that

" '

White

Bank

t0L\-n 0?UJtional
con-

effect of the additional

there

finance and economy do not exist

Inc.,

Loewi Adds to Staff

4%%

315

Co.,

Street.

with

that

Moreover,

een

^Sher income-groups w ic
vei
°f- ilf
money to be
eceive

the

rate

conformity
with orthodox British budgetary
traditions. His differentiation be-

Sons, Inc., and Barrett Herrick

& Co.

have

.Yen„so' a

Smith has become associated with

ac-

discussing.
Changes, new concepts, ventures
to
the
unfamiliar, naturally
ring problems of adjustment to
any people, who may well be
ncerned about what these things

identified

general elec¬

Bank

verse

a^rT-rY
additional

all

/Qt

has

and7has

wlU

employment.
It
risky for the

public

likely to

cuts

policy

been

true, some £60

tax

inconceivable,

full

£ound

tically

most econ-

journalists

the

not

shared

extent

with

was

addi-

bound
inflationary deButlers
hopes that

demand

not

return

monetary

have

the

Mr.

consumer

(Special to The Financial Chronicle)

Of Mid South Sees.
NASHVILLE, Tenn.—Mid-South

p)Uring recent weeks, however, it

over-

lively moderate inflation

Zoering

this

Q0vermen£ £o face

purcnasing power is

resented

Smith With

weakening

opinion identified
cheap money to almost

with

wou[d

taxation

£140 mil-

some

increase

West,

therefore,
concessions

popular
same

for

reason

sentiment

economy is

such

So the choice

ptance of the revolutionary and

volufonary

Europe

Mr.

land.

education

already hinted,

will

clude

course,

aining.
And,

accompanied

Vice-President

de-

need

of capital.

March of

plans to return

work

em-

day's

reduction

I10n'. ,n vlew

Britain

flow

Holland, Germany and

dign'ty.

management,

realize,

the

other

eloping curricula to fit into
loyee training programs.
Educators

1-unatoB

Keitb

recently

itself with

now

the extent of

^ y*

Funston visited

The field ever-widens in which
ducational

the

Fred Kirlland V.-P.

un-

^WQ decacjes dear m0ney was
as
one
of the major

evBs

and even

governments chances of winning

lar mission in

who

is needed.

lore

change

making

Mr. Funston is scheduled to visit

business

contributions,

international

by orivate funds.

this

traduced

and

tax

not

denounced

increase

freely predicted.

inter¬

here

abroad

colleges are facing rising
osts, are having a struggle to
urvive,
especially
those
sup-

rship

that

and

assume,

the

conventional

lowerea.

of stim¬

means

ulating

are

fcinzig

choice

American

securities

est

All

eern

obligation to business

nterprises.

ons

lixeiy

cize Mr. Butler must be reminded

trading

ropean

scale, and has shifted

Many

Paul

iu♦

relating to Eu¬

the

•orted

Until

Those who.are inclined to criti¬

matters

cuss

old

its
Dr.

the

use

further

temporary

budgeting

liable to do.

Trust

ciable.

place, and exercise his industria 1
oice, when appropriate, in local, leaders to dis¬

confirmed

the

undo

political

further increase of the Bank rate.

demand, the mere se o
already
excessive
buying
pressure
is
li ey to be appre-

his

Securities Co.,

the

hip to the communities in which
business

sumer

trip

foreign
stock
exchanges and

ssume

should

lead

Bor

plier

is to meet with

that,

now

the

device.

reasonable

device

that

the balance of payments, Mr. Butler would seek to offset it by a

cen¬

The pur¬

election, he would take firm

measures

the

rate

York

rate

European Mission ^^rKS5berSe^
V~.
\
left

Mr. Butler has

f° th r^1fe would have been
turtner belore

returned

Bank

that the Bank

businessmen.

Keith Funston, President of the
New York Stock Exchange, has

Butler

conclusion

omists,

conventional

people

have

rise

Keith Funston

the

now

Bud-

April

mand.

Let's grasp that opportunity!!

have thought of
there are respon¬

Then

lemocratic

from

Mr.

statement

many

announced
op¬

higher Bank rate.

sibilities to stockholders, who now
ire
found in more varied cate¬
more

lowing
get

but

worked-out solutions to man's hu¬
man

...

•ant

downward

direction. Fol-

can

earnest

peace

unsupported

security
of more s'gnifimeaning and in larger pro¬

portions

our

merely

policies

is
not
likely to be
the chances are that,

Mr.

harm

by the develop¬

three

payments from time to time with
the aid of higher taxation instead

now

unsound

And

should

purely temporary,
change would be

was

centuries

real retire-

rate

the

and that the next

witnessing, and
privilege to
participate. We might, in all in¬
nocence
perhaps, be working out
in

weeks

great.

the British balance of payments?

c o m e

men

few

eral

things which

troubled

have

caused

Socialist Chancellors, who
sought to imorove the balance of

that

between

capital items.

4%'%

that

assumed

was

other.

this

seems

Fortunately the date of the gen¬
eral election is very near, and the
amount of damage that may be

without tears," produce

money,

LONDON, Eng.—Until recently
it

Bank

prospects
for
good teamwork between elements
which

cov¬

in office by the result of the gen¬

tually-intriguing

production,
in
order
to
yield
ligher standards of living and to
create resources for

the desired effect

mu¬

him

greater

this "dear

can

Butler's

There

nient

and

is,

now

educators.

our

continuing problems are those of
lis working
force, not only their
scientific selection, their indocrination and training, but also
encouragement of their ability to
greater

question

feel justified in leaving un¬
what they choose to re¬

gard

Says, at present, there
public feeling against the high bank rate, and that the

not

revenue.

covered

referring to reactions of the rise in the Bank of

ery

evolutionary revo¬
lution eliminating want,
banishing
the slavery of man, removing in¬
centive to war and putting man¬
kind above the primitive strug¬
gle for survival that has haunted

for

in the making;

demanding

Both

reduction of £140 million in taxation.

have here:

need

Mr. Butler and his Socialist pred¬
ecessor
in
office, Mr. Gaitskell.

England discount rate to 4V2%, finds there are grounds for
holding the rate may go even higher, because of the proposed

this.

latter

by current

respect, however, there
be complete agreement

In Britain

so¬

the

ered

By PAUL EINZIG

disrupting, alarming rev¬
olution; more of a fast-moving
evolution that is promising excit¬
ing advances into better living,

will

grown

all

great change

less of

lieu-

comprehensive

way

what

directly to the problems of

business position. New advances
re
needed. Heads of enterprises

Higher Bank Rate

Dr. Einzig,

And business needs the

see

the need

that

ciety.

.elp in management,

see

pleasant life for all of

education

educational

responsibility of in¬
terpreting these developments in
terms of hufnan welfare, of better
living and higher standards, a

management have grown,

new

demand

(2091)

the

nd many of us, concerned with
he problem of getting competent
or

them,
:.^>-

them.

Being involved in management,
yself, I see a great need for speial

may

an4^inancial Chronicle

for

claiming

Joins Beil &
ST.

Hough, Inc.

PETERSBURG,

Fla.—John

Eustis, a native of St. Peters¬
burg, who has recently returned
to
this City from New York is
now
associated with the Trading
E.

Department of Beil & Hough, Inc.,
Fourth Street, North, members

of the Midwest Stock Exchange.

With Daniel D. Weston
(Special to The Financial Chronicle)

BEVERLY HILLS, Calif.—Don¬
Pierce

ald

the

staff

Co..

140

has been

Daniel

South

Beverly

added

Weston &
Drive.

(2092)

The Commercial and Financial Chronicle

Inttasiriai Gons'ruciion
Dr.

more
and more powerful and more and more
greedy. Times, at least since our entry into World War II
in 1941, have been
extraordinarily good, and the managers
of the unions have found it possible to
push heretofore
unheard-of demands, the one after the other, to successful

George Cline Smith, economist for F. W. Dodge Corpora¬

tion,

for industrial construction in 37
States in March totaled $178 million, an increase of
120% over same month last year.
contract awards

says

Eastern

ently

Addressing the annual Business
Economists

Conference

University of Chicago
George

Cline

for

the

Dodge

become

Ops Sharply

April 28,

expected

benefits"

All this

is not

construction
i

flected

tion

fluke, confined to' one or
two. large industries. In March, 17
of the 24 categories of manufac¬
turing buildings reported by
Dodge showed increases over last
year. This broad base is also re¬

said

Corp.,

that

March,
tract
for

c o n

awards

industrial
the

eastern

others

$176
million, an in¬

and

other

dential

contract

26%
of

ahead

1954.

This

the

first

substantial
trial
from

upturn in the indus¬
category since it dropped
in

peak

construction
several

1951.

has

been the

years

Industrial

for

the

past

same

was

48%

period.

43%

the

in
dollar

spite

total

ck?h£,out of the doldrums by 1956,
hi respofjcS tg demand pressures

important

lor

not

has

industrial

one

failed

p?r'dU£ts.

Appar¬

construction

habits

the

that

words

the

mean

plausible.

the

"In

President

the

Federation

present

themselves and for all

knows

Let's

candid

about

all

has upon

now

if anything.

mean,

this.

With

the

hold

that

the great rank and file, it

hardly reasonable to expect any political regime to go
very far in eliminating the abuses that have arisen in this

the tasks strikers
by force from entering the

them, too, probably there

humanity." Let him who thinks he

what these words

say

labor unionism

which any and all who would take
up
have laid down are
prevented

of labor

area

little

that is anomalous in thousands of workers
refusing to per¬
form their
regular duties because a handful of members
of some union of which
they are not members throw a
picket line around an establishment.

monopoly. Yet

some way

get this situation in hand if
future

ahead in the

all would like to do.

Continued

from

labor union existed. A situation such

thing

that

now

con¬

fronting the President and the nation in the form of a
combination of the American Federation of
Labor and the
CIO would have been all but
unthinkable.
Anything in
the nature of a labor

—

monopoly almost anywhere was,
by the vast majority of the people of this
country, re¬
garded as undesirable as were other kinds of
monopoly.
Those were the
days, too, when wise old Samuel
GemperS steadfastly refused to try to make either of the
political parties his prisoner or his vassal. It was much
later that the union leaders, who themselves are
really
politicians in another field, D6g?.n i? -»v fc deliver the
votes

the

members

one

the

other

the

great
political parties. In this they have not
always been suc¬
cessful, but the effort is now their
regular line of policy.
In Samuel
Gompers' day, too, any thought of a combina¬

tion of the farmers of the
country and the wage earners
into a "I scratch
your back; you scratch mine"
arrange¬
ment was at most not more
than a dream of a few
imagi¬
native souls.
In the years that have
flowed
tration of President

Wilson,

active aid

and

by since the Adminis¬
organized labor with the

assistance of most of the

politicians, has

Overbuilding

The demand is

not
year.

$4,000 but
They can

families

earn,

$5,000

over

therefore

per

afford

$12,500 house.
For that price
home-building industry can
give excellenet
value
in
most

number

people

have

facts.

the

parts

the

country even at to¬
day's prices and wages. No such
situation

ever

existed

the

old

days when almost three-quarters
of all non-farm families could not
afford

kind of a new dwell¬
V .' '
.■
The financial ability to buy new
homes is immensely reinforced by
any

ing-

one

forces

the

namely,

most

work

the

In tu?

think

terms

this

country,
increase

spectacular

there

well-known fact,
almost twice

were

In
as

born

average prewar year

And

only

the

of the 1930's.

years

the

level

more,

births

enormous

today,

will have at least 26,-

000.000

children

than

forces

Spectacular Migration to the

Suburbs

Growing families have to find
space
for the vastly
increased

will

long-dead

able

statistics

from

work

From the avail¬

and

trends, there
mind that 10

is little doubt in my
now

will be

American

our

truly gigantic

1965, the population should

be well

on the way to
200,000,000.
We will be called upon to provide

jobs

ple

for

close to 80,000,000 peo¬
nearly 12,000,000 more than
in today's labor force. And it

are

will be necessary to produce

$500
trillion, of goods
services annually, compared

billion,
and

half

with

the current yearly rate of
approximately $370 billion. There

doubt

that

the

American

is capable of such

economy

formance.

will

But

a per¬

done?

That is the question.
Prime Movers
To

stimulate

great

nation

effort requires

Civil War

the

so-

enor¬

notabie

were

So,
opening up of the
revolutionary mass
production
methods
which
brought the automobile v/ithin
reach

home

progress.

the

is there where

our

the

and

1920's.

building

Although

nological

developed parts of the

States to rim of the coun¬

people

many

the

peace-loving na¬
war to bring
nevertheless a

tion would resort to

the

about

prosperity,

by-product

vast

the

two

World

the acceleration of tech¬

was

improvements

increase

our

try, including the West, the Gulf
Coast,
the
Southeast
and
the

and

productive

capacity.

Great

able growth of our

Lakes.

But

regardless of where homes

the ancient maxim of
building industry still ap¬

built,

are

the

plies: when it is as cheap to build
io rent, peop!" >•«*-"«-». SjJlvS

And since V-J Day, the remark¬

population and
truly spectacular further de¬
velopment
in
technology
have
been among the outstanding
prime-movers that have kept our
a

hqmming at

economy

Su{ from"

of
families have
discovered that they can own a
house in the suburbs where they

ord pace.
support

want

000 and

myriads

children

live

and

bring up their
as cheaply as

just about

couid

old house in
older section of the city where

they
an

1939.

the

war.

the next decade?

Wars

war

children

many

building, of course, is but
phase of our economy. What

one

other

were

bulk of

these

grasped

Home

side
with the vast
migration to the suburbs, we have
a
continuous regional migration
from farms, towns and cities in
United

not

days before the

on.

Side

fundamental

uoJULtipn since 1939.

To reiterate
1954

■

goes

a rev¬

they tend to become
panicked by the immensity of
these postwar changes. They still

West

suburbs.

great

result of

stimulants

youngsters to run
around in and grow up in. Thus
we
have a spectacular migration

the

millions

revolution in
where people want to live, and,
of course, easy credit terms. Many

too,

non-farm

our

the

living.

olution in income, a

after

New Homes
all

strain¬

put up houses

mously powerful economic "dyna¬
mizer" or
prime-mover. In the
past we have had such primemovers.
And they have brought
about great periods of prosperity.
For example, the building of rail¬
roads and the early industrializa¬
tion of our country before and

page

We Are Not

families
on

must be found to

to go

are

No Checkoff Then

those earlier
days the so-called checkoff was the
exception rather than the rule, and no way
usually existed
for a handful of troublemakers
to
oblige all men to join
a union and
keep their membership in good standing upon
pain of not being able to find work.
Indeed, there were
large segments of the economy in which no such

where

insist

been

have

every nerve to

affair.

American

struggle against the aggressive
forces of communism, the workers of America will stand
up and do their full part to preserve world peace and the
free way of life—the only
way of life which offers them
the opportunity to strive for a better
day to come for

if builders

for

speculation and
then
press
an
unwilling public
to buy them.
The reverse is the

years

Words, Words, Words!

expanding should

Said

time to time.

satisfying
an
increased demand.

enormously

economy

nostalgia. In the minds of those whose memory goes no
than the
mid-Thirties, there too often, we
are
afraid, seems to be nothing exceptional or blame¬
worthy in what has become known as mass picketing by

from

We It
See

premises.

had

native is the

further back

struck

now

good deal or they could
exactly nothing. Interpreted in the light of the
of politicians, it would
appear that the latter alter¬

Labor:

These words could
mean

be overlooked."

Continued from first page

leaders

had to say the other
day in Washington. "So
Almighty will give this Administration and to
me
personally the ability to discern the proper tasks,"
said the President, "we shall do
nothing but devote our
efforts to try to lead this world—this nation of ours—
toward enduring peace, toward a better
prosperity and
equal justice for all."

buildings and heavy
engineering. The fact that this
part

should the attitude of

the

dential

nonresidential

future? What

got

sentatives

far

breaking
volume; the
remaining 57% of the construction
industry
consisted
of
nonresi¬

which

today and how

are

overbuild¬

merely

are

Builders

union

of record-

major
keep
pace with the general expansion
of construction, and it has
gener¬
ally been predicted that it would
type

cific localities from
We

ing

What of the

President, or from
anything that the American Federation of Labor repre¬

con¬

really

at all,, although, of
this is not to say that there
will not be overbuilding in spe¬
course,

fact.

dustry. In 1954, housing accounted
awards,

not

are

homes

Some people talk

where

they have joined forces
to form an organization
larger than any ever known in
this country? Not very much
information, we are afraid,

discussions has tended to obscure
the fact that residential construc¬
tion is only one part of the in¬
about

ing

Overbuilding Homes

these factors add up to this:

the

building category, also
a
substantial, although
spectacular, increase of 18%
over March, 1954.
"Emphasis on housing in recent

tract

Not

All

houses

there.

showed

for

there
is
the
draft,
brought another revo¬
lutionary change into the homebuilding picture. About a million
young men, all in the marriage¬
able age, leave the armed forces
each year. Since practically every
able-bodied male of marriageable
age is or soon will be a veteran,
the great bulk of new families can
buy or build a new home with
little or no down payment.
has

erect

for

less

ran

same

the

building, which

the

is another and

present-

enormous

Finally,

which

government be, and what is it likely to be? And what will

ahead

"Public Works and public utili¬
not included in
the
non¬

"in¬

awards

level

43%

of the

mizers" of the

shorter hours of work and less and less

ever

So much

residential

"During the first quarter of this
reported,

was

file

and

Thursday, May 5, 1955

day housing demand.

different storyt

ties,

widely pub¬
housing.

Smith

which

places union managers in

of. What it all has done to the rest of

buildings,
hospitals and

types, have
nonresidential construc¬

over

nonresiden¬

licized increase in

nearly
period

commercial

churches,

building comparable in scale

"with the much

dustrial

cate¬

March, 1954. This compares favor¬
ably with the increase in resi¬

the

Mr.

other gains have come to them.
is for guaranteed annual wages.

vigorous effort on the part of workers, would drive prices
up. Of course, there were other causes, too, but prices
would have had to rise anyhow or else labor could not
have been heir to all the "gains"
they now are so proud

nonresidential

March

high levels of construction
-activity reflect an expansion of

year,"

the

tion contract awards to
George C. Smith

current

tial

brought

120%
March of

-industrial

shorter and

the

other

most
over

for

schools,

al-

last year.
He said

with

figures

one

showing increases.
"These increases, combined with

totalled

the

dozen

rank

with

was

gories

Dodge reports

crease

quarter,

states

covered

union¬
"fringe

a very strong posi¬
membership, but let no
suppose that all of it has really been clear gain. It
inevitable, of course, that all this, together with

"The rise in industrial contracts

and

Now the hue and cry

in the past few months.

Economist

Smith,

conclusions. Minimum wages,
virtually compulsory
ism (always the dream of union bosses), countless

upturn has
been moved forward by the rapid
improvement in business activity

the

rent

they do not want to I've.
The
long repayment period of presentday mortgage makes this possi¬
ble.
to

That
be

one

has been and continues

the

major

"dyna¬

4>d,vnamizers"

$500

hence?

will

labor

a near-rec¬

now 6n,

force

wKa"?

have

we
or

80,000,-

Gross National Product

billion
To

sure,

years

may

so
ex¬

further massive population
growth,
particularly
when
the
war and postwar children begin to
reach the marrying age after 1962
or
thereabouts.
Moreover,
we
should be able to rely upon an
pect

Volume

181

Number 5426

The Commercial and Financial Chronicle

(2093)
ever-accelerating

rate

tech¬

married couple barely dreamed of

These two

will

ever,

our

carry

not

Fortunately,
of

mover

colossal

now

basic

reasons

why this prime-mover towers
before

place,

with

at this time.

atomic

atomic age
ever-present threat of

be ahead

many

years

during which
overwhelming attack on

sibility.

ever-present pos¬

Hence the rebuilding of

cities

environments

and

for

rapid dispersion of the population
is a survival-imperative.
In the
second place, a rebuilt America
is what our population will want
most

from

years

now

thereafter.

;and

why do 1

Last

con¬

better food and clothing. Those

problems
well

have

will

solved.

abundance

been

There

pretty

will

these

products

•excellent quality.
It is my belief that a home, one
•of the prime requisities of
man,

represents

opportunities for

attractive improvements than any
other item that competes for the

consumer's dollar. Today, millions
of American

families

would

better,
more
spacious,
modern
and pleasantly located homes.
As
I said earlier, we, in the
ibuilding industry, are too prone to
visualize

markets in

our

terms

family formations.
Let's
our
sights and develop
bigger future housing markets by
stimulating the desire of Ameri¬
new

broaden

for

cans

ficient

modern,

and

housing****

ef¬

comfortable

more
.

Our life today is dominated to a
considerable extent by the auto¬

mobile.

Yet

its

use

in every direction
sand

frustrated

and in

thou¬

by the present horseand-buggy transportation pattern
of

ways'

cities,

our

towns, urban ap¬
proaches and highways. We have
satisfied

not

fourth

basic

urge

modern

desire

way a
man—the

around.

move

Here

definitely hamstrung. The au¬
has
provided
the in¬

are

tomobile

strument

but

this modern
tion

attempt

framework

inherited

from the

horse-and-carriage days.
will require a stupendous ef¬

fort

on our part if we are to solve
hese twin problems of shelter and

mobility.

But

this

all-out

Tfort to solve them that wiil
stitute the
nable

con¬

prime-mover that will

our

economy to perform
big enough to support
300,000,000 people and a labor
"orce of 30,000,000 or more.

scale

ole of the Construction Industry
I have mentioned the

important
already being played by the
onstruction industry in our econmy. It has never been so impor¬
ole

tant

:annot

today.
hold

But it will not and

back.

Today it

may

epresent almost one-sixth of our
otal output of goods and services,
envision

can

vill

years

period,

from

now,

one-fifth

represent

10
when it
say

our

conomy's annual output.
I

may

appear

imistic.

And, of course, I realize
hat there will always be an ocasional year of lessened activity,
et
een

our

how

generation
fast

onstruction

the

can

have

demand

for

skyrocket.

new

War II, a rate of
homes a year was

pproached only
n

for

States
of

not

long

the President of the United

ago,

called

for

$10 billion

construction

expenditure

year

for

highway

period

And that is only a begin¬

years.

And

struction industry, will rest a
very
large part of the burden. The re¬
sponsibility will rest with you
that
ample funds will become

product

are

available for the rapidly
growing
needs of the industry.

year.

created

not

that

said

have

hope

the

building is

im¬

leave

merely

job of the construction indus¬
That is far from the case. It

try.

everybody,
than

For

direct

and

financial

our

channels.

them

one

into

problem

lead¬

these

all

make

important

collaborate

must

railroads in another

great

highways

express

will

country

tries,

create

too,

so,

across

one

the

and

industry that its
motion

tivities.

phases set

many

homes

additional

built,

are

year

construction

new

ings

theatres,

Our
the

the

highest

distributors

when

When

because

its

the

fields

pyramids

the

Nile

rich

with

silt,

temples

and

were

built.
Similarly, the Rome of
Augustus in the first century was
assured
a
surplus
food supply
from a conquered world. And so

initiated

building

the

one

booms

greatest

all times,

the

must

that

see

When I speak of this

economy

concern

may

terials

needed

greatly ex¬
1965, some

expressed

building-product

that

manufacturers

will not be able to

supply the

ma¬

support such
huge construction market.
have

such

that

sure

there

materials.

concern.

will

sufficient

On occasion there may

temporary shortages of certain
materials. But these, for the most
part, will be spotty. All available
statistics
there

nothing to warrant fear
important shortage of con¬

struction

fact,
going

that

of any

indicate

seem

materials.

matter

research

this

field. Today
spending much
building-product
re¬

manufacturers
more

deal

great

than

are

would

the

materials

from

have

been

abundant

record

that

rates

took

place

this

period and it has

a great
impact
individual savings and invest¬
ing. In the first half of 1953 in¬
dividuals
alone
invested
about
on

$41/2 billion in securities

against

only $2 billion in the first half of
1952.

addition, individuals in¬
their

creased

savings shares and
billion in this pe¬

accounts

$4y2

riod,

contrasted

crease

$31/2

the

with

in¬

billion in the first

year.
Thus,
$3V2 billion
capital pool in the
six-month period than they did in
a like period just one
year before.

individuals
to

supplied

the

I
would
like
to
suggest that
monetary policy assisted in cre¬
ating a situation where the great¬
est capital
requirements in his¬
tory up to that time were supplied

from

proper

inflationary
could

have

without the
that

sources,

consequences

resulted

markets

and

from

the

pegged

creation

money through excessive inflation
of bank credit.
In

the

lower

first

interest

half

rates

1954,

with

the

than
ary

$3 billion, based on prelimin¬
estimates, a decline of over

$l1/2

billion from the rate of

1953.

the

On the other

accumulation

counts

continued

response

Johns-Manville

first

half

ac¬

hand, the rate
savings ac¬

of
to

accelerate

and

spending

are

for

research

building materials as we did
1932, and almost four times
much

World

And

II.

spending substantial

research.

These

sums

contractors

and

still

turn

dustry

take

the

pride
being

1925. In those days, the laborer,
office worker and the just-

ments

over

the

are

out

building in¬
in the 1955

constructed.
There have been many improve¬
house

trend

issues.

These figures clearly dem¬
onstrate the responsiveness to the

public to changing patterns of in¬
terest rates.
Debt

just 10

bond

are

policy plays

important part in the interest
rate
picture and in the money
supply picture. As you know, in
the
readjustment last year the
Treasury refrained from selling
any long-term bonds in order not
to

interfere in

any

way

with the

pool of capital that

was

available

for business and for individuals.

Early this year, on the other
hand, the business recovery was
so
strong that we felt we could
issue

long-term bond. Accord¬
ingly, plans were developed, and
a

with
the
help of the financial
community we placed $1.9 billion
of 3%, 40-year bonds due in 1995.
This offer

was

movement

successful, and the
business

since

that

time demonstrates that long-term

financing

be undertaken with¬

can

out

interrupting the course of a
business recovery. The sale of this
bond was part of our long-range
plans to improve the structure of
debt, reducing the concentra¬

our

tion

short maturities and

very

placing

our

debt

the

Three

Sectors of the

sectors

been

ity

our

moving

rapidly in

recent

made

ings

Long-Term

Federal

Issues

addition, we are interested in
establishing a genuine market for
longer-term
ties.

securi¬

government

think

our

economy

sounder, and that all of the capital
markets
are
sounder, including
the mortgage market, if
long-term
investors

are

able to make

choice of investments and
to

make

investment

(particularly residential

struction), and

the

first

half of

been

taking

increased

credit.

The

governments.
1953

attractive

interest

rates;

the

degree,

with

return

without

were

providing

alternative

their

investments

government

Treasury

everyone

the

The

stock

market, we believe,
base, and lend¬
ing practices in the mortgage field
on

will

not

stock

sounder

forced

would

own

investors

consider

investments,

the

home
like to

automobile

these

movements will be
ried to excess, particularly if
are

supported by too much
in

vance

not

contribute

soundly
to

ditions—and

car¬

they**

newl^f*

A rapid

sector of

any

omy,

our

ad¬

econ¬

based,

can.

unstable

con¬

to deflation—*
than to sound economic progress.

That
your

should

even

basically why
mortgage

own

welcome

even

field

the

you

wholesome-

impact of flexible monetary pol¬
icy. In the present active business
situation, moderately higher in¬
terest

pool

rates

should

increase

the

of available

capital. At the
time, flexible monetary pol¬
icy may lay a modest restraining
same

hand

building activity
the availability of

excess

reducing

bank

credit.

Furthermore, in¬
cost, which in the

creased interest

mortgage

field

sometimes

the form of discounts
of

takes

the price

the

mortgage, may also slowbuilding activity a little. These
natural
developments
that
tend to bring our economy into
balance.
In my opinion, we can
are

achieve

maximum

home

owner¬

ship in this country only with the
of

flexible

policy

monetary

the

conditions

maintenance

which

individuals

have the opportun¬
own homes in
instance, but will have
productive jobs that will

ity to acquire their
the

first

steady,

enable them to meet the financial

obligations they assume.

75!h Anniversary
The

New

change
100

York

Broadway,

representing
in

names

ing

Stock

Ex¬

firm of Moore & Schley,

its

Wall

Groesbeck

Street,

York

the
is

its

May 1,

Schley,
present

City,
oldest

observ¬

anniversary.

ing operations

pdopted

New

one

75th

years

are

common

mortgage

through the
ways

least

Through

later.

changes

rests

widespread

country had enough high¬
There is a danger that any

ways.

high-level

believe

Start¬
1880

firm

the

five

name

very

bond

field.

billion of marketable government

1954

departing from the

conservative

strong bond market
they turned to the selling
side again, disposing of nearly $1
of

market.

not

response

they in¬
creased their holdings by over a
billion, at least partly in response
while

con¬

durable

consumer

goods production (particularly au¬
tomobiles). All of these activities

deci¬

by the lack of supply of
long-term government securities.

change in their hold-, 3%

marketable

the

free

are

sions

little

very

—

not only will

savings,

the

economy

ahead

months

market, construction activ¬

dedicated

Establishing Better Market for

interest paid on

has

en¬

Economy

use

hands of permanent investors.

forced

Nowhere

the

long-

great.

very

Fast Moving

upward

the

needed

gave

created bank credit.

management

investors

better job.

Those of

Furthermore,

country

common stock
investment, and, if
to
the changing pattern of interest you will, to mortgage loan invest¬
ment. The manager of a pension
rates been so striking as in in¬
dividual holdings of marketable fund, and the trustees of an in¬
surance
company today, for ex¬
government securities. In the first
half of 1952 individual investors ample, are now able to obtain a

debt away from

some

couragement to habits of thrift
which are particularly important
in a period such as we have
today,
when
the
capital needs of the

see

billion in the 1953 period.

improved
construction
techniques and better ways to use
materials

bank money supply because the
sale of the issue made
possible the

ownership, and

continued

How¬

mortgage market was
benefited by reduced pressure on

importance

happy

investment.

the

stock

seeking
less

will meet

report that not only manu¬
facturers but building contractors
are

confident

$5 billion were added to such
savings as contrasted with $4y2

10
on

shortly after the end of

War

challenge.

Money Supply

bond

market, individuals reduced their
net purchases of securities to less

supply, is a major ob¬
jective of this research in product
development. For example, we in
much

has watched all of these advances
with interest.
We believe in the?

The

available

are

alternative

constructive value of

rials,

the

Interest Rates and

cumulation

times

fail.

move.

curity instead of holding funds for

stock

are

too many unsound
incompetents
ready to offer to take over if they

are

long-term, 3%
opinion, a

our

page

Capital
because
investors purchased this se¬

some

have

There

the

constructive

or,

demanding in 1965.

gov¬

degree, the sale of the
bonds may have reduced the Pool
of
Long-Term

in peacetime, to
depression.
The sound

require¬

limited

have

deemed advisable in the past.
Greater utilization of raw mate¬

which

afford

one

highly

efficiently put in place with firstrate workmanship.

half

present century excepted.

panded

can

war,

population will

interest

war.

the overflow of

covered

sale
was,

vide the type and size of
economy
that the American

building contractors, han¬
dling an ever-increasing volume,

construction

Egypt was as¬
surplus food supply,

all

But

competent leaders of private
enterprise must not fail to pro¬

quickly avail¬
they are

ever¬

ancient

sured

The

bonds

and

where

period speaks for
us
itself. In this period of so-called
civilizations have come close to restraint, more money was raised
solving
man's
most
elemental than at any other first half year
wants, even on a primitive level, up
to that time for consumer
they have sought outlets for their credit, mortgage loans, and muni¬
surplus energies. They have either cipal borrowing. An increase in
gone

of
a

permit

The

build¬
utilize the

country, we have behind
the logic of history. Whenever

lose

are

afford.

cannot

one

least

that

see

leave the

actuarial

ernment securities.

term,

always true that there

things

quality.

must

are

and

schools,

this

built

their

amounts

envision

volume

industry with this challenge.

rebuilding

course.
we

growing

materials

able

pools created by housing
projects—all of these follow as a
When

through investment in

shift of

conclusion, let

It is

materials

labor

matter

rebuilding

office

factories

and

ahead

Continued

shopping centers,

churches,

the

de¬

velops automatically.
New

job

needed.

subsidiary ac¬
Thus, when more than a

million

big

outstanding

many

volume, quality and the
financial support for the

assure

the

indus¬

new

new
housing projects
developments.

the

gave

possible

close
ment

ever,

Conclusion

We manufacturers must provide
an
unlimited stream of building

era

our

construction.

America.

economy

loan commitments
just because it
difficult or impossible to come

banks.

and

our

determining

the

America.

necessary

needed.

channels.

are on the threshold of an
when the great thruways, the
express
hignways will radically

stimulus

gentlemen

You mortgage bankers will pro¬
vide a sound credit structure to

course,

age

fundamentally remake Amer¬
ica.
Just as the building of the

will

you

and

various

Construction, of

funds

with

present methods of financing will
be
sufficient to
cope
with the
future demands of the
people for

none

they are the ones who
the savings of a nation

mobilize

better

on your mortgage
bankers,
financial leaders of the con¬

the

discriminating with

what

have

All

that

finished

passing

pression

ning.

that

From

ers.

And

war.

house

That

each

the

expenditures

year

was

once.

becomes

before the

Before World

million

course

to be overly op-

10 years,

greater prog¬

even

the

have

involves

use

of transporta¬

means

characteristics of the construction

1965

few Americans will want

so,
•or

matter

but several times in

And

ress.

highway construction amounted to
$4 billion, four times as much as

convinced that by

boost

lives.

to this

come

possible

once,

their

other

clusion?
I

home

—not

Better Homes Wanted

Now

expect

will

decades

cities is

our

face

must

There may be no peace.

may

sudden
•our

lunatic wants

Yet

war.

even

but

one

realities.
There

In the first

in the

are

its
No

war.

In the next

ago.

may

to sell it to the home-owner who

everything

new

America,
try's special and prime responsi¬
bility.
two

Today, the young cou¬
ple, the laboring man and the
office clerk expect to live in a

taking shape.
And
necessity to rebuild
the construction indus¬

are

Today,

the level.

the

There

home.

new

clearly

that

sufficient

forward.
third
primeproportions is

economy

home starts dropped below a mil¬
lion a year, tne governmentwvould

how¬

prime-movers,

years

owning,

nological advance.

had
one

personnel

its

scendant, direct

al¬

organization

partner who was
or

founding partner.

the

down

the firm

years

all

de¬

collateral, of

(2092)

The Commercial and Financial Chronicle

Indusiria! Conduction

become

more
and more powerful and more and more
greedy. Times, at least.since our entry into World War II
in 1941, have been extraordinarily
good, and the managers
of the unions have found it possible to push heretofore
unheard-of demands, the one after the other, to successful

Ops Sharply

Dr.

George Cline Smilh, economist for F. W. Dodge Corpora¬
says contract awards for industrial construction in 37
Eastern States in March totaled $176 million, an increase pf
tion,

120%

month last

over same

conclusions. Minimum wages,

virtually compulsory union¬
(always the dream of union bosses), countless "fringe
benefits" and a dozen other gains have come to them.
Now the hue and cry is for guaranteed annual
wages.

year.

ism

Addressing the annual Business ently the expected upturn has
Conference
of
the been moved forward by the rapid
University of Chicago on April 28, improvement in business activity
George C'line Smith, Economist in the past few months.

Economists

for

said

fluke, confined to one or
large industries. In March, 17
of the 24 categories of manufac¬
turing buildings r e p o f t e d by
Dodge showed increases over last

that

March,
tract
for

is not

c o n

awards

industrial

This

construction

year.

flected

the

eastern

states

covered

Dodge reports

others

other

current

Dr.

high levels of

activity

reflect

the

and

expansion

other

much

scale

ties,

widely pub¬

contract

26%
of

1954.

substantial

awards

ahead

This

upturn

trial

category

from

since

peak

1951.

construction

has

several

type

which
with

pace

has

the

first

tion

for

past

major
keep
expansion

construction, and it has gener¬
ally been predicted that it would

demand

respond

lor

industrial

only

part

one

non¬

construc¬

the

about

43%

the

in
dollar

awards,

total

in¬

construction

Appar¬

not be

So
there.

con¬

nostalgia. In the minds of

the

What

union

further back than the
are

afraid,

mid-'Thirties, there too often, we
nothing exceptional or blame¬
as

mass

picketing by

the tasks strikers
prevented by force from entering the

premises. To them, too, probably

there is

that is anomalous in thousands of workers
of

regular duties because

union of which

some

picket line around

they

are

the attitude of

leaders

that

now

the other day in Washington. "So
Almighty will give this Administration and to
personally the ability to discern the proper tasks,"
the

said the

efforts

President, "we shall do nothing but devote our
try to lead this world—this nation of ours—

toward

enduring peace, toward
equal justice for all."

better prosperity and

mean

habits
native

little

refusing to per¬
handful of members

not members throw

could mean a good deal or they could
exactly nothing. Interpreted in the light of the
of politicians, it would
appear that the latter alter¬
is the more plausible.

the

"In

President

the

present

American

the

Federation

struggle against the aggressive

and do their full part to

world

preserve

peace

and the

free way of life—the only
way of life which offers them
the opportunity to strive for a better
day to come for
themselves and for all humanity." Let him who thinks he
knows

what these words

say

Let's

candid

labor unionism

about

if anything.

mean,

all

this.

With

the

hold

that

has upon

the great rank and file, it
is hardly reasonable to expect
any political regime to go
very far in eliminating the abuses that have arisen in this

for
a

handful of troublemakers to

union and

was

now

monopoly. Yet some way must be found to
get this situation in hand if we are to go ahead in the

future

all would like to do.

men

from

page

and

the nation

were

that

the

now

con¬

form of

combination of the American Federation of
Labor and the
CIO would have been all but
unthinkable.
the

nature of

Anything in

labor
monopoly almost anywhere was,
by the vast majority of the people of this
country, re¬

garded

undesirable

Those

were

the

were

other

kinds of

monopoly.

days, too, when wise old Samuel

GomDeXS steadfastly refused to try to make either of the
political parties his prisoner or his vassal. It was much
later that the union leaders, who themselves are
really
politicians in another field, b* Id deliver the
votes

the

members to

one

the

other

the

great
political parties. In this they have not
always been suc¬
cessful, but the effort is now their
regular line of policy.
In Samuel
Gompers' day, too, any thought of a combina¬
tion of
into

^the farmers of the
"I
scratch your

country and the

back; you scratch mine" arrange¬

ment was at most not
more than

dream of

native souls.

Wilson,

and

few

imagi¬

assistance of most

by since the Adminis¬

organized
of

the

labor

Overbuilding

non-farm

our

families

earn,

not

with

the

politicians, has

number

$4,000 but over $5,000 per
year.
They can therefore afford
a
$12,500 house. For that price

around

the

home-building

give

excellenet

industry

value

can

most

of the country even at to¬
day's prices and wages. No such

parts

situation

existed

ever

days when

the

old

almost three-quarters

of all non-farm families could not

afford

kind of

any

dwell¬

new

ing.
The financial

cific

localities from
are

namely,

ability to buy

there

this

new

country,
increase

spectacular

*n
To reiterate
1954

work

the

since 1939.
well-known fact, In
almost

were

born

twice

the

average prewar year of the 1930's.
And

only

years

more,

the

level

births

enormous

today,

will have at least 26,-

000,000

children

Spectacular Migration

than

the

Suburbs

Growing families have to find
space

for

the

time to time.

satisfying
an
increased demand.

erect

houses

then

press

vastly

for

speculation and
unwilling public
The reverse is the

buy them.
Builders

fact.

ing

every

where

been

have

strain¬

to put up houses

nerve

families

insist

millions

the

living.

The demand is

result of

a rev¬

olution in income, a revolution in
where people want to live, and,
of course, easy

credit terms. Manythese

have

people
facts.

not;! grasped

they

tend

become

panicked
by the immensity of
these postwar changes. They still
think

the

terms

days before the

long-dead

war.

Home

building, of course, is but
phase of our economy. What

other

will

forces

the next decade?

statistics

able

work

From the avail¬

and

trends, there
mind that 10
our
American

is little doubt in my

from

years

now

will be

truly gigantic

1965, the population should
on the way to 200,009,000.
We will be called upon to provide
jobs for close to 80,000,000 peo¬
ple or nearly 12,000,000 more than
are in today's labor force.
And it
will be necessary to produce $500
billion, or half a trillion, of goods
and services annually, compared
with the current yearly rate of
approximately $370 billion. There
By

be well

doubt

the

that

American

is capable of such

economy

formance.

will

But

per¬

done?

That is the question.
Prime Movers

stimulate

nation

great an effort requires an

after

youngsters

and

grow

the suburbs.

great

goes

spectacular

to run
in. Thus

migration

It is there where

bulk

of home

building

enor¬

United States to rim of the

Coast,

the

Great

coun¬

Lakes.

increased

Southeast

and

the

building

ancient

maxim

industry

stili

of
ap¬

plies: when it is as cheap to build
as io rent, peop!"
Since the

reach

about

the

nevertheless a
the
two
World

the acceleration of tech¬

was

nological

improvements

increase

vast,

na¬

to bring

v/ar

prosperity,

by-product
Wars

our

and

productive

capacity.
And since V-J Day,

the remark¬
population and
truly spectacular further de¬
velopment
in
technology
have
a

been

among the outstanding
prime-movers that have kept our

economy

one

that

That has

peace-loving

tion would resort to

ble.

people

many

1920's.

ord pace.

and

notable

progress.

the

were

families
have
they can own a
house in the suburbs where they
want to live and bring up their
children just about as cheaply as
they couid rent an old house in
an older section of the city where
they do not want to live.
The
long repayment period of presentday mortgage makes this possi¬
myriads

discovered

before

were

our

able growth of our

regardless of where homes

built,

are

the

Although

by side
with the vast
migration to the suburbs, we have
a
continuous regional migration
from farms, towns and cities in
the more developed parts of the

early industrializa¬

country

Civil War

the

So,
opening up of the
West and the revolutionary mass
production
methods
which
brought the automobile within

on.

Side

But

the

our

stimulants
of

have

war

children

man.y

overbuild¬

merely

enormously

tion

try, including the West, the Gulf

homes is immensely reinforced by
one
of
the
most
fundamental
forces

really

too,

all

not

are

homes at all, although, of
course, this is not to say that there
will not be overbuilding in spe¬

roads and

New Homes

1939.

In the
years that have flowed
tration of President
active aid

wage earners

ing

about great periods of prosperity.
For example, the building of rail¬

upon

thing

labor union existed. A situation
such

fronting the President

We Are Not

the

to join

keep their membership in good standing
pain of not being able to find work.
Indeed, there
large segments of the economy in which no such

Overbuilding Homes

mously powerful economic "dyna¬
mizer"
or
prime-mover. In the
past we have had such primemovers.
And they have brought

usually existed

oblige all

Not

All these factors add up to this:

of labor

area

Continued

days the so-called checkoff
exception rather than the rule, and no way

buy or
little or

affair.

Words, Words, Words!

No Checkoff Then

In those earlier

soon will be a veteran,
bulk of new families can
build a new home with
no down payment.

the great

economy

establishment.

has

age

one

These words

Said

which any and all who would take
up
have laid down are

form their

What should

got

forces of communism, the workers of America will stand

worthy in what has become known

struck

of the future?

today and how

are

sentatives had to say
far

seems

where

they have joined forces
to form an organization
larger than any ever known in
this country? Not very much
information, we are afraid,
is to be had from the words of the
President, or from
anything that the American Federation of Labor repre¬

overlooked."

those whose memory
goes no

which

Some people talk as if builders

for

much

expanding should

We See

is another and

government be, and what is it likely to be? And what will

proud

now are so

present-

enormous

day housing demand.

different story.

Labor:

Continued from first
page

"gains" they

of. What it all has done to the rest of

spite of record-

buildings and heavy
engineering. The fact that this
important nonresidential part of

by 1956,

the

Thursday, May 5, 1955

mizers" of the

shorter hours of work and less and less

ever

have been heir to all the

dential

pressures

p?r»ciU£ts.

the

breaking
volume; the
remaining 57% of the construction
industry
consisted
of
nonresi¬

tract

of the doldrums

dustry. In 1954, housing accounted

one

general

included

not

the fact that residential

indus¬

the

failed

48%

was

March, 1954.
"Emphasis on housing in recent
discussions has tended to obscure

Industrial

been the

years

which

period.

same

over

dropped

for

ahead

building category, also
showed
a
substantial, although
less spectacular, increase of 18%

same

the

level in

residential

ran

the

cate¬

"Public works and public utili¬

"During the first quarter of this
year," Mr. Smith reported, "in¬
nearly
period

43%

was

building,

the

over

nonresiden¬

which

dential

licized increase in
housing.

dustrial

the

March, 1954. This compares favors
ably with the increase in resi¬

construction

building comparable in

with

March

George C. Smith

file

and

a very

vigorous effort on the part of workers, would drive prices
up. Of course, there were other causes, too, but prices
would have had to rise anyhow or else labor could not

re¬

for

types, have
nonresidential construc¬

tion contract awards to

the

industrial

also

shorter and

nonresidential

brought

120%

last year.
He said

figures

one

increases, combined with
commercial
buildings,
churches, hospitals and

schools,

al¬

March of

over

base

the

rank

with

was

in¬

most

tial

"These

$170'

million,
crease

broad

quarter, with 14 of the 24
gories showing increases.

totalled

tion

two

places union managers in

strong posi¬
membership, but let no
suppose that all of it has really been clear gain. It
inevitable, of course, that all this, together with

"The rise in industrial contracts

Corp,,

the

Dodge

All this

been and continues

the

major

"dyna¬

humming at a near-rec¬
Sul front now On, wliaf

"dynamizers"
support

will

80,000,-

Gros£ National Product

billion

$500

hence?

have

labor force

000 and

sure,

years

may

ex¬

pect a further massive population
particularly
when
the
growth,
war

and

postwar children begin to
marrying age after 1962
thereabouts.
Moreover,
we

reach the

should

able

rely

upon

Volume

181

Number 5426

The Commercial and Financial Chronicle

(2093)

rate

tech¬

These

two

will

ever,
carry

our

prime-movers, how¬

colossal

clearly

forward.
third
prime-

economy

Fortunately,
mover

sufficient

not

proportions

taking

shape.
And
that is the necessity to rebuild
America, the construction indus¬
try's special and prime responsi¬
now

married couple barely dreamed of

years

owning

ever-accelerating
nological advance.

a
new home.
Today, if
home starts dropped below a mil¬
lion a year, the government would

possible to boost
Today, the young cou¬
ple, the laboring man and the
office clerk expect to live in a

basic

two

are

reasons

why this prime-mover towers
before

place,

In the first

at this time.

with

the atomic age
ever-present threat of

its
N'o

atomic

face

must

There may be no peace.

be ahead

may

many

years

cities is

ever-present pos¬

Hence the rebuilding of

sibility.

cities

for

environments

and

rapid dispersion of the population
is a survival-imperative.
In the
(second

place, a rebuilt America
is what our population will want

j.most

from

years

now

thereafter.

