Full text of Commercial and Financial Chronicle : November 10, 1955, Vol. 182, No. 5480

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NOV 1 fi lass
S

>

ESTABLISHED 1S39

OV 14 m

""Tim%lsmm

Bag. U. S. Pat. Office

Volume

182

Number 5480

New York

Price 40

7, N. Y., Thursday, November 10/1955

Cents

a

Copy

EDITORIAL

Net Debt in the United States

Background Facts for
We See It

As

;

]

*

'

By LELAND J. PRITCHARD

The "Look Ahead"

,

Professor of Finance

Reports that the Federal Reserve' authorities
had become fearful lest
1953

University of Kansas

By HENRY C. ALEXANDER*

they might make another

Chairman, J. P. Morgan & Co Incorporated

ify their restrictive policy have not
confirmed in any
servation of
conditions

as

yet been

prominent New York banking executive

observable iway. The recent ob¬

ation of

prominent New York banker that

a

quite tight enough in the

were

stability and growth in
Holds

wartime.

ing

money

as

these

Reserve bank that business

lative excesses, and

had

been,

and

was

many;

not

complaints from Democrats that the
of

authorities

the

was

quite

good

as

money

doing harm

the

No

action. What the future will

of

the

situation and its needs

current

are

con¬

flicting. We, along with the others, shall have to
and

wait

bearing upon Federal Reserve
Treasury officials are plain enough. Business
is still booming whether or not there has been
something more than a seasonal decline here and
there, and virtually all the forecasters are talking
about an excellent year in 1956. No one in |the
Federal Reserve, we are sure, and certainly no
one in the Administration in Washington, would
do

anything to

mar

climate.

where

But

tations

a

it

emphasis

main

is

be

.can

lost

most

is

not

only

31

Commerce, New York

of

the

contraction

or

to the level of business

servicing

and

American

expansion

of

activity. One

the

coincidence, for example,

that dur¬

ing the Great Depression which en¬
which

on

page

the

gulfed

Henry C. Alexander

country

after

1929 and

remained with us for

decade, that throughout this

over

L. J. Pritchnrd

a

entire period there was no

in total net debt. At the end of the
30s net debt was actually less than it had been in 1929.
Estimates of the Department of Commerce put the net
overall expansion

27

debt figure as of

the end of 1939 at $183.2 billion com-

the New York Chamber of

Continued

on

page

22

i

investors in cor¬
registered with the SEC
"Securities in Registration" Section, starting on page 39.

SECURITIES NOW IN REGISTRATION

of

by the close association
ups and downs in our own
business history and the ebb and
flow of debt.
It seems more than a
of

look." Looking
analyzing the past;
useful. It is so easy to

1955.

cost

is impressed

than

City, Nov. 3,

expansion,

.

debt, whether public or private,
seems to have a high associative,
if
not a cause and effect relationship,

going

by Mr. Alexander before

confidence

The

Continued
address

inflationary

an

all

easily:

fun

more

supply/accompanied by

contraction,

the

to

•

is, potentially at least, more

♦An

money

people in the credit of the Federal

we

..

<

other aspects of debt are related to the present
prospective profits of business; to wages, prices,

and

director of General Motors, a "forward

ahead

Of course, too, the
on page

■

excessive

Government.

namely, in looking into the future
and
trying
to
discern
what lies
ahead. In other words, I will try to
take what I would call, if I weren't

erally is filling its coffers at a rate not expected
by any of the prognosticators in Washington. It
is hoping for a balanced budget this fiscal year
and thus a good basis for permitting, nay advocat¬
Continued

j'

v

my

where

and

agree,

an

production and employment—and the problem of servic¬
ing our vast and growing volume of
debt may in time be acutely related

to be in that broad area where repu¬

Treasury is finding that this pace of business gen¬

ing, tax reduction next year.

we

disagree.

expanding debt at

many

others, on all of them I have views,
of course, and so do you.
And be¬
fore I have finished you will know

this picture. The

our

was

experience with bank mergers
and I might add that I don't look
forward to gaining any.
As to the

The main factors

to

of favorable business

have been

trend, notwithstanding fhe enormous increase in nation's
productivity.

no

see.

and

want

of

The

subject

we

far too much has been financed through com¬
mercial and Reserve banks. This has resulted in dilution

rate, that

assigned to me, so I am left free to
deal with any of the $64,000 questions that others may
have passed up or, failed to answer. You might expect
me to deal with some specialized subject—such as bank
mergers, or the money market, the
trend of interest rates, or the prices
of stocks. As to the first, I have had

bring forth we
do not profess to know. Reports from Washington
about what this, that or the other official thinks

serve

specu¬

(3) over-expansion of debt, both

for continuation

Looks

being put, and the general state of the economy.