•.and

so,

^<or better food and clothing. Those
problems will have been pretty

jWell

solved.

(.abundance

will

There

these

products

j-excellent quality.
It is my

;<of

the

belief that

prime

represents

home,

requisities of

one

man,

opportunities for

rattractive improvements than any
^other item that competes for the
•consumer's dollar. Today, millions

;<of American

families would

j better,

more
spacious, modern
and -pleasantly located homes.
As I said earlier, we, in the
ibuilding industry, are too prone to
visualize

markets in

our

terms of

family formations.
Let's
our
sights and develop
•bigger future housing markets by
stimulating the desire of Ameri¬

.new

States
of

for

ficient

modern,

and

ef¬

comfortable

Jiousing»*-Hw
|
Our life today is dominated to
r,.

Considerable

mobile.

extent

Yet

its

by the

use

auto¬

frustrated

direction and in a thou¬
ways by the present horse-

and-buggy transportation pattern
of our cities,
towns, urban ap¬
proaches and highways. We have
satisfied

not

fourth

basic

modern

desire

way a
man—the

Here

definitely hamstrung. The

au¬

urge
are

around.

move

tomobile

has

strument

but

.this modern

tion

provided

in¬

attempt to

the

framework

inherited

|from the horse-and-carriage days.
It will

fort

require a stupendous ef¬

highway
period of 10

for

And that is

years.

only

are

the threshold of

railroads in another
stimulus

our

era

this

all-out

effort to solve them that will con¬

stitute the

prime-mover that will
economy to perform
on a scale big enough to support
300,000,000 people and a labor
force of 80,000,000 or more.
enable

our

Construction Industry

I have mentioned the

ole

important
already being played by the

onstruction

It has

omy.

tant

cannot

industry in

our econ¬

been so impor¬
But it will not and

never

today.
hold

back.

Today it

may

represent almost one-sixth of our
total output of goods and services.
1

can

Will

envision
years

period,

tries,

housing projects
developments.
new

one

the

from

represent

when

now,

one-fifth

Economy's

industry that its

I may

million

homes

additional

timistic.

that there

will

always be

year

oc¬

When

growing
in

envision

this

volume

for

^construction

involves

than

For

problem

they are the ones who
savings of a nation
into

various

and

make

possible

construction.

the

collaborate

must

ahead

rebuilding

Conclusion

rebuilding

In conclusion, let
It is

Our
the

distributors

materials

able

when

must

quickly

are

and

where

The

and

see

must

that

the

materials

all

can

war,

or,

are

The

demanding in 1965.
unsound

many

fail.

the

from

confident

There

are

if they

over

will meet

challenge.

gone to war.

Money Supply

other first half year
time for consumer

any

that

credit, mortgage loans, and muni¬
cipal borrowing. An increase in
rates

took

place

These

figures clearly dem¬
responsiveness to the
public to changing patterns of in¬
onstrate the

management policy plays
an
important part in the interest
rate picture and
in the money

this

its

fields

the

pyramids

rich

with

and

silt,

temples

Similarly,

were

the

the first half of 1953

dividuals

riod,

building

booms of

the

all

greatest

times, the

When I speak of this

greatly ex¬
in 1965, some
expressed that

building-product

manufacturers

panded

economy

concern

may

will not be able to supply the ma¬
terials needed to support such a

huge construction market.
I

have

such

that

sure,

concern.

there will

materials.

sufficient

On occasion there may

be temporary shortages of certain
materials. But these, for the most
statistics

All available
indicate

seem

that

nothing to warrant fear
important shortage of con¬

of any

struction

fact,

materials.

going

matter

research

in this field.

manufacturers
more

great deal

Today

spending much

are

building-product

than

would

1952.

have

re¬

been

addition, individuals in¬
savings shares and
$4M> billion in this pe¬
contrasted

crease

$3 M>

would

abundant

supply, is

major ob¬

that

suggest
assisted in

the

lower

first

interest

rates

1954,

witb

the

building

materials

World

almost

research

for

did

times

four

in
as

shortly after the end of

War

I am happy
only manu¬
facturers but building contractors
are

II.

And

that

report

not

spending substantial

research.>

seeking

These

contractors

improved

materials

better

1925. In those days, the laborer,
office worker and the just-

ments

over

and

on
are

construction
ways

still

turn

take

in the

pride

billion from the rate of
in

the

first

half

ac¬

On the other hand, the rate
of
savings ac¬

1953.

accumulation

counts

continued

the

house

just

trend

available

Early this year,
hand, the business
strong that

issue

the

other

recovery

felt

was

could

long-term bond. Accord¬
ingly, plans were developed, and
with
the
help of the financial
community we placed $1.9 billion
of 3%, 40-year bonds due in 1995.
a

This offer

was

movement

successful, and the
business

time demonstrates

Establishing

that

since

that

long-term

accelerate

Better

Long-Term

Market

Federal

for

Sectors of the

sectors

been

our

moving

economy

ahead

very

rapidly in recent months
the
stock market, construction activ¬
ity (particularly residential con¬
—

struction), and consumer durable
goods production (particularly au¬
tomobiles). All of these activities
been

taking

increased

credit.

The

Treasury

market.

everyone

the

widespread

would like to

own

the

home

automobile

country had enough high¬
There is a danger that any

these

movements

ried to excess,
are

high-level

believe

will

the\^
newlj^

supported by too much
in

vance

omy,

not

contribute

rapid ad¬

sector of

any

soundly

ditions—and

car¬

particularly if

econ¬

based,

can

unstable
to

even

our

con¬

deflation—

than to sound economic progress.
That
your

basically why
mortgage

own

should

welcome

the

even

field

you

wholesome-

impact of flexible

monetary pol¬
icy. In the present active business
situation, moderately higher in¬
terest

pool

rates

should

increase

the

available capital. At the
time, flexible monetary pol¬
icy may lay a modest restraining
hand on excess building activity
by reducing the availability of
bank credit.
Furthermore, in¬
creased interest cost, which in the
mortgage field sometimes takes
same

establishing
We

genuine market for

securi¬

government

think

our

economy

sounder, and that all of the capital
markets
are
sounder, including
the mortgage market, if long-term
investors

are

able to make

choice of investments and

continued

upward

forced

savings,

free

are

make

investment

little change

made

ings

the

investors

with

alternative

the

marketable

first

half of

response

in their hold¬
governments.
1953

they in¬

their

holdings by over a
billion, at least partly in response
to

while

attractive
the

interest

rates;

strong bond market

return

without

their

investments

departing from the

conservative

government

stock

will

market,

believe,

sounder base,

and lend¬
ing practices in the mortgage field

of 1954 they turned to the selling
side again, disposing of nearly $1

not

billion of marketable government.

stock

obligations they assume.

Ilcera &

sounder

forced

investors

consider

investments,

Schley Mark

75th
The

change firm
100

New

Broadway,

names

its

Stock

of Moore &

representing

ing

taivcrsary
York

New

one

Wall

Street,

ing operations

Groesbeck

York
the

pdopted

its

May 1,

present

City,
oldest

is observ¬

Schley,

Ex¬

Schley,

anniversary.

75th

years

later.

changes

The

individuals

Start¬

1830

firm

the

five

name

very

bond

field.

rests

maintenance

which

enable them to meet the financial

deci¬

by the lack of supply of
long-term government securities.
To a degree, we were providing

common stock investment,
and, if
to
the changing pattern of interest you will, to mortgage loan invest¬
rates been so striking as in in¬ ment. The manager of a pension
dividual holdings of marketable fund, and the trustees of an in¬
surance
company today, for ex¬
government securities. In the first
half of 1952 individual investors ample, are now able to obtain a

has

the opportun¬
ity to acquire their own homes in
the first instance, but will have
steady, productive jobs that will

not

sions

the

conditions

not only will have

Issues

In addition, we are interested in

interest paid on

Nowhere

creased

constructed.
There have been many improve¬

was

ary

$1V2

out

being

pool of capital that

for business and for individuals.

longer-term

building in¬
in the 1955

with the

ties.

billion, based on prelimin¬
estimates, a decline of over

use

job.

Those of

dustry

sums

way

than $3

and $5 billion were added to such
savings as contrasted with $4Mi
billion in the 1953 period.

spending

are

interfere

any

bond

market, individuals reduced their
net purchases of securities to less

Johns-Manville
much

Three
have

dedicated

half

response

thrift

Economy

long-term bonds in order not

any

of bank credit.

jective of this research in product
development. For example, we in
times

en¬

the form of discounts on the price
policy
cre¬
financing can be undertaken with¬
of the mortgage, may also slowating a situation where the great¬ out
interrupting the course of a
est capital requirements in
building activity a little.
These
his¬ business
recovery. The sale of this
are
natural
tory up to that time were supplied bond was
developments
that
part of our long-range
tend to bring our economy into
from proper sources, without the
plans to improve the structure of
balance.
In my opinion, we can
inflationary consequences that our debt,
reducing the concentra¬
achieve maximum home owner¬
could have resulted from pegged
tion of very short maturities and
markets and
the
ship in this country only with the
creation
of
placing more of our debt in the
use
of flexible monetary policy
money through excessive inflation hands of
permanent investors.

monetary

billion in the first

previous year. Thus,
supplied $3 Mi billion
more
to
the capital pool in the
six-month period than they did in
a like period just one year before.

rials,

available

in¬

the

cumulation

are

with

individuals

deemed advisable in the past.
Greater utilization of raw mate¬

which

about

their

creased

half

present century excepted.

invested

as against
only $2 billion in the first half of

accounts

one

alone

in¬

$4V2 billion in securities

Rome
of
Augustus in the first century was
assured
a
surplus food supply
from a conquered world. And so
initiated

Fast Moving

created bank credit.

Debt

covered

Nile

habits

the

long-

are

ways.

that

this

ing.

the

needed

gave

particularly important
in a period such as we have
today,
when
the
capital needs of the
country are very great.

overflow

bond

couragement
which

see

Egypt was as¬
surplus food supply,

Furthermore,
3%

importance

the

ancient

money supply because the
sale of the issue made
possible the

ownership, and

The
In

How¬

bank

stock

because

When

investment.

the mortgage market was
benefited by reduced pressure on.

constructive value of

itself.

se¬

has watched all of these advances
with interest.
We believe in the?

supply picture. As you know, in
period and it has a great impact the readjustment last year the
on individual
savings and invest¬ Treasury refrained from selling

sured

alternative

have

Interest Rates and
record

curity instead of holding funds for

sound

page

move.

investors purchased this

some

amounts

Continued

our

degree, the sale of the
may have reduced the Pool
Long-Term
Capital
because

incompetents

ready to offer to take

efficiently put in place with firstrate workmanship.

long-term, 3%
opinion,
a

constructive

competent leaders of private

too

the

peacetime,

depression.

afford

one

But

enterprise must not fail to pro¬
vide the type and size of
economy
that the American population will

are

building contractors, han¬
ever-increasing volume,

dling

permit

avail¬

they

lose

are

afford.

cannot

one

least

that

see

leave the

always true that there

things

provide
an
unlimited stream of building
materials of the highest quality.

gov¬

limited

term,

industry with this challenge.

We manufacturers must

shift of some debt
away from

(

come

require¬

ever,

America.

volume, quality and the
financial support for the

job

big

highly

banks.

assure

sale
was,

The
bonds

our

actuarial

bonds

channels.

ever¬

come

impossible to

their

ernment securities.

the

You mortgage bankers will pro¬
vide a sound credit structure to

Construction, of course,
of
these
all
important

one

needed.

determining

sufficient

channels.
is

gentlemen

cope
with the
future demands of the people for

lead¬

the

them

will

you

present methods of financing will

none

financial

our

direct

and

funds

with

interest

that

leave

built

have

loan commitments
just because it
is difficult

become

terest rates.

house

ihe

im¬

that

everybody,

will

available for the rapidly growing
of the industry.

than

was

the

funds

needs

hope

solving
man's
most
elemental
wants, even on a primitive level,
they have sought outlets for their
surplus energies. They have either

civilizations

approached

That

created

not

issues.

once.

said

period speaks for
period of so-called
restraint, more money was raised

can skyrocket.
Before World War II, a rate of
a million new homes a year was

only

we have behind
history. Whenever

less

demand

have

ample

de¬

country,

the logic of

keen

the

have

construction

techniques and better

fast

discriminating with

course.
we

casional year of lessened activity.
in our generation we have
how

built,

are

construction

new

matter

are

building is merely
the job of the construction indus¬
try. That is far from the case. It

pools created by housing
projects—all of these follow as a

Yet

that

year.

what

pression

labor

much

be overly op¬
And, of course, I realize

appear

phases set

many

velops automatically.
New shopping centers, schools,
churches, theatres, office build¬
ings and factories to utilize the

passing

From

outstanding

many
subsidiary ac¬
Thus, when more than a

and

our

each

needed.

motion

tivities.

1932,

annual output,

and

con¬

that

characteristics of the construction

say

too,

so,

great express highways across the
country will create new indus¬

Role of the

the

gave

economy

bankers,
the

to sell it to the home-owner who

better

America.

fundamentally remake Amer¬
Just as the building of the

becomes

and

ica.

leaders

through investment

necessary

there

your mortgage

ment

when the great thru ways, the
express
highways will radically

part, will be spotty.

begin¬

age

mobility.

But

product

financial

large part of the burden. The re¬
sponsibility will rest with you

All

part if we are to solve
these twin problems of shelter and
our

expenditure

year

the

ning.

use

of transporta¬

means

for

construction

built.

in every
sand

called

$10 billion

And

years,

mobilize

broaden

cans

for

finished

struction industry, will rest a very

ers.

am convinced that by 1965 or
few Americans will want more

expenditures

year

war.
And not so long
the President of the United

Now why do 1 come to this con¬

course

times in

the

have

will

before the

other

clusion?

expect even greater prog¬

And

ago,

Better Homes Wanted

matter

but several

highway construction amounted to
$4 billion, four times as much as

decades

during which
overwhelming attack on

sudden

•our

lunatic wants

Yet

war.

even

•our

but

one

realities.
There

are

once,
lives.

their

Last

There

war.

home

new

—not

bility.
1

everything

the level.

In the next

ago.

may

ress.

are

common

mortgage

through the
ways

least

had
one

Through

all

personnel
years

its

the firm

organization

partner who

the

down,

was

al¬
at

de¬

scendant, direct or collateral, of a

founding partner.

The Commercial and Financial Chronicle

" (2094)

carrier

Continued from page

industry,

delivering goods and people with safety,
expedition, with a high degree of
dependability, and at the lowest
the

expenditure

by common carriers, who by statute are charged with the heavy
obligation to

all individuals

serve

shippers alike to the extent of

and

fense

commodities over short hauls and
to a considerable range of traffic
even on the longer hauls. Extensive competition also prevails
among rail, water, and pipeline
carriers for long-haul quantity
movements of bulk commodities
and general traffic."
In the case of railroads and
motor carriers, their economic
characteristics are virtually opposite, the one characterized by
heavy investment and large ele-

and other scarce resources,
Historically,
these requirements
have been met most satisfactorily
power

their physical

capacities, on known
schedules at published rates, and
without discriminations. The avail-

ability of this type of stable and
dependable service is of equal importance in the day-to-day business
operations, production and

veloping

the

efficiency

proposed transpor-

policy

strength

all

nearly

movement of

the

of man-

appraisal

tation

portation, government policy holds
regulated competitive forces within a tight rein. Railroads and motor carriers are most broadly competitive, their rivalry extending

efficient, and capable of

cost

promote

the

Nation

this

de-

requires, first,

for

some

Thursday, May 5, 19

the national
of

the

transportation poli

Congress

to
provide f
strengthening our fair and impartial regulation of,
coastal, intercoastal, and inland modes of transportation subject
services by water. It is important the provisions of this Act, so a
to the national economy and to ministered as to recognize a
defense that these operations be preserve the inherent advantag
both financially strong and pre- of each; to promote safe, adequa
pared to meet their role in emer- economical, and efficient servi

public without discrimi-

of present and

Rail Regulation

portation system that is dynamic,

to the foregoing con¬
siderations is the problem of de-

nation.

Recommendations oi Cabinet
on

/Related

conserve

all of the

Group

which

generally obliged to

trast is

analy-

and

sis of the probable utility of and gencies.

and

burden to be placed upon each
A common difficulty in wartime
form of transport in the event of is the maintenance of carrier
fun mobilization or war.
Al- operations other than those of the
though we may expect that all- regulated common carriers, par-

tions in transportation and amp

involvement would

out

create

ticularly

the

foster sound economic cond

the several

the

carriers; to

establishment
of

nance

carrier transportation

motor

encoura

and

reasonable

maint

charges

services,

witho

two-front war with some familiar field. The supply, under ration- unjust
discriminations,
und
aspects, we must also fully ex- ing or other procedures, of fuel, preferences or advantages, or u
in

that

pect

continental

such

the

event

United

States

tires, repair parts, and other items

fair

be placed under heavy attack and

numbers of unregulated carriers
might sustain severe damage both which do not normally report to
to its industrial production and to any Federal body. It is, moreover,
its transport facilities. Hence we characteristic of these operations
must be prepared to face a situa- that they do not obtain an equally
tion without precedent in our intensive utilization of equipment

history.
estimates

A11

our

full

under

several

States

thorized

table

fair

end

dinating,

with

duly

the

thereof;

and

wages

working

the

and

officials

encourage

competitr

cooperate

equ

conditions;

developing,

and

—

coo

preserving

and manpower, and hence * they tional transportation system
contribute less to a war effort water, highway, and rail, as w
than d<> common carriers in pro- as other means, adequate to me

potential

destructive

would is difficult to handle with large practices;

economic

mobilization

ments of indirect and fixed costs conditi0ns are subject to a con- portion to the input of scarce ma- the needs of the commerce
small while the other requires little in- siderable margin of error
While terials and equipment. A stronger the United States, of the Post
in a vestment and encounters a high traffic estimates and transport re- common carrier segment attained Service, and of the national
broader sense, the availability of proportion of direct and variable qujrements are no exception it is in part by the substitution of com- fense.
All of the provisions
this type of transportation system costs.
The one is capable °l; probable that full use of our pres- mon carriers for others, greatly this Act shall be administered a
is essential to
the orderly and heavy long-haul mass transporta- ent economic potential would ere- simplifies the problem of war- enforced with a view to carr'

market planning of large and
businesses alike.
Moreover,

healthful operation of a

national

the

tion at very low costs while the
other can afford superior service

peacetime
to

indispensable

and

economy

security

time

conducted in relatively small units
but at comparatively high unit
costs beyond the shorter distances.
Cleaily they are fitted for differ
ent roles in the development of
the most effective and co-ordilisted transportation system ^of
which technology and managerial

war.

Your

Committee

advisory

has

proceeded from these fundamental
premises
in
its reappraisal of
national transportation policy:
the

that

namely,

transportation

industry operates today in the general atmosphere of

pervasive competition; that adjustment of regulatory programs and policies to
these
e
competitive facts is long
over-due; and that the restoratipn
-due;
A"'
and maintenance of a progressive
A.

and

carrier

transportation, vi&

importance

paramount

public interest.
Although it remains
there
a~d

some

not

system

that

true

rail-bound

one

would

there

idJe

capacity

reserve

woujd

makfi

prudent to

possible

every

seem

provision.

capability, without

Recommended

II.

ir\n

that

sense,

relied

adapt both service and cost opportunities to his own requirements.
The

parts

Essentiality

Carrier

which

judgment of the re
ulatory body for that of manag
ment, especially in the adjustme
of

Transportation

The public interest requires the

ninJonn.
maintenance

the

onri

and

sound

vig-

ties and developing in accordance
with the indicated demand for its

ducer B may be able to

services.

market

water

haul.

the

The

orous

they will be physi-

of transport, each operating within its respective capabilimeans

reach the

self-interest

service

serving producer A
demands that transportation rates
enough,,to

major

en-

given

industry;

p.„„.

pnmmnn

tul
the

indispensable, yet
of some of the

common

carriers is precari-

and

competition

dynamic

will

opment of

speed

devel¬

The

rate and service

new

•

poiicy

coal^natural

^on

including

competition,

high freight

that from other than

rail-bound" codl would

common car-

directly affect coal's competitive

usual

and the unobligations which are placed

position, and reduce the 'coalfraf-

upon

common

fic of many railroads.
In short, competitive

-have

been

substituted

rier transportation,

Conditions

.much of our

icy,

both

recent
or

for

our

whinVi

rtr»iir»v

hoe

effort

..rrY1

„

petion
riers

'
government

i.r„nen.„

weakening any form of transporwhich we must place
major reliance in the event of war
tation
is not
It

shipping and traveling

satisfactory defense policy,

may
'

be necessary
'

that

v
par.

Maintenance of

(2)
.

.
j
(3) Encouragement of increased
efficiency and- economy in the

/oV

cause

exempt

(2)

mote

full

modes

D0ssible

transnortation

ReAiance on CompetiForces in Transportation
£
ce Economic
.

fic handled^- and this is not the
Regulation of
case with the railroad industryr^...jj^^Minimum

Transportation to

Consistent with
Ruf>hc Interest, arid to Assure
£air .a??^ Impartial Economic
;of--< Regulation.
The first and essential step in

the recommended program is the
revision of the declaration of polnistic in character. There opera- segments of the carrier industry icy in the Interstate Commerce
tions are conducted without the including air, water, highway, and Act. The present policy statement
or

pseudo

necessity

are

largely

publish

rates,

with pipeline

industry

make their has^placed undue, restraints upon

noJZh!
preserj! Prevents, or se- freedom to discriminate in rates respective contributions. For ex-fhJ
V71 >
realization of and service, and with no obliga- ample, in the case of extensive
trnrCOnT? USC 0^ our ^on
serve the general public, domestic damage, it might be necspon4atwn Plarft.
The continuing growth of this ex- essary to place greater reliance
j *

Notwithstanding

the

rapid

growth and current pervasiveness
of competitive elements
in trans-

minimum

empt

for-hire

competitive rate and service experimentation by the several types
of transportation subject to the
Act.
carriage
would on waterway facilities which are
The present declaration of polthe maintenance relatively more immune from de- icy reads as follows:

seriously impair
of a strong and healthy common struction.

"It

hereby

declared

charges,

reasonable
so

pro

betwee

novations,

the

tha

or more

maximum

to encourage

charge;

technical in

development
technique

new

rate and service

and

the increase of operatin
managerial efficiency, f

and

increase in traf-

and

encourage

competition

of
transportation
charges not less than reasonabl

to Assure Maintenance
pj a National Transportation
accommodating ar* expanded
-^dequate for an Exmestic traffic with a minimum inVanaxng Economy and for the
crease in equipment, since otherSecurity,
to Endorse

our

finan

and

remain fully adequate fo
defense,
the
Posta

The railroads may be expected
to have the greatest flexibility in

transportation plant. Public
interest,- however, attaches fp a
opportu- national policy which enabl^ all

for-hire carcarriers whose

and

Service and commerce;

management of all transportation

priority items for available ma- "1 ' RECOMMENDATION: Revise
terials and productive capacity.
^ -the;J^National
Transportation

some

for

efficient

seryices.in order to benefit ofultigive the the
mate consumer the

of the competition of higher

national

direct ratioTo

provide

times

...

ticular modes of public transportation absorb a large share of the
anticipated increase in domestic

declared

cially sound national transpor
tation industry by water, high
way and rail, as well as othe
means, which is and will at al

modern-

hereby

strong,

Jzed and financially strong system
of common carrier transportation;

disappeared
been greatly altered.
■
1

operations

respects,

P°sltlon is not apreparedness. Any
policy calculated
to enhance

(1)

public;

so counter large and growing com- crease the built-in flexibility

present transport polregulatory and promo-

many

ice to the

exception, regu- Any policy which strengthens the
lated common carriers today en- railroad base will tend to in-

Obsoletp Rpfrnlatlnn
T

far

either

years,

With

tional.

to meet conditions which have,

carrier /industry

pas^ pr(5:bipted

gener-.

tiling

velop, under the free enterpris
system of dynamic competition

the full its possibilities for serv¬

„

the

monopoly element in

J~0YPm°?}

enterprises

the

forms of transportation as a rule~
possible from restraints designed require additions to equipment in "

growth of new forms of transportation, both public and private, for
much of the

carriers argue

relieving these carriers

With

which

policy

substantia

read

icy of the Congress:

has not pro-

dustries compete for certain mar-'
kets in which alternative goods in adjustment of the several tvpes
and services may be
substitufable. of carrier to their areas of greatA notable example is competition est
usefulness.
Both the present
among fuels such as
force
of

rates

transportation

under

demonstrate

would

the national transportation pol

-pgrimentation in rates and serv¬
order

follows:

(b)

recommended

laration

to enable each form of
transport to reflect its abilities
in the market by aggressive exh

business

ger.

and in addition take on
(4) Development of an effisubstantial diverted loads in the cient transportation system for
vided us with the best transport face of conditions which prevent defense mobilization or war.
of which we are capable, either in any material expansion of their ^
Declaration of National
rate of technical development or physical plant or_ equipment be"Transportation Policy
Our national

related-'in-

gas, and fuel oil. Thus

rail, and water carriers.

adjudicator, not

technical

concepts; and
.

ice

traffic

desirable rapidity

Such competition is not confined
to the products of different firms
in

they lack the means to
offer superior service and to apply technological advances with
ous

able producer A to compete in the
market.
•/..
„

Qll

financial position

railroad

be maintained low

carrier transporta

common

?"d s°m6J
dy.
A policy

tion service by all of the available

lower ~ cost

hig'

competitive rates between

way,

Actions

innovation and foster the

tional demanas that defense will
make upon them and (2) to support end that
their financial well-being to
the

tem

cally in excellent shape and pos-;
sessed of a desirable flexibility

Common

country has placed indirect cpmpetitive
pressures
on
transport
rates.
For example, producer " A
may be impelled to ship all his
output of, say, heavy steel, into a
given market by rail, bufe *prosame

to justify the subst

upon

tution of the

various

tone

W"\

the purchaser of transportation to

competition,_
great development of competitive'
in

the

respects

The declaration of policy shou
be revised to make it clear (

nTrntom

inter-carrier

industry

major

policy declaration in existi
statutes, as interpreted, has be

tional transPortati°n system. The
Proper role of these services is
discussed later in the report.

to support with transport our

economic

declaration

the

does not imP!y that hone fide private carriage and true contract
transportation are not useful and
economic components of the na-

existed at the beginning of ^Vorld
^ar jj

transportation

carrier

common

and

allowance for reductions imposed

there is

guch

exnansion

rapjd

above

policy." 1

Emphasis on the essentiality of

competitive in the commercial sense eveh
though not directly among carriers
serving the same points.
where

and

the

out

time supply.

far

burden

growth and development of the
several forms of transport someexperimentation which enables what in accord with the propor-

the bulk of this traffic is

Even

The

ered

jarge

traffic

of any hitherto encount-

achieved only by the exercise of
greater freedom for competitive

traffic

water-bound traffic

competitive

the

to
,

domestic

excess

We do not find it possible to de- .
attack,
The major objectives of the folfine the limits of the tasks which
'
these and other forms of transport
oi
While a gei
general transportation Tqjyjng recommended actions and that common carriers are to
vynne
Pphcy Wltll
should perform in a transporta- "KttcTl*! 1V snouia ( concern itself pri- revisions of public policy affect- permitted greater freedom, sho
PQ"cy should
nofc
f KiO'
tion system which best meets the' rna^ily with our developing na- ing Transportation are:
(1) In- of discriminatory practices,
needs of the public. On th4 tCon-^al economy, - it must also be trfegsed reliance on competitive utilize their economic capabil
trary, we believe that such.-^^"^ned with potential defense, forces of transportation in rate ties in the competitive pricing
their service, and (2) that in a
system, in the face of rapid#*8e*/requirements. In the latter con-^making in order:
veloping technology and a high text two primary objectives may
<SCa> *° baVe transportaion en- such matters the regulatory Co
terprises function under a sys¬ mission is expected to act as
rate of innovation, is to be be noted: (1) to emphasize the

financially strong

common

ski|Js are

ate
in

use

of facilities and

and

•

the

highest

equipmen

standards

service,

economy, efficiency an
benefit
to
the
transportati
user and the ultimate consume
but

without unjust discri,mim
tion, undue preference or ac
vantage, or undue prejudic
and

without

excessive

reasonable charges on non-con

petitive traffic;
(3)
To cooperate

with

several

duly

States

and

thorized officials

thereof, and

encourage fair wages and equ
table working

conditions;

(4)

To reduce economic rei

ulation of the transportation ii

dustry to the minimum coi
sistent with the public intere
to

the

end

economic
cost

and

each

that

the

inhere:

advantages, includir
service advantages, <

mode

transportatio

may be realized in such
1 The

tional
899.

Interstate

Commerce

Transportation Policy,
(Emphasis supplier!.>

maj

Act,
54

Volume 181

Number 5426

"
.

ner

to reflect its full

The Commercial and Financial Chronicle

ars

economic

fair and
cial

restrictions,

limitations
of

controlled

tionships
cost

provisions of this Act

superiority

volume

some

Increased
tive

stitutes

Making

reliance

forces

rate

the

Competitive

competi¬
making con¬

corner-stone

modernized

regulatory

program.

Recommendations contemplate re¬
visions of four elements of cur¬
rent
to:

statutory
(a)

provisions

relating

maximum-minimum

control;

(b)

suspension

rate

powers;

freight rates.
Control

tances.
rat

Limit

striking

tent.

determination

Commission

of reasonable

maximum

rates

with no change in existing pro¬
visions making undue discrimirations and preferences unlaw-

ful.

is authorized after

hearing to

pre¬

scribe the maximum and/or mini¬

rate

mum

diction

rate

finding

the

unrea¬

possesses

when

finds

rate

undue

causes

stated

unreasonable

foreign

com¬

effect

this

conditions,
and

rates

range

rates

"ableness)

may

prescribe the

celling

the

raJe,

ICC

the

observed,
(zone

pre¬

floor

the

reason-

These rate controls

vested

were

in the ICC curing the period when

the

railroads

the

were

sole

predominating intercity form of
transportation. The principal pur¬
pose of these controls was to prothe

tect

railroad

general

public

monopolistic

against

economic

sit-

allowed

an$

serv-

re-

whenever

fpoir lull ex-

fgulatory

defeats this p'h

policy

demonstrated lower costs, are permitted to do no-more than to meet
the competitiorlfacing them which,
some

exceptions,

the

services

0f losses in other services.

means

that

the

charging

would

apply

discrimination

between

missions
0j

intrastate

have

prescribed

intrastate

where

private

unregulated

competition or'4he prospect of its
establishment

this

much

involved,

opportunity

permanently

denied

the

carriers because of the

even

may

common

j^ee^teftSWS
for

pended

investigation,

orderl covering

rate

mum

comri&n

range

have

been

carriers

carrier

seek

relief

level

rate

in¬

parte decisions. This

procedure for obtaining additional
has

revenues

rates
tive

qreated difficulties
carrier^in adjusting their

meet

particular competi¬

situations^ In addition,

ulation has held
tial

Ration, namely, th necessity

portion

down

of^he

reg¬

substan¬

common

rier rate structure to.

Basis Commission's

Suspend
Rates:

riod to Three
tinue

Burden

the

Places

Protestant

the

Interstate

Commission

merce

had

has

of^heF transport service rendered. thority u"on comPlaint
transport service" renderecf
initiative
tQ

tne

suspend

au-

its own

proposed

relationships

economy

between

com¬

peting

shippers, markets,- locali¬
ties, or traffic. A related purpose
was
to prevent the accumulation
of extorticnate earnings by an in¬

dustry vested with public interest.
j

state rates

restraints

authority

Regulatory

terstate
•

intra¬

over

granted to

was

remove

the free flow of in¬

commerce.

With

the

changed character of

transport organization and the de¬

velopment

increased

greatly

regulated and unregulated service
and cost competition for traffic,
there is no longer a need in the
-

continue the
present scope of rate controls if
the Nation is to have a healthy
common
carrier industry, and to
help assure the most economic use
and needed development of our
public

interest

The -value

method

any

most

of service

instances

competitors

today for

transport

fixed by the

rates

by the cost at
which the service can be privately
performed
by
the shipper. As
there are differences in the qual¬
ity of service and in the ancillary
costs

the

shipper,

forms

-which

service

service attended by ad¬

ditional
per

costs

borne

directly must
which is

advantage
the

have

transport

rate

though it

secure

was

one

inferior

by the ship¬
have a cost
reflected

business.

the

traffic

question

effective,

become

enter upon a hearing conaccord with the real capabilities
cerning their lawfulness without
of the several types of carrier just
suspension. Upon suspension, the
as
they deprive the shipper of Act requires
simply that the ICC
many valid choices which would shall attach to the
-filed schedule
be

available

straint

him

competition

its

rate

were

free

from

character

re-

and

timing. There is, however, danger that unrestrained rate competition

result

may

undue

pression of rate levels. While
petition

de-

com-

for traffic will gen-

reasonable

may

an(j deliver

riers

level, the

l6 Commerce Commission
to restrain

should have authority

writing

ever,

rates

until

excessive
non-com-

ive.

protection against

discriminatory picking and choosmaking of competitive
rates.

Hence it is proposed to continue

regulatory authority:

shall

not

carriers subject to the
Commerce

reasonable

less

than

minimum.

which

Act
a

just and

The

Com-

proceeding

that
rates should be

new

believes

special

ar/ now'given
without

unti',

ade

have new

the Icc

ma^er

and

un_

uate

ra4tes

opporrestric_

postponed

has adjudicated the

the

suspension expires.
practicable method of
indemnifying carriers for possible
or

•pjlere js

losses

the

(1) To prescribe minimum rates
common

how-

usua] remedy. However, those aff
ted
by proposed changes in

'yto

traffic

period

later
are

just

and

at any

revenues

i| it is
the rates
reasonable.
Morethat

hearing involving

proposed rate change,
usuaj

mittee believes" that rates are un-

over

suspension

determined

over,

practice

contrary to
complaint

reasonbly low when not com pen-

actl0ns under the Administrative

Al¬

satory, i.e., when they fail to cover

Procedure

objec¬

the

direct

ascertainable

cost

of proof is

Act,

upon

the

burden

the carrier to show

and

the

charging

from

than

These

might be justified if
no
competition " for

wore

petition

the

com¬

evenly distributed
among their stations and equally
potent at each. /
were

varying

the

termediate

they

only

ICC

determines

factual

information

have

period

be
The

three

requirement

burden

that

months.

places the
the carrier

proof upon

proposing
be
•

changed

continued

rate

except

should

cases

where the protestant is also
rier.
■

car-

■/

may

not take. The
is, are the

may

question in such
railroads entitled

cases

from

unwarranted

point exclusively by a com¬
peting pipeline, railroad, water or
other carrier?

Should

instances

would

eliminated

and,

the

one

the other, adequate

emergency relief would still be
available
in
situations where a

ment to section
ures

remain

tion

4, remedial

available

which

The

interest

shippers

alike

demands

that

cedures

should

ingly.

Although

marked

adjusted

the

above
the

dockets,

should

use

recom¬

produce

decrease

number

the

Com-

every

tion.

Bureau

Accounts,

Cost

long

erned

(d)

based

rates

are

cost

established

competition

field and in

tation

haul

traffic

volume

point of origin to
tion.
denied

these

form

what

constitutes

com¬

addition, the ICC's
of

information

operations

This

resources

developing current
covering

and

transport

the

movement

strengthened.

sh*qld

knowledge is essential if the

Commission is to effectively carry
out its

tions.

one

cost.

The public is
benefits

placed

when

the

volume

way

move-

Consequently,

carriers
permitted to make in¬

minimum
weights
and
rates, provided that such

are

open

to all who

upon

equal terms

wish to use them
provided that such

may

further

.rates meet the compensatory test.
Price differentials having a suit¬
able relation to cost

pensatory rates.

means

rates

and

from

cost

are

centive

basis for the Commission's judg¬
of

should

volume

meet

single destina¬
loading produces

Heavier

provide

the transpor¬

clearly lies in heavy long¬

measuring

order

are

distance and large-scale transpor¬
tation. It is invariably cheaper to

m e n

Make
as

The prime economic benefit of
rail, water and pipeline transpor¬

extent

costs

com¬

competition.

of lower rates for

current information for

short

differences which

should be strengthened to the full

transportation

Volume Freight Rates

RECOMMENDATION:
lawful such volume rates

obstacles

necessary for it to carry
studies
and
research
on

and

by the Interstate Commerce

Finding and Valuation of the ICC

its

applicable to

carriers by

lower per-ton

traffic

pre¬

Act.

pro¬

possible
method for expediting such litiga¬

and

water, as well as
by railroad, it may be noted that
comparable provisions are not ap¬
plicable to
motor
carriers gov¬

and

needs accord¬

should

suspension

mision

sec¬

undue

preference

the

haul clause

action

prompt

their

While

mendations

carriers

administrative

accommodate

ment

meas¬

under

prohibits

•unreasonable

showing indicates its de¬
sirability.

where

jected to undue disadvantages by
reason
of
this proposed amend¬

proper

tation

arise

economic interests would be sub¬

mon

shippers
on their
pricing adjustments. Un¬
necessary suspension of new rates

cost

them¬

tant

at¬

tacks by competitors and

make

selves competitive or is the traffic
to be hanaied to tne further dis¬

protected

creating preference
They are already

judice.

circumscribing the power
suspension, carriers would be

hand

not

prejudice.

roads
.

suspension

shortened

lower to

are

regardless of any action the rail-

adequate remedy.
should

the

of water service to
the 'further
distant point and will continue —

sup¬

its

when

instance)

present by virtue of the existence

the

are

and

sus¬

should be exercised

and

(for

point which is inland,

re¬

forces

power

seek

the further distant point which is
located on, water than to the in¬

transporta¬

competitive

degrees,

publish rates which

remedy this situa¬

making,

The

con'sidered

Interstate

practice,

the'

suspensjon Gf

Moreover, the shipper is
rates
protection against untunit
discrimination and carriers
lio

Committee;

The

peh

such

lower rate

than from

such carriers to meet

would result in

terminated

from

entitled

many

traffic which

just

car-

for

reasons

months.

seven

are

its

statement

At present the susperiod may not exceed

pension

rates

carrier

suspension."

carriers

charging

to the

affected

carriers voluntarily
their defer application of the
proposed

to keep rates within

serve

maximum

carriers

among

lawful reach

erally

enhtled

transport capacity.*

also allow the rates

may

which would result from

distribution

revisions

Also

Com-

rate

there

de¬

to be consistent with the

the

1910

been

policy which place

The

the

Carrier.
Since

level which
.

order

would

Unless

have

the protestant, or a re¬
own investigation that
the proposed
rates, or related mat¬
ters are probably
unlawful, and
'that
making the rate effective

Pe¬

Proof
Upon
Car¬
rier Proposing a Changed Rate,
a

which

rates

plied by

Authority to

that

pre¬

railroads

basis

Months; and, Con¬

Provision

charging

ex¬

been

The fact is, however, that com¬
petition exists between stations in

after

Con-

Changes

have

years

prohibitions

injury to the com¬
plainant, and that in the absence
of
suspension,
the complainant

Suspension

for

vented from

the aggregate of the intermediate

pension

Restrictive

Proposed

Shorten

hearing—the railroads, for

ample,

fre¬

higher

rate

suspension

intermediate

liance

Suspension Powers

from

tion

the

power

tion and

scril:)ea«

tinue

showing of need.

proposed

—

car¬

Except
on
the
Commission's
special authority — usually after

sult

RECOMMENDATION:

Reason-

Commission substitute its own

(b)

Minimum

capabilities.

certain statutory rules of rate
ma11*?^ disappears. This repeal
wu0.u1^. re™ov? °+ne of /hef m°st
objectionable features of rate reg-

traffic

revenue

general
in

wide

important in causing

through
creases

maxi-

than

ing
of
competition
only
and
largely denying them the right to
give effect of their full economic

reasonableness of rates are set
forth Wlth lts authority to exer-

e£fect
outstanding

Moreover,

Less

prove

have become
unduly restrictive,
holding the carriers to the meet¬

thus

unlawfulness t able Rate.

veloped for determining the law¬
fulness
of
suspended
schedules

in-

^incfv, p?™c" 5 standards to
Sul^e the ICC in determining the

long delay

required

proper

standards

basis
is

commerce,
,

petition and the Charge Is Not

competitor

number of complaints are filed
by
carriers.
In
this connection the

on interstate traffic in
degree shown to burden inter.

allegations

Route in the Same

Direction, the Shorter Being In¬
cluded
Within the Longer, if.
Necessary to Meet Actual Com-

reductions and by far the grestest

jy in force

Same Line

Rates^

protested changes in rates involve

consistent with the basis current-

carrier

not

of
and
for
Charging Less for Longer than
for Shorter Distances Over the

there

why

Charging

Aggregate

Intermediate

for

than

quently has been used by compet¬
carriers merely to delay de¬
Currently, nearly all the

com-

which

rates

reason

Approval

Greater

cisions.

inter-

and

Prior

ing

found

where state

commerce

upon

effective,

sound

Re-

Requirement that Rail or
Water Common Carriers Obtain

reasonable prior

becoming

The

to characterize any existing rate
relationships, including the relationship of rates to be maintained
state

RECOMMENDATION:

upon a

prefer-

are

Long-and-Short Haul Clause
(4th section)

particularly when temporary re¬
lief during suspension is available

traf-

rate

his

unjust

undue

in event the latter

ences

rests

..move

proposed change in

is just and

should

exceson

avoid

effect,
is dif¬

justification in
of shippers for
requiring

case

its

^3^ <j,Q determine rate relation-

which

remedy

complaining

fic which is non-competitive,

ships

there

appears

the

shall

unreasonable rates

rates

carriers

from

prevented
sive

respect

which

end

the

effect

and

with

already

carrier to assume the burden of

extent

proving that

into consider-

discriminatory rate cut¬
and to maintain reasonable

unfair

the
a

In this

brief, these rate maladjust- changes in rates pending a de¬
ments, in part enforced by regula- termination
of their
lawfulness.
ti°n, deprive the public of the The ICC

pricing

While

be required to take
the

(c)

rate

him to prove that the assailed rate
is unlawful.

rates

ation

rate

changed

reasonable.

complainant's

connection the Commission should

competition

proposed

ferent, for the burden

cise minimum and maximum 1 ate
relationships. Especially controls, the need for present un-

cost

and

provided,

ting

the same^rate regardless of

name

its

shall

just

maximum;

performing

*ctmlarge part state
notwithstanding

carriers,

for the

considered lawful.

terrrt&,of cost and

Present^

since

discrimination

practical

determine

the

intrastate

that upon a finding of the

means

cise

authority

any

against interstate
merce.

that

preference

that

being investigated is

mission

■

com¬

its juris¬

unjustly discriminatory
unduly preferential. The Com¬

subject to

upon

sonable

rate

exact

carriers

mon

be-

judgments of the utility

exist

with

Under current provisions of the
Interstate Commerce Act, the ICC

under
as

and

ages

that

that rates cannot be forced by the
Commission below the full cost

ad.

which

excess

reasonable

service

whi<3^ regulation is at
least partly
responsible.
It the
mar^e|||is to determine
the
appropriate,||se of each form
of
transportation! in accord with

cost

dis-

for

fleet

is just and

carriers

common

not

oiLc^rriage discloses

incqnja&tencies

service

(2) To prescribe maximum rates
Gf

cost

relationships

essentially unscmnd
uation

they

minimum
>■

tween fornjs

terstate

Commerce

some

Howevfr, analysis of the

e-c o s

regulatory authority of the In¬

the

for

intermediate

ice, rates must

RECOMMENDATION:
■

both

stand-

which traffic is distributed

to them

.-V;

cost

advantages

for

hand,

of commodities have

advantage

the

longer which such rates apply exclusive

other

o^ transport,

have

shippers

(a) Maximum-Minimum Rate

have

shorter movements, and

type

some

over

the

service Jand

point,
Rate

others

over

modes

from

that

movements

.carrying out the above declara¬
tion of policy.

secure

toward

transportation

distances.