Concludes

Says this is not time for all-out
over-confidence,
though stating there are "grounds for genuine confidence."

country have not been reflected in Federal Re¬

v

errors:

credit restraint, and warns of danger of

policy

across

expansion; the methods of financing it; the distribntion of the debt burden; the uses to which the funds

public and private.

politically inspired

appraised in terms of the rate

of

in

as

are

among

(1) confusing inflation with actual growth; (2)

it

this movement must be

reconcili¬

well

mistakes will be the only liipit bind¬

our

economic future, and lists

our

sees a

peace

Pritchard, in viewing the complicated problems -i

arising from debt expansion, finds that the impact of

In viewing the current situation and economic prospects,

market, the rather mild conclusion of the Chicago

as

Prof.

"mistake/' and that they would shortly mod¬

Underwriters, dealers and

—

porate securities are afforded a complete picture of issues now
and potential

DEALERS

undertakings in our

State, Municipal

in

and

U. S. Government,
Stale and

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MEMBERS

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SECURITIES
Commission

District Bonds

Markets

CANADIAN

Members

County and

Teletype: NY 1-708

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Members New York Stock Exchange

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Bond Dept.

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THE FIRST NATIONAL CITY BANK

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Teletype NY 1-702-3

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Boston

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Teletype NY M70i

Telephone:

EnterpHw

The Commercial and Financial Chronicle
2

For Banks,

The

Brokers, Dealers Only

Express

American

in the investment and advisory

Basic Atomic

they to be regarded,

•re

as an

are not intended to be, nor
offer to sell the securities discussed.)

Registered Representative
Dreyfus & Co., New York City
Members: New York Stock Exchange

Hall-Scott Motors

Convertible

Bonds

bonds, particularly new issues at
par, you combine the safety of a
with the capital gains po-

Transcontinental Gas Pipeline

bond
t

United Utilities

e n

t i

1 of

a

request

stock.

In

certain

New York Hanseatic

WOrth 4-2300
Private

process,

York

to

so¬

phisticated in¬

Exchange

vestors

5

look

for

Teletype NY 1-40

Wires

turn-

points
may
be in

1920

New

when

cyclical
in g

Member

Broadway,

un¬

mar¬

kets

Corporation

120

a hedge —
position

a

Principal Cities

market

con¬

Specialists in

Rights & Scrip
Since 1917

frfcPONNELL & fa
Members

American

110

Stock
Stock

2-7815

There

market.

stock

"investment value" of
of

Company

Alabama-Tennessee Natural

This

value"

"investment

praised regularly
statistical

Company

Company
Dan River Mills

and

Lynchburg, Va.
Tele. LY 62

LD 33

ap¬

his¬
minority

past

losses

a

convertible

Thus gains

may go.

bonds

unlimited

are

minimized.

are

When

invest¬
ment value—the conversion privi¬
lege
which
has
high potential
speculative value, is acquired at
is

right—that

at

cost.

no

Scott, Horner &
Mason, Inc.

Let's

for example, the

assume,

purchase of 35 Burlington Indus¬

tries, 42/4S of 1975

at par,

in¬
security is
rated
BA
by Moody's. A bank
loan could be arranged by the in¬
vestor for 85% of the cost. Thus,
for only $5,250 in cash, and a bank
vestment

$29,750, he will double his

capital

if

the

sells

bond

(Commissions and interest
loan

Transport

covered

are

by

Magna Theatres
0. A. Sutton

received

ESTABLISHED

37 Wall St., N. Y.

a

price

of

is

cause

Tel. HAnover 2-4850

414%

semi-annually

shares

from

Mindanao Mother Lode Mines

at

19

1919

am

New York

Security Dealers

Ass'n




BArclay 7-0045

volume.

conditions

in
an

These

mainly
responsible for estimated 1955 fis¬
cal

are

earnings rising to $2.20
per share as opposed to $0.95 for
the
same
1954
period.
In
my
opinion this trend will continue
year

for

quite

time.

some

which

The stock,

of

the

for

and

of

most

to

we

ager, Lester Ryons & Co.,. Los
Angeles, Calif. (Page 2)

the

common

date.

Other

likely

may

Beaunit, American
Industrial
Rayon
and

Viscose,

Lowenstein

at

of

20—

an

intermediate
been

often—as in the

bull

Thus

if the

Bond

parity,

a

at

miles.

Coast

Therefore,

markets

involve

tively little risk, have
tial

capital

substan¬

a

gains

potential and
cash is required,

only 15%

excellent

an

rela¬

against

the

western

large.

competition
Eastern

or

of

Hawaii, Alaska,
America

tral

South

and

and

Cement

past

seven

the

1952

population
national

.

.

growing

rate

.

.

.

at

serving a
twice the

operating the
largest cement

.

West,

I

the

of
larg-

one

two

est

the

in

world

.

the
an

.

.

of

the

lowest

and

conversion

cost

raw

material
to

sources

the Bond selling
approximately 116y2. (Multiply

found

where

by 55.55.)

.

going

a

concern,

must

proceed

to

an

the San Fran¬
serving Northern
gypsum deposit

the

Gulf

of

California.

most

is

in

important

the

Waldron & Company
Russ

San

Bldg.,

Garfield 1-2000

Francisco

Teletype SF 752

and this newest unit which is the

of its kind within

only

one

dius

of 800 miles, has been oper¬

ating

hours

24

a

ra¬

day, 7 days
week continuously to date.
An

unique feature of the

pany's

a

a

com¬

is

operation

gypsum

the

only one on the

located on the Island
Marco, Lower California.

of
It

98%

and

gypsum,

pure

MANUSCRIPTS
INVITED
Looking for
we

contain

a

on

of

high-grade gypsum ore.
company operates an
espe¬

The

cially
constructed
gypsum
ore
ship
which transports the raw
material to the gypsum plants via
low cost water routes, and also to
overseas

markets

for

gypsum

throughout the Pacific

publisher?

Learn how

promote and dis¬
as we have done

for hundreds of others.

of approximately 200 million

tons

a

publish,

considered.

re¬

serve

can

tribute your book,

overburden,

no

is estimated to

BOOK

lies

and

financial

New authors welcomed.

for

booklet

All subjects

Especially seeking books

business

CN.

It's

topics.

Write

today

free.

Vantage Press, Inc., 120 W. 31 St., N. Y.
In

Calif.: 625S Hollywood Blvd., Hollywood 28

In

Wash., D. C1010 Vermont Ave., N. W,

ore

N. Q. B.

area.

Expansion Program

An

(1)
plant

is

entirely
be

to

California at

having
lion

an

a

cement

new

in

built
cost of

Southern

$12 million,

initial capacity of 2 mil¬

barrels

per

year,

and

to

be

OVER-THE-COUNTER

"

INDUSTRIAL STOCK INDEX
14-Year

Performance

of

35 Industrial Stocks

in operation by the Fall of 1956.

(2)

The San Francisco

cement

7

FOLDER ON REQUEST

plant is being expanded 20% from
million

to

8.4

million

barrels

materials
company

Inquiries Invited

serve

Coast building

Augustus Slater

Mining issues

serving Southern California;

leading West

analysis, both technical and fun¬
damental, of the common stock,
since the common most likely will

Oil &

and this

the large
market in the Pacific Northwest,

this

.

Coso Uranium

smaller plant in

cisco

be

any¬
.

Uranium

Far

division
has
been
of increasing
importance more recently., The
properties purchased included a
gypsum plant in the Los Angeles

of

with

gypsum
one

Consolidated

the gypsum business through pur¬

chase of

important
producer

.

Standard Uranium

entered

company

at the surface with

years

v

Lisbon Uranium

Dealers in all Uranium,

In

San

With sales nearly tripled during

Broadway,N.Y.6 COrtlandt 7-5680

Federal Uranium

East.

averages

Permanente

111

Cen¬

the

even

1897

by

being

Lester, Ryons & Co., Los Angeles

Established

Brokers A Investment Bankers

Mid¬

producers

West Coast situated on tidewater,

Research Manager

write

Home Office Tokyo—70 Branches

San Francisco Bay area, has built
uo a substantial overseas trade in

fact that it is the

AUGUSTUS SLATER

or

Yamaichi

hand,
since the cost of water
transportation is much lower,
Permanente, being located close to
ocean
shipping facilities in the

opportunity
or

Call

Securities Co., Ltd.

the distance element. On the other

Lower

of

1975

■

protected

are

in

414s

investors with knowledge

Pacific

In

term.

price of 21 for the stock

we

200

Seattle, Wash., to

of Bethlehem

stock

of

in¬

up—Burlington Indus¬

have unusual appeal

may

■

of the principal
limestone,
clay,
etc., and the fact that transporta¬
tion costs are relatively large in
relation
to delivered prices, the
economic marketing area via truck
or rail from any one cement plant
is ordinarily limited to distances

a

sum

offices

of Japanese potentiaL

materials,

raw

dustry and that
termediate

branch

our

to investors with vision—
-

scattered deposits

Bay area
California; and

we may look for¬
higher prices for the in¬

to

SECURITIES
*

factor

ward to

and others.