Forces

transition

indicates

•and

Analysis of cost and rate rela-

forms

Increased Reliance

1935

this
objective has not been attained.

shall be construed, administered
enforced
with a view of

Carrier Act in

cost-of-service rate structure,

be
spe¬

conditions

the rates apply,

individual modes

producing

tor

transport.
All the

;

regulation

(2095)

tives of the enactment of the Mo-

com¬

impartial, without

„

petitive capabilities; and
(5) To require that such min¬
imum

necessary

regulatory func¬

accepted in
and

the
in

services

are generally
pricing of goods

all

parts

our

economy.
A

Modernized

and

Strong System
Carrier

Financially
Common

Transportation

Must Be Maintained

Historically,

common

service has been recognized

Continued

carrier
as the

page

The Commercial and Financial Chronicle

(2096)

Continued from page

Rail Regulation

only if they
clearly substitute for a feasible
private carrier operation and do
not perform common carrier services which would ordinarily be
strong system of common carrier undertaken by common carriers,
transportation.
Provision should be made for conAmong such developments are version, after hearing, of existing
the
rapid
growth of privately contract carrier permits to comoperated fleets of trucks, the rela- mon carrier certificates where the
lively less regulated status of con- carriage is not that of a contract
of

core

transportation should be so regarded

our

Yet, in recent years there
a
number of developinents that have mitigated against
the maintenance of a financially

system.

been

have

carrier

service, and statutory

tract carrier

able services.

deiined,

above

the

definition of a com-

publication

contract earner who

entirety at their option.
The purpose of these recommendations is to protect common

lie

property

provided that the
not

was

acf"red Jor

wh0

tion.

are in

exempt rate. It is claimed that
conformity with the requirements
for exemption results in operating
inefficiencies such as smaller
tows, and poorer service to some

shippers.

exemption

contracts in

effect engaged in comoperation
without

The

undermine

the

carrier

common

ity to carriers now engaged in
the transportation of bulk com-

within

disparity

this

(d)

compete effectively

war.

The Commission has

that where

Na-

requirements

so-called

pointed out

private car-

riage is a subterfuge for engaging
public transportation, it con-

stitutes

growing

menace

shippers and carriers alike; is injurious to sound public transportation;

discrimination

promotes

between

shippers;

and threatens
existing rate structures.
Provision

should

for

made

appropriately
franchising,
upon
application, either as a contract
carrier

carrier

common

case

private

operating

continue

provisions

new

would

operate as private carriers
the

who

legally
who

but

entitled

carriers

be,

carriers

Jiot

may

been

under

the

Act

and who make application within
a

vide

RECOMMENDATION:

Rede¬

fine motor and water contract
carriage

as being that transpor¬
providing
services
for

tation

hire but otherwise

bona

fide

private

equivalent to
carriage and

for

determining

those

";T

™

Pro¬

P LXrmnr!

rates

are

abandonment

and

which

entitled to

on
ex¬

formly
state

these

subject to
regulatory
commissions

These

0n a

den interstate

and

unduly

bur¬

foreign

com¬

facilities
of

this correction is

illustrated by the fact that the
Act exempts from regula- railroads have suffered for many
f^011 tbe carriage of commodities years from a persistent and creepin bulk when "• • • the carS° space ing malady of unprofitable pas-

require that actual, rather than

modities

minimum, charges be filed.

ties

are

than

three

com-

non-exempt commodi-

being carried.

It is

rec¬

that

however,

gov¬

procurement

practices
exigencies af¬

desirable

un¬

approval of
commissions.
shown

have

are

irrespective of

than

the

law

fic

move¬

channels

re¬

existing statu¬

authorizing

provisions

car¬

tender

way

which

the-

preserve

the

accommodate

movements

Commerce

abuses.
Except for rates and fares sub¬
ject to security, such special gov¬
ernment rates and fares should be

published

enactment

tariffs

accordance with

and

filed

the provisions

the Interstate Commerce Act

and

regulations thereunder, provided
that filing
and publication re¬
quirements of the Interstate Com¬
merce

Commission may be waived

application of such rates;

assure

fares

notice

than

less

statutory-

retroactively.
enactment of legislation*

Upon
to

the

above
savings

accomplish

mendations,
should

be inserted

recom¬

clause

permit car¬

riers sufficient time to review and

sions

provi¬

existing

then

incorporate

Section

tenders

published tariff form.
of

Members

visory

Ad¬

Presidential

Committee

Transport

Policy and Organization:
Sinclair

Weeks,

Secretary

Chairman.

Commerce,

Charles E. Wilson, Secretary

Defense.

Arthur

Fleming, Director of

the Office of Defense Mobilization.
Ad Hoc

Participating Members:

George M. Humphrey, Secretary

Act.

Commodity

yet will overcome*

the present

consideration I be

Ex¬

emptions
the

commercial

features

the

such

ing this principle to carriers sub¬
ject to Parts II and III of the

Agriculture

peculiar

States, State, and Municipal Gov¬
ernments should be amended iix

given by the Congress to extend¬

Treasury.
<E*.

Arthur

Summerfield,

Post¬

master General.

Part II

the Interstate Commerce Act providmg for the economic reguiation of service by trucks, the Con-

Ezra

Taft Benson,

Secretary of

Agriculture.
Rowland
Bureau

Hughes,

the

Budget.

Director,
w

senger

are

when

also,

special govern¬
ment rates and fares to the United

service
operations.
The gress exempted from regulation
transported is being provision of freight and passenger trucks carrying certain agriculused for the carrying of not more services by railroads constitutes a tural products from farm to marthan three such commodities." For common enterprise. Consequently, keb
purposes of the Act, barge tows
the actual losses incurred from
These exemptions have grown
are
considered as single vessels, passenger service operations must under current court rulings so that
Economic regulation is applied to be borne from earnings realized
now, for example, the ICC has
bulk commodities in a vessel or a from freight service. Thus, in final
before it a case involving the
tow

rate

public interest.

the

riers

state or the order of any
authority. We believe it is

(f)

Part III of the Interstate Com-

com-

the

tory

any

state

available.

merce

such

Inter¬

granting free
transportation to

For these reasons

discontinuance of such services or

Interstate

need for

the

quire special consideration.

available to meet
*
the public need, it may order the

portation

provided reasonable ade¬
quate service in lieu thereof is
The

distinguished from normal

reluctance to grant permission be°?P
Li) nWctf
curtailment irom local interests
and
ei?JP .ye.e^*. f.
has held that its jurisdiction ex*encls 01J
1 e comPiete aoandonment of line and operations,

merce

plicable to other transportation.

reduced

distribution of volume freight
f
i
non-profit basis for the purpose of securing lower rates, although termed non-profit, in fact
absorb costs which include overhead, and the expenses involved
g0 beyond those paid to a carrier.
In order to alleviate this situaeffect, this exemption opens the tion> the Interstate Commerce Act
way to establishment of non-reg- should
be amended to provide
u 1 a t e d
forwarding enterprises, that where the Commission finds
Definite statutory standards that continuance of unprofitable
should be provided as a basis for facilities or services imposes an
determining which of such asso- undue
burden upon interstate
ciations are entitled to exemption commerce,
and that adequate
and which should be subject to service by other forms of trans-

otherwise

Section

government traffic has given rise
to abuses and evils which are not

shipper or shipper asso-

by carriers of that por¬

use

state Commerce Act

deficits. Service abandon¬
however, are almost uni¬

ments,

ciations involved in consolidation

loss

Require¬

Where National

in Cases

Curtailment special needs of government traf¬

improved highways.

senger

Some

that ap¬

The
tion

portation service, particularly by

empt status.

subject such transportation

to regulation similar to

nartjri1iariv

Fai"s> Parilculari.y mose
no

non-profit basis for securing

lower

Authorization,

Filing

Security Is Involved.

ment

of volume freight

and

Provi¬

Haul

With

and

Waiver

ments

profitable trains offer a means of
substantially reducing the pas¬

bulk commodity exemption
applicable to water carriers so

for

ernment

tribution

the

stances

^tinns do" not^ r^od^

stand¬

statutory

Subject

sions, With Authorization for
Application of Special Govern¬
ment
Rates Retroactively
and.
on
Short Notice in Special In¬

ognized

shippers or shipper associations
involved in consolidation or dis¬

RECOMMENDATION: Repeal

modities

(b) Contract Carriers

definite

ards

because they

0f the vessei jn which

specified period.

tions

but

Suspension

Except

Long-and-Short

reauired

are

Rates

fecting movement of its traffic

have no means of determining the
actual rate charged by contract
carriers.
For
this reason, the
Committee advocates that the Interstate Commerce Act should be
amended to require the publica- regulation.
tion of actual rates charged to(e) Service Deficits
gether with the contracts and
RECOMMENDATION: Em¬
other descriptions of the services
power the ICC to override cer¬
to be rendered by contract cartain state service requirements
riers.
if continuance of such service
(c) Bulk Commodity Exemptions
would result in a net revenue

the

have

ing)

s'
ma"y ^ases
°Peratlons, «e
' Forwarder Associa- no longer needed ^because^ of the
development of alternative trans¬

RECOMMENDATION:

not

bear the main burden of the

.„

common

Government

Such Rates to All Provisions of
the Act (Including Public Fil¬

Federal

the

Con¬

Authority for Carriers to>

and

if application is made
stated period of time.

modities

possible for common carriers to

in peace and

utilitv
certifi-

satisfactory servke for
segments of their transportation plant for which public au-

motor

authority

state

publication of rates are also
lenient to contract than to

Due

RECOMMENDATION:

tinue

Establish Voluntary Special

transportation system which must
tion's transportation

rail

carriers

Rates
issues

basic

maintain

|ng appropriate operating author-

carriers. The former are
dise
required only to post their minifrequently
sound
economically, mum rates in contrast to the reThe problem is created by those quirement
that actual rates of
practices of private carriers which common carriers
be published.
handling their own merchanis sanctioned legally and is

pers

the nature
require-

vision should be made for grant-

operations should
distribution of

private carriage is
practice of ship-

Legitimate
not in issue.

with

competitive

either

managers.

public

the

common

the

ernment rates merits attention.

business

under

cated

ment for special equipment, is not

the

transportation

by reason of
commodities

which,
the

0£

p0r

prudent

Governmental

addition

transportation policy discussed
above, the special problem of gov¬

common railroads. In unregulated business
an(j contract water carriers en- enterprises, prudent management
gaged in transportation of such WOuld abandon even at the loss
commodities on the inland water- 0f capital investment, any plant
ways, coastal waters
and deep or product which for'any period
sea r0utes, and the Great Lakes. 0f time
operated at a loss or
However, the repeal would not showed no prospect of becoming
affect the bulk commodity exemp- profitable. The common carrier
tion now applicable to the trans- transportation
industries,
howportation of such commodities by eVer faced with a similar situa-

Znarenot^

Special

regulation

Commission

having had to demonstrate the
"public convenience and necesthe owner's products and supplies sity" of the service offered.
from plants, the distribution cenThere has developed an area of
ters, and the return haul of ma- conflict
between certain motor
terials to be used in his own oper- contract carriers and
competing
.^tion.
motor and rail common carriers
A primary problem in transpor- over whether the contract carriers
tation at present concerns the in- are not, in many instances, actufringement
of
private
carriers ally performing a common carrier
upon the field of common car- service.
These contract carriers
riage and the need for remedial are taking substantial blocks of
action in the form of more effec- traffic
in
their service ■ areas
tive regulation of private carriers through
excessive numbers of
or enactment of legislation to deshipper contracts constituting in
lineate more adequately the prop- effect common carriage. The proer
place and status of such car- visions of part II of the Interriers.
state Commerce Act with respect
limited

part by trains showing passenger
profits.
Moreover, these data
make no allowance for return on
investment in passenger service
facilities nor do they reflect the
cost of transporting fuel and materials for the benefit of the passenger service,
These substantial losses have an

legislation.

Repeal of the bulk commodity extremely adverse effect on the
exemption would bring under overall financial position of the

carrier

mon

Private truck

III.

carriers against contract carriers common carriers. Of course, pro- thorization has been given.

of such tiansporta-

the purpose

of those

the

train losses have been offset in

and

the owner,

their contracts or

because individual company and

This procedure is often
which case they
must quote published rates with
j-isk of losing the business to
another carrier quoting a secret

theory

under

tion

fail

impossible, in

of actual rates, charges, and ters. Nor would it disturb the
affecting transporta- right of contract carriers to seek

riers

These

reveal

1953.

however,

the full extent of the total deficit

non-exempt com-

regulations

Rede-

a private carrier by motor
vehicle as any person not in-

-fine

mon

occurred

—

figures,

7IpcIp

transports propeityof which

lion

be amended to require the filing ^ntract carriers in non-ocean
publication by contract car- going vessels on international wa-

Private Carriage

eluded

years,

modities.

To further assure that motor
and water contract carriers will
operate in their appropriate roles
in the transportation system, the
Interstate Commerce Act should

carriers.
To this must be added the large
deficits
resulting from
the enforced maintenance of unprofittraffic from the common

RECOMMENDATION.

other

benefits of the ex-

the

tows to exclude

where the holder of the permit
makes application within a specified time and shows that he is
posed on common carriers. These engaged in bona fide transportadevelopments have had the effect tion for hire Which is not contract
of diverting profitable sources of carriage as so defined.

nvmMMVNnaticiN•

the

emption they must segregate their

by water of commodities in bulk
from the regulatory controls im-

(a)

operations,

obtain

transportation

the

exemption

Thursday, May 5, 1955

hand, need not publish their rates
and are able to obtain competitive

Recommendations of Cabinet
liard

1942-45. The deficit aver- to allow it to testify on this com¬
The
Act
should
aged about $250 million annually plex subject.
between 1936 and 1940, with the be clarified to indicate what ex¬
traffic by quoting lower than the annual average rising to nearly emptions the Congress now wishes
published rate. -Common carriers $625 million between 1948 and to give without undue interfer¬
by water contend that if they are 1953. The peak deficit—$705 mil- ence with the main purposes of

empt

Group

analysis, the railroad shippers of
the country are being required to
subsidize in substantial and grow-

Joel Cooper Returns

To Willis Burnside Co.
Willis
30

Co.

Inc.,
City,
that Joel Cooper has re¬

Street,

announce

turned

Burnside

Pine

the

New

firm

York

from

question of whether green coffee military service.
and cocoa beans are "exempt"
commodities, although neither is

active
t

George Stewart Admits

ing amounts those who benefit produced by any farmer in this
On May 15 Emanuel J. Matkowfrom the utilization of passenger country. A continual expansion
tract carrier by water provided in competing service in the carriage train services.
of these exemptions could destroy sky will be admitted to partner¬
the Interstate Commerce Act of
bulk
commodities, are fully
Class I railroads have incurred the fundamental purpose of the ship in George Stewart & Co., 350
The

rier

definition

motor

contract

vehicle

and

car-

con-

.should be sharpened to make clear
that

such

•cialized

carriers

nature,

are

and

that

spe-

they

Both

mon

railroads

carriers

and

many

com-

their

water,

regulated, including the requirethat actual rates be published. Bulk water carriers in exment

deficit in their passenger service

operations every year since

1930

the

war

with

the

exception

Act.

Fifth

York

City,

the New York

Stock

Avenue,

The ICC which has jurisdiction members of
in this matter has asked Congress Exchange.

New

Volume

181

Number 5426

The Commercial and Financial Chronicle

(2097)
Continued

from first

m thai- W9i^ to describe

page

cent

progress

tion—is

far

re-

efficient

from

tasIC
of

have

learned

that

and

equipment

another

are

all-time

„

1955

new

business investments in

plant

likely to set

record.

they have
Washington
the

that

dynamics

the

American

stronger
Our

wide

making for stability

business

action

the

understand

fore

the

private

People

virtues of

has been

the

kind

There

—

which

open

new

the

open

thousand

kind

bechoice

economy

the

lion

possible.

economy
because
headed toward an

scheduled
r,

Force
am

the

and

today

and

the

that

the

have

past

the

and

rededica-

faith

growing

continue

business

will

keep

ahead

long line

World

have

few

force
moving
us
all
ahead into that open future is the
creative force of competition.
At
time

which

our
new

bumper
during and

yeais

War

years grow up

Competition

urging

firm

will

II.

And

years

and begin to

their

marry

children

own

from now, the popula-

tipn will really begin to

The

war

experts

census

re?cb 190 minion by 1965
million by 1975.
All of this

grow,
it

say

will

and 221
.

JhatAmencra
out lor

business has its work cut

it.. The challenge

our

specialist

once

en-

com-

are

the

competitive

business

sounded

build

atomic

plants for the strictly comproduction of electricity,

power

mercial

this

means

that

the

industry

power

greatest

the

wing of

From

interest

govern-

now

the

competitive
private managements test the comparative efficiency of rival methas

ods of power production.
we

are

before

too

many

passed, the
to

told

that
have

years

use

atomic

energy

steam

make

electric

will

current

being

now

followed

the

0f atomic batteries which will

use

convert

into

nuclear

electricity.

directly

energy

Think of the

markets

that

will

one

development

this

Think

the

cause

equip

new

opened

alone,

revolution

will

our

way

offices.

In every other branch of science

the

selling

job

from

coast

good

schools

mended.

for

the

can
generate

that
make

educated

better

asset

Another item

high

unfinished

building of

for

Within the lifetime of
in

this

auditorium

processes

its

building.

all

ade-

the

other

permitted

that Americar

say

favors

You

not

are

special
want

mate

for

continuing

work

that American

been

doing

from

here to

consideration,

you

the

right
do

the

business has

successfully

cli—

*tc

now

ndvorat;nf?

arp

relfanrP

m0rp

of free

You

tried

and Drivate

not

are

,Lc
and

interested

system of sheltered

highway

the

svstem

rovpn

soundiypromoting

finance

asks

demand

What

our

program

Washington

co™d

investment if

schools

business

iob

business

is possible that the
great deserts small compared with the nation's
wili be irrigated with water from, mterest rn a
large-scale,

the unknown. fresh by
sea-made
yet

which

one.

and

today when I
the

speak from conviction. Great
interest is, however, it is

safely

sound

was

this

future

atmosphere that
encourages competition
I know I
speak for Vou businessmen here

adequate system of
roads and highways. Those of us
who are in the business of build-

that

the

can

defense

tion

technology similar gains are ing and selling automobiles have
being made. We are on the verge a deep and immediate business
0f
harnessing solar energy. We interest in better highways. We
are
tapping the ocean floor for speak on this subject often and
petroleum.

quate

list

business

thinking
our
big-

things that are being demanded
by our great and growing civiliza-

goods

the

are

one

vest in highways

business.

This country will be ablp to in-

business-

communities

markets

and services

against

there

ever

responsibility and
They also know

carry
ideas.

well

last

country

now.

of any organization is people well trained, well balanced
people

who

concluded

charge

is not entirely altruistic. It makes
good sense from a practical stand-

Foward-looking

the

enough to fill the country's needs
Many of the nation's wisest head*

erated in the minds of the
young,
But business
support for schools

know that the greatest

I believe that
anything less than

have

point.

countrv

aware

the size of the
program suggested
by
the
President
is
less
than

are

society. They know that the real
dynamics of the future are gen-

men

action.
this

gest challenges.

good

made

big enough about

They know that

make

cost
of
our
obsolete
system. At last they know
the tremendous
advantages to the
economy of a road program on the
scale
the President
has recom-

giving strong support to the drive
for better schools.

been

call

road

and

some

Problem

enormous

To their everlasting credit, businessmen

design and

homes and the way we
and
operate our factories

build
and

the

achieve,

people

the

have

we do, the economic activity we
generate—all these will determine

atomic

moving out

—

na-

the

last

how much the nation can accomplish in building school facilities and attracting a continuing
flow of talent into the teaching
profession.

planning

What

The Highway

community of America. The new
products we create, the efficien-

groups of electric power producers
are

were

rapidly

cies

when

the

providing ?n

to
keep up with them.
Just a
few weeks ago the Atomic
Energy
Commission announced that four

for be-

future

rapidly

those youngsters born

un-

principal

ino

our

since

....

atomic

control.

A very important record

crops

open

always

open

country is going to watch with the

sixty

recent

reconsideration
tion

future.

Creative

What

that make

field

developments

ment

confidence,

But

thousand babies were
born in the United States. This
was the biggest
baby crop in our
history, but it was only the most

„

change

one

set last year when four mil-

was

wants for himself

the freedoms

the

fast that it takes

task

under

its work

reasons

driving

economy

records.

toward

heavy demands

man a

roads

life he

all

course

make

and
his
family.
It is an open
economy because it is built on a
belief in constructive
change—and
upon

the best

demands

gives every

atmosphere

population.

future.

Ours
cause

the

One of

developing the unfenced frontiers
of

only

from

and

fng confident about the

economy

exploring

and downs for

ups

business continues

growth.
Ihey
American
business

prolonged depression in this Country if
competitive

enjoy,

fu-

companies,

will

serious

for

geared

creatmg

that

economy
as
a
whole.
there need not be
anything

system of

civilization

our

the

ihey know it

major force m

possibilities

be-

ever

ing

bigger,
has

always the possibility

ergy new

economy

individuals

they

They know it has opened
know

and

are

ture.

"is

avenues

l,h tailure a?d success. ,for lion's newest industry-the
and
for

con-

our

enterprise

open

future.

open

ture there is

are

than

that

Family

optimistic about

bigger

and

because

future

better

and

free

g
fident

the

we au recognize that there is
no
ironclad guarantee that it will go
right on becoming stronger and

economy — an Administration
which has formed and executed
many policies

for

feel

the

road program

growing population. Here again,
The present Administration
has
opportunity our ability to do this job de- roused the nation
to the
urgency
opening out into the fu- pends directly upon the perform- of
the highway problem.
It has

thousand

long-range prospect for the
economy—but at the same time

People

conscious

Cars

adequate
carried out.

busi-

adequate education for

Automation

the

know
Administration in

...

More
All

confident because they

are

Industry!

automatical

is frgh on the agenda

the;nation's

ness

indeed.

For Motor

to 40% of all traffic
accident*
could be eliminated
if an
up

being a threat
of any kind.
Instead, it is a timely
■blessing—a very timely blessing

1955 Can Be Best Year

which competitive business
makes
major
contribution. : Another

SnffiLTYou a"d

strength and effieiencv
big and exThe most significant of all the
Year after year we have seen A"ave
forVpd in the heat of coinc,lting- But there is one aspect of advances made in recent years the number of cars and trucks in
obvious than in the present pe- the growth in our population that
l"e, "T"
"""
are
those made by medical sci- "se
grow
steadily and rapidly.
™' V"®
' *
riod.
Competition presents itself Presents us with a more than or- ence.
The recent announcement We
have
seen
tremendous adto
the
American
a^d I know that in the busipeople as
a
dinary challenge. That is the fact about the Salk vaccine and its vances in the mechanical excelcontinuous process of creation and that the working population, those
„p° lifp nf this countJv no corngreat victory in the fight against lence of our products.
We have
W
change—in which competence and trom 20 to 65, will increase much infantile
^
h
paralysis thrilled all of seen great technical progress in pd"y_
progressiveness are rewarded for more slowly than the population us. other
no comequally important vie- the fuel that powers the modern

values

competition

been

the

„

bringing
•of living.

new

permits

<ess

and

better ways
The speed of this proc-

business to remain

born in the

static.
In

this

competitive

innovation,

Tin

stake

out

around

hi*

claim

and

littl*

ran

and

virtup

Gains

world

products

new

nnn

riehts

*vi?
y

hold

cnoattpr'c

can

his

held

nnlv

I speak of the virtues of competition with conviction because
current

experience.
Many of
know that my own company

;you

has

helped
in

year

the

set

the

this

pace

automobile

business,

JBut we know that to consolidate
the gains we have made we must

hard

rnove

right

fast

moving.

for

son

and

our

and

—

keep

This is the

nine-figure

rea-

invest-

this

rnent

year in the company's
.future—not only expanded plants

for

building engines, bodies

and

transmissions, but also sharpencreases

research

facilities

Our

own

and

will

that

ficient

and

one

Beautiful

useful

automobile is, the
row

will be

people's

continue
in

nf
of

this

even

cars

other

ac-

ef-

tomor-

responsive
will

markets

new

industries.

power

use

the

are

confident

will increase
greatly.
one-car

familv

the minority—and
tion

three

of
or

families
more

and

before

years

but not

years,

that

By 1975

could
lar*e

its

nronorp

may

cars.

using

tories

other

over

diseases

are

to follow.

SUre

Every achievement we make as remarkable advances in the denation—whether in science, the sign and construction of
superarts,
education, or the general highways and expressways and
welfare—will depend in part upon traffic controls.
Wherever these
the strength of the
economy. And advances
have been made they
the
better
the
performance
of have generated new values—for
business

the

likely

faster

advance

our

working age. The
population is growing fast at both

those

other

fields.

eraq

anr}

si0ur

the

The job ahead
is to produce
enough goods and services to meet
the

needs

rapidly

growing
population with a slowly growing
force of productive workers.
To
d0 this job
successfully will take
the

ingenuity

engineers,

our

the vision and hard work of

man-

agement, farsighted policies on the
part of labor, and heavy investments of capital.
It will also require a continued understanding
and

constructive attitude by govtoward the needs of the

ernment

have heard

tomation
cerned

visible

lot about

plo.yment.

Some are
its
threat to

Automation

new.

only

au-

conem-

really
a

new

name for the

constantly improving
machinery and power so
perform work more effi-

use

The

result

this

con-

tjnuous development is to raise
productivity,
multiply
opportunityj and raise the ge£eral stgnd_
ard

make

living.

the

our

years

will help

Any advances we
production method?

immediately ahead
to expand the econ-

omy

and, at the

por^

tion.

same

time,

greatly, increased

automation—if

sup-

populawe

want

the

importance
in

the

for

suburban

interstate

develop-

the

of defense

depend

upon

business.

given people

streets

made

the
and

start

kind

toward

roads

highways

and

Some states and cities

have

made

an excellent start.

the

erating with a highway plant that
is hardly an improvement on the

program

af-

can

whole

ford is related directly to the size
of
the
nation's
economic
base,
The national defense will remain

facilities

strong

tern

long as we continue to
have
an
industrial
community
made up of strong companies that
compete and compete hard.
as

But

fense

job

our

the

experf

our

goods

businessmen

defense

job

and

program,

produce de-

services.

And

every time we succeed in cutting
the costs of producing tanks or

planes

shoes

rations

of the other million
fense goods and

and

or
one

buys from business
helping our country to

de-

for its defense

dollar.

one

competition

sense

pons

our

powerful

in
is

wea-

defense.

Helping
tional

most

itself

defense

only

strong
one

years

ago.

highway

money

sys-

—

big

our

to Congress on

message

highway

needs

President

the security

is.

when they
There

every

mile

that

means

average

they

one

drive.

nation

costing

for

opportunities

SOng

who

They

strikes

that

they

singing

are

fhe American soul.

response

We have been

of liberty for

long time

equally long time

have

exploring the fabulous

pos-

This

sibilities
in>
see

the

And

the

believe

not

one

succeed.

been

spending needlessly about $5 billion a year—in the cost of acci-

you gain

few people ir.
would build a
closed society in America —whc
would limit competition — whc
would prescribe the products of
industry and plan the level of
production and
consumption —
who would try to determine the
future in advance,

cent

are

good

may

midst

For

you

appear,

lovers

motorists

when

by exploring the tremendous
range
of possibilities in
this
Twentieth Century world—and py

Eisenhower said that the present

for

you gain

kn°w you are growing and ad-

highway inadequacies

are

And

wjn

In his

Far

money

na-

of the

nation's great challenging tasks to

important

would

save

quate roads is the

than
with

far

ahead

going

are

world

universe

what

live

you

car.

be showing

to
it

means

certainty

the

number

records

lives

lost

that

highway
On the basis of safety

established

highways

modern

dedicated

free and open and

wonderful future for

men.

Reynolds Adds to Staff

ade-

well engineered roads would mean
a
tremendous
reduction
in
the
accidents.

build

head.

roads and streets.

princip£i

this

costing

money.

Here

down—and

op-

elsewhere it is competition that
provides the
incentive

bringing costs

And this out-of-date

na-

get

for

had

still

are

dents, the waste of time and fuel,
and the many other expenses of
operating
vehicles
on
crowded

services the gov-

ernment
are

any

But in the

*
c
*
*
As a people we Americans knowthat there is only one kind of security that means anything. Thai:

need., our

the ingenuity and
efficiency of
private industry. And the size of
defense

his
lik

acting fast
have

building

tion

big idea in

vancing—the security

dom.
We

hear;

moving out into the open future

of free-

sense

and

reach

fire in his

and

They have made
They have

new

jth

and

travel

highway travel safer.

defense

reliability and to
design of the

great extent

weapons

businessmen

than

The

program.
a

contribution

our

lately.

about

nothing

ment,
resort

Nowhere

It is not

About Automation

industry,

trucking, and for the tourist

Business and the Defense Program

middle.

vehicle and the rubber it rolls on.
And here and there we have seen

many people of

ciently.

Whatever happens to the
design
ih*
the automobile and ifr
its

plant,

low,

was

business community.

modern

Research

create

when

those born since the war become
workers- In other words, we will
add manv millions of older Pe0"
ple and children to the population

the

and

the

needs.

rate

the

industry's greatest periods of
complishment.

birth

years

of expansion

belief

our

years

engineer-

manpower.

program

is evidence of

the
will

depression

during the next 20

norfnrmanpp

•of

as a whole. The young men and
women now coming of age and
entering the working force were

number

design,

highway engineers estimated that

(Special to The Financial Chkonicle)

SAN

FRANCISCO, Cal.—Tullis
M.

A. Hardy, Jr., Lew Micheison ana

William H. Bryan, Jr., are now
connected with Reynolds & Co
425
Montgomery
Street.

Bryan was formerly
& Co.

with Bailey

(2098)

a
A

through
National Speculative

Investors Group Cana¬
dian Fund Ltd., has been organcompany,

Series

the

under

ized

the

laws

Corporation

By ROBERT R. RICH
CONFIDENCE in the stability by

Do-

Securities

National

investment

Canadian

new

Sales Manual

Mutual Funds

Canadian Fund

Relatively High Income

Thursday, May 5, 1955

...

National Revises

I.D.S. Forms

Investing for

The Commercial and Financial Chronicle

tion

quarterly

1955

THE MARCH 31,

& Research

publica¬

announced
edition of

new

sales

its

J131"1?8, manual for the mutual

ob¬

Diversified Services, Inc., of Min-

economy

jective of which is to provide an
investment in a diversified group

neapolis, Minn. This company is
the eighth in the Investors Group
of affiliated and subsidiary com-

by Calvin Bullock, sponsor of
Canadian Fund, Inc., as it announced that the fund's holdings
of U. S. corporate securities had
declined from 9% of assets to 3%

the tour fund^indust^
Wisconsin
wnat Every baiesman
Fund shareholders on April 30 Should Know About Mutual infrom
net
investment
income,
* "_nd>
mf fya-page
showed net assets at an all-time leather bound, loose-lea £ manual
high of $8,628,523 compared with has been prepared by the cor$5,947,562 a year earlier. On a poration s staff for the purpose of

iin the year ending March 31,
1955 and that the entire balance

per share basis this was equivalent to $5.40 compared with $4.34

minion

mutual fund, the primary

of bonds,

preferred and common

stocks selected

because of their

involved.

Prospectus

information
from your

may

companies
than

the

Established 1930
120

company

Canadian

Commission proposes a

million

Some

request from the national

upon

medium

lation

865

Investors Bldg. 8th & Marquette

Minneapolis 2, Minnesota

■t

•

The

con-

investment

Fund's

the

dividends,

income

ordinary

and

any of

capital

rpali7pri
realized, hut
but

mav
may hp
be

reinvest

such

income

gains, thereby increasing the
a

cor-

ATOMIC DEVELOPMENT

in activities

uc
Inasmuch

as a

as" it
as
t

Canadian, not

corporation,

organized
organ zed

was

United States

because

and

its

proposed

methods

operating,

the

will

snhiert

Fund

not

confidence in the growing

United States
the

resulting

from Atomic Science.

existing

tax

1033 thirtieth street, n. w.

washington 7, d. c.

NET

ASSET value

Mr.

,terested parties that National Se-

purities & Research Corporation
to. revise it and bring it
date, including material on
Statement of Policy of

decided
Up

the

new

The Securities and Exchange Com-

region.

Zaugg will maintain offices

lrm ,ftth

in w»«h

mission.
.
No mutuaI fund
by name
aimed at

•

ls mentioned
as it is not

the manual

selling

particular

any

fund; instead, it is designed as a
Ba^es educational medium for
those interested in mutual funds
generally.
1
-y:
.

Ten Million Electronics Fund

Makes Initial Share
The initial offering of two mil-

of New York

its 23rd

Offering
has

year

than

175

Exchange, heads a group underErpf, President. Such asset value writing the $1D million capital TT r'
rjj ® 8Hpn" 8P
compared
with
$24,853,112
or
Tn^p<?tmpnt >nrnftr anfi~ rjpvelnnmpnt Washinutnn
Specialist 'in electronics research
$24.85 per share on Dec. 31, 1954
Electronics Investment Corporand $23,359,165 or $23.35 a share ation management policy as set
1 r
?->P^,rnh
on
Aug. 24, 1954 when the Fund forth in the registration statement «hVsicist in" basi^telLiSnn Secommenced investment operations, will be to maintain a widely di- Lnnmpnt 7pnith RaHh Pnrnnra"
As of April 27, 1955 net asset versified position in the higher
William S. Ivans, a director
nie>

chairman,

Armand

and

st^£

first quarter
were
Western Leaseholds, Ltd., St. Law^e

Corporation

rence

Limited,

laws;

ex-

Famous

Cor-

certain

^ofl'comp'any Ltaited^'WeJt-

benefits afforded

un-

mfoisYer

tax laws.

electroniS

°f ®IC. is chief electronics

Pmpnf^

ffc

rnrnLaf?nnS
Corporation

en-

8ineer and head of Electronics &
Engineering
vair

gan

Laboratories

Diego

division

Dynamics

Conof

Corporation;

and Bernard Koteen, also a direc-

Offices of EIC and its allied
™

Company;

Canadian

Players

than

General

Ventures Limited
Increases in
stocks Prevlously held included 1

Mountain Oil Pipe Line

laTfifi"/
fl

fnwstmenR n«ir

of its investments, other than government securities and cash, are

and

P°ration Limited; The Shawinigan

tax

"field

Eclulties added to the portfolio

during

and

fnaI^n&^0ha!® been estabI'shed

tor

of EIC,

and

Commission,

nications
^Qn

Ev^ry phas°e

Senior

Washing-

According

Charles E. Salik, President of world today
Pff.mes wilF*^be opened

former

Attorney of the Federal Commu-

Salik>

the

is poised on the
of

bustels'^nfusfoy

in New
i?1
Chicago, San Francisco, Los and home life will be affected by
the
lamnenfkbrieken- Aluminium Angeles and Dallas. Within six the miracles of this new science.
investor of large income. The inLimited- Cerro de Pasco CtJ^ora^"*11011^8
offices will be
'
i
opened in Loridon,
vestor of average income also may
tion; General Mining and FinahliEr 0Pened in London, England, and
This

tax

featurp

substantial

tax

should

rpsult

\
d:r /
benefit to

Canadian Westinghouse Gbumpbht
Limited

-a/r?

^•

_—.

ion Foundries and Steel,

tion

investment

the

investment

was

also

Limited,
made

Fund, until he desires to liquidate
his

convertible

Gjohn P^Hase"

well-known

ling

firm,

was

said.

debentures.

Inc

FACTS

Boston

investment counselhaS

been

retained

iD^Cstmen advisor to

EIC' The Ch|Se ComPany. now «n

Anglo American Exploration Ltd.

investment, it

INVESTMENT

Berne. Switzerland.

ment of personal taxes in eonnecan

*11

Corporation Limited; and Dor in-

with

i*r

find it advantageous to defer pay-

eastern

the world s largest exporter of
iron ore*

pected that the Fund will obtain

•

ATOMIC DEVELOPMENT SECURITIES CO.

taxes under

income

der present Canadian
GET THE FACTS AND FREE PROSPECTUS

econ-

in-

ap-

sale representative for the South-

e subJect t0 Crown Life Insurance Co.; Trans

companies participating

this

for

value Per share was $25'63-

responding extent.

variety of

reasons

other

to distribute to the Fund

asset value of the Fund to

the

heloful

and

labo^toi^

rather

managed investment

May

was

salesmen

Bon shares of Electronics Invest- accounts, with market values exment Corporation, a mutual invest- eeeding $250 million,
ment fund with headquarters in
Tpphn;rai
7?rr
San Diego, Calif., has been re- n
charlec qtark rtranpr Prntw
leased this week for public offer'
.
~
w'titntp nf
in the economic develop- Fund's quarterly report for the jng at $5.00 a share
William R. KJMXS °
of Canada.
They do not &st three months of 1955 issued Staats &
,
of Los Angeles
.v
tor publication by Henry C. Bru- member of the New York Stock n
Tn„pnh M
p ftit
p
f
"
fi

gains whirh
which

the

ann0Unced

effective

1951

dealers

in long-term capital Capital Fund of Canada, Ltd. as
growth securities of Canadian in- of March 31, 1955 was $24,991,dustries —primarily common and 272, equivalent to $24.99 per share
preferred stocks—with a view to- 0n the 1,000,000 shares of outwards
participating
over
t h e standing stock, according to the

shareholders,

intment

jjshed

in uranium and silver; and fourth

intend

FUND, Inc.

Fund

Mutual

Atomic Development

rapidly growing mutual fund in¬
dustry."
It
is the only manual
of its
kind.
The original edition pub-

principally

propose

designed to provide

NE'WTON I. STEARS, Jr., President of the

Jn copper, lead and cobalt. ShortCanada promises to become

capital rather than the

managers

centrate

ment

a me

which

receipt of current dividends.

years

MUTUAL

PROGRESS

$30,-

were

accumu-

investment

for

looks towards long-term

PERSONAL

Beale, consultant to Calvin Bui- a? 1033 30th Street, N. W., m Washcompany of the open-end type. It
lock> pointing out that Canada ington, and , will supervise the
is, however, a special type of mu- now ranks first in the world in Fund's relations with investment
tual
investment
company,
de- production
of nickel, asbestos, dealers jn Alabama Florida Georsigned to provide the well-to-do platinum and newsprint; secdild
■ '
'
'
United States investor in the up- in aluminum, zinc, cadmium, gold
Continued on page 4b
per income tax brackets with a
and . hydro-electric power; third

manager;

DIVERSIFIED SERVICES, INC.

Pared Wldl 3,873 a year ago.

omy of Canada were detaUed m
a recent statement by Sir Louis

Group Canadian Fund
Ltd. will operate as a mutual diversified management investment
Investors

distributor and investment

an-

in Canada,

United States, but not

Prospectus

was

assets

approximately 25% in per share
'
'
apiece, asset value for the year.
Wesley Zaugg as the Fund s whole-

distributed in the

Inc.,

Fund,

ago .which represents

common

$5.41

priced

Shares will

net

value of $1 per

shares with a par

share,

total

to the large

training information

The number number of men and women now
of shareholders were 4,624 com- m or contemplating entering the

167,097, equivalent to $15.24 per
Exchange share, as of March 31, 1955, compublic of- Pared with $12.22 a share a year

with the Securities and

time,

same

that

making available important sales

in Can- on March 31, 1954.

statement filed

The registration

fering

the

nounced

nipeg, Manitoba.

York

New York 5, New

Broadway,

Home office of
will be in Win-

$1.6 billion.

new

was

is invested exclusively
adian securities.

D. S. currently has

management assets of more

under

Corporation

these

for

distributor

and

visor

of
the
Canadian report, accompanying
reaffirmed recently cent dividend paid to

promise

and

organization is the investment ad-

and other
obtained

National Securities &

Lri_"

Investors

offered

investment dealer or:

Research

Canada

panies whose securities are being
to the public.
The I.D.S.

relatively high current yield and
reasonable expectance of its con¬
tinuance with regard to the risk

_JS

Cr/emCOfm/lfm

v>'.

eystoneFund

are

of Canada, Ltd.

pleased

to announce

ADMINISTERED FUND

and

MR. HARRY L. SEBEL

CAPITAL GROWTH

President and

firm

in bonds,
common

prospectus

HUGH

information, write
W.

LONG

to:

AND

Jl
CO.

INCORPORATED

•

stocks, with the

National Distributor of

agement's judgment.

SELECTED AMERICAN SHARES, Inc.

Nime

135 South La Salle

Street, Chicago, Illinois

in accordance with

PROSPECTUS

April 30, 1955

man¬

REQUEST

from your investment dealer

Distributors

COMPANY

proportions "balanced"

describing

State

investing

preferred and

SELECTED INVESTMENTS COMPANY

Keystone Fund of Canada, Ltd.

Address

INVESTMENT

I
For

Keystone Company

Please send

City

our

MUTUAL

inc.

Director
A mutual fund

the

Securities,

Incorporated 1933

under Canadian Laws

The

Group

TAX BENEFITS

SO Congress Street, Boston 9, Mass.

S£EB.8k9:

lOi

THE FULLY

Chairman of the hoard of Directors

fully managed Canadian
Investment Company
seeking
and certain

MR. EDWARD P. RUBIN

long-term

the election of

Group, Incorporated

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

Please send
information

NAME-

ADDRESS-

CITY_

free prospectus and other

Fundamental Investors, Inc.

Volume

181

Number 5426

The Commercial and Financial Chronicle

(2099)
Continued from

vaae

Eleven businesses

failed with

liabilities in

excess

compared with 19~lh the preceding week.

The State oi Trade and
and

car

sents

truck

42,200

Steel

total will be

53,200,

new

Industry

top mark.

Output Set This Week
of

to Establish

2,328,000 Tons

in progress.

was

shooting

output

states,

Wholesale Commodity Price Index Moved In

■

adding there have been times when the steel industry has run at
than 100% of rated
capacity, but those were war times and
the

not

was

great

it is

Range the Past Week

industry is not inclined to

level

96%

run

The

capacity, the

industry would have to use some
stand-by facilities and otherwise
resort to costly practices, such as
pushing good equipment to the
limit, it states.
of

its

older

and

less

Before it will be

efficient

willing to

go much

Grain

for

higher, the steel industry

Some

The

machine

of the

tightness

industry slows only moderately, the over-all
could remain high, for many other businesses

steel

well.

for

areas

buying in wheat

free

wheat

was

adverse

and

volume of orders

how, you
project with

ness?

that

social

taking

conscious¬

the liberty of
opportunities

few

I develop

say, can

before the door of every¬

are

one.

(1) Education. This is the num-Y
ber one social problem of our
day.
Inadequate school plants. Lack of

trained

potential

conditions

suggesting

teachers.

Unsatisfactory

dry

teaching curricula. Lack of funds

of the Winter wheat belt where dust storms and high winds

for liberal arts colleges. The need
for scholarships. No candidates for

largely minimized the effects of recent rainfall.

school

Corn offerings were in limited volume but demand was not
industry received a larger
than in any month since
so aggressive and prices were
slightly easier. Field work in corn
September,
1953.
This trend is in line with plans of businessmen to
was* retarded somewhat by rains last week.
Oats displayed indespend
more for new plant and equipment thisyear than in 1954. Expen- - .^•^-pemdent firmness while rye advanced largely in sympathy with
ditures tor new plants, the second largest user of
wheat.
Trading in grain and soy-bean futures on the Chicago
steel, are help¬
ing push up construction, and dollar volume of heavy construc¬
Board of Trade was more active.
Daily average purchases last
tion is running 10% ahead of record
week totaled about 44,000,000 bushels, against 38,400,000 the week
1953, "Steel" magazine con¬
cludes.
V. -before and 60,600,000 in the same week last year.
YY
The American Iron and Steel Institute announced that the ^^.irfi^'Ooffee prices were mostly steady with a substantial interest
are

But

influenced by

responsibility.

public support and
our
enterprises is

bound to grow.

weather

own

busi¬

something to dis¬

social

increased

approval

and

nervous

its

every

magnificent and compelling. Such

irregular the past
Prices generally tended toward higher levels, reflecting
uneasiness regarding developments in the Far East.

If the automobile

doing

continued

short,

combined effort will register with
great impact, and the motivation

wholesale

markets

do-nothing
of

everyone doing something, there
is no doubt that the effect will be

week.

will have to be convinced high demand is here to
stay for a long
time. It isn't convinced of this. It wants to see what
happens to
automotive demand.

demand

daily

door.

should do

charge

commodity price index, compiled by
Dun & Bradstreet, Inc., moved in a narrow range last week and
showed little change for the period. The index closed at 274.31 on
April 26, as compared with 275.11 a week ago, and 275.90 on the
corresponding date last year.

Without the spur of war,
that high. To exceed its present
now.

and

front

And the amazing fact is that with

Narrow

inertia

ness

foodstuffs and meats in general use and its chief function
is to show the general trend of food prices at the wholesale level.

can be high steel
declares this trade journal.
is not likely to go much higher,

philosophy
front

raw

capacity

Social Responsibilities
clear

comparable year-ago figure of $7.39 to 13.1%.
Moving upward in wholesale cost the past week were flour,
wheat, rye, oats, beef and rice. These were heavily outweighed
by declines in corn, hams, bellies, lard, butter, sugar, coffee, tea,
cocoa, beans, peas, eggs, hogs and lambs.
The index represents the sum total of the price
per pound of

This shows there

war,

•

The Businessman's

current level to the lowest in almost two
years, or since May 12,
1953 when it also stood at $6.42 and widened the decline from the

Production of 2,317,000 net tons of steel for
ingots and cast¬
ings in the week just ended (May 1) about equaled the record of
2,324,000 tons made in the week ended March 29, 1953 when the

Current

Continued from page 15

current week.

output without

general downtrend in foodstuffs last week caused a sharp
dip in the Dun & Bradstreet wholesale food price index which fell
to $6.42 on April 26, from
$6.52 a week earlier. This brought the

This repre¬

If steel ingot output
goes any higher, it will set a new tonnage
record, says "Steel," the weekly magazine of
metalworking, the

Korean War

to Two-Year Low

New Record

$100,000

Wholesale Food Price Index Dipped LastYWeek

'% *+

and 11,000 trucks.

cars

tool

board

jobs. There are innumerable, opportunities here.
if

March

(2) Employee self improvement.Y
the paycheck the end-all of
your employee plan? How aboutY
night study courses, subsidized? !t
How about credits for ideas, communication seminars, and promo¬
tion meetings? Is stabilized employment a factor in your plan- i
ning? Do you schedule orders to
maintain level job rolls? Do you
tell employees of your problems,
and take them into your confi¬
Is

shown

operating rate of steel companies having 96.1% of the steelmaking
capacity of the entire industry will be at an average of 96.5% of
capacity for the week beginning May 2, 1955, equivalent to
2,328,000 tons of ingots and steel for castings as compared with

(revised) and 2,307.000 tons

95.6%

will set

nage

record

new

week ago.

A late report

YY'

A year ago the

placed at 1,654,000 tons

was

comparable

because

capacity

The percentage figures for

121,330,410 tons

based

annual

sugar

government's

light and

1955,

was

electric

markets

capacity of

distributed

the

turned upward

dence

totalling

61,700

bales,

the

well

electric

any

seven

Trade Volume

Rose

your

nesday

;

continued

last

week

corresponding week
Car

Because

Loadings in Latest Week Advance 4.7% Despite

revenue freight for the week ended April 23, 1955,
continuation of labor trouble on several railroads in the

Southern District, increased 31,459
cars, or 4.7% aftove the pre¬
ceding week, according to the Association of American Railroads.'
Loadings for the week ended April 23, 1955, totaled 705,848
1954

week, but

from

•'

Highs

The automobile

industry: for the latest

ended April 29,
:1955, according to ^'Ward's Automotive Reports," assembled an
estimated 187,060 cars, compared with' 180,647
(revised) in the
-

week.

The

past

week's

production

tolalYof

cars

and

units, an increase cbove tJtie preceding
units, setting a new high+peak, states

"Ward's."
Last week's car output rose above that of the
previous week
by 6,413 cars, while truck output showed a gain of?801 vehicles
during the week. In the corresponding week last&year 124,844
assembled.

Ys?

Last week the agency reported there were
32,152+rucks made
Umted States. This compared with

in the
week

31,351

and 23,394

Canadian

3,005 trucks.

iri+he previous

year ago.

-+|

output last week was placed at
In the previous week Dominion

10,488

cars

and

plant$ built 10,241
trucks; and for the comparable 1954 we£k 8,956 cars
and 2,012 trucks. •„;
cars

and 2,835

•.

Business Failures Rose
Commercial
week

ended

and

April

Bradstreet,
234

Inc.,
occurring a

comparable
prewar

Slightly in Past

While

casualties

remained

size

were

recorded.

below

the

they exceeded the toll o|si69 for the
1953.
Mortality continued 35% below the
'

Failures with liabilities of $5,000 or more rose
from 174 but were not as numerous as last

sffghtly

to 177

year whepr 206 of this
Among small casualties under $5b000, the toll

moved up to 35 from 30 in the
previous week and 2s-*a year ago.

dollar volume

total
to

above

year

lower

this

retail

trade

the week

While

retail

worthy
respon¬

ever

you

con¬

show

opportunities here, if
willingness to shoulder

move confidently and enthusi¬
astically forward, and each to do
his part. It matters not that the

unusual in¬

role

week,

greater

according

than

the

department stores in New York City

trade

observers

corresponding

week

was

unchanged

recorded.
of

For

the

occurred.

1955, the index recorded
ing period of 1954.

four

weeks

ending April 23, 1955, a de¬
period Jan. 1, 1955, to April 23,
rise of 1% from that of the correspond¬

For

the

fire,

speak.

minor one;

set the world

But

responsibilities, and then pull for¬
clown the furrow of public
and
understanding.
And it is time for every business¬
ward

appreciation
man

the

to
way

bilities

speak up and report on
he fulfills his responsi¬

society.

thus, with a public be¬
that we understand the
problem, can we hope to motivate
people to act in their enlightened
self interest and ours, at the polls
and elsewhere. Only then can we
lead
aggressively on voluntary
social amenities, instead of stag¬
Only
lieving

blindly as we are
by compulsory legislation.
gering

1954.

According to the Federal Reserve Board's index department
store sales in New York City for the weekly period ended April
23, 1955, advancd 4% above that of the like period of last year.
In the preceding week, April 16, 1955, a drop of 19% (revised)

essential that every business yoke
to the implement of social

may

itself

volume

play

it isn't necessary to

volume

Yes, the opportunities for social
service
are
legion
before
the
businesses
of
America
today.
Truly they are numbered in pro¬
portion to the opportunity en¬
joyed by the enterprises them¬
selves. It behooves us therefore,
to

*■

cline

ever

Conclusion
■

washing machines and refrigerators
year ago, there was a slight dip in television
sales. Hardware and home redecorating specialties were heavily
purchased as consumers' Spring home refurbishing programs got
under way. Spot enthusiasts increased their buying of equipment
with particular emphasis on baseball, golfing and fishing ap¬
paratus.
The dollar volume of wholesale trade was noticeably above
that in the corresponding week a year ago.
v
Department store sales on a country wide basis as taken from
the Federal Reserve Board's index for the week ended April 23,
1955, advanced 10% from the like period last year. In the preced¬
ing week April 16, 1955, a decline of 13% was registered from that
of the similar period of 1954, while for the four weeks ended
April 23, 1955, an increase of 3% was recorded. For the period
Jan. 1, 1955 to April 23, 1955, a gain of 6% was registered above
exceeded that of

was

Have

ranged

biles remained at very high levels.

Ia,st

you

social

number

numerable
you

"Davey Crockett" shirts,, hats and other accessories.
Consumer purchases of household durables and new automo-

Chamber

Have

involving

sibility?

year

ago,

sales of children's wear with

moderate increase in

Retail trade

ago,

level of 326 in 1939.

slightly

achieve this?

your

sidered writing the national office
for
suggestions? There are in¬

larger than that in dollar

that of 1954.

§Veek

industrial failures edged up t| 212 in the
204 in the preceding week,
I>un &

reports.

week

28 from

year

was

projects

terest in

week

trucks amounted to 219,212
week's output of 7,214

cars were

were

in unit volume

according to estimates by Dun
& Bradstreet, Inc.
Regional estimates varied from the year-ago
levels by the following percentages: New England and East +2
to +6; South -j-4 to +8; Middle West and Pacific Coast +3 to
+7; Northwest +1 to +5 and Southwest +6 to +10.
Spring apparel buying recovered from the post-Easter slackhgs8.
Women shoppers were noticeably more interested in hosi¬
ery, lingerie and accessories, while retail volume in men's wear
dipped slightly; sports .clothing usually sold briskly. There was

U. S. and Canadian Automotive Output Set
pew
In Latest Week
•

a year ago.
retail
prices

them.

The
•

increase of 79,606

cars, or 12.7% above the corresponding
decrease of 73,956 cars, or 9.5% fJelbw the cor¬
responding week in" 1953. +,yY"
Y;| -

cars, an

help

slightly in the period ended on Wed¬
compared favorably with that in the

and

clubs

considered that your local Cham¬
ber
of
Commerce
office
needs

SSklCSs

Loadings of
despite

must

than last, the rise

Labor Trouble

Contact

Commerce Office.

levels of employment and personal in¬
the expanded volume of retail trade.

high

reflected

were

service

you inter¬
creating more jobs in
community and in working

(4)

Consumer buying advanced

1953.

The
come

with

projects?' Are

with other groups to

Slightly in Latest Week and

output increased 2,000,000 kwh. above that of
week, when the actual output stood at 9,697,000,000
kwh.; it increased 1,309,000,000 kwh., or 15.6% above the com¬
parable 1954 week and 1,760,000,000 kwh. over the like week in

local community fund agencies where necessary? Do you co¬

ested

Compares Favorably With Like Period a Year Ago

week's

the previous

willing to volunteer your
company's services to
augment

special

months of the current

.■

•

Are you

operate,

this

week

2,267,000 bales, against 1,910,000 bales in the same period

last year.

industry for the week ended Saturday, April 30,
estimated at 9,699,000,000 kwh., according to the Edison
power

for

job

your
•

Exports of cotton during February totaled 307,000 bales,

bringing total exports for the first
season

•

Spain and Yugoslavia.

smallest

affecting

(3) Community Service Projects.
•:

repayments continued in small

matters

fluctuations?

slow with reported sales in the 14

was

Electric Institute.

This

Brazil official

in the latter part of the
The rise was

grants to

announcement

CCC loan entries

season.

energy

coffee to be used for stabiliza-YY \
....:;YY
limited demand reflecting the

slight net gains for the period.

Activity in spot markets

Electric Output Registered Mild Increase the Past Week
amount

■

reported

Y attributed to mill price-fixing with some buying influenced by the

production

volume.

The

with

steady

was

Spot cotton prices

The operating rate is not
lower than capacity in 1955.

are

Raw

week to finish with

pro¬

of Jan. 1, 1954.

are

slow seasonal movement of the refined product.

69.4%.

was

1954

actual weekly

from South America quoted

export tax of 30%

tion purposes.

The former ton¬

The industry's ingot production rate for the weeks in 1955 is
based on annual capacity of 125,828,310 tons as of Jan.
1, 1955.
For the like week a month ago the rate was

duction 2,300,000 tons.

arrivals since roasters' inventories

low level.

proposing

output.

95.3% and

in nearby

driven

It has been said that the future

belongs to them that prepare for
it. Just so,
its

social

business faces up to

responsibilities,

will^.

for business. In
this combination rests the destiny

society
of
an

our

stand

expanding

America

nnrfiinif.v

wi'h

and!

economy,

and

increasing

op-

for

all.

hannillPSS

The Commercial and

(2100)

Continued

from first

the

page

suburban

the suburban

This

areas.

Investment Portfolios
I

insurance

man,

rather

dangerous ground to ven¬
the opinion that the human

ture

rights of beneficiaries must be
emphasized
against
t h e
legal
rights of the remainderman. Ac¬
tually,

cipal
give

which

program

the

increase

value

should
prin¬

period of time and
against
infla¬
against the decline in the

over

protection

tion and

purchasing
should

the dollar
benefit to the

power
of equal

remainderman.

common

slightly less on the aver¬
age,
than high grade corporate
bonds, and in that period the Fed¬
eral Corporate Income Tax was
same, or

relatively low figure,

the differential

net

that,

significant.

after

The

taxes

same

re¬

lationship would apply for the in¬
dividual taxpayer.

Over the sub¬

sequent period to date the
interest

rates

declined

le^vel of

consider¬

ably whereas the level of income
tax

increased

rates

Furthermore,

substantially.
the

over

riod 1937 to date the

fields
of

were

high

since

much in

very

grade

1940

entire

bond

yields,

and

for the major part, substan¬
tially in excess of preferred stock

/were,

yields.
and

casualty

insurance

company pays the Federal corpo¬
income tax rate of 52% on

rate

the

income

from

government

Thus,

and

fully

taxable

corporate

bonds.

long-term high-grade cor¬
porate bond with a 3% gross re¬
turn

yields 1.44% after taxes. Div¬

idends

stocks

common

are

empt to the extent of 85%

total,
52%

that

paid

Income,

the

effect
15%

ful

advantage.

stock

income.

Standard

of"

the

Thus,

Index

Fifty Stocks, the current yield
of 4V8% gross becomes 3.80% net
after taxes.
Whereas in the late
2920

period

cant

difference

after
vs.

there

taxes

was

from

common

taxes

the

corporate

stocks,

these

net

bonds

today

figures would indicate
after

signifi¬

between

market

approximately 2.7 times the yield
high-grade corporate bonds and

excess

yield

three

•^government

times

net

portfolio

average

bonds.

the

The

same

re¬

lationship would prevail in a com¬
parison of yields on common stocks
vs.

municipal

two

yield

1929

the

municipal bonds aver¬
about 4.25% vs. a yield of

aged

foighs.

stocks

common

their

Currently municipal bonds

yield
yield

2.43%
4V8%

continued
the

bond

since

and

now

condition

has

for quite some time
of

stock

yields

yields,
a

particularly after
omparatively high level

about

stocks have

desirable
vestors

Thus,

common

much

holding to corporate in¬

adversely affected in

manner

therefore,
attractive

corporate

by the changes in

interest and in tax rates.

stocks,

angle of relative
The individual
taxpayer

been

similar

1937.

become

from the

income.

stocks

common

This

ratio

taxes, at

has

these

over

3.24%

with

bonds

periods.

same

Common

have

become

holders,

both

and individual.

Increased

Income

years

income
serve

may

increased

considered

re¬

against

market

a possible decline in
value, assuming that this

additional income is not disbursed
too

generously in the form of divi¬

dends.

substantial

reserve

can

broader

segment

to the narrow base of 25 years ago.

should

healthy sta¬
bilizing influence in any business
mean

recession.

period of the last 20
holders of common stocks

Stimuli to Purchasing Power

Another

have enjoyed larger income, both

social

purchasing

has been

power,

sustaining the economy is unem¬
ployment insurance, and in the
years to come pension funds will

in terms of purchasing
than holders of fixed in¬
securities, and the value of

come

this

principal has also increased
greatly.
It seems reasonable to
that

with

the

continued

growth in population, in gross na¬
tional product and in the increased

favorable influence in

increasingly important sustain¬
ing and contributing forces toward
maintenance of purchasing power.
I

would

mention

just

income of the peoples of this coun¬

briefly, without going into detail,

this should be reflected
in increased corporate earnings—

other factors which have had very

try—and

common

stocks

favorably

over

should

perform

important influences
and

desirability of

portant long-term
Over

from

power

declined

and

the

dollar
income

real

high-grade bonds has
been reduced very drastically. At
very

time

present

decline

the

that real income is 75% since 1913
and about 60%

since 1929.

On the

other hand, dividends on common

stocks

this

over

period have

creased and the real

wise,

has

ment

invest¬

policy must give recognition

social

and

impact

political trends and
the future value

the dollar and

security
in

in¬

income, like¬

increased.

values.

fire

company

the trend of

Common

stocks

and casualty insurance
portfolio, therefore, pro¬

vide the stockholders with protec¬
tion against inflation and against

the

resulting decline in purchas¬
ing power of the dollar. Common
stocks should provide this same
protection
the

to individuals—both to

beneficiary

the

form

The increasing power and
strength of unions which will work
against substantial

except

(2)

The level of interest rates,
which is always an important con¬
sideration. With the increased in¬
fluence

well-

monetary management
fiscal

rates

money

management,
continue to be

will

relatively low compared with the
level
in

the

interest

1920

rates

mechanisms is illuminating and it

favorable
stocks

inflation

experience
the

over

there have

have

common

past 15 years, but

been

other

significant

developments which also contrib¬
uted to that favorable
and

forces

experience,

character

which

should continue to have favorable

impact in the future.

During the
post-depression period, the coun¬
try has undergone a great social
revolution

nificant

the

form

redistribution

sig¬

income.

1953,-33% of this country's fam¬
ily units had incomes of between
$3,000 and $10,000 as compared

rise to

really

vestor

for

risks

in today's prices, this
ceiving one-third of the

income.

Today

group

re¬

total cash

70%

over

year

all

in¬

involved

bonds.
Monetary
will probably be a

affair—easy

and

the

management
one-way

level

which

decade

longer continued to be a real
threat, then there can be no ques¬
about

the

role

common

stocks in the portfolios of fire and
casualty insurance companies and
of individuals.

Other
tion of

clude
and

ing

important factor mak¬

for

sounder

common

stocks,

for it has meant full disclosure of

facts,
tion

the

and

money

always

are

reverse

(4)

Price supports

pop¬

unpopular.
not

only to

the farmer but to other important

segments of the economy.

The in¬

of the farmer is pretty much
maintained
at
minimum
levels.
come

Also, we have
important

for
as

price supports

seen

materials such

raw

figures and

other

informa¬

having important significance

the affairs, operations and out¬
look for companies listed on the
on

tices.

The

supervisory

measures

taken by the Federal Reserve
Sys¬

tem have also been

factor in the

lead, zinc and copper through
piling.
The

Employment Act of
1946. This law charges the govern¬

the

coop¬

relationship with

much

enlight¬

ened, for they go out of their way
most instances to discuss their
affairs in complete detail,
giving
in

figures and

insight into policies
on future pros¬

pects.

The

bearing

leading

corporations

and

with

this

the

law

government

This

that

means

choice

and

can

maintain

and

the

bring

employment.

the

but

that

must

government

use

strongly

are

entrenched.

Another important factor in the

that

amount

can

equities has

been

invested

increased

sub¬

stantially. Pension funds have be¬
come
important factors as have
mutual

funds, life insurance com¬
panies, savings banks and college
endowment

market

today

funds.

The stock

becoming more
of
an
institutional
affair, with
transactions on the Exchange by
the institutional investor growing
more
important daily.' All these
factors

contribute

the

increas¬

ing investment stature of

common

stocks
ance

their

and
as

growing accept¬

suitable

medium

for

all

the

While

investment

various

types of

in¬

good

portion

what

the

today.

concerned

all

are

problem

investing

The

stock

sharp rise in
prices, particularly

35,700,000 families
in this group get over 90% of the
total
income.
The $4,000-$7,500

the last 19 months, has made
for caution and rightfully so. Many

group

contains

now

families

this group

38%
now

19,700,000

of the total, with

getting 40% of all

income. This group has more than
trebled since 1929 in both numbers
real

purchasing

power.

The redistribution of income has

quite

naturally,

tremendous increase in
bers

the

purchasing

the hands of vast

num¬

people, creating mass de¬
all types of goods on
a
wide front.
The impact of in¬
creased purchasing power of the
mands

for

people has
business
the

favorable

generally;

effect

influences

living habits of people, result¬
ing in part in migratory trends,
with people
moving from cities

heed

and

the

this

mandate,
not, Congress might

for if it does
amend

Federal

Reserve

perhaps unwisely, so
in grievous
damage

result
and

to its non-partisan

Act,

to
it
character.
as

Under the 1946 Employment Act,

the policy

toward relatively easy
fact. The inferences

money is a
to be drawn

are obvious. Increased
volume of money will be injected
into the economy when business

shows

signs

any

further

expansion
with

any

sliding

and

will
improvement of
money

business because expanding credit

requirements

will

over

questioning

are

the

interesting contribution
in

score

Senate

Mar.

"At the outset let

that
are

too

one

high today.

payout

the

No one—not

dividend

about

prices

in¬

payments

50%.

Meanwhile

advanced

steadily,
disregarding the business reces¬
(this is reminiscent of 1954),
and after only slight hesitation in
sion

1928

and

the

19.5

summer

1929,

1929 peak at which the

times

ratio

and

about

was

the dividend yield

only 3.2%, well below the
yield of close to 5% on high grade
was

bonds

that

With

the

time.

market

slump which
began in the fall of 1929 and the
collapse of the entire
1931 and

1932,

economy

leading com¬
only
nominal

many

reported
even deficits.

re¬

sult, price-earnings ratios for this
period are not meaningful. How¬
ever,

most of these companies

tinued

con¬

dividends, giving
the high yields of this period con¬
pay

siderable

significance.

Earnings
ered

and

after

advanced

dividends

1933

rapidly.

recov-

stock

and

prices

At their

1937

high, stocks were selling at
almost 17 times 1937 earnings and
yielding only about 4]/4%.
In

1938,

of sharp business re¬
earnings dropped nearly

year

cession,
50%

dividends

and

40%.

Stock

prices

than

that

year

relatively high in relation to
low earnings and dividends;

were

the

price-earnings

from

low of 15 to

ratio

ranged

high of over
and the dividend yield ranged

from

a
high of 5.4%
only 3.3%.

the

Toward

to
of

end

low of

the

1938

stock market

counting

apparently was dis¬
recovery in earnings

and dividends
curred

which

1939,

actually

1940

and

oc¬

1941.

Europe,

United

the

of the stock market."
A

review

the

mon

stock

prices,
of

again

past

study of

com¬

earnings

and

certain

economy

which

over

may

the

supply

France

States

suffered

Pacific.

fell,

and

the
and

attacked

was

serious

initial

During

defeats in

this

period,

the lowest rates of stock prices to

earnings

and

dividends

occured

at
the
end
of
1941, when the
price-earnings ratio fell to 7.6 and

the

dividend

yield

rose

high

8%.

During the war period, stock
prices rose, price-earnings ratios
advanced

and

yields declined

un¬

til at the end of 1945, discounting
future
the

earnings

unburdened

profits tax, the pricereached a peak of
and the dividend yield

excess

dropped

course

re¬

sult in higher stock prices; on the

—

certainty the

the

indi¬

rose

dividend

and

predict with

years,

every

During this

period,

the most experienced trader,
economist or businessman
can

have had

emphasize

even

last

knows whether stocks

phases

this

certainly

the

23, 1955, which I shall quote:

and

under

that

Banking and Currency
Washington,
D.
C.,

dividends

responsibility
Employment Act and

Committee,

ties

same

of. the

before

statement

advisable, this time

the

level

market. Mr. Bernard Baruch made

automatically
expand bank deposits. Both par¬
have

above the 1926 level.

funds

take

slight reduction in 1927,
a
year of minor busi¬
ness recession, earnings
recovered
in 1928, and by 1929 were 30%
a

was

however,
with

of any

must

around

contrary, the market worked ir¬
regularly lower as war broke out

common

the

indicate favorable appraisal values
for the future.
At the moment,

tained. The Federal Reserve Board

year and

low

However, this recovery did not

tools at its command to carry out
mandate.
The
political life
reason¬

has been said is past history, nev¬
ertheless it includes factors which

this

party is at stake if

After

which

ably full employment is not main¬

earn more

6.3%

During that year, high grade
bonds yielded about 43A%.

profits

than $3,000

family units
a

about

5%.

panies

responsibility

assumes

1926 earnings and the divi¬
yield ranged from a high of

seasoned,

much

are

base.

In 1926 the stock price
ranged between 8.6 and 11

have sound financial positions and

today

Fifty Industrial
1926 as 100, and

lows.

price-earnings

much

very

and

stockholders

used

Standard

1926, stock prices had already ap¬
proximately doubled from their

ments

erative

not

improvement in business activity
when had begun after the 1921
depression.
By the beginning of

reached

are

figures

from

same

reduction of excessive speculative
influences.
Corporation manage¬

stitutions, including the fire and
of casualty companies.
promoting national employment,
Implications for the Future
production and purchasing power,
ment

using the

stock

prac¬

does

The year 1926 was one of gen¬
eral prosperity, following a steady

creased

making for sounder

currently

the earnings and dividends there¬
on,

registered Exchanges or engaging
in public financing.
Self-regula¬
tion by the 'Exchanges has had the

stock

(5)

Stocks, based

dend

Securities

Exchange Commission which

has been

& Poor's Index of

times

the

derived

are

stock equities in¬

role

stock

common

index

the

short

are

data

reviewed

long

here

common

the

The

considera¬

the

and

enough period, and
that
is
why
this
presentation
covers a period of
nearly 30 years.

1921

factors

your own

the current level of
Memories

most

one

tion

and

but

the

market.

cover

time, and consequently still fur¬
nish a relatively low real income
to investors, and if the inflation¬
over

the

would

forces

be able to find

you may
answer

presented

only be mod¬
erately higher than at the present

ary

background of data from which

seems

direction

Thursday, May 5, 1955

past

the

over

dollar

degree. Thus, if interest rates can
be expected to rise at best to a

and

has

per

level which

compensate

the

ownership

earned

$3,000

the
the

the

ing investments by trust funds and
by other types of funds.
The

rates

would

about

than

est

now

with only 29% 25 years ago. Twothirds of all family units in 1929
less

assume

consideration of equities has been
the liberalization of laws govern¬

con¬

small degree to the

It is,

recognized that it is politi¬
cally inexpedient to permit inter¬

ular

has

one

having

(3) The role of government in
our economy has assumed increas¬
ing importance. The history of the
past two years in the use of these

low interest rates

and

prevailing

1929 period.

higher income and to the remain¬
Wars

cuts
circumstances.

mass wage

special

derman in larger principal.

tributed in

influences:

(1)

long period of time the

purchasing
has

Income

over

The question

years.

erosion

power

parties

effect of

stocks

common

and which will continue to be im¬

the future.

Real

the value

years

which

measure

actual and

Reserve

for

much

the

power in

This

against in¬

from bonds.

equities or common stocks was and
is compensation to the fire and
risk.

stocks

common

resulted,

greater

Equally important is the fact thai
is now supported by

the economy

This

and

casualty insurance companies

expenditures for
sewers, water and public utilities.

accumulation of additional income

The very substantial increase in
net yield through investment in

the

capital

base, by a large
population with its
huge buying power as contrasted

yield

stocks

common

And the longer the

the

Poor's

may
be depressed
longer the corporate in¬
vestor may be wrong, the more
nearly is he right, because of the
and

their

dividend

7.8%

resources

absorb temporary market
declines,
this additional income is a power¬

the

tax

dividend

total
use

constant

ing and

adequate capital

ex¬

the

has

the

fire

that

its

not

pe¬

yields

effect

with

business,

political

reasonable

areas,
building of schools, con¬
struction o^churches, road build¬

excess

stock

common

therefore,

both

curity values. Consequently, just
long as an insurance company

stock

common

bene¬

niture

impact of declines in

assume

not

was

again

that

se¬

the

Over

1920's,
stocks yielded about the

will carry out this mandate.

residential building, on the fur¬

be created in this manner to cush¬
ion

come

part of the

cation

might continue

from

the latter

Today

from

rural

industry, on the household
appliances
industry,
automobile
industry, development of shopping

Comparative Yields
In

ficial

and

nearby

areas

to the

trend

Financial Chronicle

ratio

earnings
times

3.6%.

this

time

high grade corporate bonds yielded
about 2.6%.
As in 1939-41, earnings
idends

did

increase

through

1950,

pursued

course

but

and div¬

from

stock

generally

1946

prices

downward

from mid-1946 to the

sum-

Volume 181

Number 5426

The Commercial and Financial
Chronicle

(2101)
of

1949. From a 1946
high of
17.5,
t h e
price-earnings
ratio
slumped to 5.8 in 1948, 5.0 in 1949
mer

and 5.6

1950.

From

the Republicans in 1952 had taken

the-road

3.6%, the dividend yield soared

to 8.7%-in

Since

dends

1949 and 9.4%

1950,

have

earnings

back

divi-

not

the

its

times

well

was

1948-50

lows

highest since 1946.

such

clock"

and

reverse

had

accurred

—particularly the
gotiation

divi-

dence

high

likewise the lowest since 1946.

and

under

successful

two

the

convincing evi-

levels

Recently

tunities

general

for

usually,

that

terized

are

1928-1929

not always, charac¬
relatively low price-

—

1929-1932

but

terized

entire

period

—

During the period
-covered here, the best
buying op¬
portunities were present in 1926,

1950-1954

—

There

price-earnings ratio
reached a relatively low point. On
the
other hand, this
ratio also

1934

relat.velv

these
low

1954

able

indicators

stocks,

times

for

values

earnings.

ings ratios

During

the

yield
-

that

and

return

.^common

stocks.

opportunities

What

light

tions throw
and

these

1934.

observa-

the postwar period

particularly on the present
In
retrospect, the high

situation?

ratios

price-earnings

and

low

yields prevailing m 1945-46
■entirely justified in
that
were

discounting

provement

which

were

they

future

did

im-

occur.

earnings and dividends increased
from 1946
through 1950, and as
prices
failed
to
rise
commen-

surately, price-earning s r a t i o s
dropped, and yields rose, to levels
which

were
-

historical

perspective
abnormal. In due

clearly

this abnormality had to be
resolved either by a rise in
prices
•or by a
drop in earnings and divicourse,

dends.

Its

existence shows that
investors in general distrusted the

historically high earnings, ascrib¬
ing

them

boom

which

peared temporary and to
inflation
■could

which

due

ap¬

price

course

expected
to
collapse.
"These fears date back to the his¬

tory of earlier major

which

wars,

business

and also to the bitter
experience of the great 1930-1935
■depression and the 1938 relapse.
recessions,

Moreover,
the

national

was

chasing power of fixed income securities, and began to turn more
and

to common stocks.

m0re

sequenRy

01'ie

perjod

term
0f

the

Con-

1953-1955

readjustment

^alueg

reflecting the rebirth of
confidence
and
the
cumulative
expansion of confidence of all in-

vesting groups in common stocks
ag
agajnsf other types of securities.

However,

ePtering

into

may

now

period

mild

reckleSsness initially
npwnf

tir™

^seni

terms oi

etui

pwc

btandard^^
^naustnai common biocKS,

°asea

|a^aRDasec',aa^ni"gs
vfd

1Qt;f -L
foin* 'H°r i
"Jold
f
*1?® ln
4?
to $io.oz a snare or about
t

about

farni"PL aba^YinS
ther liberalization

o4/fc

so™e.j

of the dividend

payout, 1955 earnings of $31 might
produce dividends of around $18
or

58% of earnings. Thus, the

rent level of industrial stock

represents
3 DOU I
about

prices

price-earings ratio of
times
limes

1954
1 uOt

and
dliCl

1^ /2
12V?

estimated 1955 earnings, and
nhmif do/

ydejd6Sf

ana

x«5 /2
13%

cur¬

based

iq^

projected

1955

^b/0 based on projected 1955

a^iaenas.

In historical perspective, these
ratios do not suggest that common
stocks

are

as was

econ-

either dangerously high

The years
war's

lear

attractively cheap but rathersomewhere in a middle area, such
and

omy.

end

downturn

immediately after the

were

shadowed

business

finally

by the

recession.
came

the

1943.

case

1927, 1935, 1939

times

these,

lacking the relatively clear guidance which would be offered by
extreme

relationships

market

prices to current earnings and
dividends, the investment manWar, be- ager finds himself in the uncomin

1949,

but it proved
relatively short and
mild.
Then the Korean

ginning in 1950, produced
wave

inflation

accumulation,

the

new

and

inventory
latter
being

washed out in 1954, again without
serious consequences to the health
of the economy.

In the meantime,

housing surplus before
A further cause for

lies

the

during

rate

the

which

past

sume

Baruch, I do not

to be able to

pre-

tell you what

terms

na-

have

been

made.

further

long

assume

growth in

range

our

growth.

If I cannot tell
you whether the

stock market

likely

rise

the next year or several

over

I might offer

a little advice
modest scope
concerning
selection of common stocks. There

is, in

opinion,

unfortunate
tendency for investment managers
to

be swayed

torical

by fashion and his-

favoritism

rather than by
intelligent and practical analysis
of the record.

recent

comparing

1953

vealed

that

panies

many

the

considered

lesser

improvement

prices.

to£d
^re

For
comearn-

the average rise
total pretax profits

14-year period.

con-

0n the other hand there are trast, four out of five leading pabasic trends of favorable per companies greatly outdisl?ng range significance. One is tanced the average gain in profits.
oar P°PVlatl°n co"
!aufs.,
yet leading chemical stocks are

®ome

Srow at a rapid rate and that this currently selling at 17 to 25 times
growth centers m the under-18 1954 earnings (after adjustment
and over~65 groups who consume for excess amortization), while
mucb niore than they produce, leading paper stocks are typically
This imPels those in the working selling at only 12-16 times.
age gr0UPs to Produce more in
No doubt many of you are gen-

and

the
n,

0£

the.

additional

t1,„

nnn"

repreSSgThe^:

stock

iong term debt

stock "of" the

eight

panies showed increases in

theysaie

from

the redemption of
$13,729,000 long

whose stocks sell at rela—
lower

o£recordonMav31955

tprm^phT^an^

tively

Slares of ad-

share for each four shares

one

debentures

com"*

panies

market

^rtsi\a.re^irr ®
Proceeds

commensurately
liberal
price-earnings ratios (and low
dividend yields), have actually

this

3*14%

r~ v?" ls underwriting an offering
by the C01?1PfnJr to boldfrs oi itscommon stock to subscribe at

re-

over

Riegel

Paper Corporation 25-year

sinking fund debentures. The defutures were priced at 100% and
accrued interest. The same group,
a sa managed by Morgan Stanley

com-

outstanding growth charac-

a new issue oi $15,000,000

with -1939,

generally

have

An
underwriting group headed
by Morgan Stanley & Co. offered
^or Public sale yesterday (May 4)

$23

study brings out this

repercussions on the
economy ings as large
when Pe0Ple finally stop going in- (6.8 times) in
to debt and begin Paying it off.

Morgan Stanley Group
Underwrites Riegel
Paper Financing

Without

economy, with variations only
the assumed rate of

outlook

proper timing should also
emphasized
nevertheless se-

thorough research and study of
the long-term
prospects of induetries
and
of
companies
within
those industries,

projections

which

man-

most important at this
time and enough stress
cannot be
put on the need for careful and

tional product.
Moreover, I could
cite other
reports, but I thing this
will suffice to indicate
the general '
tenor
of
the
many

important exception, they

capable

strong financial position

lectivity is

fur-

gross

com

demonstrate

favorable long-term

referred to include
other than those mentioned
series other than

shown

more serlous wl11 be the eventual

and

recent

on any

sBles snd csrnin^js thcin other

year;

and preferred

"company" and "its'sub-

sidiuries presently
outstsndinjj
aP
aggregate redemption cost

$16,607,000
and

plus

accrued

dividends.

3fc
of^

interest

Remaining

pro-

ceeds will be used in connection
with the expansion of
capacity of
the company's pulp mill at

Acme,
Carolina, estimated to cost

North

$5,800,000.
Annual
0f $600,000

1956,

will

sinking fund payments
annually, beginning in.
be

sufficient

retire

the

entire debenture issue
by maturity. Sinking fund redemption
prices range from 101%% for the.
first

four

to the principal
optional redemption
prices scale from 103%% for the
amount

first

years

and

four

the

years

principaL
order to maintain their accus- erally familiar with the market amount.
tomed family standard of living, record of the major industrial
Riegel Paper Corp. produces a
tends to create a chronic labor stocks during the postwar period,
broad line of papers and
pulps,
shortage and an upward pressure but let me remind you of a few its
papers include glassine, greasewages and salaries, and gen- examples of the importance of seproof and other flexible packaging
erates a strong incentlYe lor busl" lectivity. On average, industrial
papers, specialized industrial and
nesses to invest heavily in new stocks haxe approximately doublants and better equipment to bied since their 1946 highs. Yet printing papers and base papers

increase efficiency and offset the
higher cost of labor. On the basis

children

already

born,

the tremendous,

the

have

period

same

almost

paper

stocks

quadrupled,

while

toilet

tissue

and

par-

ing the index for each group,
some individual stocks, of course,
have done much better.
On the

tially exploited, body of scientific

1954

from

annual

sales

$28,031,000

knowledge

oped from the intensive

efforts of recent
automation
may

years.

and

well create

devel-

research

Electronics,

atomic

energy

products and

new

Net income for 1954

largely

It js

and

New

York

City

15%, cigarettes by 20%, and

has opened

well

en-

dustry

suggested

the

fol-

dents of business trends who have

been wilI'ng to publish long
foreCasts have been

timistic, although with
ference

range

uniformly

degree.

some

For

op-

dif-

example,

Gerhard Colm, economist for the
National Planning Association, in

predicted that by 1960

biHi0n).

Another

economics

projection

staff

McGraw-

Publishing Company, headed
by Dexter Keezer, suggests a 17%
rjse in gross national product between 1954 and 1960. A
projection
made

for

Weyerhaeuser

Timber

1960, $465 billion in 1965 and $586
in 1975, representing in-

billion

creases

15%,

30%

and

228%,

lead-zinc
stocks

such

market

those of

64%

copper

down

relative

83%

and

banks

Mr.

the

1947.

York

Texas

branch office in the

Smith

Also

office

new

„

New

The Central

Joseph

has been

Central Investment

Company

associated

with

James

with
Mul-

lins.

and

other major eastern cities.
..

the

since

growth areas,
the Pacific Coast against

management

Smith.

16%; and in the
performance of

banks

gross

nati0nal product would be
nearly
2o% above the 1954 level ($357
tbe

—

Company

^ plains Ljfe Bui]ding under
the

iniim

1952

LUBBOCK, Tex.
Investment

couraging to note that nearly all lowing changes for various kinds
nnnfAY»rATic
mAfole'
aluminum
tbe economists and other stu- of nonferrous metals: olnm

Opens

New Branch in Lubbock

mo-

tance

$45,589,000.
was $1,638,000.

Central Inv. Co.

banks

since their 1946 highs, while
textile stocks have declined
by

even

unaware.

interesting

33%

29%

!ion piciure,s ^ 3.0%- -^e imp?r"
of select.v.ty within an in-

are
now

hand, electric utility stocks
average have risen only about

increased

other

and

technical

household

rolls of waxed paper. The
company
is one of the two largest domestic

this aircraft, oil and rubber stocks
producers of glassine and greasehave approximately tripled, takproof papers. In the years 1950

only

and

for

over

con-

fortable position of having to deCompany by the Stanford RePend iupon his
5"aJy«s of the search Institute points to gross naprobable future trend of earnings tional
products of $412 billion in
and dividends
Like Mr.

are

can

While

The studies

sell

may

Another favorable factor lies in

whole

any

and confrom the

over

$535

this can Perhaps continued indefi- instance, only three out of
mtely' bat the-longer it does the leading diversified chemical

°f

V11

grown so heavy that any extended
slump in commodity prices would

disastrous to the

eft

agement

years

variety.

^acK P]"c<es n"Veraacnea an an- population trend is certain to
P1*" 01 ™
^ tinue at least through 1960.

had

debt

creeping

in residential building

especially

on
wii

that

apparent

burden

the

very *on&*

became and con¬
be buyers, and this cu¬

pur-

^pvp"%oon" lollowed "hv' "^harn times
soon
followed by sbarp
severe

seems

general price inflation of

result in

groups

the'probability

weie

price declines and

will

concern

return and
of increasing return, versus the danger
of further shrinkage in the

when dividend yields were low
represented appropriate points for
selling stocks in 1929, 1938 and
and

there

rnort^s^G
snd
consumer
debts
have risen
since
the
War
and

mulative buying had its effect

Conversely, times

1945-46, but not in 1933

economy

II—it

War have been largely liquidated,
and some experts are beginning

ii.stitu-

llluia»,c

1949 lows. All of these
represented

buying

that

War

sumer durables

market priCes. Later on the
pub-*
•earnings ratios. During the 1926_Hc generally began to awaken to
54 period, high yields were
presthege yalueg and to be impressed
<ent at the 1932,
1937, 1941 and .
th
excellent performance of
*1950 lows, and yields almost as
Common
st0rks
theeond current

general

which

lor housing automobiles

con„

readjustment

Some

States

World

than

one

which

further

1950-

1953_i95g period

United

unlikely

stock yields as
against yields

tinued

reliable signposts than price-

maore

the

major

consequences

product

which

convincing record

1965

another

vesting

1930,
offer

seem

those

I would dis¬
to

might be much less favorable than

other categories of investment
securities. These professional in¬

1931; 1933, 1938 and 1945.
,

the

forecasts

years,

Inflation

earn¬

■

Dividend

war—the

?S;^%'SaTtAe„resS ^ com!
mon

period

recorded in

were

deal

there

national

prices and do not rely
ther price inflation.

fall

Creeping

Unless

gross

trated in those industries and
panies

billion, 50% higher than the actual
1954
figure. All of these

and

Only

Economic'Report points

ti0"al

reason

.reviewed, the highest price

great

one

war

finance it.

.Anve.stors ?"<» regulatory
authorities"beean to'recoenitp the boom

sell

that such times may be
periods of

-Jew

the

consider

reflection of that

above the 1954 level. A
relatively
optimistic projection
by the staff
of
the Joint Committee on
the

and

direct result of the

direct consequence of the
the inflationary methods

Confidence

respect

fidence

the

period, which I consider

that to

prosperity and of the great inflation
in
the
general price level
which, although delayed, was a

offr=n^unc«,and
to

being

not

•common

with

agree

earning

ratios

be tact-

may

employed

characterization, but

and

bankrupt prices.
High price-earnings
gh

con-

this pleasant state of

Although it

prices has been

Disillusionment
Recklessness

Current Return

which the

1933 and

affairs.

1932-35, 1941-42, and 1947-50. All
these, except 1934, were years

1932,

tinuation of

confidently

indefinite

Disillusionment

—

1954-1955

cannot

forward to

and that the extended rise in
earnings,
dividends
and
stock

Recklessness

■of

vears

markets,

1932-1950 —Safety

-earning ratios.

say with some asafter more than a

that

decade of almost unbroken business prosperity and rising stock

war,

following fashion:

oppor¬

stocks

this

however,

surance

ty has been

friend How-

good

stock prices.

(but not exclusively
so) the postwar business prosperi-

ard

buying

common

I can,

large extent

Vultee in a talk given on
Dean's Day at the New York University Graduate School charac-

What tentative conclusions
may
draw
from
this
review
of

favorable

the
new

earnings—were

ings and dividends,

less to say so, I believe

cumulative stimulus to investment
confidence.

Conclusions From Past
Performances

One

re-

the

the future holds in terms of
the
general level of prices, the rate of
business activity,
corporate earn-

look

ne-

postwar

experience?

the

These events

permanency of
plateau of prices and the

new

peaks and

the

cessions

dend yield at 4!4% was less
than
half the 1949 and 1950

1926-54

any

changes,
redistribution of wealth,

which

was

The

desire to "turn

New and Fair Deals.

over

and

the

which

of the major institutional

changed greatly,
but market prices have worked
steadily higher.
At the end of
1954, the price-earnings ratio at
twice

Administration

showed little

in 1950.

and

Presidency and control
Congress under a middle-of-

1946 low

the

over

American Loan & Inv.

RIVERSIDE

Caution in Order

Calif

vcaui.

Marvin

—

ud;vui

In closing, I would suggest that Bledsoe is engaging in a securities
caution be exercised at this point'business
from
offices
at
3840
and

the level of

prices reaches

common

stock

highs that still
greater caution be exercised, particularly as mommon stock yields
decline and corporate bond yields
remain

stationary

Portfolios able to

assume

increase,

tinue

include

name

Street

under

American

balanced

con-

com-

common stocks selected

after careful analysis and concen-

Loan

the
and

firm
In-

vesiment company,

J. E. Des Rosiers Inc.

In New York

the risks

0f market fluctuations should

ponent of

Seventh

new

City

J. E. Des Rosiers Inc. is
engag¬

ing in
offices

securities business from.
420

Lexington Avenue,

New York City.

>■

The Commercial and Financial Chronicle

(2102)

The following statistical tabulations

Indications of Current

latest week

Business Activity

week
Latest

AMERICAN

IRON

Indicated

steel

Crude

and

-'-42 gallons each)

■

Crude

Ago

§2,328,000

$2,307,000

2,300,000

1,654,000

of Apr. 22

6,831,800

6,828,450

6,862,600

6,586,450

Apr. 22

117,099,000

7,131,000

7,334,000

6,812,000

95.3

J95.6

—:—

(bbls.),—

stills—daily average

____„-Apr. 22

23,974,000

24,017,000

23,990,000

2,250,000

2,177,000

2,273,000

10,382,000

10,841,000

11,831,001/

8,005,000

8,026,000

8,154,000

BUILDING

Distillate

—————

—

output

unfinished

and

Kerosene

fuel

Residual

ASSOCIATION

East Central

South

179,741,000

181,864,000

184,157,000

178,033,000

Apr. 22

20,429,000

Apr. 22

65,678,000

63,360,000

62,657,000

Apr. 22

44,619,000

44,741,000

46,050,000

freight

loaded

18,890,000

18,518,000

from connections

Apr. 23

705,848

674,389

639,447

Private

618,396

606,292

398,039

Apr. 28

$458,531,000

$382,790,000

$335,750,000

Bituminous

coal

308,490,000

233,676,000

245,535,000

and

lignite

STORE

ELECTRIC

Electric
FAILURES

iper

gross

PRICES

Straits
Lead

tin

(St.

Zinc

32,920,000

18,375,000

£0,212,000

7,900,000
374,000

;

(New

Apr. 23

INDUSTRIAL)

—

10$

111

103

?i.

York)

(East

St.

DUN

9,697,000

9,804,000

8,390,000

212

204

a>'

237

Apr. 26

4.797c

—Apr. 26
Apr. 26

$35.67

4.797c
"

4.797c

4.634c

$56.59

SERVE

$37.00

$26.17

mated

35.700c

32.700c

29.700c

36.500c

37.750c

36.575c

29.525c

91.375c

91.875c

91.375c

—-Apr. 27

15.000c

14.000c

14.800c

13.800c

—_———

at———;

Apr. 27

—_—

11.500c

Industrials

96.29

96.25

96.63

Group.

May

109.24

109.42

112.93

115.63

110.52

110.70

110.88

112.75

Government

109.42

105.60

109.79

104.31

104.48

107.62

109.97

103.97

110.15

110.34

110.52

.May

2.77

2.75

3.21

3.20

3.01

3.14

3.13

3.12

MOODY'S
NATIONAL

3.19

3.49

.May

3.31

3.30

May

3.17

May

3.16

3.15

INDEX

PAPERBOARI)

Orders received

(tons)

Production

May

orders

Apr. 23

.—

AVERAGE

end

of period

—

3.30

3.20

3.16

3.13

3.14

3.05

437.1

235,891

242,594

199,437

267,445

DEALERS

EXCHANGE —SECURITIES

Odd-lot

sales

dealers

Number of shares
Dollar

EXCHANGE

(customers*

235,321

>■

451,822

Customers'

266,031

483,631

514,762

106.91

107.07

Other

other sales——

EXCHANGE

1,399,849
6,213

ACCOUNT

„

Total

11,510

1,554,272
$78,572,088

$37,018,685

Apr. 16

THE N.

238,190'

427,350

427", 350

TRANSACTIONS

FOR

ACCOUNT

—

447,310

294,180

439,740

318,220

574,860

498,490

9,547,130

14,275,030

16,522,120

9,865,350

14,849,890

17,020,610

398,130
10,500,110

10,898,240

Apr.

1,754,360

2,303,570

189,890

532,690

286,100

193,900

188,200

218,500

188,900

$1,847,000

INSTITUTE

—

Month

—

COMMERCE)

February

NEW

(millions

Feb.

516,000

SERIES—

L'.-y

dollars):

•-

$24,439

L__

10,204

♦19,253

19,947

$43,643

*$43,625

$46;115

25,200

24,900

23,600

$29,795,000

$29,817,000

$29,707,000

2,224

2,181

1,971

—:
;

r—

Sales

• v-

March

NONFARM

vV;

REAL

(000's

omitted)

ESTATE

SAVINGS

FORECLOSURES-

AN.D

LOAN

INSUR¬

ANCE CORPORATION—Month of December

■i-.
VEHICLE

PLANTS

•

FACTORY

number

SALES

FROM

S.—AUTOMOBILE

MANU¬

vehicles—^

894.597

*744,942

633,003

Number of passenger cars..

791,280

*677,705

531,529

102,992

67,061

101,177

325

176

297

$292.4

♦$291.4

$285.0

199.9

♦199.3

194.7

85.8

*85.2

53.5

♦53.5

51.8

26.4

♦26.4

.24.9

34.2

33.4

5.1

*5.2

PERSONAL INCOME IN THE
(DEPARTMENT

226,390

972,080

1,428,140

1,831,170

1,760,830

2,117,270

1,235,550

UNITED

STATES

COMMERCE)—Month

February (in billions):
and

incomeil:—.

____-

salary, receipts,

total—^

producing industries...;

Commodity

Distributing

1,009,160

1,161,970

industries

—

392,600

Service industries
„

——„—

Government
Less

employee

contributions

for

social

84.6

in-

206,290

377,030

361,560

6,400

36,900

30,100

20,800

201,370

370,910

6.6

428,610

6.6

384,990

6.6

207,770

407,810

Proprietors and rental income

49.9

♦49.5

405,790

49.6

Personal Interest income and dividends

24.7

23.9

458,710

532,661

559,100

388,728

60,270

89,100

68,920

Apr.

445,394

573,701

670,620

386,016

739,540

433,116

Apr.

662,801

1,752,830

2,664,051

3,224,230

Apr.

1,970,888

256,560

458,690

Apr.

385,120

294,290

1,618,844

2,372,751

2,930,400

Apr.

—

505,664

Apr.

1,780,166

1,875,404

2,831,441

3,315,520

2,074,456

of members—

NEW SERIES
(1947-49 = 100):

DEPT.

Total

REAL

ESTATE

AREAS

Apr. 26
—.—

110.4

110.3

110.5

111.1

92.8

♦92.1

93.8

Apr. 26

102.4

103.7

105.4

84.1

83.4

86.8

115.8

95.0

115.8

115.5

114.6

Apr. 26

-^Includes 692,000 barrels of foreign crude runs.
§Based on new annual capacity of
125 828 310
1, 1954 basis of 124,330,410 tons.
^Corrected figure.
i*>.«bijio
reported sinco introduction of Monthly investment Plan.

against Jan.

Savings and loan
Insurance
Eank

15.0

268.2

$702,007

S. —HOME
of

Feb.

$688,457

$517,133

companies

savings

BANK

omitted):

associations

150,944

;—

banks_4»
i_

104,813

378,699

274,350

115,786

164,519

365,144

-—r

and trust companies—

Mutual

NONFARM

LOAN

(000's

127,953

tons

a<?

tons as

Total
UNITED

STATES

BUREAU

EXPORTS

84,553

228,138

245,547

208,470

395,683

419,185

235,869

$1,957,702

$2,024,360

$1,425,193

lending institutions
—

AND

CENSUS —Month

IMPORTS
of

March

(000's omitted):

Exports

—

$1,337,000

$1,230,500

$1,125,200

Imports

998,000

849,700

861,796

tNuraber of orders not

*16.5
275.5

100.4

102.8

Apr. 26

commodities other than farm and foods

16.4
.——

FINANCING

BOARD—Month

4.8

276.3

payments

Individuals

Apr. 26

;

foods—

income

nonagricultural Income

Miscellaneous

commodities

products

labor

47,100

—

PRICES,

Other

Total transfer

385,880

Apr.

;

217,000

259,600

MONEY IN CIRCULATION—TREASURY DEPT.

1,189,560

Apr.

sales

1,-1955,

PURCHASES

Total

Wage

1,160,660

floor—

Meats

Jan.

Total personal

Commodity Group—

3,600

5,700

5,200

$26,168

♦Revised figure.

7,700

Apr.

Total sales

All

46,100

(units)

Apr.
:

purchases

Processed

49,956,674

Number of buses

the floor—

—

Short sales

All

51,214,559

Apr.

Total sales

Farm

51,277,150

Apr.

sales

—

ASSOCIA¬

FACTURERS' ASSN.—Month of March:

Apr.

purchases

LABOR

34,253.942

$612,078,000

*$24,372

Month

217,310

Apr.

—

transactions initiated off the

WHOLESALE

37,092,518
$644,528,000

418,000

MEM¬

—

sales

Other

38,197,992-

i__uT

FEDERAL

Total round-lot transactions for account

$2,781,000

Total

Short sales

;

58,200

customers—month

INSURANCE

283,815

—Apr.

—

Total sales

Total

consumers—

$3,056,000

purchases

Other

ultimate

$3,314,000

(SHARES);

Short sales

Total

MANUFACTURERS

Total

;

Other transactions initiated

Other

1,738

INSTITUTE:

Number of motor trucks—

MEMBERS

sales

Other

2,564

1,752

376,000

283,815

23^ 190

362,770

362~770

TRANSACTIONS

Total sales

Total

2,150

2,831

$2,177,000
503,000

STOCK

specialists in stocks in which registered—
Total purchases
*
Apr.
Other

2,427

2,735

1,614

616,000

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:

Short sales

6,452

845,188

Apr. 16

—

Apr.

Transactions

7,010

529,000

3,733

869,416

sales

ROUND-LOT

3,505

Apr.

sales

6,974

5 443

$2,169,000

LIFE

MOTOR

STOCK

4,405

9,919
v

Group

789,682

848,921

$43,803,793

-Apr. 16

sales—

1,538,967

$36,077,922

1,399,849

—

SALES

4,833

2,481

2a,-_ ;

Ordinary

109.77

1,565,782

dealers—

ROUND-LOT

1,550

1,758

INSURANCE

(DEPT.

107.07 '

$80,834,406

872,921-

$65,689,065

Short sales

Other

$47,931,382

Apr. 16

AND

round-lot

919,857

Apr. 16

———..——

purchases by

1,530

loans-

furnace? shipments

•

Number of shares

FOR

$71,621,860

—

TOTAL ROUND-LOT STOCK

Total

1,362,579

Apr. 16

sales

Round-lot

5.484

$660,153,000

Durables

by dealers—
sales—

21,381

10,641

4,912

ultimate

-Apr. 16

Short sales

$27,833

22,508

5,479

January (000's omitted)——.

Inventories—

Apr. 16

sales

Number of shares—Total

$29,518

11,053

goods

credit

Nondurables

———

sales

.I:

22,974

350,855

263,794

—Apr. 16

Dollar value

' l'-'':

purchases)—t

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

Round-lot

(000's omitted):

COMMISSION:

——

short

$29,948

biirner shipments (units)
operated boiler shipments (units).

Apr. 23

STOCK

value

Customers'

MANUFACTURERS', INVENTORIES AND SALES

—

SPECIALISTS

AND

225,054

LIFE

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

Domestic gas range shipments (units)—
Gas water heater shipments (units)
„

3.47

402.7

Apr. 29

•_

100

102,032

Gas conversion

3.15

3.48

400.7

Apr. 23
Apr. 23

-————

(tons)

398.9

3.18

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1941)

Industrial

—

activity—.

•>"'S

credit

;

modernization

sales

from

Gas-fired

Gas

ASSOCIATION:

—„

(tons)

Percentage
Unfilled

3.20

—

COMMODITY

464,906

155,908

TION—Month Qf March:

3.02

Group—

Group

31:

Number of ultimate customers at Jan.

2.87

.May

Group

Utilities

term

January

3.13

3.02

.May

Public

Month
Revenue

2.45

3.21

.May

2.77

.May

———

Industrials

Kilowatt-hour

566,938

490,130

112.19

corporate.

Railroad

RE¬

SERIES—Esti¬

loans

GAS APPLIANCE

872.503
(

646,038

'■

March

consumer

Personal

1,340,803

127,926

—

EDISON ELECTRIC

110.70

110.15

Bonds

—

FEDERAL

credit.,

and

'$1,439,441

489,229

Service credit

110.34

AVERAGES:

Aaa

Baa

$1,986,841

' 617,155

Single payment loans—___—
Charge accounts
:

109.42

.May

Average

THE

104.66

107.44

—May
DAILY

110.70

.„May

YIELD

intermediate

Noninstalment

100.52

.—May

Group-

BOND

$80,400

OUTSTANDING—BOARD

and

consumer

Repair
'

•

10.250c

.—May

MOODY'S

12.000c

—.

—

Utilities

$77,400

SYSTEM—REVISED
short

Other

;

——;

Public

$77,700

••

——Ai-AAAa—!

Automobile

DAJLY AVERAGES:

Baa

12.000c

May

.May
.May
Group

A__—_L

millions

97.000c

Railroad

11,900
22,400

•

'"/*

11,500

22,200

Instalment credit1__1

35.700c

—_———____-Apr.,27

corporate.

11,700

22,400

municipal—

GOVERNORS

Total

Apr. 27
Apr. 27
—_—-Apr. 27

—

and

Federal

$56.59

QUOTATIONS):

Government Bonds-

Average

•

,A:

$36.00

$56.59

112.75

$46,100

1
__________

State

—

.—.—

MOODY'S BOND PRICES

$43,600

COM-

Public: construction;

;

£pr. 28

——

Louis)

$43,600

99.045,726

February *r-

April (000's omitted#*

loi

413,617,885

dollars):)

CONSUMER CREDIT

at-w————

Louis)

CIVIL ENGINEERING CONSTRUCTION
V *GINEERING
NEtyS-RECORD — Month
•

388,645,316

TotalUyS.. construction———a-' $1,449-,047
"Private; construction tii^AAAAA——aaaaaic,T-"
831,892

9,699,000
-

—

York)

DEPT.

—

SERIES—Month

6,845,000

443,000

82,284,930

$436,333,050
47,687,734

$512,663,611

59,577,583

____________

,; ;-

41,116.159

-20,GOO,514

483,260,516

Retail

385,000

—_—

$542,838,099

—

Wholesale

♦8,445,000

—Apr. 30

AND

ton)——

NEW

76,275,782

22,074,312
18,690,754
69,983,474

29,963,928

J___|

Manufacturing

copper—

(New

Lead

76,596,000

387,000

J00

Domestic

Export

42,651,962
A—

____

lb.)__

(E.

94,290,437

96,005,691

92,135,424

INVENTORIES

96,808,000

8,610,000

kwh.)__

reiinery at
refinery at

City

MERCE

71,840,000

Apr. 23

—

(per gross ton)———.

Electrolytic

York

90,215,000

INDEX—FEDERAL feESERVE
=

—_

States!;

United

149,114,000

.——-—Apr. 23

(tons)—.___—

SALES

000

(per

Pig iron

Scrap steel
METAL

,25.557,000

INC.————,

steel

45,453,570

80,905,186
98,976,940

_i—

116,194,000

COMPOSITE PRICES:

Finished

128.170,912

46,488,242

„J

Total

( tons)

(COMMERCIAL

AGE

$23,411,307

75,968,217

54,570,182

____\___ilA—_*_

___

(millions of

INSTITUTE:

BRADSTREET,
IRON

150,041,000

124,484,000

OF MINES):

AVERAGE

(in

output

Apr. 28

—

—:

BUREAU

SYSTEM—1D47-4.0
EDISON

$23,245,925

106,256,795

—A

Outside New York

144,295,000

Apr. 28

_.——

Pennsylvania anthracite
DEPARTMENT

New

$241,103,000

—Apr. 28

—Apr. 28
(U.

ENGINEERING

—

__—;—

municipal

OUTPUT

63,246

Month

—

99,021,764

Central

BUSINESS

construction

Public construction

COAL

DUN

—

_A__—AA

Mountain '_______

565,866

construction

State and

VALUATION

—

■"Pacific

626,182

(no. of cars)—Apr. 23

NEWS-RECORD:
S.

122,339

14,458

—

Central

Total

(number of cars)-—

CONSTRUCTION

ENGINEERING

19,451,000

RAILROADS:

AMERICAN

freight received

116,236

11,970

43,779,000

Revenue

Total

West

58,932,000

at—

Re/enue

CIVIL

Apr. 22

8,361,000

...

South Atlantic

(bbls.)

oil

at—

oil

fuel

(bbls.)

130,272

England

9,418,000

(bbls.)

Distillate

gasoline

Ago

$22,232,353

PERMIT

Middle Atlantic

——

Finished

Year

Month

MINES):

of March:
New

(bbls.)--———______

oil

fuel

BRADSTREET, INC.—215 CITIES

2,155,000

(bbls,)——
—Apr. 22
Residual fuel oil output (bbls.)—
Apr. 22
Stocks at refineries, bulk terminals, in transit, in pipe Hnes—
' «

i bbls.)

output

(BUREAU

Production of primary aluminum in the U. 8.'
(in short tons)—Month of March—

23,319,000

Apr. 22

runs

Gasoline

Kerosene output

ALUMINUM

69.4

Stocks of aluminum (short tons) end cf March

(l?bls.

average

of that date:

are as

Month

§96.5

May

of quotations,

cases

either for the

are

Latest

output—daily

condensate

Week

Thursday, May 5, 1955

Dates shown in first column

Year

______

INSTITUTE:

PETROLEUM

oil

Month

production and other figures for the

cover

that date, or, la

V-'

(net tons)—

ingots and castings

AMERICAN

______May

month ended

Week

(percent of capacity)

Equivalent 4o—
Steel

INSTITUTE:

STEEL

AND

operations

month available.

♦Revised.

**Being revised on basis of new data.

Volume

181

Number 5426 V.-. The Commercial and Financial
Chronicle

(2103)

it INDICATES
i..

March 31
stock

mon

(letter of notification) 240,000 shares of
(par 10 cents). Price—$1.15 per share.

ceeds—For

Augusta Newspapers, Inc., Augusta, Ga.
April 5 filed 40,000 shares of 6% cumulative preferred
(par $10) and 50,000 shares of class A common
stock (par $1). Price — To be
supplied by amendment.

com¬

Pro¬

stock

equipment,

working capital and general
corporate purposes.
Underwriter—Southwestern Sec|irities Co.,
Dallas, Texas.
'
; ,

Proceeds—To acquire stock of Southeastern

$100,000 to be contributed to capital surplus of
latter; and for general corporate purposes. Underwriter
—Johnson, Lane, Space & Co., Savannah, Ga.

Air Control Products, Inc., Miami, Fia.
\
f
April 26 filed 300,000 shares of common stock
(par $1),
of which 250,000 shares are for
account of
company and
50,000 shares for account of Henry A. Keller, President.
...

Price-—$6

share.

per

Proceeds— For

Automatic Garage Corp. of New York
May 2 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price-*-$l per share. Proceeds—

construction/apU

equipping of extrusion plant,.payment of
other general corporate
purposes/. Underwriter—
Horner & Mason,

obligation^a5nd
'■

To repay

bidding. Probable bidders; Halsey, Stuart & Co.
Morgan Stanley & Co.; Union Securities
Cofj?.,
Equitable Securities Corp. and Drexel & Co.
(jointly);
The First Boston
Corp.; Lehman Brothers;
Rarrijnan
Ripley & Co. Inc., Blyth & Co., Inc. and
Kidder/jtaabody & Co. (jointly).- Bids—To be received
up^mpll
a.m.
(EDT) on May 24 at office of Southern
Series,
Inc., 250 Park Avenue, New York 17, N. Y.

city.

Amcrete Corp.,

Dec.

—

Paul

Ferguson

(letter of

ticipating
share;.

Feb.

working capital. Business—^Dis¬
tributor of prefabricated concrete wall
panels and wutof steel reinforced dense

concrete, etc;%U|i-

purchase

75,000 shares of class B

common

offered
Feb. 17

(par

$1).

Price

—

cents

•

stock

Proceeds—For
Underwriter—Maine Invest¬

general corporate purposes.
ment

common

share.

per

Co., Ltd.
Discount

Co.

(5/9-13)1

Georgia

Pro¬

ceeds—For

working capital. Office — Charlotte, N* C.
Underwriters—A. M. Law & Co., Spartanburg, S.
C., and
Johnson, Lane, Space & Co., Inc., Savannah, Ga. •
j! *•
American

due

Electronics, Inc.

zs£

filed $1,250,000 of 5%

May

1967.

convertible debentures

Price—100%

and

accrued

interest.

Proceeds—To retire

bank loans and notes
payable'^ for
subsidiaries; and for working capital. Under¬
Van Alstyne, Noel &
Co., New York: ^nd

loans to
writers

—

Crowell, Weedon & Co., Los Angeles, Calif.
Expected today (May 5).
•

American

Feb. 25 filed

Offering—

Minerals

460,000 shares of

common

Corp.
stock

Bros.

New

York.

Offering

—

(par lOtf).

today

American Locomotive Co.
March 11 filed $25,000,000

March 15, 1980.
Price—To be supplied by amendment
Proceeds—Together with other funds, to redeem $18,700,000 of 7% cumulative preferred stock (par $100) at
$115 per share and prepay $10,000,000 loan from Metro¬
politan Life Insurance Co. Underwriter—Smith,
Barney
& Co., New York.
Offering—Temporarily postponed.

Appell Oil & Gas Corp., Alice, Texas
March 10 (letter of
notification) 4,000 shares of
stock

(par

cents).

com¬

Price

share).

— At
market' (esti¬
Proceeds—To Minnette

Prinz, the selling stockholder. Underwriter—Lawrence
& Murray Co.,
Inc., New York.
it Arizona
April 4
mon

(letter of

notification)

St., Phoenix, Ariz.

Insurance Co. of

300,000

same

working

general corporate purposes.

Under¬

Plymouth, Mass. (5/6)
(letter of notification) 120,000 shares of com¬
stock (par $1).
Price—$2.50 per share. Proceeds—

working
Boston, Mass.

for

each

principal

100

amount

shares of
to

stock¬

Proceeds—For development
corporate purposes.
Underwriter—

general

None.

it Boston Fund, Inc., Boston, Mass.
April 29 filed 1,250,000 shares of
capital stock.
At market. Proceeds—For
investment.

Price—

capital.

Underwriter—

49 Federal

Proceeds

—

For

mining

expenses.

Office

Room

402,
15 East First St., Reno, Nev.
Underwriter—Northern Securities, Inc.,
Seattle, Wash.
—

First National Bank
Bldg.,
•

Braniff

Airways, Inc. (5/10)
19 filed 460,644 shares of common
stock
(par
$2.50) to be offered for subscription
by common stock¬
April

holders of record on or about
May 10 on
new share for each three
shares

basis of

one

held; rights to expire on
May 24. Price—To be supplied by amendment.
Proceeds
—Together with other funds, to purchase seven
DC

new

aircraft

during
&

order

1956

from

and

Douglas Aircraft Co. for
early 1957.
Underwriter—

serial

—■

one

Co.

Peabody & Co.,
(jointly). Bids—•
on May
25 at

(EDT)

a.m.

St., Boston, Mass.

N. H.
$14,217,100 of debentures due May 15,
1975, and 142,171 shares of common stock (par
$1) to be
offered for subscription
by holders of "called" $5 cumu¬
lative

convertible first

preference stock who have not
shares for redemption or
conversion
stock.
These holders may subscribe for
$100 of debentures and one share of common stock
for
each $5 preference share
held. Price — $100 per unit.

surrendered
into

their

common

Proceeds—For redemption of $5 preference stock.
derwriter—None.
California Tuna Fleet,

Un¬

Inc.

Feb. 15 filed

(amendment) $500,000 of 6% sinking fund
debentures due 1967 and
50,000 shares of common stock
(par $1) to be offered in units of a $1,000 debenture
and
100 shares of stock.
Price—Expected at
$1,100 per unit.
Proceeds—For expansion and
working capital. Office—
Diego, Calif. Underwriter—Barrett Herrick &
Co.,
Inc., New York.
San

it Capital Gains Investment Co.,
Sacramento, Calif.
April 12 (letter of notification) 2,750 shares of
common
stock.

Price—At par ($100 per share).
Office—4336—4th
Ave., Sacramento, Calif. Letter subsequently withdrawn.

VCarling Brewing Co., Inc., Cleveland, Ohio
15 (letter of
notification) 3,803 shares of capital

March
stock

(par $15)

holders.

to be offered for subscription by stock¬
per share. Proceeds—To repay loan

Price—$40

Canadian Breweries, Ltd. Office
Ave., Cleveland, O. Underwriter—None.
•

9400

—

Quincy

Chicago Corp.

April

14 filed 672,000 additional shares of
(par $1) being offered for subscription by

stock

stockholders
share

for

May 19.

each

common

record

May 2 on the basis of one new
shares held; rights to
expire on

five

Price—$18

share.

per

struction and working
notes.

Proceeds—For

capital; and to

Underwriters—Glore, Forgan

and

common

prepay

& Co.,

Ladenburg, Thalman & Co., New York.

new

con¬

outstanding

Chicago, IU.j
.

it Cohen (Harry) Merchandising Corp.* '
May 2 (letter of notification) $250,000 of 6%

subordi¬
nated debentures due June
1, 1965. Price—100% of prin¬
cipal amount. Proceeds—To repay bank loan and ac¬
counts payable; for inventories and

working capital. Office
Y.
Underwriter—None.

—

1177

expansion; and for
Broadway, New York,

Radio Co.

April 5 filed 122,500 shares of 4% convertible preferred
stock (par $50)
being offered for subscription by class
A and class B

new

stockholders

common

for

rights to expire

each
on

May 11.

ceeds—To redeem presently
for working capital.

the basis of

held

April 26;
share. Pro¬

Price—$50 per
outstanding preferred stock

and

Underwriters—Kidder, Peabody & Co. and White, Weld & Co., both of New York.
•

Colohoma

Uranium, Inc., Montrose, Colo. (5/26);
April 21 filed 2,960,000 shares of common stock
(par one
cent), of which 2,500,000 shares are to be offered
pub-(
licly. Price—50 cents per share. Proceeds—For
explora¬
tion and development expenses and for
general corpor¬
ate

Underwriters—General Investing
York; and Shaiman & Co., Denver, Colo.

purposes.

New

Corp.,

it Colorado Sports Racing Association
April 29 filed 60,000 shares of common stock (par five
cents!:. Price—$1 per share. Proceeds—For
purchase of

other facilities and for working

fice—Grand

Junction, Colo.
vesting Corp., New York.

Comnionwealth

capital.

Of¬

Underwriter—General In¬

Uranium,

Inc.

March 17 (letter of
notification) 7,500,000 shares of capi¬
tal stock. Price—At par
(one cent per share). Proceeds
—For mining expenses.
Office — Suite 29, Salt Lake
Stock & Mining
Exchange Bldg., Salt Lake City, Utah.

Underwriter—Trans-Western Brokerage Co.,

same

city.

it Comstock

Uranium-Tungsten Co., Inc.
April 8 (letter of notification) 440,000 shares of
stock

(par two cents).

Price—25 cents

per

common

share.

Pro¬

ceeds—For

mining operations. Office—405 Henderson
Bldg., Elko, Nev. Underwriter
Utah Uranium
Brokers, Salt Lake City Utah.
Bank

—

Continued

page

cumulative

con¬

(par $50) being offered for sub¬
stockholders of record April 26 on
preferred share for each six shares
on

retire

debentures,

one

common

Indianapolis plant)

held;
Price—$50 per share. Pro¬
outstanding long-term debt (3%%
2%% notes, and 4%
mortgage on
May 10.

and for general corporate
purposes.
& Co., Inc.; Hornblower &

Underwriters—Blyth

and Stone & Webster Securities

pay

Bridgeport, Conn.

March 28 filed
202,547 shares of 4.50%
vertible preferred stock
of

Kidder,

Co., Inc., New York.

Bridgeport Brass Co.,

ceeds

Corp.;

and Shields

ISSUE

Brown Co., Berlin,
March 17 filed

land|ptnd

Uranium Co., Reno, Nev.
March 7 (letter of
notification) 2,900,000 shares of com¬
mon stock
(par 2V2 cents). Price—10 cents per share.

1985.

April 21

and

notes

Weeks;
Corp.; all of New York.

Brockton Edison Co. (5/25)
April 26 filed $6,000,000 first collateral

it Armstrong Manufacturing Corp.,

expansion
Sheehan & Co.,

held.
Price—95% of
holders and 100% to public.
costs

received

REVISED

Smith, Barney & Co., both of

it Bonnyville Oil & Refining Corp.,
Montreal, Can.
April 29 filed $2,000,000 5% convertible notes due
July
1, 1975 to be offered for subscription by common stock¬

basis

—

For

and

New York.

rights to expire

(par $10)

offered for subscription
by common stockholders
on
the basis of one new share for each
three shares
held.
Price
$15 per share.
Proceeds — For

mon

Underwriters

purposes.

—Kuhn, Loeb & Co.

Securities

Collins

$191,659,000 325-year convertible de¬
1980,"^ing offered for subscription by

stockholders 6n the basis of $500 of debentures
for each 25 shares of common
held on May 2;
rights
to expire on
May 23. Price—100% of principal amount.
Proceeds—For general corporate

scription by

address.

capital and future
writer—None.

due

common

F. Eberstadt

Underwriter—First National Life

Phoenix,

bentures

com¬

($1 per share). Pro¬
Office—807 West Washing¬

£ Arizona Bancorporation, Phoenix, Ariz.
April 29 filed 100,000 shares of common stock
to

Price—At par

ceeds—For working capital.
ton

and
Richard

Bethlehem Steel Corp.

delivery

Amortibanc, Phoenix, Ariz.

stock, class A.

•

April 11 filed

Bountiful

sinking fund debentures due

mated at about $1.50
per

stock

Expected

(May 5).

mon

company

expand iritd other states. Underwriter—None.
G. Johnson of
Mesa, Ariz., is President.

holders at rate of $100 of

International

Price—$1 per share. Proceeds—For exploration and de¬
velopment of mining properties of subsidiary and for
working capital, etc. Office—Dover, Del. Underwriter;—
Vickers

ceeds—To build up capital and
surplus of
permit to qualify as a full legal reserve

April 15 filed 15,00G shares of 5% cumulative preferred
stock, series of 1954. Price—At par ($50 per share).

March 31

rights;

(par $1)

company

American

•

stock

presppt anfl future life insurance salesmen,
district managers ^and state
managers; and 455,208 double
option coupons with and attached to
policies of whole
life
insurance, to be offered to the general public. Pro¬

American Asbestos

Co., Ltd.
(Regulation "D") 600,000 shares of

from

Best American Life Insurance
Co., Mesa, Ariz.
11 filed
800,000 shares of class A common stock
(par $1) to be offered to present and future holders of
its life insurance
policies with stock

—

Proceeds—For

der writer—None.

Underwriter—

it Benrus Watch Co., Inc.
April 28 (letteFof notfication) 10,000 shares of common
stomk
par $1).
Price—At market (estimated at $10
per share). Proceeds—To Oscar M.
Lazrus, the selling
stockholder. 'Underwriter—L. F. Rothschild &
Co., New
York, N. Y.
-

notification) 7,500 shares of o% .par¬
preferred stock.
Price
At par ($l(frper

resses made

¥ |

Briarcliff, N. Y.

Insurance Co.

West 44tHN5fr, New
York, N.
Ralph E. Samu$ & Co., same city.

Marine

—50

Industrial Development Corp.,
Dover*|pel.
April 7 (letter of notification) 300,000 shares of
cl^SSf A
stock. Price—At par
($1 per share). Proceeds—For Oil
Underwriter

Fire &

it Benrus Watch Co., Inc.
April 28 (letter of notification) 20,000 shares of common
stock (par $1L Price—At market
(estimated at $10 per
share). Proce^fas^-To four selling stockholders.> Office

Allied

Co., Houston, Tex.

Underwriter—Mitchell Securities, Inc., same

■

Bankers

ff|p
:<$gB

activities.

(par 50

April 12 (letter of notification) 15,000 shares of common
stock (par $5) to be offered for
subscription by stock¬
holders.
Price—$14 per share. Proceeds—To increase
capital and surplus. Office-—312 N. 23rd St.,
Birming¬
ham, Ala. Underwriter—None.

Uranium Corp., Moab, Utah
''
April 19 (letter of notification) 1,000,000 shares
of/t&mmon
stock (par one
cent). Price—30 cents per *' '
Proceeds—For mining operations.
Underwriter-^
eral Investing
Corp., New York.
'''.'WtoS

gas

Md.

more,

Inc.;

and

stock

Pricfr^$3.75 per share. Proceeds—For manufac¬
ture of Telea£ Sending and
Receiving Units, working
capital and general corporate purposes. - Office—Balti¬

bank loans and for construction
be determined by
competi¬

All State

March

Webster

White, Weld & Co.

cents).

program. ^Underwriter—To

tive

automatic parking garages.
Office — 15
St., New York, N. Y. Underwriter—None.

Automatic Remote Systems, Inc.
3 filed 540,000 shares of common

;;

Alabama Power Co. (5/24)
April 27 filed $15,000,000 first mortgage bonds due 1985.
—

construct

West 44th

Inc.,:Lynchburg, Va.

Proceeds

Newspapers,

Inc.;

ITEMS

•

Advance Exploration
Co., Dallas, Texas

ADDITIONS

SINCE

trust bonds due

Proceeds—For redemption of 3%%
bank loans and for construction

bonds, to

re¬

program.
Under¬
writer—To be determined by
competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp. and Salomon Bros.
& Hutzler
(jointly); Stone

New York.

Boston

Philadelphia

Pittsburgh

San Francisco

Private Wires

all

offices

Chicago

Cleveland

(2004)

The Commercial and Financial Chronicle

Continued

from page 3$

per

share and 200,009 shares of such stock. Price — At
price prevailing at the time of the sale of

the

finance Corp., Omaha, Neb

poses.

York.

Underwriter-—J. J. Riordan & Co., Inc.,
New York City.

working capital.
42

Broadway,

Consolidated Fenimore Iron Mines Ltd.
24 filed

be offered for

of record Feb. 7,

geological surveys and metallurgical re*
^search, for drilling expenses and other general corporate
purposes. Office—Toronto, Canada. Underwriter—None.
used to pay for

if Consolidated Gold Uranium Corp., Denver, Colo.
April 20 (letter of notification) 186,666 shares of com¬
mon stock
(par $1). Price—$1.50 per share. Proceeds—
For mining expenses. Office—1548 South Sherman St.,
.Denver, Colo. Underwriter—None.

^Consolidated Natural Gas Co. (6/2)
additional shares of capital stock
(par $10) to be offered for subscription by stockholders

April 27 filed 738,721
.

•of record June 2, 1955 at rate
shares

Proceeds—To repay bank loans and to

ties
use

from

make

Devonian Gas & Oil

loans

purchase securi¬
subsidiaries for
Underwriter—None.

company's

for their construction programs.

Consolidated

Sudbury Basin Mines, Ltd.,
Toronto, Canada
Jan. 31 filed 3,000,000 shares of common stock (no par).
Price—To be supplied by amendment.
Proceeds—For
exploration and development of properties. Underwrite!
—Stock
to
be
sold on Toronto Stock Exchange or
through underwriters or selected dealers in United
States.
Constellation

Uranium

Corp.,

Co., Renovo, Pa.
(letter of notification) 500,000 shares of com¬
stock (par 10 cents) to be offered for subscription

March
mon

Denver, Colo.

March 22 (letter of notification) 2,855,000 shares of com¬
mon
stock (par one cent).
Price —10 cents per share.
Proceeds—For

mining expenses.
Office—206 Mercan¬
Bldg., Denver, Colo. Underwriter—Bay Securities
Corp., New York.

tile

stock

(par $5)
to be offered for subscription by common stockholders
of record May 5 on the basis of one share for each five
shares held; rights to expire on May 19. Price—To be
supplied by amendment. Proceeds—To retire obligations
-and for general corporate purposes.
Underwriter—Paine,
"Webber, Jackson & Curtis, Boston and New York.
Offering—Expected to be made today (May 5).
common

if Cuba

(Republic of)
(5/23-24)
29 filed $2,500,000 of 4% Veterans,

April

Courts

and

amendment.

Cutter

Price—To be supplied by
Romenpower Electra Con¬
Underwriter—-Allen & Co., New York.

Proceeds—To

struction Co.

Laboratories* Berkeley, Calif.

Arches

—

Offering—Indefinitely postponed.
Dal-Tex
March 24

Corp., Dallas, Texas
(letter of notification) 2,850,000 shares of

stock (par one cent). .Price—10
cents per share.
Proceeds—For mining expenses. Office—6051 Del
Norte
Bane, Dallas, Tex. Underwriter
Selected Securities

anon

Daybreak Uranium, Inc., Spokane, Wash.
April 4 (letter of notification) 800,000 shares of
mon

stock

(par 10 cents).

Price

—

cents

per

Proceeds—For

share.

mining operations. Office—415 Paulsen
Bldg., Spokane 1, Wash. Underwriter—Pennaluna & Co
same city.
Dayton Rubber Co. (5/10)
April 15 filed $3,000,000 convertible subordinated deben¬
tures due Dec. 1, 1970. Price—To
be supplied by amend¬

ment.

Proceeds—For increased inventories and for work¬
ing capital, etc. Underwriter — Lehman
Brothers, New
York.

four

Building, Moab, Utah.

City, Utah
notification) 259,500 shares of common
(par two cents). Price—$1 per share. Proceeds—
lor mining operations. Office—506
Judge Building, Salt
Bake City, Utah.
Underwriter
Selected Securities
Btd., Los Vegas, Nev.

-stock
:

—

Desert

Sun Uranium
Co., Inc.
April 18 (letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share
Proceeds—For mining operations. Office
343 South
-State St., Salt Lake
City, Utah. Underwriter
J. W.
Hicks & Co.,
Inc., Denver, Colo.
I
—

—

if Detroit Edison Co.
May 3 filed $60,000,000 general and refunding
mortgage
T»onds, series O, due May 15, 1980. Proceeds—To
repay

J>ank loans and for

new construction.
Underwriter—To
he determined by competitive
bidding. Probable bidders:
Halsey, Stuart
Co. Inc.; The First Boston
Corp.; Coffin
-fc Burr, Inc. and
Spencer Trask & Co. (jointly); Kuhn,
Boeb & Co.

Devon-Leduc Oils, Ltd., Winnipeg, Canada
31 filed warrants for the
purchase of 200,000
-fihares of capital stock
(par 25 cents—Canadian) at $1.59

(par $100)

Great

basis; offer

May 9 in the ratio of

new

share for each

held; rights to expire on May 23. Price—r
supplied by amendment.
Proceeds — To reduce
Underwriter—Merrill

loans.

& Beane, New

ner

one

bank

Lynch, Pierce, Fen¬

York.

...

General Controls

R. W. Brown

Ltd., Toronto, Canada,

—

"best-efforts

on a

basis."

(par $1).
Price—$5 per share. Proceeds—For plant expansion, new
equipment, inventory and working capital.: Office—
Huntington Station, L. I., N. Y. Underwriter—S. D. Ful¬
ler & Co., New York.
1 »

(letter of notification) 25,000 shares of common
stock (no par). Price — $10 per share. Proceeds—For
working capital. Office—203 East Cotton St., Longview,
Underwriter—D.

Homes, Inc.

Dec. 15 filed 300,000 shares of common stock

Jan. 20

Tex.

Co., San Francisco, Calif.
General

East Texas Loan & Investment Co.

Carter Investment

Co.,

same

address.

• General
Telephone Co. of Kentucky (5/10)^
t.-*
April 22 filed 26,000 shares of 5% cumulative preferredstock (par $50). Price—To be supplied by amendments ~
Proceeds—To repay bank loans and advances from par¬
ent (General Telephone Corp.) and for construction pro-*"
«

Electronics Co. of Ireland
Jan.

filed

300,000 shares of capital stock. Price—At
par ($1 per share). Proceeds—For machinery and build¬
ing and working capital. Office — 407 Liberty Trust
Bldg., Philadelphia, Pa. Underwriter—None.

ceeds

N. Y. Underwriter—None.

one

new

for

each

five

held.

Proceeds—For general corporate
purposes. Office—Newhouse Bldg., Salt Lake City, Utah.
Underwriter—Allied Underwriters Co., same address.

Federated Uranium Corp.
March 14 (letter of notification)
stock

common

(par

one

3,000,000

Price—10

cents).

Second

cents

of
per

South

Fidelity Insurance Co., Mullins, S. C.
(letter of notification) 86,666 shares of

March 25

stock

(par $1). Price—$1.87 V2
—To increase capital and surplus.
Daniel Lewis

share.

per

com¬

Proceeds

Underwriters—Mc-

Co., Greensboro, N. C.; Dietenhofer &

Heartfeld, Southern Pines, N. C.; and Calhoun & Co.,
Spartanburg, S. C.
Financial

Credit

Corp., New York

ing fund preferred stock. Price—At par ($2 per share).
Preceeds
For working caiptal. Underwriter — E. J
Fountain & Co., Inc., New York. Offering—Withdrawn.
—

Florida Home Insurance Co.,
Miami, Fla.
March 14 (letter of
notification) 3,000 shares of common

Price—$24 per share. Proceeds—To in¬
capital and surplus. Office—7120 Biscayne Blvd.,
Miami, Fla. Underwriter—None.
crease

Florida Power Corp. (5/12)
April 14 (letter of notification) 232,557 shares of com¬
mon stock (par
$7.50) to be offered for subscription by
stockholders

common

record

May

New-

For

—

investment

additional

common

stock:

Georgia Power Co. (5/10)
April 13 filed $12,000,000 of first mortgage bonds due
Proceeds—To retire bank loans and for construe-

Underwriter—To be determined toy com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co..
Inc.; The First Boston Corp.; Lehman Brothers; Union,
Securities Corp. and Equitable Securities Corp. (jointly);.
Morgan Stanley & Co.; Kuhn, Loeb & Co.; Shields & Co.
and Salomon Bros. & Hutzler (jointly); Harriman Ripley
& Co.

Inc.; Blyth & Co., Inc. and Kidder, Peabody & Co.
(jointly). Bids—To be received up to 11 a.m. (EDT>
on May 10 at the office of Southern Services, Inc., Room;
1600, 250 Park Avenue, New Y0rk?I7, N.'-Y-A' r

Proceeds—For

mining operations.
Office—122
Street, Salt Lake City, Utah. Un¬
derwriter—I. J. Schenin Co., New York.
West

tion program.

share.

per

both

Underwriters—Paine, Webber,
Jackson & Curtis and Stone & Webster Securities Corp.,;
both of New York; and Mitchum, Jorfes &
'Templetbiv
Los Angeles, Calif.

1985.

(5/6)

April 21 (letter of notification) 6,00C shares of common
stock (par $10) to be offered first to stockholders on
of

Corp.,

equities of subsidiaries.

April 11 (letter of notification) 25,000 shares of capital
stock (par $6) being offered for subscription by stock¬
holders of record April 20 on a pro rata basis. Rights to
expire May 16. Price — $10 per share. Proceeds—For
working capital. Office—123 Erie Boulevard East, Syra¬

the basis

Securities

Webster

• General Telephone Corp., New York (5/23-24)1
May 3 filed 300,000 shares of convertible preferred stock:
(par $50). Price—To be supplied by amendment. Pro¬

Excelsior Insurance Co. of New York

Price—$40

York.

poration Trust Co. of Nevada, 206 No. Virginia St., Reno,
Nev. Underwriter—Coombs & Co., of
Washington, D. C,

cuse,

Stone

and

Uranium Corp.
March 18 (letter of notification) 12,500,000 shares of com¬
mon stock (par one cent).
Price—Two cents per share.
Proceeds—For mining expenses. Office—c/o The Cor¬

•

Underwriters—Paine, Webber, Jackson & Curtis

gram.

Elk Mountain

l-for-10

Grace

(W. R.)

& Co.

(5/18)

April 26 filed $30,000,000 of convertible subordinate de¬
bentures due May 15, 1975.
Price—To be supplied by
amendment. Proceeds—For general corporate purposes,,

including capital expenditures for chemical operations
in

the

man,

United

States

and

Canada.

Underwriter—Gold¬

Sachs & Co., New York.

if Grand Canyon Life Insurance Co., Phoenix Ariz..
April 11 (letter of notification) 173,887 shares of com¬
mon
stock (par $1).
Price—$1.50 per share. Proceeds
—For capital and surplus.
Office — 3827 N. Central
Ave., Phoenix, Ariz. Underwriter—None.
Great

Frontier Mining Corp.

March 21

(letter of notification) 300,000 shares of

stock

com¬

Price—$1 per share. Pro¬
ceeds—For mining expenses.
Office—1320 Continental
Bank Bldg., Salt Lake City, Utah.
Underwriter—J. EL
Call & Co., Reno, Nev., and Salt Lake City, Utah.

mon

(par five cents).

Greenfire

Uranium

Corp.

April 18 (letter of notification) 7,500,000 shares of capi¬
tal stock. Price—At par (one cent per share). Proceeds
—For mining expenses.
Office — 201 Pacific National
Life

Bldg., Salt Lake City, Utah. Underwriter—Uraniums;
Mart, Inc., same city.
*

basis; rights to expire on May 31. Price—To be supplied
by amendment. 1 Proceeds—For construction program.

April 21 filed 75,000 shares of class A stock

Underwriters

Price—To

Lynch,

Pierce,

Kidder,

Peabody

Fenner

—

Co.,

and

Merrill

April 21 filed 495,524 shares of common stock (par $2),
of which 343,025 shares are to be offered in
exchange
for 68,605 shares of common stock
(par 25 cents) at
the rate of five Foremost

delphia Dairy
be

common

shares for each Phila¬

share; and 152,499 shares

are

reserved

for issuance under
Employees' Restricted
Option Plan for Foremost officers and key em¬
ployees.
Stock

Frito

Co., Dallas, Texas (5/9-13)
April 15 filed 127,500 shares of common stock (no par),
of which 27,500

to be offered to

are

employees by company at $9.50
are

and

per

largest

are

stockholder,
to

directors who

be
are

offered
not

at .$10
for

GAD

Doolin, a founder
share; and 10,000

Doolin's

employees at $9.10

ceeds—For working capital
poses.

per

Mr.

officers and

share; 90,000 shares

to be offered for account of C. E.

per

account

share. Pro¬

and general corporate pur¬

Underwriter—Dittmar & Co., San Antonio, Tex.

Enterprises,

Inc., Alexandria, Va.
(letter of notification) 260,000 shares of com¬
mon
stock (par 10 cents).
Price—$1 per share. Pro¬
ceeds—For purchase of factory and
working capital.
Office—1710

Mount

Vernon Avenue,

Gulf Cities Gas

Corp.

supplied by

(5/16)
amendment

(par $1).
(expected to be

about $8.75 per share). Proceeds—For repayment of bank
loans, etc., expansion and working capital. Underwrite*

Beane.

Dairies, Inc., Jacksonville, Fla.

March 15

March

preferred stock

on the Toronto Stock Exchange.
Proceeds—To American
Trading Co. Ltd., the selling stockholder. Underwriter—

Foremost

Desert Queen Uranium
Co., Salt Lake
•Jan. 26 (letter of

second

of record

stock (par $10).
com¬

Garrett Corp.

—

Btd., Las Vegas, Nev.

Co., Inc.
^
(letter of notification) 2,306 shares of pre¬
(par $100)-being offered in exchange for
1,237 shares of first preferred stock (par $100) and 1,069
(Robert)

(5/10)
April 20 filed 182,033 shares of common stock (par $2)
to be offered for subscription by common stockholders

Jan. 29, 1954 filed 250,000 shares of 7% cumulative sink¬
eom-

'."(TT^."V.

■;*:■

Co., Gfendale, Calif. (5/10)
April 18 filed 60,000 shares of common stock (par $5).
Price
To be supplied by amendment. Proceeds — For
general corporate purposes. Underwriter—Dean Witter

•

Uranium

Associates, Washing-

'-j,

ferred stock

•

Dyno Mines, Ltd., Toronto, Canada.
March 25 filed 1,100,000 shares of common stock (pat
$1). Price—To be related to the current market price

mon

April 25 filed 144,500 shares of series LV common stock
(par $1). Price—To be supplied by amendment. Pro*
cceds—To selling stockholders. Underwriter
Bfyth &
Co., Inc., San Francisco, Calif., and New York, N. Y.

Thursday, May 5, 1955

Southern Box Co., Inc. on a share-for-share
to expire May 16.
Underwriter—None.

Durango Kid Uranium Corp., Moab, Utah
April 1 (letter of notification) 30,000,000 shares of capi¬
tal stock. Price—At par (one cent per share). Proceeds
—For mining expenses. Underwriter—Guss &
Mednick,

share.

Public Works bonds due 1983.

Gair

March

by stockholders. Price—25 cents per share. Proceeds—
drilling operations and working capital. Office—
Ave., Renovo, Pa. Underwriter—None.

if Federal Security Insurance Co.
Copper Range Co.
April 14 filed 282,464 shares of

For

of one new share for each
Price—To be supplied by amendment.

held.

—

704 Erie

204,586 shares of common stock (par $7),
subscription by common stockholders
1955 at the rate of one new share for
-each five shares held. Price—$2.20 per share. Proceeds
From sale of this stock, plus $440,000 to be available
from sale of 200,000 shares to Alator Corp. Ltd. and
Yam Securities Ltd., and $175,000 treasury funds, to be
Jan.

ton, D. C.

For

general corporate pur¬
Underwriter — American Securities Corp., New?
No public offering contemplated at this time.

150,000 shares of 7%

preferred stock (par 95 cents) and 15,000
shares of common stock (par one cent) to be offered in
■units of 10 shares of preferred stock and one share ot
common stock.
Price — $10 per unit. Proceeds — For

(letter of notification)

March

■cumulative

Proceeds

warrants.

Underwriter—T. J. O'Connor and

the market

Confidential

Alexandria,

Va.

—Eisele &

King, Libraire, Stout & Co., New York.

Gulf Uranium & Development

Corp., Gallup, N. ML
3,000,000 shares of com¬
(10 cents per share). Proceeds

April 4 (letter of notification)
mon

stock.

Price—At par

—For

mining expenses. Office—First State Bank Bldg.,
Gallup, N. M.—Underwriter—Coombs & Co., of Ogden,

Utah.

Harley Patents, Inc.
(letter of notification) 10,000 shares of capital
stock (par 10 cents.) Price—$1.50 per share. Proceeds—
For working capital. Office—580 Fifth Ave., New York
36, N. Y. Underwriter—E. E. Smith Co., same city.

April 6

• Hawk Lake Uranium
Corp. (5/23-27)
April 12 filed 200;000 shares of common stock (par ID
cents). Price—$1.50 per share. Proceeds — For mining
expenses, etc.
Underwriter—Dobbs & Co., New York
City, will act as agents.

Helio

Aircraft Corp.,

Canton, Mass.
3
(letter of notification) 48,000 shares of com¬
mon
stock.
Price—$6.25 per share.
Proceeds—To pay¬
off obligations, for working capital, etc. Office—Metro¬
politan Airport, Canton (Norwood P. O.), Mass. Under^
writer—None*-:*
*t--"
March

Volume 181 * Number 5426

The Commercial and Financial Chronicle

(2105)

Vy;;'"

i'h

Heliogen Products^ Inc. *
Horton Aircraft Corp., Las Vegas, Nov.
v> :
(letter of notification) 22,670 shares of common
April 26 filed 500,000 shares of common stock (no par),
Etock (par $1), of which 12,670 shares are being offered
of which 400,000 shares are to be offered for account of
for subscription by stockholders up to and
company and 100,000 shares for account of William E.
including
June 15, 1955, and 10,000 shares are to be offered
pub¬
Horton, President. Price—$1 per share. Proceeds—For
licly. Price—$5 per share. Proceeds—For working capi¬ v construction of model of "Horton Wingless Aircraft"
tal, etc. Office—35-10 Astoria Blvd., Long Island City,
and expenses incident thereto. Underwriter—None.
March 7

N. Y.

♦

Underwriter—Smith &

Co., Waterville, Me.

Humble

Hidden

Valley Uranium Co., Inc.
April 21 (letter of notification) 5,950,000 shares of com¬
mon stock.
Price—At par (five cents per share).
Pro¬
ceeds—For mining expenses.
Office—705 Judge Bldg.,
Salt Lake

City, Utah.

short-term

loans, and for new equpiment and
Office—1222 Linden Avenue, Erie, Pa.
Underwriter—Reitzell, Heed & Co., Erie, Pa.
repay

working capital.

Bend Uranium, Inc.
March 16 (letter of notification) 150,000 shares of
stock (par one cent). Price—$2 per share.
—For exploration and development expenses.

10 West 2nd

South, Salt Lake City, Utah.

Office—

Underwriters

Salt Lake City, Utah.

Price—At par (five cents per share). Proceeds

Salt

Co.,

Lake

Office

expenses.

City, Utah.

701

—

Underwriter

Newhouse

Van

—

Bldg.,

Blerkom

city.

same

stock

(par

Inc.

$3,000,000 of 6% debentures due March 1,
of which $2,596,600 principal amount are to be

offered

first

ISSUE

Price—To be supplied by
purchase preferred stock of

stockholders.

Proceeds—To

amendment.

Hugh H. Eby Co., at par; to purchase real estate, ma¬
chinery and equipment, etc.; for the acquisition of all
common stock of Eby company and to pay certain bank
loans and notes payable of Eby. Underwriters—Milton
Blauner

Co., Inc., New York; Hallowell, Sulz¬
berger & Co., Philadelphia; and Baruch Brothers & Co.,
Inc., New York).
Inland Western

Loan

Finance

Corp.

Feb. 17 filed 2,500,000 shares of class A
non-voting com¬
mon stock (par $1).
Price—$1.25 per share. Proceeds—
To be used

NEW

Hardware Manufacturing Co.,

Industrial

operating capital for its two subsidiaries,

150,000 shares of common stock (par 10 ~
Price—$5 per share. Proceeds—For exploration
development expenses. Underwriter—Baruch Bro-.

cents).
and

Co., Inc., New York,

on a

"best-efforts basis.**

International Fidelity Insurance Co., Dallas, Tex.'
March 30 filed 110,000 shares of common stock (no par).:

share.

per

Proceeds—To

12 selling stock--

Underwriter—Name to be supplied by
■

com¬

Proceeds—For

Industries, Inc., New York.

March 25 filed

ment.'',

10 cents). Price—25 cents per share.
exploration and development expenses.
Office—Denver, Colo. Underwriter—Garden States Se¬
curities, Hoboken, N. J.
mon

ir Horsethief Canyon Uranium, Inc.
April 12 (letter of notification) 6,000,000 shares of capi¬
—For mining

(Wyo.)
(5/10)
(letter of notification) 1,200,006 shares of
Inc.

Iowa

',.[•]

amend¬

Public

Service Co. (5/11)
April 20 filed 270,220 shares of common stock (par $5)
to be offered for subscription by common stockholders
of

record

May 11, 1955 at rate of one new share for
10 shares held (with an oversubscription privi¬
lege); rights to expire on June 1. Price—To be supplied by amendment.1 Proceeds—To repay bank loans*
and for construction program.
Underwriter—None.

each

Israel

Pecan

Plantations, Ltd.
24,900 shares of ordinary common stock:
(par one Israeli pound). Price—$10 per share. Proceeds
—For capital expenditures. Underwriter—None. Offices
Feb. 28

filed

—Natanya, Israel, and New York, N. Y.
Jarmon

Properties & Oil Development Corp.
(letter of notification) 30,000 shares of captal
stock. Price—At par ($10 per share). Proceeds—For fur¬
ther exploration and development. Addres—P. O. Box
1109, Wichita Falls, Tex. Underwriter—John A. Aicholtz
Jan.

Associates, 505 Macon St., Fort Worth, Tex., and an-;

other.

Jersey Central Power & Light Co. (5/10)
April 14 filed $20,000,000 first mortgage bonds due May
1, 1985. Proceeds—To refund $8,500,000 of bonds; repay

CALENDAR

j**

;

Inter American

holders.

Uranium,

April 1

1975,
com¬

Proceeds

—James Anthony Securities Corp., New
York; Lawrence
A. Hays Co., Rochester, N. Y., and Ned J. Bowman
Co.,

tal stock.

Ibex

additional
Office—Phoenix, Ariz. Under¬

Price—$6.50

Co., Dallas, Texas.

■

writer—None.

thers &

March 9 filed

Horseshoe

mon

common

and to. finance establishment and operation of
loan and finance offices.

stock (par

10).
Price—$1.20 per share. Proceeds—For exploration for
sulphur and related activities. Underwriter—Garrett &
•

High Pressure Equipment Co., Inc., Erie, Pa.
April 8 (letter of notification) 26,000 shares of common
stock (par $1). Price — $2.25 per share.
Proceeds—To

Sulphur Co., Houston, Texas

April 25 filed 500,000 shares of

•;

bank loans and

for

new

construction.

Underwriter—To

be determined by

■

;
•

•*

May 5

(Thursday)

Stewart Oil & Gas Co

American Electronics, Inc

(Van Alstyne; Noel & Co. and Crowell, Weedon & Co.)

American

International

Minerals

(Vickers Brothers)

Copper Range

(Offering to stockholders—underwritten
&

Curtis)

Webber,

Co., Inc.—Com.

Ohio

Edison

(Tuesday)

Bends

(Bids 11

$30,000,000

EDT)

a.m.

-•'••-May 6

Armstrong
-

(Friday)

Manufacturing
£1

(Sheehan

(Bids

Corp

Common

(Offering

Federal Security Insurance Co.__
(Offering

Common

stockholders—underwritten

Underwriters,

Inc.)

(Lee

mon

stockholders at the rate of

-Debentures
Blosser

& McDowell)

$1,100,000

May 18

(Monday)

American Discount Co. of Georgia
(A.

Law

& Co.

and Johnson,

Preferred

$750,000
-

Frito

& Co

(Goldman,

Co.)

$900,000

of America

(Vickers

(Van

Alstyne,

Noel

Container

■

& Co.,

Co.)

Corp

(Allen

Debentures

Witter

May 10
Airways,

(Offering

Co.)

1,346,800

Co.

Garrett

Eberstadt

Brothers)

Common

(Tuesday)
—__J5enda
EDT)

a.m.

$15,000,000

May 25

(Wednesday)
Bonds

EDT)

a.m.

$6,000,000

(Bids

Bonds

invited)

Merrill

182,033

(Bids

$8,000,000

(General

EDT)

$12,000,000

—Common

Securities)

June 1

$300,000

(Offering
by The

stockholders

First

Boston

and

Common

employees—underwritten

Boettcher

Corp.;

Co.; and
Bosworth, Sullivan & Co., Inc.) 303,010 shares

Bonds

(Bids noon EDT) $20,000,000
June 2

New York, Chicago & St. Louis RR.__Eq. Tr. Ctfs.
V

4;T; (Bids

EDT)

noon

>Schmieg Industries, Inc.(S.

Fuller

Co.

and

.Common

Vermilye

Brothers)

Scholz Homes, Inc.(Strauss,

$299,640

McDowell)

Silver

Creek

Precision

(General

Iowa

Public

Service

(Wednesday)
Co

Corp.

Investing

.Debentures

Corp.)

$600,000

$900,000

June

May 11

Common

Offering to stockholders—no underwriting 738,721 shares)

..Common

Blosser

(Thursday)

Consolidated Natural Gas Co

$4,080,000

Common

—

(Offering

Steel
(The

Pacific

Corp

First

Boston

Common

to stockholders—no underwriting)

(Offering
and

155,324

Power
to

Central

Illinois

.Common

Peabody & Co.)

May 12
Florida
Co.

Corp.)

Clay Products
(Kidder,

June

.Common

9^,875 shares

663,469 share*

May
Gas

(Eisele

Pomona Tile

Weedon

Progress Manufacturing
&

Co.

Incorporated

Co.)

120,928

Emanuel,

invited)

—

^ King'el Uranium Corp., Reno, Nev.
April 11 (letter of notification) 300,000 shares of com.mon
stock.
Price—At par ($1 per share).
Proceeds—
mining

(Bids

Power

(Bids

Common

Bonds

Preferred

$6,000,000

Bonds

$25,000,000

—Bonds

—

invited)

177,500

Common
Deetjen

Co.)

Southern

Co.
(Bids

made through

director.

Co.,

same

mining

expenses.

City, Utah.
city.

(one cent

per

Office—2174 S.

Underwriter

—

share). Pro¬

Main Si.,

Guss & Mednick

ir Kropp Forge Co., Cicero, III.
April 20 (letter of notification) 18,081 shares of common
stock (par 33% cents).
Price—At market. Proceeds^- 1
For selling stockholders.
Undewriters—L. D. Sherman
& Co., New York; and Sincere & Co., Chicago, 111. -—
...
ir Kurman Electric Co., Inc.
May 2 (letter of notification) 100,000 shares of common,
stock (par 25 cents).
Price—$3 per share. Proceeds— )
For equipment and working capital. Business—Electro¬

City, N. Y.

Underwriter—John R. Boland & Ce.

Inc., New York.
LeBlanc Medicine Co., Inc., Lafayette, La.
April 6 filed 1,000,000 shares of common slock (par Id
cents).
Price—$1 per share. -Proceeds—For purchase

building and equip¬
Business—Proc¬
essing, packaging and merchandising of new proprietory
medicine, KARY-ON. Underwriter—None.
land,

plant,

ment; and

warehouse,

office

additional working capital.

(letter of notification) 270,000 shares of com¬
(par 10 cents).
Price—$1 per share. Pro¬
ceeds—For mining expenses.
Office—2761 Washington
stock

Underwriter—Mid-America Securi¬

ties, Inc., Chicago, 111.
+ Lockheed Aircraft Corp., Burbank, Calif.
4 filed $30,000,000 of subordinated (convertible)
debentures due May 1, 1980. Price—To be supplied by

Common
500,000

May

(Wednesday)

invited)

sales to be

stock. Price—At par

Blvd., Ogden, Utah.
Common

J.
to

None;

^ Knapp Uranium & Development Co.
21 (letter of notification) 20,000,000

mon

November 9

Office—139 No. Virginia St., Reno*

Lockhart Basin Uranium Corp.

$15,000,000

Light Co

—

King, President and

April

common

$4,000,000

(Tuesday)

invited)

expenses.

Underwriter

Nev.

March

September 13

Utah

$656,250

Co., Inc
and

200,000

Gas

(Bids to be invited)

Class A

Manufacturing Co!

(Crowell,

(Llair

Stout

invited)

Utah Power & Light Co..

i_.

Libaire,

Kidder,

(Monday)

Corp

King,

Virginia Electric & Power Co

Peabody &
Merrill Lynch, Pierce, Fenner & Beane) 232,557 shares

Gulf Cities

Electric

(Bids

Common

stockholders—underwritten

(Tuesday)

Southwestern Gas & Electric Co

(Thursday)

Corp

Inc. rcf

magnetic control apparatus. Office—35-18 37th St., Long

(Friday)
Co

(Offering to stockholders—no underwriting) 270,220 shares

McLouth

Securities,

King Oil Co., Salt Lake City, Utah
(letter of notification) 260,000 shares of capital
to be offered for subscription by stockholders.
Price—50 cents per share.
Proceeds—For development
and drilling expenses and
other corporate purposes.
Office
28 West Second South, Salt Lake City, Utah.

Island

Illinois Bell Telephone

Address—P. O. Box 528, Moab,

Mid-America

stock

Salt Lake

(Wednesday)

Public Service Co. of Colorado

..Common

States

(Thursday)

Inc

Investing Corp. and Shaiman & Co.) $1,250,000

..Bonds

a.m.

Uranium,

—

March 31

ceeds—For

Jersey Central Power & Light Co

Underwriter

Clarence

60,000 shares

Uranium, Inc.
(Garden

Colohoma

..Common

Witter & Co.)

May

Lynch,

Georgia Power Co...

;

mining expenses.

•

Utah, 26 West Broadway, Salt Lake City, Utah.

For

Washington Gas Light Co
•

—For

■

Underwriter—None.

Brockton Edison Co

$3,000,000

stockholders—underwritten

(Dean

;

$300,000

share for each two

Price—$5.35 per share to stockholders; and
days, to public at $6 per share. Proceeds—Tcpurchase new plant site and shop building, and to in¬
crease
inventory and working capital.
Office — 801
Fourth Ave., Grand Junction, Colo. Underwriter—Taylor & Co., Chicago, 111.

Common

General Controls

(Bids

Debentures

Pierce, Fenner & Beane)

Ibex

Co.)

May 24

Inc.) 460,644 shares

Corp.

(Offering

new

after 30

Utah.

Common

Alabama Power Co.

.Common
by

Dayton Rubber Co
(Lehman

$2,500,000

(Tuesday)

Inc

stockholders—underwritten

Co.)

Bonds

(Offering to stockholders—underwritten by Dillon, Read
& Co. Inc. and Johnston, Lemon & Co.) 511,660 shares

(Bids

Braniff

(Dobbs

Common
Dean

and

one

Kane Creek Uranium Corp.
April 1 (letter of notification) 6,000,000 shares of capital
stock.
Price—At par (five cents per share).
Proceeds

$30,000,000

(Monday)

Potomac Electric Power

250,000 shares

Corp.

Inc.

Co.)

(Republic of)

Common

Hawk Lake Uranium Corp

$300,000

(Halsey, Stuart & Co. Inc. and Van Alstyne,
Noel & Co.) $7,000,000

Transamerica

Cuba

Common

Brothers)

National Container Corp

National

Debentures

Sachs

May 23

Common

Minerals Corp.

(Blyth

(W. R.)

(Wednesday)

Co.
(Dittmar

Grace

Lane, Space & Co., Inc.)

shares held.

•

May 9

(letter of notification) 33,745 shares of cdmstock (par $1) to be offered for subscription by

$40,950,600

underwriting)

Junction, Colo.

March 31

Debentures

Corp.

$240,000

'Junction Bit & Tool Co., Grand
Preferred

Higginson Corp. and Straus,

St., New York, N. Y.

$10,000,000

Edison

stockholders—no

Radio

Trav-Ler

Allied

EDT)

a.m.

California

Southern

Co.) $300,000

11:30

—

10 at office

Public Service Co. of Oklahoma
•'•*

(jointly); White, Weld & Co.; Kidder, Peabody & Cc.
To
be
received up
to noon (EDT) on Mayof General Public Utilities Corp., 67 Broad

Bids

May 17

by Paine,
shares

282,464

$750,000

(Israel & Co.) $300,000

$460,000

Common

Co., Inc.)

Western Nebraska Oil & Uranium

Corp.. .Common

Co..

Jackson

$1,250,000

Common

(Barrett Herrick &

Debentures

competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blair & Co. Incorporated; Leh¬
man Brothers; Union Securities Corp., Salomon Bros!. & :
Hutzler and Merrill Lynch, Pierce, Fenner & B6ane,

Continued

page

(2006)

The Commercial and Financial Chronicle

.*'/

Continued

East

from page 41

St., \ Salt Lake City, Utah. Underwriter
Christensen, Inc., Denver, Colo. '

Peters,

—

Writer &

Proceeds—For working capital and general

amendment.

Underwriter—Blyth & Co., Inc. and
both of New York.

corporate purposes.

Hornblower & Weeks,

Inc.

Lone Star Uranium & Drilling Co.,

April 7 (letter of notification) 570,000 shares of common
stock (par 10 cents).
Price—50 cents per share. Pro¬
ceeds—For mining expenses. Office—1100 Fidelity Union
Life

Tex. Underwriter
Vegas, Nev.

Bldg., Dallas,

Nichols Co., Las

Lost Creek Oil & Uranium

Christopulos-

Monarch

Co.

March 25 (letter of notification) 2,995,000 shares of com¬
mon stock
(par one cent). Price— 10 cents per share.

Office—507 West Spruce
St., Rawlins, Wyo.
Underwriter—Carroll, Kirchner &
Jaquith, Inc., Denver, Colo.
Lucky Lake Uranium, Inc., Salt Lake City, Utah
(letter of notification) 8,000,000 shares of capital
stock. Price—At par (two cents per share). Proceeds—
For mining expenses. Office—201 Boston Building, Salt
Lake City, Utah. Underwriter—Kastler Brokerage Co.,
Feb. 9

city.

Lucky Strike Uranium Corp.

Underwriter—Seaboard Se¬

curities Corp., Washington, D. C.

Majestic Uranium Corp.
March 10 (letter of notification) 300,000 shares of com¬
mon
stock (par 25<«cents).
Price—$1 per* share. Pro¬
ceeds— For mining expenses.
Office — 715 Newhouse
Bldg., Salt Lake City, Utah. Underwriter—Van Blerkom
& Co., same city.
McLouth Steel Corp., Detroit, Mich. (5/11)
April 21 filed 155,324 shares of common stock (par
$2.50). Price—To be supplied by amendment. Proceeds
—To selling stockholders. Underwriter—The First Bos¬
ton
•

Montezuma
stock

Proceeds—For exploration and development operations.
Office—Ernest and Cranmer Bldg., Denver, Colo.
Un¬

derwriter—Investment Service Co., same city.
Morrell
March 31
stock

Corp., Denver, Colo.
of

stock

(par 10
cents), of which 400,000 shares are to be sold by the
company
and 312,149 shares by selling stockholders
Price—$4 per share. Proceeds—To repay bank loan of
$242,000 and a secured note of $384,000; for acquisition
of new properties and the drilling of wells; and for
other general corporate • purposes.
Underwriters—First
common

California Co., San Francisco, Calif.; William R. Staats
& Co., Los Angeles, Calif.; and Allen &
Co., New York.

Offering—Now being made.

Mechling (A. L.)

Barge Lines, Inc., Joliet, III.

March 31 filed $837,252 of instalment note certificates to
be offered in exchange for the 3,578 shares of authorized
common

stock of Marine Transit Co. at rate

of $234 per share.

The balance of $1 of a total purchase
price of $235 per share is to be paid in cash. The
exchange will be contingent upon acceptance of the
offer by holders of not less than 81% of the Marine
offer

Transit shares.

it Mehadrin Plantations, Inc., New York
April 28 filed 70,000 shares of common stock (par $10).
Price—$10.75 per share. Proceeds—For acquisition of
additional groves and working capital and other
gen¬
eral

corporate purposes. Business—Production and sale
of citrus fruits in State of Israel; also
plans to grow sub¬

tropical fruits.

(John)

& Co., Ottumwa, Iowa

(letter of notification) 16,000 shares of capital
par) to be offered in exchange for a like

(no

number of shares of John J. Felin

payment.
•

Co., Inc., plus

cash

Underwriter—None.

National

Container

New York (5/9-10)
April 18 filed $7,000,000 of 15-year sinking fund deben¬
tures due 1970.
Price—To be supplied by amendment.
Proceeds — To repay bank
loans; for machinery and
equipment; and for expansion. Underwriters
Halsey,
Stuart & Co. Inc. and Van
New
•

Underwriter—None.

Metalphoto Corp., Cleveland, Ohio
April 4 (letter of notification) 108,070 shares of com¬
mon stock
(par one cent) to be offered first to stock¬

Alstyne, Noel & Co., both of

York.

Corp.,

New York

(5/9-10)

common stock (par $1).
Price—To be related to the then current market
price on

New York Stock

Exchange. Proceeds—For expansion and

general corporate purposes.

Underwriter—Van Alstyne,

Co., New York.

NationaUfrural

Electric Cooperative Association,
Washington, D. C.
April 22 filed $720,000 of 2J/2% first trust notes. Price—
At par (in multiples of

$1,000). Proceeds—For construc¬
headquarters building. Underwriter—None,
notes to be offered through officials to member
systems.
tion of

new

Oil Corp.

expenses.

dred, W. Va.
226 West 47th

Broadway, New York,' N. Y., and Hun¬
Underwriter—Chippewa Securities Corp.,
Street, New York City.

Bristol

Oils., Ltd., Toronto, Canada

Corp., in exchange for properties. Newton-Conroe is dis¬
tributing its stock to its stockholders in a liquidation.
As holder of 51% of the Newton-Conroe

stock, PhoenixCampbell will receive about 800,000 shares which it pro¬
to offer to the

un¬

22,500 shares of

common

stock issuable

pursuant to exercise of 90,000 stock purchase warrants
the underwriters of the public

shares of

boratories.
one

offering in 1951

stock of The Norden La¬

common

The warrant holders

share of

are

entitled to receive

Norden-Ketay stock for each four warrants

exercised at $12 per share.

porate purposes.

Proceeds—For general cor¬

•

iv-

Price—To

John

Office—2903 E. 79th St., Cleveland
4, Ohio.
writer—Wm. J. Mericka & Co., same
city.

Under¬

Mineola, N. Y. Underwriter—None.
Millsap Oil & Gas Co., Siloam Springs, Ark.
(letter of notification) 599,200 shares of com¬

March 17

stock

(par 10 cents).

Proceeds—For oil and

Price

gas

—

activities.

cents

per

Office—518

share.
Main

St., Siloam Springs, Ark. Underwriter—Dewitt Invest¬
ment Co.,
Wilmington, Del.
•

Minerals Corp. of America

(5/9-13)
(letter of notification) 300,000 shares of com¬
mon
stock (par one cent).
Price—$1 per share. Pro¬
ceeds—For exploration and
development expenses and
working capital. Office—Grand Junction, Colo. Under¬
March 31

writer—Vickers

Brothers, New York.*

mon

stock.

Price—At

par

(one cent

per

ceeds—For mining expenses.
Bank Building, Salt Lake

share).

com¬

Pro¬

Office—210 Zions Savings
City, Utah. Underwriter
Potter Investment
Co., same city.
Moab

March

—

Minerals, Inc., Moab, Utah
(letter of notification) 30,000,000

shares of
(one cent per share). Pro¬
ceeds — For mining expenses.
Office
Archer Bldg
Moab, Utah. Underwriter—Guss &
Mednick, Salt Lake
City, Utah.

capital stock.

Price—At

par

—

• Mojave Uranium Co., Salt Lake
City, Utah
April 13 (letter of notification)
3,000,000 shares of
mon

stock

—

amendment.

Boston, Mass.,

Underwriter—To

Proceeds—To

whq is the selling

named

stock¬

Ohio Edison Co.

later.

(5/17)

Proceeds—For working capital and

speculation."

general corporate purposes.

Un¬

Office—Houston, lex.

derwriter—None.

* Poly-Seal Corp. (N. Y.)
April 27 (letter of notification) 40,000 shares of capital
stock (par 10 cents). Price—$3,371/2 per share. Proceeds
<—For machinery acquisition, mold construction, inven¬
purchases and other general corporate purposes.
Lexington Ave., New York, N. Y. Under¬

writer—None.
•

Pomona Tile

Manufacturing Co^ (5/16-20)
common stock (par $i).
supplied by amendment. Proceeds—To re¬
tire bank loan and for general corporate purposes. Un¬
April 25 filed 120,928 shares of
Price—To be

derwriter—Crowell, Weedon & Co., Los Angeles, Calif.
it Potomac Electric Power Co.
May 2 filed $10,000,000 of first mortgage bonds due
1990. Proceeds-^To repay $3,000,000 bank loans and for
construction

Underwriter—To be determined

program.

by competitive bidding.

Probable bidders: Halsey, Stu¬
Inc.; Lehman Brothers; The First Boston
Kidder, Peabody & Co., Merrill Lynch, Pierce,
Co.

Corp.;

Fenner & Beane and Salomon Bros. & Hutzler

(jointly);

Harriman
and

Ripley & Co., Inc.; Dillon, Read &
Johnston, Lemon & Co. (jointly).

it Potomac Electric Power Co. (5/23)
May 2 filed 511,660 shares of common stock
be

offered for
on

new

for

subscription by

common

Co., Inc.

(par $10)

stockholders

about May 23, 1955 on the basis of one
each 10 shares held.
Price—To be sup¬

plied

by amendment.
gram.
Underwriters

Proceeds—For

construction

pro¬

Dillon, Read & Co. Inc., New
York; and Johnston, Lemon & Co., Washington, D. C.
—

★ Precision' Radiation
Los

Instruments,

Inc.,

Angeles,

common

are

stock

(par 50

offered

for

and 60,000 shares for selling stock¬
supplied by amendment. Pro¬
ceeds—For acquisition of real property and other new
plant facilities; and for working capital. Underwriter—
Price—To

Dempsey-Tegeler & Co., St. Louis, Mo.
it Progress

Manufacturing Co., Inc. (5/16-20) ;
April 29 filed 200,000 shares of common stock (par $1),
of which 122,053 shares are to be offered for
account
of company and
77,947 shares for selling stockholders,
price—To be supplied by'amendment. Proceeds—To re¬
pay bank loans. Office—Philadelphia, Pa. Underwriters

—Blair & Co. Incorporated and
both of New York.

Emanuel, Deetjen & Co.,

Public Service Co. of
Indiana, Inc.
18 filed 202,431 shares of
4.20% cumulative

March
ferred
after

stock,

July

par

$100

1956)

(convertible

being

into

offered

for

common

pre¬

stock

subscription

April 20 filed $30,000,000 of first mortgage bonds due
May 1, 1985. Proceeds — For property additions and
improvements. Underwriter—To be determined by com¬
petitive

bidding. Probable bidders: Halsey, Stuart &
Inc.; Morgan Stanley & Co.; Glore, Forgan & Co.,
White, Weld & Co. and Union Securities Corp. (jointly);
Co.

The
a.m.

First

Boston

(EDT)

Corp.

Bids—To be received

May 17 at office of Commonwealth Serv¬

ices, Inc., 20 Pine St., New York 5, N. Y.
Pacific Clay Products (5/11)
April 20 filed 94,875 shares of capital stock (par $8).
Price—To be supplied by amendment.
Proceeds—To
Pacific-American

(45,000

shares)

shares).

Investors, Inc., Los Angeles, Calif.
Kidder, Peabody & Co. (49,875

and

Underwriter—Kidder,

Peabody

Co.,

New

York.
•

Pacific

Northwest

Pipeline Corp.

held;

share.

rights

Proceeds—For

expire
new

May

construction.

Price—$10

com¬

per

Underwriter—

None.

Payrock Uranium Mining Corp.
March 28 (letter of notification)
3,000,000 shares of com¬
mon
stock (par one cent).
Price —10 cents per share.
Proceeds

For

mining operations. Office
Ave., Grand Junction, Colo.
Underwriter
Kirchner & Jaquith, Inc.,
Denver, Colo.
—

vertible preferred stock

—

(par $5).

Proceeds—To reduce bank loans.
Kimbal

Co., Chicago, 111.

held; rights to expire

on May 9. Price—$105 per share.
Proceeds—For repayment of bank loans and for
prop¬

erty

additions.

901

—

Texas

Carroll,

con¬

Price—$10 per share.
Underwriter—Paul C.

Underwriter—None.

it Public Service Co. of New Hampshire
May 4 filed 413,016 shares of common stock
to

the basis of

offered for

subscription by

one

common

share for each

new

(par $5)

stockholders

six shares

held.

Employees to be offered right to subscribe for up to
10,000 unsubscribed shares. Price—To be supplied by
amendment.
construction
& Co. and

Proceeds—To
program.

bank

repay

loans

Underwriters—Kidder,

arid

for

Peabody

Blyth & Co., Inc., both of New York.

Public Service Co. of Oklahoma

(5/17)
20 filed 100,000 shares of cumulative preferred
(par $100). Proceeds—For property additions and
improvements. Underwriter—To be determined by com¬

April
stock

petitive

(par $1)
being offered for subscription by common stockholders
of record April 27 on the basis of 2.221 shares for each
share

stockholders of record April 13 dn the basis of
preferred share for each 21 shares of common stock

one

it Peoples Finance Corp., Denver, Colo.
May 2 filed 50,000 shares of 60-cent cumulative

(par one cent). Price
10 cents per share.
Proceeds—For mining expenses. Office
130 S. 13th
—

March 9 filed 1,549,100 shares of common stock

Moab

King, Inc.
April 4 (letter of notification) 10,000,000 shares

holder.

Underwriter

common

Micro-Moisture Controls, Inc.
Jan. 13 (letter of
notification) $250,000 of 6%% income
convertible debentures
(subordinated) due Feb. 1, 1965,
to be offered
initially to stockholders. Price—100% of
par (in units of $100 or multiples
thereof). Proceeds—
For working capital, etc. Office—22
Jericho Turnpike.

mon

Fox

supplied

Streets, Philadelphia, Pa.

Pioneer Mortgage & Development Corp.
April 27 filed 300,000 shares of common stock (par $1),
with warrants attached entitling the holder to purchase
one additional share at prices ranging from $13
to $20
depending upon the exercise date. Price—$10 per share

holders.

Norden-Ketay Corp., New York

of 400,000

share. Pro¬
Office—

per

improvements.

Under¬

writer—None, the distributing stockholders having
holdings directly.

sold to

Price—$6

and

account of company

dertaken to market their

16 filed

Arch

and

24.

modernization

Price—

public, together with the 800,000

shares received directly from New Bristol Oils.
At market.
Proceeds—To selling stockholder.

March

record

Calif.
April 28 filed 225,000 shares of
cents), of which 165,000 shares

holders.

tal.

22nd

of record

April 11 filed 2,400,000 shares of common stock (par $1),
of which 1,600,000 shares were issued to Newton-Conroe
Oil Corp. and 800,000 shares to The
Phoenix-Campbell

poses

—None.

New

it North Penn Gas Co., Port Allegany, Pa.
April 29 filed 419,000 shares of capital stock (par $5).

Price—$1 per share. Proceeds—For purchase
equipment, expansion of facilities and working capi¬

holders

ceeds—For

art

March 18 (letter of notification)
1,175,000 shares of com¬
mon stock
(par 10 cents). Price — 25 cents per share.
Proceeds—For exploration and development

Offices—1501

,,.yf

Philadelphia Daily News, Inc.
Feb. 24 (letter of notification) 50,000 shares of common
stock (par $1) to be offered for subscription by stock¬

Office—405

Container

April 18 filed 250,000 shares of

Noel &

Securities, Ltd., Toronto, Canada.

son

tory

National

Thursday, May 5, 1955

it Peruvian Oils & Minerals, Ltd., Toronto, Can.*April 27 filed 225,000 shares of capital stock (par $1).
Price—To be supplied by amendent. Proceeds—For ex¬
ploration and development work and working capital.
Underwriters—Doolittle & Co., Buffalo, N. Y. and David¬

"as

Corp.,

Nevada-Utah Uranium

March 24 filed 712,149 shares

and issued

Uranium, Inc., Denver, Colo.
(letter of notification) 3,000,000 shares of com¬
(par five cents). Price—10 cents per share.

Corp., New York.

McRae Oil & Gas

—

Jan. 4 (letter of notification) 4,300,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For mining operations.
Office—38 South Main

St., Salt Lake City, Utah.

(letter

Jan.

Proceeds—For mining expenses.

same

mon

—

Uranium

Co., Salt Lake City, Utah
notification) 15,000,000 shares of
capital stock. Price—At par (one cent per share). Pro¬
ceeds—For mining operations. Office—430 Judge Bldg.,
Salt Lake City, Utah. Underwriter—Ned J. Bowman
Co.,
same
city.
March

Co.

bidding.
Inc.

and

Probable
Central

bidders:

Republic

Harriman

Co.

Inc.

Ripley
(jointly);

Smith, Barney & Co.; Glore, Forgan & Co.; Kuhn, Loeb
& Co.
Bids—Expected to be received up to 11:30 a.m.
(EDT) on May 17.
Public Service Electric & Gas Co.
Dec. 22 filed 250,000 shares of cumulative
preferred stock
(par $100). Price—To be supplied by amendment. Pro¬
ceeds—To reduce bank loans and
gram.

for construction pro¬

Underwriters—Morgan Stanley & Co.; Drexel &

Co.; and Glore, Forgan & Co.
delayed.

Ottering

—

Temporarily

it Pyramid Electric Co., North Bergen, N. J.
May 3 filed 75,000 shares of 5% cumulative convertible
preferred stock (par $10). Price — To be supplied by
amendment. Proceeds
For new facilities, equipment
and machinery and working capital. Underwriter—S. D.
Fuller & Co., New York.
—

Volume

Number 5426

181

The Commercial and Financial Chronicle

^ Pyramid Electric Co., North Bergen, N. J.,
May 3 filed 50,000 shares of common stock (par $1).
be

Price—To

supplied by amendment. Proceeds — To
selling stockholders. Underwriter — S. D. Fuller & Co.,
York.

New
•

Life Insurance Co., Charlotte, N. C.
(par $1 be¬
ing offered for subscription by common stockholders of
record March 1, 1955 on the basis of one new share for
each three shares held; rights expire on May 9.
Price
—$3.75 per share. Proceeds—To expand business. Un¬
Pyramid

it Sonoma Quicksilver Mines, Inc.,
San Farncisco, Calif.
April 27 filed 800,000 shares of capital stock (par 10
cents), of which 80,000 shares are to be initially offered
to public. Price—To be fixed on the basis of the market

vRevere

Realty, Inc., Cincinnati, Ohio
March 8 filed $1,000,000 of 5^% cumulative convertible
debentures due Jan. 1, 1980 and 25,000 shares of common
stock (no par). Price—Par for debentures and $100 per
interest therein.

value

Underwriter—Stanley Cooper Co., Inc.,

stock.

mon

ceeds

•
com¬

par (10 cents per share).
Pro¬
mining operations. Offices — 1810 Smith

•
Rtegel Paper Corp.
April 13 filed 190,960 shares of

stock

pire

held

•

Southern

Feb.

Acme,
Underwriter—Morgan Stanley & Co.,

per

Klein

New

Co.

and

McGrath

Underwriters—R

both

York.

Miguel Uranium Mines, Inc.

Rafael
4

Uranium

(letter

Co.

one

new

market price to be equivalent to last sale on Toronto

Underwriters—Willis E.

Burnside

Corp., Toronto, Canada

(5/16-20)

Price—$1

per

share.

Proceeds—To repay bank loan, and

shares-of

—

liabilities.
New

Underwriter

Degaetano

—

Securities

mon

stock

Price—$3

(5/10-16),
shares of com¬

share. Proceeds-^
Underwriters—S. D. Fuller & Co.
per

For working capital.
and Vermilye Brothers, both of New York.

Scholz Homes, Inc., Toledo, Ohio >(5/10)
7I2I?
April 14 filed 180,000 shares of common stock (par $1).
Jfrtee—Expected to be $5 per share. Proceeds—To pre-*

notes; to establish and equip new plant; and for iriventories and working capital.
Underwriter.^— StrkdS,
pay

• Sun Oil Co.
May 2 filed 14,000 memberships in Stock Purchase Plan
for the Employees of this
company and of its subsidi¬
aries, together with 149,200 shares of common stock
(estimated number of shares anticipated may be pur¬
chased by trustees of Plan during period of July 1, 1955
to June

30, 1956, with respect to 1955 Plan and 186,700
shares of common stock (maximum number of shares
it is

Sunshine
Nov.

stock

(par $1) to be offered for subscription by emq,
ployees of company and its subsidiaries. Price—At mag;-'
ket (estimated at $31 per share). Not to exceed $30Oy000 in the aggregate.
Proceeds—For working capital.-'

St., Los Angeles 15, Calif.: Un¬

^ Security Electronics Corp.

ceeds

capital

—

For

and

Madison

electronically

general

operated

corporate

purposes.

Ave., New York, N. Y.

working
Office — 347

camera,

Underwriter—NoneM

it Shcni Uranium Corp., Riverton, Wyo.
April 21 (letter of notification) 2,000,000 shares of com¬
mon
stock (par one cent). Price — 15 cents
per share.
Proceeds

—

For mining expenses.

Riverton, Wyo.
Denver, Colo.
-

Silver

Underwriter

—

Address
Melvin

—

Bo:x 489,

Schroeder;'-

Creek

Precision Corp.
(6/2)
z
$600,000 of 10-year convertible 6% de¬
bentures due June 30, 1965. Price—At 100% of
principal
amount
(in denominations of $100 each).
Proceeds—
March

For

filed

-working

capital

Office—Silver

and

general

Creek, N. Y.

corporate purposes.
Underwriter—General In- >

vesting Corp., New York.
•

Sinclair Oil

Corp., New York

(Fla.)

$7iMMi0O of 6% convertible sinking fund

70,000 shares of common stock
(par 10 cents>.— 100% and accrued interest for
debentures and; i$2r "per share for stock.
Proceeds—To
bank loaiiSj for new construction and for working
capital. Underwriter—Gulf-Atlantic, Inc., Tampa, Fla

stock.

Price—At par

ceeds—For
;

Las
•

mining

Vegas, Nev.

Texas

ferred stock
common

(five cents per share). Pro¬
Office—319 Fremont St.,

Underwriter—None.

Instruments

April 13 filed

pre¬

stockholders of

record

May 2

the basis of

share of preferred stock for each 18 shares of com¬
mon
stock held; rights to expire May 19.
Price—$25
one

share.

per

Proceeds—To repay bank loan for expansion

and

working capital.
Co., New York.

Underwriter—Morgan

Stanley

T«xm International Sulphur Co.
June 21

filed 455,000 shares of common stock (par 10
cents), of which 385,000 shares are to be offered for
subscription by common stockholders at the rate of on«
new share for each 4^
shares held; and 70,000 shares
are

for account of certain

selling stockholders. Price—To
be supplied by amendment. Proceeds—For exploration
ind drilling, and payment of bank loans and advances

it Texas State Petroleum, Inc., Alice, Texas
April 18 (letter of notification) 300,000 shares of

Co., both of San Francisco, Calif.

it Trav-Ler Radio Corp., Chicago,
April

III. (5/17)
$1,250,000 of 12-year 6% sinking fund
May 15, 1967 (with detachable 12-year
stock purchase warrants), of which $1,100,000
filed

debentures
common

due

to be offered publicly

and $150,000 to officers and em¬
ployees. Price—To be supplied by amendent. For each
$500 debenture, the purchaser will receive warrants for
the purchase of 50 common shares at $4 per share,
exercisable until May 15, 1967.
Proceeds — To repay
bank

loans; for loan of $170,000 to Orleans Mfg. Co.,
wholly-owned subsidiary, to repay its bank loan; and
working
capital.
Underwriters —Lee
Higginson
Corp., New York; and Straus, Blosser & McDowell/

Chicago, 111.
Tri-State Uranium Co.
March

common

(letter

stock

Ogden, Utah.

Turner

Uranium Corp.
April 1 (letter of notification) 2,000,000 shares of com¬
mon stock
(par 2V2 cents). Price—10 cents per share.^
Proceeds

—

For

mining operations.

Hall Avenue, Salt Lake City, Utah.
vin G. Flegal & Co., same city.

Union Club,

Office

—

130 Social

Underwriter—Mel¬

Inc., Hollywood, Calif.

«'

March 1 filed 30,000 shares of preferred stock (par $50)
and 100,000 shares of common stock (par $10) to be '
offered in units of three preferred and
10 common
shares.

Price—$400 per unit. Proceeds—For purchase of
property, construction of hotel, athletic and health facil¬
ities, and working capital. Underwriter—None,- but sales
will be made through agents.
Union Uranium

Co., Denver, Colo.

March 2 (letter of notification) 10,650,000 shares of com¬
mon stock.
Price—At par (one cent per share). Proceeds
—For mining operations.
Office — 230 East 19th Ave.,

Denver, Colo.
city.

Underwriter—J. W. Hicks & Co., same
'

U. S. Igniter Corp., Philadelphia, Pa.
March 18 (letter of notiifcation) 100,000 shares of class
A

stock

common

(par 50 cents). Price — $3 per share.
debt, buy equipment and machinery
and for working capital. Business—Manufactures a new
type of spark plug. Underwriter —Allen E. Beers Co.,
Proceeds—To

pay

April 8 (letter of notification) 1,200,000 shares of com¬
mon stock
(par one cent). Price—25 cents per share.
Proceeds—For mining expenses.

St., Longview, Tex.

forts" basis.

mon

York,

on a

"best ef¬

Uranium Geophysical

stock (par 10

cents).

Exploration Co.

stock

(par one cent). Price—Four cents per share.
mining expenses.
Office —414 Denver
Building, Denver, Colo.
Underwriter—Floyd
Koster & Co., same city.
Proceeds—For

National

Uranium Prince Mining Co., Wallace, Ida.
April 18 (letter of notification) 1,750,000 shares of com- '
mon stock.
Price
10 cents per share. Proceeds—For
—

operations.

mining

Address

—

Price—$1

per

share. Proceeds

Box

Underwriter—Wallace Brokerage

709,

Co.,

Wallace, Ida. '
city.

same

Vanadium Queen Uranium Corp.

April

filed

shares of

845,000

capital

stock

(par

cents), of which 70,000 shares are for the account of sell¬
ing stockholders and 775,000 shares for the company's
account.

Price—$2.50

and

notes

—

for

per

share.

exploration

Grand Junction,

and

Colo.

Proceeds

—

development

To repay
expenses.

Underwrtier—Van Al-

Offering—Expected latter

part of May.

it Wall Street Investing Corp., New York
29 filed (by amendment) an additional 100,000
shares of capital stock (par $1).
Price — At market.

April

investment.

Proceeds—For

Webster

Uranium

Mines, Ltd., Toronto, Canada
"D") 300,000 shares of common stock
(par 10 cents). Price—$1 per share. Proceeds—For gen¬
eral corporate purposes.
Underwriter—James Anthony
Securities Corp., New York. Offering—Expected in two
Dec. 30 (regulation

three weeks.
Western

March 14

stock

bur

Development Co. of Delaware
18,773 shares of capital

(letter of notification)

(par

pire
com¬

March 14 (letter of notification) 7,400,000 shares of com¬
mon

each

Statement withdrawn.

Office—137 East Tyler

Underwriter—None.

styne, Noel & Co., New York.

165,945 shares of 4.48% convertible

(par $25), being offered for subscription by

Venezuelan Petroleum Co. in the ratio of five shares of
Sinclair stock for each eight shares of Venezuelan stock
tendered for exchange.
The offer will

May-

Inc. and Dean Witter &

Office

Inc.

Underwriter—Vtekers Brothers. New

com¬

expenses.

March 7 filed 337,830 shares of common stock (no
par)
being offered in exchange for shares of capital stock of

expire

(5/9-10)
v■
April 18 filed 1,346,800 shares of capital stock (pair $2).
Price—To be suppiled by amendment. Proceeds—To re¬
pay bank loans and for additional investments in bank-,
ing and other subsidiaries. Underwriters—Blyth & Co.,

repay

mon

com¬

Pro-

Patfceftacing Association, Inc.

18 filed

debentures due:

• Tantsse Uranium Mining Co. of Nevada
April 7 (letter of notification) 2,000,000 shares of

derwriter—None.

(Del.)
April 27 (letter of notification) 300,000 shares of
mon
stock (par five cents).
Price—$1 per share.

Fla.

Transamerica Corp.

Philadelphia, Pa.

City, Utah.

anticipated may be offered for public sale
by certain selling stockholders during the same period.

^Seaboard Finance Co., Los Angeles, Calif.
April 7 (letter of notification) 9,677 shares of common

So. Flower

•

-A- Uranium Development Corp.,<Lcngview, Texas

which

Blosser„,& McDowell, Chicago, 111.

Office—945

writer—Emerson Cook Co., Palm Beach,

Salt Lake

Co.,

(no par).

Proceds—To construct and operate a manu¬

ceeds—To purchase property; for construction of
hotel;
and for working capital.
Underwriter—Coombs &

Corp^

York.

Scttmieg Industries, Inc., Detroit
April 25 (letter of notification) 99,880

amendment.

facturing/plant near Orange, Tex., for the purpose of
manufacturing insulation building products.
Under¬

inci¬

Angelo,
Underwriter—Barrett Herrick & Co., Inc., New

Texas.

York.

15,000.000

series B convertible debentures due serially from
Price—To be supplied by

1, 1962 to Aug. 1, 1966.

& Co. of

»><«Sun Hotel, Inc., Las Vegas, Nev.
stock.
Price
At par (one cent per share).
Feb, 16 filed 760,000 shares of pfd. capital stk. (par $9.50)
Proceeds—For mining expenses.
Underwriter—Lewel-^
and v1,540,000 shares of common capital stock (par 25
len-By.bee Co., Washington, D. C.^
"
cents), of which 680,000 shares of preferred and 1,360,000
it Saxon Uranium Mines Ltd., Toronto, Canada
shares are to be offered in units of one
preferred and
two common shares; the
April 29 filed 1,500,000 shares of common stock (par $1).
remaining 80,000 shares of pre¬
Price—40 cents per share.
ferred stock and 180,000 shares of common stock
Proceeds—For exploration
may
and working capital; also to repay advances and other
be exchanged for properties. Price—$10
per unit. Pro¬
common

Feb.

share for each share

for development of properties and other activities
dent to oil and gas operations.
Office — San

Maryland

notification)

basis of

March 14 filed 750,000 shares of common stock (par 100).

mining operations. Office — Mineral Bldg.,
Grand Junction, Colo.
Underwriter — Tellier & Co.,
Jersey City, N. J.
San

Stewart Oil & Gas Co.

ceeds— For

March

development expenses and for general corporate pur¬
poses.
Underwriters—Gearhart & Otis, Inc. and F. H.
Crerie & Co., Inc., both of New York.

Jan. 6 (letter of notification) 2,000,000 shares of common
stock (par one cent).
Price—15 cents per share. Pro¬

Oils, Ltd.

April 18 filed 200,000 shares of cumulative convertible
preferred stock, series A (par one cent). Pri#c—To be
supplied by amendment. Proceeds—For exploration and

•

San

Union

Stancan Uranium

Corp.,

of 6%

for

Co., Inc.,
New York; and Canadus Corp., Ltd., Toronto, Canada.

N. M.

Securities

Underwriter

16 filed

Canada.

Sept. 14 filed 300,000 shares of common stock (par 10
cents).
Price—$2 per share.
Proceeds—For develop¬
exploration expenses, etc.

construction.

for

unit.
Proceeds—To reduce bank loans and for working
capital. Underwriter—None. Statement effective Mar. 31.

and

new

Exchange—83c-85c (ex-rights) per share.
Pro¬
exploratory and developmental expenses;
possible acquisition of additional oil and gas inter¬
ests; and to meet current liabilities.
Office—Toronto,

thfird series (par $50) and 40,000 shares of class
JB cprnmoff stock (par $1) to be offered in units of one

ment

ex¬

Texboard, Inc., Dallas, Texas
17 filed $1,500,000 of 6% series A debentures due
serially from Feb. 1, 1957 to Aug. 1, 1961, and $1,000,000
Jan.

Stock

Samicot Uranium Corp., Santa Fe,

Office—Fitzsimmons Bldg.
Underwriter—R. V. Klein Co., New York.

Alice, Tex.

ceeds— For

Price—$75

—For oil and gas activities.

of notification)
4,700,000 shares of
(par three cents). Price—Six cents per
share.
Proceeds—For mining costs.
Office—270 South
State St., Salt Lake City, Utah.
Underwriter—Coombs

jp^Ted 4,000 shares of 5Vz% cumulative preferred

£rfeffe¥rfed share and 10 class B shares.

May 17, 1955; rights to

of March 17, rights expiring on April 12. Price
—To stockholders, 50 cents per share; and to
public, at

York.

RitterFinance Co.r Inc., Syncote, Pa.

of record

1,211,002 shares of common stock (par $1)
of which 511,002 shares were offered for
subscription by

presently outstanding preferred stock and to help

held,

Feb.

—None.

stockholders

share,

Edison Co.
(5/17)
maximum of $40,950,600 of convertible

term bank loans and for

common

C., pulp mill.

per

finance the proposed expansion of the company's
New

increase facilities

June 14. Price—At principal amount (in de¬
nominations of $100 each).
Proceeds—To retire short

stock (par $10),
stockholders
of record May 3 on a one-for-four basis; rights to ex¬
pire May 18. Price—$23 per share. Proceeds—To re¬
deem

due July 15, 1970, to be offered for sub¬
scription by holders of original preferred and common
stock on the basis of $5 of debentures for each share

common

being offered for subscription by

sale

—

debentures

Douglas Bldg., Seattle, Wash. Underwriter
—None; sales to be made through Walter G. Petersen,
President.

Purpose

Southern California

April 19 filed

311

first

their

lower.

quicksilver properties; and for work¬
ing capital. Underwriter — Norman R. Whittall, Ltd.,
Vancouver, B. C., Canada.

Price—At

For

—

Tower

time

the

ever

and invest in other

Cincinnati, O.
it Richfield Uranium Corp., Seattle, Wash.
April 8 (letter of notification) 2,500,000 shares of

which

To purchase real estate or

—

Co., Boston, Mass.; Boenning & Co., Philadelphia, Pa.,
Hampshire Corp., Concord, N. H.

and First New

derwriter—None.

further extension.

Sonic Research Corp., Boston, Mass.
April 18 filed 150,000 shares of common stock (par $1).
Price—$7 per share. Proceeds—For working capital and
general corporate purposes. Underwriters—J. P. Marto

Feb. 15 filed 250,000 shares of capital stock

Proceeds

subject to deposit of at least 450,000 shares
Corn Exchange Bank,
New York City.

Chemical

There shall be

share for stock.

and -is

with

(2107)

$1)

class

Uranium
6.6
on

being
A

Corp.

June 15.

offered

and

class

in exchange for 124,165
capital stock of Excali-

basis of

Excalibur

one

stock

Western share for
held; offer to ex¬

Address—65 Sena Plaza, or P. O. Box

1201, Santa Fe, N. Mex.

Underwriter—None.
Cnntinupd

nane

44*

The Commercial and Financial Chronicle

(2008)

•

(probably

from page 43

Continued

Inc.

Western Electric Co.,

— For
expansion.
Underwriter—None.
Telephone & Telegraph Co. owns 11,528,585

Price —$45

American

Proceeds

share.

per

Broadway, New York.

Office—195

(99.81%) of presently outstanding

Fort Worth,

Inn,

filed

Price—$5

share.

per

Schwanz & Co., Inc., Aurora,
•

Oil

Nebraska

Western

111.
Inc.

Co.,

^ Artloom Carpet Co., Inc.

shares) to its stockholders on the basis of one new share
Price—$5 per share. Proceeds

Wilrich

Petroleum, Ltd., Toronto, Canada

2,000,000 shares of capital stock (par

$1),

1,000,000 shares are to be issued in payment
certain properties to be acquired from American

which

-of
for

Co., Ltd. who will purchase the remaining
1,000,000 shares for $455,000. Proceeds—For exploration
and development costs and working capital. Underwriter

received ICC exemption from competi¬
$345,000,000 of new securities. Pro¬
refunding. Underwriter—Feb. 16, Howard E.
Simpson, President, announced Glore, Forgan & Co.,
Halsey, Stuart & Co. Inc. and Alex. Brown & Sons have
been engaged to continue studies and formulate plans
looking towards a simplification of the railroad's debts
Feb. 10 company

tive bidding of up to

ceeds—For

and

structure

Blackhawk

April 5 it

Fire

plans to issue and sell

company

—None.

200,000 shares of common stock. Price—Expected at $5
per share. Proceeds—To acquire Blackhawk Mutual In¬

it Wisconsin Power & Light Co.

surance

May 4 filed 263,140 shares of common stock (par $10) to
be offered for subscription by common stockholders of

Krensky

the basis of one new share for each 10
shares to be offered to em¬

record May 16 on

held.

Unsubscribed

Price—To be supplied by amendment. Proceeds

ployees.

and for new construction. Under¬
writers—Smith, Barney & Co., New York; and Robert

—To repay bank loans
W. Baird & Co.,

Inc., Milwaukee, Wis.

Rockford,

& Co., Inc.,
pected late in April.

• Bliss

(E. W.)

Wisconsin Power & Light Co.
(par $100) to be first offered for

subscription by

16 and employees
Price—To be supplied by amendment. Pro¬
ceeds—To redeem presently outstanding preferred stock,
lor payment of bank loans and construction program.
Underwriters
Smith, Barney & Co., New York; and
Robert W. Baird & Co., Milwaukee, Wis.
preferred stockholders of record May
of company.

—

'W & IVI Oil Co.,

Lincoln, Neb.

stock

Co., New York.

$1).

(par

Woodland Oil & Gas

Co., Inc.
Dec. 21 (letter of notification) 299,900 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For equipment, drilling expenses and working capital
Office—42 Broadway, New York, N. Y. Underwriter—
E. M. North Co., Inc., same address.

Wy-Okla Oil & Uranium Co., Denver, Colo.
29
(letter of notification) 3,000,000 shares of
common
stock
(par two cents), Price —10 cents per
share.
Proceeds
For mining expenses.
Office — 804
Denver Club Bldg., Denver, Colo.
Underwriter—Car¬
roll, Kirchner & Jacquith, Inc., Denver, Colo., and Rob¬
ert R. Baker & Cot, Inc., Fort Collins, Colo.
March

—

April 1

Offering

Co., Inc., Bridgeport, Conn.
Uranium

Cavendish

April
sale

19
of

issue

debenture

Mines

announced

was

Expected in

—

several

dollars.

million

concentrating mill, mining equipment

Underwriter—James

Anthony Securities Corp., New York.
Illinois Electric & Gas Co.

Central
March 28 it

was

reported

Co.

Inc.; Stone & Webster Securities Corp.; Kidder, PeaBids—Expected to be received on June 7.
Registration—Planned for.May 6.
body & Co.

(letter of notification)
(par

Proceeds—For

cents).

mining

1,425,000 shares of com¬
Price—20 cents per share.

expenses.

plans to issue and sell some additional common stock
$10 (probably to stockholders) in the latter part of
1955. Proceeds—For construction program. Underwriter

par

—May be determined by competitive bidding. Probable
bidders: The First Boston Corp. and Coffin & Burr,

Inc.
(jointly); Harriman Ripley & Co. Inc.; Blyth & Co.. Inc.
kidder, peabody & Co. (jointly). Meeting—Stock¬
May 11 on increasing the authorized

holders will vote
stock

common

Office—208

First

Na¬

tional

Bank Building, Denver 2, Colo.
Underwriters —
Peters, Writer & Christensen, Inc., and Mountain States
Securities Co., both of Denver, Colo.

from

3,250,000

fering—Probably in
•

Clinton Trust

3,500,000 shares.

Of¬

capital

stock
The

(par $10)

from

120,000

130,000

shares' are being offered
subscription by stockholders of record April 15 on

the

basis

one

rights to expire
ceeds—To

Tenth Ave., New

10,000

new

increase

each

for

held;

May 20. Price—$20 per share. Pro¬
capital and surplus.
Office—857

Underwriter—None,

York, N. Y.

it Coal Operators Casualty Co., Greensburg, Pa.
25, it was announced capital and surplus would

Zonolite Co., Chicago, III.
March 30 (letter of notification) not in excess of 18,181
shares of common stock (par $1).
Price—At market.

April

Proceeds

May be The First Boston Corp., New York.

—

selling

Paine. Webber. Jackson

stockholder.

Underwriter

—

soon

increased

than

$3,500,000

changed to Old Republic Insurance Co.

and

name

expire
&

May

31.

Dealer-Manager—Kidder,

Peabody

Co., New York.

Brothers and

Union

Securities

Corp., both of New

York.

authorized

approved

common

stock

proposal

(par

$1)

increase

from

500,000

shares to 1,000,000 shares to provide for future financing
and

expansion.

Underwriter—Hirsch & Co., New York.

exceed

When

convertible

debentures.

about

stockholders

$60,000,000

ers

without

approved

offer of convertible

April
not

to
is¬

sued, each stockholder would receive rights to purchase
the

debentures

proportion

his

holdings

International

stock

proposal

convertible

debentures

authorizing

debentures.

was

made

Previous
stockhold¬

underwriting.

stockholders

approved
shares of ndditinnai caoital stock
one

new

rmtceua—ao

iiicicaae

May 20.

capnai

Inc.

plans to offer pub¬

licly 500,000 shares of common stock. Price—$9.50 per
share.
Proceeds—Together with other funds, to acquire

Iroquois Beverage Corp. and Frankenmuth Brewing Co.
Underwriter—Shields & Co., New York. Offering—Ex¬

Fund Ltd.

^ Investors Group Canadian

early registration is expected
20,000,000 shares of common stock (par $1). Price—To
be initially offered at $5.41 per share. Proceeds—For in¬
vestment.
Office—Winnipeg, Canada.
Distributor—In¬
vestors Diversified Services, Inc., Minneapolis, Minn. .
April 28 it was announced
of

Sulphur Co. (Texas)
was reported early registration is planned
undertermined number of common shares. Under¬

Isthmus

March
of

Electronics

Jerrold

Tex.

Corp.,

Philadelphia,

Pa.

reported company plans to sell $2,750,000 of 6% convertible debentures and 200,000 shares of
common
stock some time in the near future.
Under¬
writers—Van
Alstyne, Noel & Co., New York; and
Butcher & Sherrerd, Philadelphia, Pa.

April 25 it

was

^ Kansas City Power & Light Co.
April 28 the directors authorized an offering this Sum¬
mer of approximately 245,000 shares of common stock to
stockholders on a l-for-10 basis. Proceeds — For con¬
struction program.
First Boston

Underwriters—Blyth & Co., Inc., and

Corp.

Keystone Wholesale Hardware Co., Atlanta, Ga,.
it was stated that the company plans at a later
to

offer additional shares for

sale nationally.

offering

(par

$10)
as

Price—$20

and surplus.

58.000

basis of

April 28,
per

share,

offering of 16,666 shares of common stock was recently
made to residents of Georgia only
at $3 per share.
Office—517

Stephens St., S.W., Atlanta, Ga.

Long Island Lighting Co.

19, Errol W. Doebler, President, announced that
funds will be required to finance con¬

additional

about

650,000 shares of common stock in June or early July.
Rights will again be offered to common stockholders to
subscribe to the new stock, probably in the ratio of one
new
share for each ten shares held.
Underwriters—
&

Langley

Co., Inc., The First
&

Corp. and W. C.

Boston

Co., all of New York.

if Long Island Lighting Co.
23 it was announced company plans to sell an
issue of about $15,000,000 first mortgage bonds, series H,
April

due

share for each five share held

1955; rights to expire

v .•

Breweries,

April 27 it was announced company

Blyth

Detroit Edison Co.

May

Business—Industrial merchant

.V.

;

struction, the company is contemplating the sale of

if Daitch Crystal Dairies, Inc.

Federation Bank & Trust Co.

American Telephone & Telegraph Co.
April 20 stockholders approved a new issue

$650,000,000

W., Washington, C. D.

•

ir American Machine & Foundry Co.
May 4 it was announced company plans to make an of¬
fering to its stockholders. Underwriters—May be Leh¬
man

•

issue

the next few weeks, will offer

bankers.

April

the

in addition to plac¬

of $500,000 convertible deben¬
additional con¬
vertible debentures to shareholders, probably sometime
in the Autumn of this year. Office—726 Jackson Place,
privately

ing

tures in

New York.

28 stockholders

Bank, Washington, D. C.

April 25 it was announced company,

date thereof.
The company has no present plans
making any additional borrowings. Underwriters—
Goldman, Sachs & Co. and Lehman Brothers, both of

April

Underwriter—None.

for

standing 136,744 shares of 5V2% cumulative preferred
slock, series A (par $100) on the basis of ten shares of
6% stock for each 5%% preferred share held. Offer to

stock (par $100) and

(6/3)
March 29 the company petitioned the Illinois Commerce
Commission for authority to issue and sell 663,469 addi¬
tional shares of common stock to stockholders of record
June 3 on the basis of one new share for each six shares
held; rights to expire on June 30. American Telephone
& Telegraph Co., the parent, owns 99.32% of the pres¬
ently outstanding stock. Price—At par ($100 per share).
Proceeds—For improvements and additions to property.

the

Alleghany Corp.

Power

shares
requested
exemption from competitive bidding. Proceeds — For
construction program. Underwriter—Blyth & Co., Inc.

date

18, preferred stockholders approved creation of
exceed/an additional $25,000,000 of debentures or
other indebtedness maturing later than one year after
not to

Feb. 10 company offered 1,367,440 shares of 6% convert¬
ible preferred stock (par $10) in exchange for the out¬

Under¬

Jan. 27

April

Prospective Offerings

the

of cumulative preferred

Underwriter—

Continental Can Co., Inc.

Curtis. Chicago. Ill

company applied to the Federal
Commission for authority to issue and sell 15,000

•

Co., New York

additional

$20,000,000.

Chicago, 111.

Power Co.

it Idaho
April 22

writer—Garrett & Co., Dallas,

September.

April 27 stockholders voted to increase the authorized

for

stockholders will vote May 10

increasing the debt authority to

writer—A, G. Becker & Co. (Inc.),

pected in June.

Maine Power Co.

31, W. F. Wyman, President, stated that company

and

is considering the issue

non-convertible preferred stock,

Hammermill Paper Co.

(6/7)

plans to issue and sell

company

Proceeds—For con¬
struction program.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &

Central

company

International

and

issue

plans

company

Equipment Corp.

President, announced that
of $10,000,000 of
of which approxi¬
mately $6,500,000 par value are expected to be offered
in exchange for present non-convertible preferred stock
on
a
share-for-share basis. Proceeds — To retire out¬
standing
non-convertible preferred stock and $2.90
cumulative convertible preferred stock, and for work¬
ing capital. Underwriters—The First Boston Corp/and
Tucker, Anthony & Co., both of New York.

Corp.

underground development.

shares.

Queen Uranium Co.

stock

mon

June.

Dec.

Wyco Uranium, Inc., Salt Lake City, Utah
April 7 (letter of notification) 2,900,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For mining expenses. Office—429 Ness Bldg.,
Salt Lake City, Utah.
Underwriter — Rocky Mountain
Securities, Las Vegas, Nev.

Yellow

$4,000,000 of first mortgage bonds.

President.

Allen

..A

Hydraulic Co.
March 7 it was reported company plans to offer 22,688
additional shares of common stock (no par) to its stock¬
holders on a l-for-8 basis. Underwriter—Smith, Ramsay
&

General Precision

Illinois Bell Telephone Co.

(par $1) from 1,000,000 shares to 1,500,000 shares.

Underwriter—Previous financing was handled by

and for

(letter of notification)225,000 shares of common

Price—$1.30 per share. Proceeds—For
oil and mining activities.
Office—116 S. 15th St., Lin¬
coln, Neb. Underwriter — None. J. Keith Walker is
stock

Co.

April 26 stockholders increased the authorized common

Proceeds—For

Feb. 25

Underwriter — Arthur M.\
Chicago, 111.
Registration—Ex¬
111.

Bridgeport

May 4 filed 20,000 shares of new cumulative preferred
stock

Co.,

probable 10-

shares will be made to

April 26, Hermann G. Place,

Casualty Insurance Co.

reported

was

Detroit, Mich.

reported that following a

Feb. 25 it was announced

far, four issues have been placed privately.

Trading

was

offering of approximately 4,000,000
the public. Price—Expected
to be around $60 per share.
Proceeds — To the Ford
Foundation. Offering—Probably in June.

reduction in over-all interest costs.

Motor Co.,

15 it

stock split, an

new

Ohio RR.

Baltimore &

exploration and development costs and working
capital. Office—924 Broadway, Denver, Colo. Under¬
writer—Israel & Co., New York.

March

the

bank loans.

repay

Corp.

Ford

for-1

April 27 it was announced directors have authorized a
common
stock subscription offer (about 98,170 no par

(5/16-20)

For

Boston

share.

per

about

1955

late

new

—To

April 4 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—

March 24 filed

Proceeds—To increase capital
surplus. Underwriter—Blyth & Co., Inc., San Fran¬

Price—$35

for each four shares held.

Uranium

April 5, 1955, on basis of one new share for each
held; rights to expire on May 10, 1955.

four

cisco, Calif.

(no par).
Proceeds—Together with other
funds, to construct, furnish and equip hotel to be built
between Dallas and Fort Worth, Texas.
Underwriter—
Jan.

3,500,000 shares. Of the additional stock, 556,250 shares
are
being offered for subscription by stockholders of

and

Texas
200,000 shares of capital stock

Hills

Western

stock.

Co., San Francisco, Calif.
April 7 stockholders approved proposal to increase au¬
thorized capital stock (par $10) from 2,500,000 shares to

record

announced company may issue and sell
$12,000,000 of first mortgage bonds.
Underwriters—To be determined by competitive bid¬
ding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane (jointly); Lehman Brothers and Blyth &
Co., Inc. (jointly); Glore, Forgan & Co.; and The First

April 14 it was

American Trust

April 13 (letter of notification) 1,155,000 shares of com¬
mon
stock
(no par) being offered for subcription by
stockholders of record April 12 on basis of one new
share for each 10 shares held; rights to expire on May
27.

Underwriter—None.

Thursday, May 5, 1955

Florida Power Corp.

the basis of $100 of debentures for each

eight shares of stock held).

1985.

Proceeds—iFor construction

writer—To be determined by
able
ton

program.

bidders—Halsey, Stuart & Co. Inc.; The First Bos¬

W. C. Langley
Williams & Co.

Corp. and Blyth & Co., Inc. (jointly);

Co.; Smith, Barney & Co.; Baxter,
Offering—Expected late in 1955.
&

Under¬

competitive bidding. Prob¬

.Volume 181

Number 5426

The Commercial and Financial Chronicle

...

New

Lucky Stores, Inc.
April 20 stockholders approved a proposal to increase
the authorized common stock (par $1.25) from 1,000,000

vious

2,000,000 shares (there are 804,063 shares out¬
It was reported previously that the company
proposed to raise approximately $1,500,000 through the
sale of 150,000 shares. However, no immediate financing
is planned.w Underwriter—Probably Blair & Co. Incor¬

of several million dollars."

The company has scheduled
large-scale expansion program, involving $75,000,000
in order to keep abreast of estimated load growth over
a

Majestic Auto Club, Inc.

the

Aug. 25 it was announced company plans to offer 500,<390 shares (par five cents) to the motorist and general
public shortly after completion of the current offering

vote

Plehn.&r

Co., New York.

Registration—Expected around

May 16.
New
.Bids

York, Chicago & St. Louis RR.

•equipment

trust certificates to mature semi-annually
15,'1955 to June 15, 1970. Probable bidders:
Stuart & Co. Inc.; Salomon Bros. & Hutzler;

from

Dec.

Halsey,
-Kidder, Peabody & Co.; Blair & Co. Incorporated.
New

York

April 7 it

State

totaled

Gas

May 6

Corp.

proposal to authorize 200,000
(par $100) to be issued
plans to raise about $21,500,000
stock

Company
through the sale of new securities this
lerred stock financing was done

year.

Last pre-

privately.

•Jan.

17,

the company will
•<of

announced that
than $100,000,000

have to raise more
capital money to aid in carrying out its expan¬
improvement program which will cost ap¬

new

sion

and

proximately $200,000,000. Underwriter—For and bonds,
be
determined
by competitive bidding.
Probable
"bidders: Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.

Northern States
March

Power Co.

announced

that

$84,077,350.

April

(Minn.)

early 1956.

Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
"Inc.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Equit¬
able Securities Corp. and Union Securities Corp. (joint¬
ly); Smith, Barney & Co.; Lehman Brothers and Riter
& Co. (jointly); Glore, Forgan & Co.
tive

Alberta,

Can.

March 4 company plans to issue and sell publicly deben¬
tures and common stock to finance its proposed chemical

project. Underwriter—Eastman, Dillon & Co., New York.
Oklahoma
Feb. 23 it

Gas

Electric

Co.

was

Loeb

Co.; Harriman Ripley & Co. Inc. and
Union Securities Corp. (jointly); Smith, Barney & Co.

Peoples Gas Light & Coke Co.
April 5 it was reported that the company plans to offer
to its common stockholders about
$15,000,000 of addi¬
tional

common

stock.

Underwriter—None.
I

•

Public Service Co. of Colorado

April

was

with the SEC

275,464 shares
mon
are

tion

announced

company

303,010 shares of
are to

stockholders

(6/1)

plans

stock, of which
subscription by com¬

a
l-for-10 basis; and 27,546 shares
employees. Proceeds—For construc¬
Underwriters—The First Boston

to be offered to

program.

announced

was

registration

planned

Corp. the selling stockholder. Un¬
derwriters—Blyth & Co., Inc., Kuhn, Loeb & Co. and
Smith, Barney & Co., all of New York.
St.

Louis-San

April 11 it

Francisco

announced

was

Ry.

stockholders will

vote

May
10 on approving an additional issue of
up to $25,000,000
of first mortgage bonds, of which it is
planned to sell
initially $19,500,000 principal amount.
Proceeds
For
property additions and improvements. Underwriter—To
be determined by competitive
bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.;
—

Corp.; Blyth & Co., Inc. and Harriman
Ripley & Co. Inc. (jointly).
Southern California Gas Co.
Feb. 28 it was reported

company plans to issue and sell

$40,000,000

been

with

filed

first

from

mortgage

California

competitive

bonds.

Application haa
P. U. Commission for ex¬

bidding.

Bids

received

were from
Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.; White, Weld & Co. and Union Secu¬
rities Corp.
(jointly); Lehman Brothers.

Southern Co.

Dec. 30 it
sell

was

company plana to

Issue and
common

(par $5). Proceeds—To repay bank loans and for

investment in additional stock of
subsidiary companies.
Underwriter—To be determined by competitive bid¬

ding. Probable bidders: The First Boston Corp., Ladenburg, Thalman & Co., Carl M. Loeb, Rhoades & Co. and
&

Co.

(jointly);

Stearns & Co. and Dean

Blyth

Co.,

Witter & Co.

Inc.,

Bear,

(jointly); Union

/Securities Corp. and Equitable Securities
Corp. (jointly);
Lehman Brothers; Morgan
Stanley &

Co.; Kidder, Pea¬
body & Co., and Merrill Lynch, Pierce, Fenner & Beane.

Bids—Tentatively scheduled for Nov.

Registration—

Not expected until Oct. 12.
Southland

stock.

Frozen

was

Foods,

Inc.

reported company plans to offer $600,and 60,000 shares of common

Office—160

Southwestern

May
and

3
sell

Corp.,

by the issuance of debentures
(he did not assume the sale of
stock). Plans for the possible'issuance of

ferred stocks
man

rities

company

Broadway, New York City.

Under¬

$6,000,000

Gas

Electric Co.

(6/7)

sought

SEC authorization to issue
of cumulative preferred stock (par

$100). Proceeds—To prepay bank loans and for construc¬
tion program. Underwriters—To be determined
by com¬

April 26

it Southwestern States Telephone Co.
April 25 company applied to the Arkansas P. S. Com¬
mission for authority to issue and sell
40,000 shares of
preferred

stock

(par

$25).

Proceeds — To¬

gether with funds from proposed issue (probably pri¬
vately) of $2,000,000 first mortgage bonds, to be used for

(Inc.),

program.

Chicago,

Underwriter

—

Central

Republic

111.

was

reported

United Gas

stock

to stockholders.
Proceeds—For construction,
of company and of United Gas Pipe Line
Co.*
subsidiary. Underwriter—None.

mon

program
a

United Gas Corp.
24, N. C. McGowen,

Feb.

President, stated that com¬
might be doing some debt financing, with this?
year's total financing program reaching about
$50,000,000 (including about $35,000,000 to
$40,000,000 of com¬
mon
stock). Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co.

Inc.; The First Boston Corp.; Morgan Stanley &
Co.; White, Weld & Co. and Equitable Securities
Corp.
(jointly); Harriman Ripley & Co. Inc. and Goldman,r
Sachs & Co. (jointly).
it United Gas Corp.
April 28 directors of Electric Bond & Share Co.
approved
a distribution
of rights to its stockholders to
purchase
525,036 shares of common stock (par $10) at rate of one
share
and

United

possible that $40,000,000 of that

as¬

for each

Price—To

selling stockholder.

competitive

Bond

later.

announced

Pro¬

Underwriter—To

bidding.

Probable

de¬

bidders-

Merrill Lynch, Pierce, Fenner &

Beane; Kidder, Peabody
Co.; Goldman, Sachs & Co.; Blyth & Co., Inc.; Lehman
Brothers; The First Boston Corp. Offering—Expected

in June.

Utah Power &

Light Co.

(9/13)

March 28

it was reported company plans to issue and
sell $15,000,000 of first mortgage bonds due 1985. Pro¬
ceeds
To repay bank loans and for construction
pro¬
gram. Underwriter—To be determined by
competitive
—

bidding.

Probable

bidders: Halsey, Stuart & Co.
Inc.;
Corp. and Smith, Barney & Co. (joint¬
ly); Kidder, Peabody & Co.; Salomon Bros. & Hutzler;
White, Weld & Co. and Stone & Webster Securities Corp..
(jointly); The First Boston Corp.; Lehman Brothers and
Bear, Stearns & Co. (jointly). Bids — To be received
Sept. 13.
Union Securities

Power &

March 28 it

Light Co. (9/13)
reported company plans public sale of

was

177,500 shares of
struction

stock.

common

Proceeds

Underwriter—To

program.

competitive

bidding.

Probable

—

For

con¬

determined

bidders:

Lehman

Bro¬

thers; Union Securities Corp. and Smith, Barney & Co.
(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Blyth & Co., Inc.; The

First Boston Corp.

Bids—To be received

Sept. 13.

Virgina Electric & Power Co.

(6/7)
Feb. 19 it was reported
company plans to issue and seBL
$25,000,000 of first mortgage bonds in the near fu¬
ture..

Underwriter

To be determined by
competi¬
bidding. Probable bidders: Halsey, Stuart & Co±
Inc.; Union Securities Corp.; Stone & Webster Securities
Corp.; Kuhn, Loeb & Co.: Salomon Bros. &
Hutzlerj
White, Weld & Co. Bids—Expected June 7.
—

tive

Washington Gas Light Co.
Feb.

announced

was

sell about

(5/25)

company

plans to issue and

$8,000,000 refunding mortgage bonds.

Under¬
writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; The First Boston
Corp.; Equitable Securities Corp.; Union Securities Com.

Bids—Tentatively expected to be received

May 25.

Registration—Planned for May 5.
Westcoast Transmission
and sell

units

was

reported

Co.,

company

Ltd.
plans to

now

issue

publicly about $20,000,000 of securities, probably
of notes

and

placed privately.
New York.

stock.

Bonds

are

expected

to be

Underwriter—Eastman, Dillon & Co.*

Offering—Expected in July.

Westpan Hydrocarbon Co.
March 2 it

was

announced Sinclair Oil

Corp. has agreed

with the SEC to divest itself of its investment of 384,380
shares of Westpan stock (52.8%).
Underwriter—Union

Securities Corp., New York, underwrote recent sale of
Sinclair's holdings of Colorado Interstate Gas Co. White,
Weld & Co., New York, may be included
among

mon

the

stock

was

Telegraph Co.

announced

through

April

that

some

consideration

voted

being

additional shares of

offering to stockholders.

company's stock and

1,580,000

the

•

given to the issuance of
holders

12, George T. Naff, President, referred to the pos¬
sibility of some $85,000,000 in new financing when and
if the companyis. current
application for the reconver¬
sion of the Little Big Inch pipeline and the construction
of the new natural gas facilities is launched. He indi¬
it was

Gas stock

stock.

ceeds—To

Western Union

company

Jan.

that

Corp.

24, N. C. McGowen, President, announced thaL
corporation plans to raise $35,000,000 to $40,000,000 in
the first half of 1955
through the sale of additional com¬

March

plans to issue and
sell $3,000,000 of convertible
preferred stock.

cated

a new issue of 500,000
$100). Proceeds—To re¬
preferred stock (233,500

Feb.

bidders.

Sterling Precision Instrument Corp.,
Buffalo, N. Y.
April

outstanding), and for working capital. Under¬
writer—Harriman Ripley & Co.,
Inc., New York.

(jointly); W. C. Langley & Co.; Harri¬
Co. Inc.
Bids — Expected on June 7.
Registration—Planned for May 16.

Co.

was announced

Aircraft Corp.
stockholders approved

Securities Corp.

construction

yet, it

pre¬
comsecu¬

United

April 25

cumulative

and
any
new

Underwriter—Dillon, Read & Co., Inc., New-

York.

petitive bididng. Probable bidders: White, Weld & Co.
and Kidder, Peabody & Co.
(jointly); Lehman Brothers;
Merrill Lynch, Pierce. Fenner & Beane and
UniOD

Ripley

not at all definite

are

March

debentures

writer—Eisele & King, Libaire, Stout &
Co., New York.
Offering—Expected in June or July.
•

was making he
financing would be

accomplished

Utah

(11/9)

announced

the public 500,000 additional shares of

Wertheim

financing might be in the form of
bonds, (to be placed privately), and

new

that based upon the
assumptions that he
believed that the remainder of the

termined

Texas Eastern Transmission Corp.

common

be offered for

If,

To Bethlehem Steel

man

reported company plans to issue and sell
$15,000,000 of first mortgage bonds later this year. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.,
Equitable Se¬
curities Corp.; Merrill Lynch, Pierce, Fenner & Beane
and White, Weld & Co.
(jointly); Lehman Brothers and
Blyth & Co., Inc. (jointly); The First Boston Corp.;

Kuhn,

the

Funded debt at Dec. 31, 1954
in the future, the directors

future of 400,000 shares of common stock. Proceeds—

near
•

000

new

Ltd.,

will

indebtedness

Manufacturing Co.
it

April 18 it

Nitro-Chemicals,

June

Inc.; Morgan Stan¬

proceeds of the sale of additional bonds late in 1955

Northwest

authorized

ley & Co.
Rheem

pany

stockholders

it in the best interests of the
company to
issue bonds, the board will determine the amount of the
issue and the terms and conditions of the bonds. Prob¬
able bidders: Halsey, Stuart & Co.

capital require¬
ments for 1955 will approximate $31,000,000.
Present
plans contemplate these funds will be obtained tem¬
porarily from short-term bank loans to be repaid from
was

should deem

stock

New York

Telephone Co.
Keith S. McHugh, President,

•

last sale of bonds

on a

preferred

series.

.1,

announced

to $125,000,000.

emption

announced holders of the serial preferred

was

stock will vote
new

Electric

soon

Union Securities

expected to be received by company up to noon
May 10 for purchase from it of $4,080,000

are

(EBT-

(5/10)

public offering is

Co.
was

increasing the

company

Essex

-^National Telefilm Associates, Inc., New York
May 2 it was reported company plans to issue and sell
:312,500 shares of common stock. Underwriter—Charles

reported that

was

Reading
April 18 it

common

Banking Co.
April 23 it was announced stockholders on May 9 will
vote on approving a proposal to offer to stockholders
:28,880 additional shares of capital stock (par $25) on
basis of one new share for each eight shares held on
May 19; rights to expire on June 14.
Price—To be
named later. Proceeds—Expected to be about $2,000,000
—to increase- capital and surplus.
Underwriter—Clark,
Dodge & Co., New York.
1

exceed

Under¬
writer—Probably A. C. Allyn & Co. Inc., New York.
&

not

-connection with the current expansion program.

Newark

would

about 250,000 shares of common stock, of
100,000 shares will be sold for account of com¬
pany and 150,000 shares for selling stockholders. Under¬
writer—Bache & Co., New York.
I

(par $1) from 300,000 shares (260,100 shares out¬
standing) to 400,000 shares. Joseph H. Quick, President,
:said it Is contemplated that some financing will be ar¬
ranged during 1955 to provide additional capital in

National

This

which

stock

•

expected

Inc., Maiden, Mass.
authorized

issue.

Radio Receptor Co., Inc.

Murphy (G. C.) Co., McKeesport, Pa.
.April 12 stockholders approved a proposal to increase
the authorized limit of indebtedness from $3,000,000 to
$20,000,000. Prooeeds—For expansion program. Under-writer—Merrill Lynch, Pierce, Fenner & Beane, New
York, handled preferred stock financing in 1942.
increased

debenture

writer—Probably Smith, Barney & Co., New York.
Feb.

$85,000,000

first mortgage

new

shares of preference stock
(par
deem present 5% cumulative

$50,000,000 and would be issued at the discretion of the
directors any time within the next 12 months.
Under¬

equipment

stockholders

convertible

expected to be received in April for an issue of

Securities

April 9 stockholders approved the possible issuance of

Pacific RR.

National Co.,

Underwirters—Probably Stone &
Corp., The First Boston Corp. and

sumed

years.

Pure Oil Co.

trust certificates due 1956-1970.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon
©ros. & Hutzler; Blair & Co. Incorporated; Kidder, Peafoody & Co.

.March

five

Webster

shares to service station owners and operator!.
Office—Room 717, 141 Broadway, New York 6, N. Y.
are

Smith, Barney & Co.

of 100,000

©ids

offer.

porated, New York.

."$3,765,000

stock

common

Puget Sound Power & Light Co.
April 5, Frank McLaughlin, President, said that "it will
be necessary in 1955 to obtain funds for construction
purposes from outside sources—at least to the extent

standing).

Missouri

York; and Boettcher & Co. and Bosworth, Sulli¬
Co., Inc., both of Denver, Colo., underwrote pre¬

van

shares to

(2109)

approve

4-for-l

the issuance of

com¬

Stock¬

split

additional

shares, part of which are expected to be
-offered
as
aforesaid, but no definite financing plans
have been formulated.
Underwriters—Expected to in¬
clude Kuhn, Loeb & Co.; Lehman Brothers; and
Clark,
Dodge & Co.
new

The Commercial and Financial Chronicle

(2110)

United

States

icx

Commissioned

Securities Salesman's Corner

1942, the

ruary,

with

service

Thursday, May 5, 1955

ursi

uixereu

of record

present

May 23.

Proceeds will be used to pay off

Delaware di¬

new

the

left

rector

Ensign in Feb¬

holders

Navy.'

•

the

from

release
i

bank debt and to finance

the

new

con¬

struction costs.

rank of Lt. Commander. He served

By JOHN DUTTON

virtually
Pacific

the

Control the Situation

is the ability
relations with his

his

control

The

customers.

psychology-

will

you

should possess

man

business
eradicate the lack of
knowledge on the customer's con¬
science and you will erase
his
doubts, not by bluff or showing
off, but by the conviction that
comes to you from KNOWING.
If

good securities sales¬

selling securities is based primari¬
upon certain factors, and if you
will recognize and accept them it
will clarify the reasons for em¬
ly

something

know

you

blast it from

have

don't

you

the house¬

Your prospect will know
quickly enough.
Your attitude,
tops.

phasizing the importance of "con¬
trol" in every phase of your work.

voice inflections, and your

By "control" I refer to your abil¬

your

customer's think¬
ing and direct it along the lines

ability to adjust your first inter¬
view to YOUR APPRAISAL OF

it should follow.

HIS SITUATION

ity to lead

Here
basic

they

investors realize

to'invest

how

know

They

have control, your
customer will desire that you re¬
tain it.
His fears will gradually
become "lessened as his confidence
Once

securities salesmanship:

money.

try to hide their inade¬

may

know

•

that

decision they make on

any

their

is tenuous at best.

own

path you have laid out for him.
Eventually he, will leave more
of the decision making to you.
His laziness will see to that. Con¬
of-the customer, comes after

trol
Most investors are afraid of los¬

ing

their

Others

fear

accumulated
capital.
old age, sickness, or
that

misfortunes

the

to their families.
afraid

may

come

Most people are

great part of their lives

their
money as much, or more so than
their health, or their reputations.
Fears are greater during certain
periods of our lives and there are
cycles of fear that come and go
throughout the entire world. Fear
is one of
the
great motivating
—and

behind

forces

losing

fear

they

activities

the

mankind.
Most
to

people

lazy. Few wish
hard thinking

are

any

enable them

is sufficient to

than

Many people have ac¬

to survive.

cumulated

luck,

good
rience

capital

some

that

due

fortunate expe¬

through

about

came

a small effort on their part,
they know in their own hon¬
soul-searching that providence

only
and

est

immeasurably. But
when it comes to the trying and
painstaking Study that is required
in order to select a group of in¬
helped them

securities

vestment

and

lected

that

supervised

are

over

se¬

pe¬

riod of years, with definite

invest¬
objectives firmly resolved,
most people are not up to it.
If
ment

want

you

find

how

out

lazy

be just select a course of
study in some phase of your own
work and try to do a good job of
it over a six months period.
See
you

can

how

far

without tir¬
short cuts.
Pick out some recognized method
of market analysis for example,
such as a study of trends in the
stock market, cycles, charting, and
try to learn something about an¬
other phase of this business in
which you are engaged. If you've
ever done
this you'll know what
I mean.
Or just read a prospec¬
tus carefully, or analyze one single
ing

you

it,

can

taking

from top to bottom and

company

do it well—this is hard work and

it takes patience, care, and a will
to do it.
When you understand that

factors

time

every

with

are

operating in
you

desire

your

uncover

a person

increase

their

capital, you can see immediately
why
they
are
psychologically
floundering around in a hopeless
maze

of their

number

interview

control

you

two, and so on. CON¬
TROL
IS
VITAL
IN
EVERY
PHASE OF YOUR SALES WORK
IN
THE
INVESTMENT BUSIand

one,

NESS

—

YOUR CUSTOMERS

IT THAT WAY.

WANT

Mntnal Funds
gia, Maryland, Mississippi, North
Carolina, South Carolina, Virginia
and the District of Columbia.
Zaugg has broad experience

Mr.

investment

his

from

Following

work.

graduation

Ohio State

1934 with a major
in economics,
he was connected
with New York security dealers
University

until

1939

Airlines

American

joining

assistant in the of¬

fice of the President.

years' service
with the Air Transport Command
in World War II, he served for
three years in the Plans and Poli¬
Following

four

Division of

cies

the International

Reconstruction and De¬

Bank for

velopment.
In 1949, he became the South¬
eastern representative for North
American Securities Company of
San

Francisco, the position he now

holds.

ness

time

enter into

relationship with

Since

greater
on

you

the

this
or

the

and
you

busi¬

investor.

case,

lesser degree depending

individual

circumstances,
then it behooves you to offer the
answers

to these emotional condi¬

Pont Company.

member

Board

the

tor of the United

Fund,

World

the

Man¬

including the big ones,
substantial buyers of
Council, Chicago Rock Island & Pacific's
panies,

member

Affairs

turned up as

President of the Americans for the

Enterprise

Competitive
vard

Club, and

System,

member of the

the

board

increasing

directorate

Fund's
NET

effect

000

The

current

all bonds owned

ity,

with

and

the

Of the

51%

balance

Aaa
A

rated

But

body's
will

mutual

cover

New

department,

fund
York

served
in

Commander

The

Public offering of 400,000
of common stock of The

rectors

Mr.

former
under
son

Delaware

Fund

by W. Linton

satisfied

Nelson,

Pennsylvania's
of

Commerce

Duff and

grand¬

of President Theodore Roose¬

investments
by the direct route along with
pushing their funds liberally into
the

pick

mortgage market.

Whether

the

Island

ex¬

generally agreed that the liberal
yield is what really made the

little

shares
O.

new

Firm

variety
the

Issue

was

list

due to be
prospective

issues this week with

one

ly by F. Eberstadt & Co. and Shil-

velops,

linglaw, Bolger & Co.

least $30,000,000 through the same

major builders of aircraft pre¬
paring to come into the market

was

priced

the

offering,

being

The stock

at $12 per share.

sold

300,000

the

shares
room

chairman

and

circulating

the

issued

total

and

out¬

This represents the second pub¬

lic

offering

the

company's

shares, the initial offer¬
ing of 400,000 shares in July 1954
having comprised 200,000 shares

common

for

the

and

account

the

company

200,000 for Mr. Sutton.

the

vide

company's share of the

additional

facilities

pro¬

for

the

production of its newly developed
home

central

air

conditioners.

The balance will be added to gen¬
eral funds.
On the basis of net sales for the

ended

ness

consisted of the manufacture

room

air

the

under
name

conditioners

electric

fans

company's

"Vornado";

manufacture

and

for

own

room

air

sale

trade

about 43%

tioners for Westinghouse
eral

Electric

Motors

Corp.

the

condi¬

Electric

Co.

for

and

American

sale

by these
companies under their respective
trade

names.

sion

covering the issue which will
and

new

working capital.

An official of the

The balance of pro¬

Treasury De¬

Robert

ers

Blyth, Assistant Treas¬
Secretary told mortgage bank¬
that it is watching the stock

market, housing activity and the
auto industry against such con¬
ditions growing out of excessive
banking credit.
But,

expressed

opinion

the

that

"in

ness

situation, moderately

interest

the

rates

the

Executive

Midwest

the

ex¬

Firms.'He

plan

give

taxation

Exchange

small

the

from

dividends

elimination
the

relief

Stock
author

filing

wage

tax

double

and

the

returns

by
Mr.

earner.

Barnes served with both state apd
national tax committees. He con¬
ceived and developed the present
money-involved commission table

which
York

adopted

was

and

other

throughout

the

active

been

the New
exchanges
country. He has
stock

field

broad

civic work, particularly the Corri-

munity Fund of Chicago and is
member

the

Chest
Mr.

Barnes

Four

the

Wheel

America."

director

Trust &

budget

Community,

Councils

and

Suburban

national

the

Savings Bank,

Drive

Auto

LaSalle Extension

Co.

and

University.

Also nominated and tantamount

election, it was announced by
John R. Burdick, were the follow¬
ing members of the Board:
Chicago: Clyde H. BidFloor Member; Thomas S.
Koehler, Floor Member; Robert
C. Wilson, Floor Member; James
W. Pope, Glore, Forgan & Co.
From

good,

Cleveland:

Leslie

Schwinn, L. B. Schwinn & Co.

B.
.

-From Detroit: Clarence A.

Horn,
First of Michigan Corporation.
From
Minneapolis: Robert L.
John, Woodard-Elwood & Co.
'

From

Louis:

St.

Oscar

Wib-

bing, O. H. Wibbing & Co.
The

following

members

the

elected
Nominating

were

1956

Committee:
Chancellor

partment, made it plain this week
that
the
Washington
monetary
chiefs are keeping a close eye on
the general business situation with
a view to acting to head off
any
excesses
that may threaten.
ury

Association

Dcugall,
Chicago;
Chicago; Paul
R.
Doelz, Kalman & Company,
Minneapolis; Arch C. Doty, Chi¬
cago; Daniel M. Hawkins, Haw¬
kins & Co., Cleveland; George F.
Noyes, The Illinois Company, In¬
corporated, Chicago; Leonard J.
Paidar, Goodbody & Co., Chicago;
and Edwin R. Waldemer, Stix &
Co., St. Louis.
Joseph

Capital and Cost

present active

busi¬

Brown,

(Special to The Financial Chronicle)

OAKLAND, Calif. — Joseph A.
Peters
has
joined the staff of
First Western Securities, Inc., 141£
Broadway.

higher

should increase

the

With Calif. Investors
(Special to The Financial Chronicle)

New Prospects

The current week produced lit¬
tle in the way of additions to the
roster of securities going

With First Western Sees.

pool of available capital."

Nov.

30, 1954,
about 42% of the company's busi¬
year

company,

who, after completion of this sale,
will own 600,000
shares of -the
out

amount

provide funds for expansion

Sutton, President
of

that

The company is expected to go

being sold for the

account of O. A.

raise

subordinated debentures.

The remaining 100,-

air

public

•/,'

former Governor

change and former Vice-President
and member of the board of tRe

From

Aircraft Corp., it de¬

planning

into registration shortly with the
Securities and Exchange Commis¬

and

are

electric fans.
shares

money.

air

conditioners

000

the

are

company,

leading manufacturer of

new

Lockheed

Chairman

committee

Rock

perience carries any real signifi¬
cance
as
a
harbinger of the fu¬
ture is hard tcf tell, since it is

added

Corp., Hotpoint Division of Gen¬

Roosevelt,
Secretary
Governor

was

their hands for

long spell, taking only meager in¬
terest in new securities and being

Corporation,

circulating

Roosevelt, III, to the board of di¬

sitting

been

for

Theodore

had

the

1949.

latter

After the war he worked
with Eastman, Dillon & Co. until
joining Kidder, Peabody & Co. in

ELECTION

Inc.,
was
made yesterday
(May 4) by an
underwriting group headed joint¬

Sutton

fiscal

THE

far

are

pretty much

"Vornado" Shares

the

Navy.

big: point,

Aircraft

ing, $750,000 will be used to

which

the

Rock Island debentures attractive.

proceeds from the present offer¬

com¬

Island

Bankers Offer

and Delaware.

Lieutenant

into

converted

tional buyers.

Fund's total shares at the

Island, New Jersey, Philadelphia

Company of New York until the

Preferred
little inter¬

concerned, is that the
debentures
really
roused the interest of big institu¬
Rock

39%
held by individuals, 23% by
fiduciaries,
10%
by
insurance
companies, 15% by other corpo¬
rations and
the balance by re¬
ligious, charitable and educational
institutions
or
profit sharing
funds. V
/

City, Long

He graduated from New York
University in 1936 and was asso¬
ciated with the Guaranty Trust

Committee

$50,000,000.

they

bankers

Baa.

and

their

"laid-off"

they

Mr. Barnes is

...

total,

stock remains to be disclosed.

mon

Aa,

the

had

since

extent

of bank qual¬

are

rated

this -decidely

est in the debentures, and to what

that

notes

Chairman of the Board.

stockholders revealed

were

report

;

thereabouts

than

$3,347,907,
equal to $8.20 per share, accord¬
ing to the annual report just pub¬
lished.
This compares with $3,215,151 on March 31 of last year,
amounting
to
$8.28 per share.
During the 12-month period the
number of shares outstanding in¬
creased from 388,132 to 408,062.
March 31

found

liking

of Boston at the close of its fiscal
year on

but

ASSETS of The Bond Fund

standing.

Peabody & Co. in New
as
Vice-President and
Wholesale Representative for In¬
corporated Investors and Incor¬
porated Income Fund. Washburn,
who has headed up Kidder, Pea-

price to yield 4.50% and
more thaa_pleased with the

They had to take down $62,000,-

the

members.

Exchange. This was an¬
by
John
R.
Burdick,
Chairman of the Nominating Com¬
mittee, and is tantamount to elec¬
tion. Guybert M. Phillips, Cald¬
well, Phillips Co., St. Paul,
Minnesota, was nominated Vice-

results of the deal.

has

Delaware's

Stock

of¬

was

Chair¬

of the Board of the Midwest

nounced

$65,000,000

which

were

election

the appointment of

Kidder,
York,

issue

new

fered at

graduate of Harvard College.

George Washburn, formerly with

nounced today

the

Philadelphia Club. ..Mr. Roosevelt

an¬

Bankers underwrote

His

been nominated to serve
man

recently offered debentures.

the Philadelphia Har¬

member of

Notwithstanding that they have
cool toward most
issues coming to market over
period of months, insurance com¬

new

of Episcopal Hospital, direc¬

agers

CHICAGO, 111. — George E.
Barnes, senior partner of Wayne
Hummer & Co., Chicago, members
of the Midwest, New York and
American Stock
Exchanges, has

been noticeably

Among his civic activities, he is

1,400,000

Corporation

President.

every

associated with the

was

stock

membered.

laziness

Roosevelt

common

PARKER

THE

announced

Ignorance, fear,
are
working
for

Admiral Chester W.
spectacu¬
lar night combat mission in 1944.
Prior to his Naval service, Mr.

Nimitz for his part in a

end of the latest fiscal year,

Continued jrom page

ignorance, fear,
and laziness. These are not polite
adjectives but they are easily re¬
own

Midwest Exchange
Announces Nominees

the

were

war,

these
favor

judgment increases. That
performance enters the

where

picture, as well as your ability to
keep'his thinking straight on the

fear'

they therefore

and

—

you

in your

underneath the' ex¬
various,degrees of sup¬
posed confidence','they are actual¬
ly
afraid
to
trust
their own
guesses.
They know they don't
but

quacies

terior

will control the

interview.

factors

the

some

are

Most
not

your

areas

awarded

was

Air Medal by

If you know your

tions.

important attri¬

One of the most

butes that

combat

all
and

LOS
D.

ANGELES, Calif.—Clarke

Williams is

nia

into reg¬

now

with Califor¬

Investors, 3924 Wilshire Blvd.

istration for future offering.
But

its $12,000,000 of new bonds on

which

Almar Shatford

Georgia Power Co. set next

Tuesday for the opening of bids

information

meetings

are

scheduled to be held late today for
the benefit of
Meanwhile

Almar

Shatford,

partner in

Merrill

Lynch, Pierce, Fenner &
Beane, passed away at his home
at the age of 83.
Mr. Shatford
was

the oldest member of the firm.

prospective bidders.
'' Potomac

Electric

Leslie

Thompson
partner of the Philadel¬ duction was principally jettison
Power Co. disclosed plans for the
Leslie H. Thompson, partner in
phia investment banking firm of fuel tanks for the U. S. Air Force.
sale of $10,000,000 of bonds plus Delafield &
Delafield, passed away
Montgomery, Scott & Co. which The company's plants are in Wi¬
he joined in 1945 following his chita, Kansas.
511,660 shares of*eommon, the lat- at the age of 76.
velt, is

5426

Volume 181/ Number

; v

DOME MINES LIMITED
.•

DIVIDEND

NO.

1955

meeting

Limited,

Mmes

BERKSHIRE HATHAWAY INC.

151

the Board of Directors of
held this day, a dividend
of Seventeen and One-Half Cents (171&C)
per
share < in Canadian Funds)
was declared pay¬
able
on
July
29,
1955,
to
shareholders
of
record at the close of business on June 30, 1955.
At

Dome

CLIFFORD

MICHEL,

President

and Treasurer.

AMERicAN-^taitdard

The Board of Directors of The Berk¬

Hathaway Inc. has declared

shire

dividend of 25

cen|s

Common Stock,

per

PREFERRED
COMMON

a
A

the

...

President

been

1955

the

Common

payable
on

Fifty-five Cents

quarterly
per

declared

payable June 4th,
of

holders

ONE-HALF

1955 to share¬

record

the

Also

declared

DIVIDEND

Directors

Board

The

declared dividends

1955,

April

$1.0625

per

the $4.25 Cumulative Preferred
payable June 29, 1955, to stock¬
holders of record as of the close of busi¬

June

ness

COMPANY

business

of $.25

Stock,

per

May

May 31,
of the
1955.

payable

of record

stockholders

Common

the

1955

1955.

dividend

Quarterly
on

Improvement

Company

DIVIDEND

The

NOTICE

16,

clared

quarterly dividend of 50c per
share on the Common Stock, par
value $13.50 per share, has been
declared payable June 30,
1955

stockholders

Board

2£c per

NOTICE

Directors has de¬

quarterly dividend of

the outstanding

Stock, payable on June

Common

1, 1955, to stockholders

record

May 31, 1955.
A quarterly dividend of $1.06}^

of record

1 1, 1955. The transfer

May

books will not close.
PAUL C. JAMESON

NEW YMK 20,

ANSLEY WILCOX

2nd, Secretary

N.Y.

FLAZA

CORPORATION

Stock,

30 ROCKEFELLER

29,

follows:

dividend

Quarterly

THE

J.T.CULLEN,
Treasurer

PRODUCTS

The United Gas

JR.

DULLEA
*

President

Niagara Falls, N. Y.

president and Secretary

Vice

Secretary

7
April 26, 1955

NATIONAL DISTILLERS

Dividend Notice

-April 28th, 1955

pany of the par value of $12.50 per share, !
payable July 1. 1955, to holders of record •
close of business June 1, 1955.
j

at the

ELECTROCHEMICAL COMPANY

of FIFTY CENTS
June
1955.

F.-ljRONMILLER,

NOTICE

and Trust Company have de¬
clared a dividend of 30 cents

•

ger share on thedeclaredPreferred
4M % payable
tock has been

Treasurer

April 28, 1955

July

1, 1955 to stockholders of
record May 31, 1955.

Johns Hopkins, Treasurer
Half
A

holders of record trt^roe
ness

Boonton

Jersey v

A
/

declared

been

May 27,

of business

dividend

(20c)

May

the

cents

the

FINANCE CORPORATION
^

payable

Vice-President and Treasurer

stockholders

May 4, 1955.

have declared a

record at the close of business May

18,

cents

1S55.
H.

Company
dividend of thirty

(30(0 per share on the com¬

mon

stock of said Company, pay¬

able

KINGSLAND, Secretary

June 15, 1955, to stock¬
the close of

holders of record at

ELECTRIC BOND AND SHARE

business June 1,

regular quarterly divi¬
of 50 cents per share
on the common
stock ($10
par value), payable June 1,
1955, to stockholders of
record May 16, 1955, was
declared by the Board of
Directors on April 27, 1955.
A

INDUSTRIES

INCORPORATED

Preferred Dividend No. 193

A dividend of 62Vi
share

$ per

the $50.00 par

Value 5% cumulative con¬

vertible
this

preferred stock of

Corporation has been '

declared

1955,
the

1955

payable June 1,
stockholders of

record at close of business

May 13, 1955.

1955.

Secretary

•••••••••••••••••

dividend, subject to the

TENNESSEE
CORPORATION

AMERICA'S

LEADING

TRANSPORTER

TEXAS

QUARTERLY CASH DIVIDEND

10$ a share*

The

regular quarterly dividend of 35c per

been

Payable June 1, 1955
Record

The Company proposes to arrange

date, May 19, 1955

declared

1955 to stockholders of

has

been

B. M. Betsch,

able

June

J. E. IVINS, Secretary

April 28, 1955

Common a/it/P/rferm/ Dividend

business

close of business June

CITIES SERVICE COMPANY

Dividend Notice
Directors

Cities

Service

April 28,1955

5.50% First Preferred Series $1.37Y2
Preferred Stock, 4.75% Convertible Series
$1.18%
Preferred Stock, 4.50% Convertible Series... .$1.12%

Preferred Stock,

$035

Company has

its $10 par value Common stock, payable June

quarterly dividend

of fifty cents

($.50)

per

13, 1955, to stockholders of record at the close of business

Secretary

Amount

Common Stock
Board

C. Allan Fee,

declared

P<r

The

declared

1955.

May 10, 1955:
Security

stockholders of record at
c

the Company has

following quarterly dividends, all payable on
June 1, 1955, to stockholders of record at close of

the

common

1955

Notice

April 28, 1955

Corporation

15,

July

June 3, 1955.

Secretary and Treasurer

April 28,1955.

declared, pay¬

the capital stock
was
split two-for-one. This dividend
is
on
the
currently
outstanding
697,194 shares.

stockholder*.

The Board of Directors of

the

record

*0n March 24, 1955,

A dividend of $1.00 per
on

share has

the Common Stock, payable

Company's dividend agent

handle fractional share equiva¬

lents for the

OAS

NO. 31

DIVIDEND

Common Dividend No. 142

stock of this

NATURAL

Notice of

■i

GAS

^Jg
§ TRANSMISSION COMPANY
HOUSTON.

460 West 34th St., N.Y. 1, N.Y.

representing fractional shares of
United Gas Corporation Common
Stock will be issued to stockholders.
for the

this Company,

has

of the Securities- and
Exchange
Commission, on the
Common Stock, payable June 13,
1955, to stockholders of record at
the close of business May 13, 1955.
The dividend will be payable in
shares of United Gas Corporation
Common Stock at the rate of 1.8
shares for each 100 shares
of
Electric Bond and Share Company
Common
Stock. No scrip

capital stock of
payable June 10,
to stockholders of record
close of business May 6,

the outstanding

W. D. Bickham, Secretary

approval

acr

April

26, 1955, declared a quarterly
dividend of 50£ per share on

President

Dividend

The BoarcT of Directors

declared

■'.'■■"7:

The Board of Directors on

New York 6, N. Y.

Common Stock

Company,

Inc.

dend

B. c. Reynolds,

Two Rector St.,

porated, has been changed to
Socony Mobil Oil

•

1955.

J. Raymond Pritchard,

COMPANY

NOTICE

DIVIDEND

of -Directors of Nor¬

folk Southern Railway

The corporate name of Socony
Vacuum Oil Company, Incor'

Dividend

Common

The Board

common

1955

25,

twenty

Company,

per

stock

PACIFIC

RAILWAY COMPANY

the

1955.

de¬

Corporation

Radio

•••••••••

NORFOLK SOUTHERN

the

CLIFTON W. GREGG,
clared

INC.

Dividend No. 177

close of busi¬

1955, to stockholders of record at
close

OIL COMPANY,

1905—r 1955

Common Stock payable June 10,

Dividend No. 89
/ On May 2, 1955, the Directors of

Earth

quarterly dividend of $.60 per
has

SOCONY MOBIL

Philadelphia, April 26, 1955

1955.

June 1,

Aircraft

Century of Chemicals

From the Salt of the

the

$4CumulativeI?|eferredStock
payable June 1^^,955, to stock¬

RADIO

CORPORATION

New

declared

been

has

AIRCRAFT

dividend of $1.00 per

quarterly

TEXAS

EASTERN
SHREVEPORT,

May 12, 1955.
erle g.

christian, Secretary

DIVIDEND NO. 232

HOOKER
quarter
ONE and
$1.50 per

share on COMMON? STOCK, payable
1955 to shareholders ;M record May 10,

JAMES A.

Montreal

DIVIDEND

The Board of Directors has de- '
clared a dividend of 25* per share on the '
outstanding Capital Stock of the Com-

Trustees of Title "Guarantee

WILLIAM H. DEATLY

per

share designated as the second
regular quarter-annual dividend for
1955, payable May 27,1955 to stock¬
holders of record on May 5, 1955.

FREFERRED^STOOK, payable July
1955 to shareholders:^! record July 6, 1955.

20,

VmU

And Trust Company

hfitt declared for

30, 1955 DIVIDEND of
<l»/2%)
PER' CENT or

May 9th, 1955.

business
■

the

value shares of this Company,

par

Directors

June

J-gi AND LIGHTING COMPANY, INC.

June 3, 1955.

Pennsylvania

Board

in U.S. currency was

GUARANTEE

TITLE

per

April 2% 1955

1955'

remain open.

Foundry Company

THE SAFETY CAR HEATING

REFRACTORIES COMPANY

ending

*„no

HARBISON-WALKER

and

per

Secretary

]

United States Pipe

been

1955

the

transfer books will

The

May 13, 1955.

SANITARY CORPORATION

Pittsburgh

dividend of

has

24,

Frank J. Berberich

NOTICE

shareholders of record at the close

JOHN W. BRENNAN, Secretary & Treasmw

AMERICAN RADIATOR I STANDARD

DIVIDEND

The Board of Directors this day declared a
quarterly dividend of seventy-five cents (754)
share on the outstanding Common Stock
of this Company, payable June 20, 1955, to
stockholders of record on May 31, 1955.
per

j. F. McCarthy, Treasurer.

close of

Stock

June

of record

stockholders

business

Foundry Company

Burlington, N. J., April 28, 195S

Limited

a Dividend of one dollar ($1.00)
(Canadian) per share has been de¬
clared on the Capital Stock of this
Company, payable June 13, 1955,

of business

NOTICES

United States Pipe and

Mining

May 24, 1955.

28th,

the

quarterly dividend of 32 cents

ALUMINIUM LIMITED

April

record

DIVIDEND

62 =

NO.

and Smelting Co.,

de¬

declared,

April 28, 1955

has

June

business

jb.
f$.

per

Stock

payable

stockholders

CHACE, JR.

DIVIDEND

Preferred

the

clared,

Record May 6,1955.

MALCOLM

DIVIDEND

quarterly dividend of $1.75

payable June 1, 1955

stockholders of

DIVIDEND

Hudson Bay

April 25,

NOTICES

DIVIDEND

NOTICES

DIVIDEND

NOTICES

DIVIDEND

NOTICES

DIVIDEND

(2111)

The Commercial and Financial Chronicle

LOUISIANA

•
;

The Commercial and Financial Chronicle

Thursday, May 5, 1955

(2112)

* 48

will / become

enterprises

BUSINESS BUZZ

will

from the

JLI w\A/

J, t/w

the

curtail

that it should

feels

Government

its

lending, and
the di¬

encourage

investment

rect

les3

force

task

Federal

the

that

should

\f g^mm

much

become

complex,

machin¬

administrative

merit's
ery

the ground thai the govern-

•n
:

solidly founded, and secondarily

savings

and in the

property ownership

equity shares of business enter¬
"

the

looks

—

'finally settled upon the design
for their principal line of 1955
merchandise, which is business

Caesar

Stanley
time

one
-

attempting to write

sideration of all the

assets.

For some four years

advantage

certain

provides

that

"business

Ilill

the

man

rent

this

length the studies and

4<forward-looking"

treating

Then, too, there is a return to
about business capital ex¬

penditures. When business is not
to be condemned for failing to

ivy

•

panding

under forced govern¬
is time for
on the spot

growth
panies.

draft, then it
business to be put
for

buying machinery.

The time for the latter
and

Rep.

Tex.)

Wright Patman (D.,
chairman of the "sta¬

undertake

that these businesses are

vide

TNEC,

the

highly-placed people in govern¬
ment seriously discussed, if per¬

too

investing

business

dependents"

plant
-capacity for the sake of making
profits, and that maybe there

heavily

in machines and

should be

curb

new

tax

costs,

ness

the

to cope

the

merger

mer-

groups,

way

how

remote

pear.

There is

even

under

surance

around

deposits

investments

and
in

savings and loan associations.
"Losses will be minimized if
the

risks

and

1955 Vol.

Stock

Henderson^
i

Calif. — Ken~)
neth E. Mangum and William L.
Sneed
have joined
the staff of;
Harbison & Henderson, 210 West
Seventh
Los

Street, members of the

Mangum

was

with

previously

Hopkins, Harbach & Co.

;

JoinsPowell, Johnson
(Special to The Financial Chronicle)

Bohm is
son

now

with Powell, John¬

Powell,

Security

Inc.,

Building. Mr. Von Bohm was pre¬
viously with Samuel B.-Frank-lira
& Co.

enterprise system are
governmental

not dislocated by

interference,

even

motivated by good

"Primarily

further

the

homes,

our

interference
intentions.

the ground that
development

communities,

and

New Views

RIVERSIDE CEMENT CO.

likely

CLASS

CALIFORNIA

STOCK

(Common)

Copies

on request

of these en¬

Hoover Com¬

Carl Marks & Co. Inc.

1949 reported, there

FOREIGN

and what
itself recom¬
mended. Each specialized field
of Federal activity was assigned
to a "task force" to- sift out the

50 BROAD STREET

Commission

preliminary rec-

SECURITIES

TEL:

r»
»

HANOVER 2-0050

"«

- f

-vv

•

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

.PASADENA, Calif.—Victor Von,

LERNER & CO.

facts and make

Mr.

Angeles Stock Exchange.

incentives of the

legislation, for he will

the first

LOS ANGELES,

system of in¬

bank

insurance

way

our

Official/ Year*

Exchange

(Special to The Financial Chronicle)

are,:

able to make the settlement ap¬

individuals or
we have assem-

forces" recommended,

the pending bill to

great deal of confusion
between what the various "task

Hangs in Balance

chandise is

small

matter

are

Competitive Aid

When

the

„

made>

There

losses.
around this,

there

terprise

them

people

our

Of Federal Credit

was

become stronger
with these problems.

Holding Company Bill

House, there is

mission in

busi- '

and move

strong

cape

Cites

and

themselves at¬
make ~

to become strong

"in¬

they seem
their way

savings

terprises.

tributable to government,

It difficult for the weak in

force

ditional regulation

thing there is a sure
outlook.
Only a
few timid
voices will have much to say

high

voiceless.

farther than the Federal Reserve Board in providing ad¬
go

one

about how high labor costs

the

to be

inven¬

can,

doing,

with

tions.

in effect that if the

notice

they

10c.

Institut

University's

With Harbison

voiceless.

and

private
.

because

of the load, or be¬

are

cannot

Gov-j

Printing Office, Wash-;

for two volumes.

must stand the losses of our en¬

they must with the
growth in the volume of enter¬
prise, but by our efforts to es¬
grow,

they

"The

"Our risks have continued to

Senator Robertson has served

haps not on the record, the pos¬

load

similar-assist-:';

the Federal Treasury.

go.

can

sibility that unemployment was
-due

death

either

"Among others, future gener¬
ations are both unaware of the

fetish of financial
security for the individual, and
and by each governmental ef¬
fort
to
enhance
it, we have
loaded
more
of the financial
risks of our economic life on

virtually

present income tax laws, bank
holding companies are some¬
times the only place some banks

many

for

not

unaware

are

cause

its

qualify

who

and

complain

the early 1930's, we have

the forking over
of a large amount of cash, and
in
the
unhappy state of the
market for bank equities under

recalls

how

useful

also pro¬
the

die,

owners.

that of foreign
These objectives the
and

complain the most

who

it,

those

ance," the group reported.
;
■'
"Ever since the depression of

require

taxes

not

market for small banks

when

where, and why thereof.
correspondent

They

themselves.

going to
inquiry on "auto¬

mation," the who, what, when,

This

of¬

risk

Home

(for the Lon~i
Exchange)—Thomas
Skinner & Co., Ill Broadway*.
New York 4, N. Y. (cloth) $33
don

favorite

about

government
lending
object is to help in¬
dividual people and businesses
improve their competitive posi¬
tions and, in this way, to dis¬
criminate against those who do

years

and

Federal Taxation—Complete

Book

ex¬

Housing

—

Documents,

York

Stock'

financially.

posed

"However, this report is cri¬
where

peo¬

secure

relatively

others

shift

some

In
recent
device politi¬
cally has been to shift them
around by law, relieving those

This task force re¬

task force did not criticize.

tical

that

relatively

are

and

of Price,

facilities. They
strengthened the national

powers.

They recognize

choke them off.
-

Patman

Mr.

ple

credit

position

around

them

about

them

the report of the
lending agencies,

Urban

Proceedings—Mathew Bender 8c.
Company, Inc., Albany 1, N. Y.
$25.

can

for

ington 25, D. C. (paper)
New

system is free

The most that

from loss.

They provided
with new and im¬

nation

have

economic

"No

purposes.

proved

addi¬
hold¬
ing companies, do not want to

Congressional Joint Committee
on the Economic Report, is the
man.

the

done so by to¬

set¬

done
was

their

Develop

Program

Agency—Superintend¬

ernment

out, or in any
coming of fu¬

await the

generations for

ent

tlement.

have

forces

much daylight

see

force

three

ficials, while favoring the
tional regulation of bank

now,

bilization" subcommittee of the

task

the

Waterhouse.

Speaker Sam

Federal bank supervisory

ture

Finance

somehow

they

another

one

event

"play¬

port noted that in general, gov¬
ernment
credit
aids served

bank holding com¬

the Commis¬

has been

headed by Paul Grady

packed with nine new members
largely "liberal," will vote out
a
bill largely cutting off the

talized, of course) or when busi¬
ness is not to be cajoled into ex¬
ment

task

House* committee,

the

day,

capi¬

National Product" (always

Typical

"inde¬
pendents" and it appears that if
it has not already

Administra-j

Can

Localities

>•

Renewal

to plague us, or can¬

cease

cel

the press.

Rayburn has backed the

buy machinery and build fac¬
tories so as to expand the "Gross

reason

of them in

that

hope

will

this time

failed

legislation.

In this situation

ing down" the reports of its task
forces. As a result, some of the

Independents

holding company

dear

this

For

sion

agreed to a mild bill, the hold¬
ing companies tactically for the
last couple of years have come
out on the record against any

business.

well

Knowing that they might lose
their
shirts
if they formally

TNEC inquiry, to ;
help in the latest hunt for all
the facts which will show the

in 1949, with the

and

national public debt where

the

"task forces."

gems

Rayburn Backs

•heney run the

alleged evil designs of

now

ing.

very v

along,

mission itself fails

branch bank¬

from

differently

bled

ommendations. Often the Com¬

re¬

holding company any

How

Workable

by Federal
a state from

and which
law would prevent

An¬
O'Ma-

Joe

bank

banks

103'!"

"Temperature 102—He keeps yelling: 'sell at

purchase of
holding com¬

panies,

Dewey

helped

who

derson

these

grave

Go?

Griswold—Amos Tuck

tion, Dartmouth College, Han¬
over, N. H. (paper).

strictions upon any

has ♦

of ' the

aid

the

impose

will

which

among

Celler

Mr.

businessmen.
enlisted

and

nervousness

out

Busines

Money

School of Business

agree
carry

the

Does

John A.

however, they would
always back down.
What the
independents
want is a bill

hearings

testimony

of
of

Where

purposes,

National Eco¬
nomic Committee of the 1930's,
which * produced
voluminous
amount

would

which

of the Temporary

volumes

asked

Flow Through

Cash

"independents"
to a bill

the

When
were

Committee, is planning a
scale

(D., Va.) has pending, and a
slightly new version of which
he will introduce shortly.

grandinquisition into the cur¬
merger
trend. It is said
will
rival in
scope
and

Willis Robert-

West 42nd
36, N. Y.

Fund, 330
New York
(cloth) $10.

Century

Street,

bill

son

Emanuel

Rep,

Y.), who is Chairthe
House
Judiciary

embodied

which Senator A.

venient target.

Celler (D., N.

hurst and Associates—The 20th

ing companies, if not officially,
were agreeable to such legisla¬
as

Resources: A

Survey—J. Frederic Dew-

New

period most of the hold¬

tion,

Needs

America's

For almost the

purposes.

same

con¬

accomplish these two osten- ~

sible

the *

over

opposition in f
Congress, because the Depart! ment of Justice antitrust divi- s
; aion, of which
Mr. Barnes is
I head, has got the bow and a full t
quiver of arrows to shoot at any
loyal Democratic

legislation

have been in favor of
to

Administration has

the Fed-

supervisory officials

bank

eral

here.
In this the

this

legislation
is to provide for
regulating the growth of bank
holding companies, and requir¬
ing them to divest themselves
of
ownership of non-banking

days

pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.)

billl for

Ostensibly the purpose of

Football Hall of

sympathetic conunavoidable
economic factors which would i make for concentration of busi- K
j ness appear to have ended. The
days of busting monopolies are
The

flect the "behind the scene" inter¬

Committee

this purpose.

Fame, will carry the ball for
the Eisenhower Administration.
•

stage

- *

(This column is intended to re¬

but has now
where the

pup,

the

Banking

House

N. Barnes, himself
football star and a

member of the

was

reached

concentration, or mergers.
-

prises."

bank hold¬
ing companies. This issue has
been
kicking around
since
regulate further the

It
have

C.
politicos
D.

WASHINGTON,

Invest went

Securities

Post Office Square

Boston, Mass.

Phone HUbhard"2-1990

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In 2 Sections—Section 2

ESTABLISHED 1839

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OFFICES IN 14 CITIES IN CANADA AND ENGLAND

A. E. Ames & Co.
Incorporated

BROAD

STREET

•

NEW YORK 4,

N. Y.
New York

TELEPHONE HANOVER 2-0050

Boston

TELETYPE NY 1-971
BUSINESS ESTABLISHED 1889

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Lou

;

Volume

181

Number 5426

Wade, Dominion Securities Corporation; Ted Pollard, Burns Bros. & Denton, Inc.; Jim Concagh,
Nesbitt, Thomson Inc.; Terrence Simmons, Dawson, Hannaford Inc.; Rex Stevenson,
Nesbitt,

Chronicle

The Commercial and Financial

Thomson

and

Company,

Inc.

Mulqueen, Mills, Spence & Co., Inc.; Les Scott, Ross, Knowles <ft Co., Ltd., Toronto;
Bulford, Greenshields & Co. Inc. (N. Y.); John Calefy Dominion Securities Corporation;
Desmond Magee, Dominion Securities Corporation

Mike

Mickey McBride, Midland Securities Corpn., Limited, Toronto; Jack Carleton, Eastman, Dillon & Co.;
Brad Firstbrook, Greenshields & Co. (N. Y.), Inc.; Tony Hutchison, A. E. Ames & Co., Inc.;
Don Robitaille, Burns Bros. & Denton, Inc.

Arthur

Vare,

Kalb,

Vcorhis <ft Co.; Tom Greenberg, C. E. Unterberg, Towbin
Kugel, Stone & Co., Inc.; John Keelin, Fahnestock <£ Co.

Co.;

Herb

Gesell,

Underwriters and Distributors

Industrial, Public Utility and

Specialists in

Railroad Securities

Municipal Bonds

BANK and INSURANCE

Bank and Insurance Stocks

STOCKS

Unlisted Securities

Laird, Bissell & Meeds
MEMBERS

NEW

120

YORK

AND

AMERICAN

STOCK

edwin l. tatro company

EXCHANGES

BROADWAY, NEW YORK 5, N. Y.

BROADWAY, NEW YORK 4, N. Y.

Bell Teletype NY 1-1248-49

Telephone BArclay 7-3500

Teletype: NY 1-3430

Telephone: DIgby 4-2420
DU PONT

LINCOLN LIBERTY BUILDING

BUILDING

WILMINGTON,

Direct

PHILADELPHIA, PA.

DEL.

Nat Krumhclz, Siegel & Co.; Ray
44

WHITNEY

NEW HAVEN,

AVE.

BASLE,

CONN.

SWITZERLAND

160 W.

BROADWAY

Shearson,

Hammill

Forbes,

BALTIMORE

BOSTON

—

Telephone
HARTFORD:

Enterprise

7846

Co.

SALEM, N. J.

Specialists in

Primary Markets in

Foreign Securities
New York

City

Bank Stocks

Foreign Investments
tjdin/icldandIdJ/eic/iwede't

Kugel, Stone

dnc.
INVESTMENT

Associate Member American Stock

30 Broad

Telephone
WHitehall

3-9200

Co.

Incorporated

SECURITIES
30 Broad Street

Exchange

Telephone: WHitehall 3-2050

Street, New York 4, N. Y.
Teletype
NY

1-515

Irving
John

Feltman, Mitchell & Company;
de Maye, Sutro Bros. & Co.

New York 4, N. Y.

Teletype: N.Y. 1-1822

The Commercial and Financial Chronicle

Herck

Colhet

Mottino, Harris Upham & Co.; Merritt Coleman,
& Co., Philadelphia; Joe Titolo, Harris,
Upham

Thursday, May 5, 1955

Allen & Company; John Fant, Penington,
& Co.; Joseph Corby, Allen & Company

Pflugfelder & Rust
Members of the New York Stock Exchange

BROADWAY,

NEW

YORK

Telephone BOwling Green 9-4900

Win

Eldredge, Morgan Stanley
W. Sparks & Co.; Pele

& Co.;
Brochu,

Bruce Briggs, J. R. Williston & Co.; Thomas J. Hickey,
Allen & Company; Walter Haubert, Jesup & Lamont

Founded 1851

UNDERWRITERS

DISTRIBUTORS

DEALERS

Industrial, Public Utility and Railroad Securities
State and

Municipal Bonds

ESTABROOK

Storer

CO.

Broadcasting

MEMBERS

Company

NEW YORK AND BOSTON STOCK EXCHANGES
Associate

40 Wall

Member

St., NEW YORK 5

HARTFORD

•

American

Stock

Exchange

COMMON STOCK
-

POUGHKEEPSIE

IS State

St., BOSTON 9, MASS.

PROVIDENCE

•

SPRINGFIELD

•

Prospectus

request

Consolidated Television

Rights

Scrip

Warrants

■A.

REORGANIZATION

Radio Broadcasters, Inc.
COMMON STOCK

Bought — Sold

SECURITIES

McTTohnell

Go.

York

American

120

Stock
Stock

Members

New York Stock Exchange
and

REctor

other

120

Telephone: WOrth 4-6700

254 Park

Teletype: NY 1-635

2-7800

BRANCH OFFICES:

Building, Detroit, Mich.

American Stock Exchangb

BROADWAY, NEW YORK 5, N. Y.

PHILADELPHIA

Buhl

•

principal exchanges

Exchange
Exchange

BROADWAY, NEW YORK 5
Tel.

Quoted

Reynolds & Co.

members
New

—

1 Press Plaza, Asbnry Park, N. J.

Avenue, New York

•

CHICAGO

•

SAN FRANCISCO

•

33 Offices from Coast to Coast

Volume

181

Number 5426

The Commercial and Financial Chronicle
13

OUR 26th

YEAR

SERVICING

BROKERS AND DEALERS
SINCE 1929

MAY & GANNON
INCORPORATED

Arthur

Schwartz,

Bache

Stein

Co.;

Eddie

Bros•

Opper, J. B. Maguire & Co., Inc., Boston;
Boyce; Bert Stern9 Allen & Company.

Dave

Buckner,

161

DEVONSHIRE ST.

BOSTON

10, MASS.

Telephones
New York

Boston

CAnal 6-2610

HUbbard 2-8360
ATT

Primary

Teletype BS 568

CONNECTICUT

MARKETS for Dealers everywhere
We

particularly invite
inquiries in:

your

Industrial-Utility
Insurance

AMERICAN

Bank

LT.

SPRING
POWER

CONNECTICUT POWER
EMHART

State &

HARDWARE

ASSOCIATED
CONN.

Municipal

MFG.

HARTFORD
LANDERS
NEW

Securities

CO.

ELECT. LIGHT

BRITAIN

MACHINE

Amendola,

Bache

Co.;

Morris

SeUer, Bache &
Larry Lyons, Allen &

Co.; John
Company

Reilly,

Walker

MFG.

SOUTH'N

Eddie

RUSSELL

NEW

TORRINGTON

Co.;

CO.
ENG.

TEL.

CO.

VEEDER-ROOT

COBURN & MlDDLEBROOK, INC.
100 Trumbull Street at Pearl
Hartford Tel. JAckson 7-3261
Bell Teletype HF 464

N. Y. Tel.

DIgby 4-6713*

Boston Tel. HUbbard 2-3780*

*Direct Hartford-New York-Boston 'Phones

NEW YORK
New

NEW HAVEN

London, Conn.

Worcester, Mass.
Direct

Norwich, Conn.

PROVIDENCE

Manchester, Conn.

Manchester, N. H.
Wire

BOSTON

Springfield, Mass.

W. Wardsboro, Vt.

Portland, Me.

Troster, Singer & Co., New York

Robert Mottershead, G. H.

Walker & Co.; Larry Wren, Allen & Company; Irv
Hood, Lee Higginson
Corporation; John Barker, Lee Higginson Corporation; Carl Swenson, G. H. Walker &
Co.;
Harry Michels, Allen & Company

PRIVATE

WIRES

Hendricks &

Eastwood, Inc.

G. A. Saxton

Co., Inc.

Philadelphia

Teletype NY I-609 6*
McAndrew
San

Co.,

Francisco

I-610

Your Doorway to trading markets in

Inc.

70 Pine

St., New York 5, N.Y.
WHitehall 4-4970

New England Securities
31

MILK

STREET, BOSTON 9, MASS.
Telephone HAncock 6-8200

Trading Markets in Public Utility, Natural Gas and Industrial Securities

Members New York and

Springfield

•

Boston

Fitchburg

•

Stock

Exchanges

Worcester

Financial Chronicle
r

The Commercial and

,■

Lester

Boston;

Abe

Chatfield Co., Springfield, Mass.; Bill MacDmald, McCoy & Willard,
Rieth, Rieth & Co., Philadelphia; Quentin Smith, Albert Frank-Guenther Law, Inc.

Cunningham, F. R.

Albert

Strauss,

Ginberg
and

& Co., Inc.; Martin Gilbert, Bache A Co.;
Joe Bond, Candee, Moser & Co.

Martin Lipsky, Burnham

Dick

■

Wershil, David J. Greene &
Third

Thursday, May 5, 1955

Brooks & Co., Inc.

Irwin Frumberg; Jim Hodes,

Co.; John J. Laver;
Avenue

Bean & Mackie, Inc.; Eddie Fischer,

Shipman, L. D. Sherman & Co.; Herman Frankel, Singer,
Robert S. By field; Thomas C. Darrie, P. W.

Philip

Transit Co.

Company;

NESBITT, THOMSON AND COMPANY, INC.
25 BROAD

SAVARD & HART

STREET

NEW YORK CITY 4

•

Teletype NY 1-4358

Telephone HAnover 2-8875

Dealers in

Members: Montreal Stock Exchange
Canadian

Stock

Canadian Government,

Exchange

Toronto Stock

Public

Municipal

Utility & Industrial Issues

Exchange
Orders
Stock

Head Office: 230 Notre Dame St. W.,

executed

Exchanges

Montreal

all

Affiliated

Canadian

New York prices

net

with

NESBITT, THOMSON AND COMPANY
I

Limited
AND

THOMSON & CO.

Offices:

Branch

MEMBERS

40 Exchange Place, New

York City, IIAnover 2-6625

MONTREAL

EXCHANGE

STOCK

TORONTO

QUEBEC

—

TROIS-RIVIERES

CHICOUTIMI

—

ST. JOHNS, P. Q.

MONTREAL QUEBEC

Arnold

PROVIDENCE, R. I.

Midland Securities
members:

& Co.;

Wechsler,

Ogden,

Wechsler

Everett W. Snyder, E. W. Snyder
and
Co., Syracuse, N. Y.

CORPN. LIMITED

WINNIPEG

STOCK

EXCHANGE

TORONTO OTTAWA HAMILTON LONDON, ONT.

REGINA

VANCOUVER

EXCHANGE

CANADIAN

SHERBROOKE

STOCK

CALGARY

SASKATOON

VICTORIA

SAINT JOHN, N. B.

Gairdner %

KITCHENER

EDMONTON

LETHBRIDGE

FREDERICTON

MONCTON

Gompanq Inc.

The Investment Dealers' Association of Canada
•

*$"

40 Wall

Street, New York 5, N. Y.
WHitehall 4-1656

Canadian Government, Municipal
and

Corporation Securities

Inquiries

•

regarding

Securities

Dealers

The Midland
member:

Company

The Toronto Stock

are

and

Canadian
from

invited

Institutions

Affiliate:

Gairdner &

Exchange

Company Limited
Member:

Stock orders executed on all Exchanges

The Investment Dealers' Association

TheT or onto Stock

Exchange{

Montreal Stock Exchange

Toronto, Ontario: 50

King Street West

Canadian Stock

Exchange

of Canada

W innipeg Stock Exchange
Vancouver Stock Exchange
American Stock Exchange
(Associate)

London, Ontario:

Huron & Erie Building
Montreal

110 March Street

Montreal, Que.: 215 St. James Street West
Private

Wire to Eastman, Dillon

& Co., New York City

Kingston

Hamilton

Sault Ste. Marie, Ontario:

Kitchener

Quebec
London
New

Bob

Mathews, Pyne, Kendall & Hollister;
Jack

Crowley, Reed, Lear & Co.

Calgary

Vancouver

Edmonton

York

Private wire system.

Winnipeg
'

Volume 181

Number 5426

The Commercial and Financial Chronicle

PENNY SAVED IS

PENNY EARNED

You Save
THE N. Y. STATE TAX
When You Trade

With

WELLINGTON HUNTER ASSOCIATES
15

EXCHANGE PLACE. JERSEY

Direct N.

Y. Private

Wire

Jersey City Phone

Stan

Tatro

—

CITY

2, N. J.

Dial WOrth 2-4578

HEnderson 5-6005

Dawson-Smith, Cruttenden & Co.; Sal Rappa, F. S. Moseley & Co.; John De Marco, Edwin L.
Company; King Ghegan, Edwin L. Tatro Company; Thomas Casson; Edwin L. Tatro
Company

Mitchell & ('oinpiii]
Members

Philadelphia-Baltimore Stock Exchange

120 BROADWAY
Tel. WOrth 4-3113

NEW YORK 5,

Bell

•

N. Y.

Teletype N. Y. 1-1227

INACTIVES

Irving

Greene,

Greene and Company; Jerry Monahan, Edward A.
Sabah, Cohu & Co.; AI Kaidy, Cohu & Co.

Purcell

Co.;

Bill

ORIGINATORS

UNDERWRITERS

DISTRIBUTORS

NEW JERSEY MUNICIPAL
AND

AUTHORITY REVENUE OBLIGATIONS

Boland, SaSEin

Co.

Established 1920
20

PINE ST.

TELEPHONE

NEW YORK 5, N. Y.
Robert Payne, Bache &

Quotation

Bell

Co.; J. Vincent Lytle, Shields & Company; Lou Walker, National
Bureau; Richard Goodman, Shields & Company

MEMBERS

NEW

YORK

STOCK

System Teletype—NY 1-535

Underwriters, Distributors and Dealers in

The American Red C

GARTMAN, ROSE & CO.

Corporate and Municipal Securities

\£a?r/es_ o// J,

EXCHANGE

Net Markets to
MEMBERS

AMERICAN

STOCK

WHITEHALL 3-3414

EXCHANGE

(ASSOCIATE)

Institutions

and Dealers in

Corporate Stocks and Bonds and Foreign Issues

HIRSCH

CO.

Members New York Stock Exchange and Other Exchanges

NEW YORK 5,

ONE WALL STREET

TELEPHONE

WHITEHALL

TELETYPE

3-8200

1-2122

N. Y.

25 BROAD

STREET, NEW YORK 4, N. Y.

Telephone: HAnover 2-0600
1636

Teletype: N.Y. 1-210

Eye St., N.W., Washington 6
Tel: NAtional 8-2545

LONDON, ENGLAND
Direct

—

Keyser Building, Baltimore 2
Tel: Lexington 7861

Representatives'

Wire Service

—

New York,

Offices: GENEVA

•

AMSTERDAM

Washington and Baltimore

The Commercial and

Financial Chronicle

Thursday, May 5, 1955

)

Abraham

Metz,

Mr. & Mrs. Walter
Co., Jersey City, N. J.

guest;

Tellier

Tellier,

Everett

Parks,

Hunter

Securities

Corporation;
Inc.;

Murray Levin, Singer, Bean & Maikie,
Milt

Capper & Co.

Capper,

Helstern, Bank of Nova Scotia, Toronto; Bellman Mason, Anderson &
Joseph Eilert, Harriman Ripley & Co. Incorporated; Joseph Cabbie, Burns

Kurt

Co., Limited, Toronto;
Bros. & Denton, Inc.

Mclaughlin, gryan & go.
MEMBERS
NEW

YORK

AMERICAN

STOCK

COMMODITY

INVESTMENT

EXCHANGE

(ASSOC.)

EXCHANGE, INC.

ADVISORY

SERVICE

BOND BROKERAGE SERVICE

Specializing in Public & Stockholders Relations

ONE

WALL

STREET

NEW

YORK

!?ukeli *?Un^r'
City,

Wellington

Hunter Associates, Jersey

N. J.; Norman Baum, Cruttenden & Co., Chicago;
Rlnrk #»v
H/im.c.
Blockley, Harris, / / rtltnrtt X rn • "Hanlr" Serlen,
Upham & Co.; "Hank" Sot-Ion
Josephthal & Co.

Jnhtt
John

Telephone HAnover 2-1355

Krumholz,

Nat

Siegel

Co.;

Tisch, Fitzgerald

Rhoades

Co.

Teletype—NY 1-2155
ALBANY, N. Y.

PITTSBURGH, PA.

Op*

Underwriters

Wholesale Distributors
Dealers

WHY We

Firmly Believe

Mid-Continent Uranium

CORPORATE SECURITIES
Will Become One of the

Top-Ranking

—•—

Independent Uranium Producers of the U. S.
*

INTERIM FINANCE
i

Current
•

price around $2.25 Per Share
Report Available

JOHN R. BOLAND & CO.
INCORPORATED

30 BROAD STREET

BOwIing Green 9-3249

NEW YORK 4, N. Y.

•

Teletype N. Y. 1-4487

Company, Inc.; John Bunn, Stifel, Nicolaus & Company,
r
i. j
c i.
i
•
r? j
11
o
r
■#
r
i
Incorporated, St. Louis; Ed Kelly, Carl M. Loeb,

GENERAL INVESTING CORP.
80 Wall St.,

New York 5.

Tel.: BO 9-1600

Full text of Commercial and Financial Chronicle : May 5, 1955, Vol. 181, No. 5426

FRASER