common

sell

economic

important

September, 1954, a gypsum
plant was placed in operation in

should result in

Now

An

has

trend

established for this

reached.)

case

feel

I

Industry
has
problems, that

its worst

overcome

now

whole.

a

wires

JAPANESE

in the cement industry is that due
both to the combination of widely

area,

as

Textile

not

Steel convertibles

Mobile, Ala.
Direct

earnings, with
no
financing required. Hence,
double

world.

a

taken

the

that

NY 1-1557

New Orleans, La. Birmingham, Ala.

expected to increase
sales 50%, to $60 million

over-all

market

are

mill in

conservatism

Members New York Stock
Exchange
Members American Stock
Exchange
"19 Rector St, *•* York
8, M. Y.

•-

ever,

plus,

performing fa¬
vorably in the market place, re¬
sisting declining prices and ad¬
vancing somewhat better than the
,

be

bond.

is convertible
third

textiles

Textron,

since

$1,000

final

sake

to

year

like

# I

HAnover 2-0700

gram

only % above the low for

are

the

price of
Since the

21.

each

the

now

per year

—

21

Exchange Place, Jersey City 2, N. J.
!<r5?n Telephone
Teletype J CY 783
New York City I!?40?

favorable

sales

taking into consideration
selling at a premium, or
a higher price than the conversion
parity of the common stock
a
phenomenon which occurs quite

at

Members

in

the bonds

the

Established

increase

recent

(The second, third

Marinduque Iron Mines

M. S. WIEN & CO.

result I foresee less drastic

a

for all investors—small

its

price

a

acquired

For

Philippine Oil Development
Lepanto Consol. Mines

As

The

115?

CmiHt*

ResearchLlNtK. HOUSE OLvQ.

com¬

the

afford

verted before 115 is

TRADING MARKETS

in

so

the bond rise to

can

am
assuming that not more than
$10,000,000 of Bonds will be con¬

FIRM

Severe

price
competition,
resulting
higher profit margins, and also

tries

I

For Financial Institutions

during

respects

tions.

rise in the price of the

a

16%. to

1929

all

hosiery
which is an important
of Burlington's opera¬

segment

the

first third of the $30,000,000 Bond
issue is convertible at 18, 55.55

&Teene<mdGompaT\u

in

especially

To

issuing company.)

Now, how

common

Reeves Ely Lab.

on

the

from the

Eastern Industries
>

woven; syn¬

The product mix

of many smaller marginal produc¬

115.

at

interest

Assoc.

in

were

postwar period.

or

This

value.

loan of

Trading Markets

half

is on an indicated $1
dividend basis, thus sells
yield more than 6%. The price
declined below their "investment,
earnings ratio is less than 7%
value," except in periods of panic.
Himes estimated earnings.
There is a floor, of sorts, below
The commqn in
1955 sold as
which they do not fall, but there
—4he low was 16. Thus
Is no ceiling as to how high they high as 21

bought

Commonwealth Natural Gas

is

'the leading

by

services

have

cases

and

Gas

bond type

a

security.

of

American Furniture

Augustus Slater/

Bought—Sold—Quoted

is
stock
diversified, being sold to Permanente Cement Co. is a fa¬
over
20,000
customers.. Ninety vorite of mine.
plants, most of them in North
Permanente Cement was organ¬
Carolina and Virginia, are owned
ized
in
1939
and
completed its
outright. From the $4.03 earned
modern cement producing plant in
per share in 1951, per share earn¬
the San Francisco Bay area, Calif.,
ings declined
through 1954, at
in January, 1940. The plant, hav¬
which time they reached a post¬
ing an-original capacity of 2%
war low of 0.95
per share.
Only
million
barrels per
annum
has
this year do we witness a reversal
since been increased to 7 million
of the earnings trend in the entire
barrels, and is one of the two larg¬
textile industry, which had been
est single cement plants in the

no

on

tory shows that only in

Trading Markets

is

how high convertible
bonds may go—yet they possess
a
floor, or a support level below
which they are unlikely to go,
because of the money value or

Exchange
Exchange

BROADWAY, NEW YORK S
TEL. REctor

the

were

thetic fabrics.

business

and
also
have
higher
prices
greater protection against capital
losses in the event of declines in

ceiling

30

which

ers,

the

in

Cement Company

ermanente

petition has forced the elimination
Joseph S. Klehman

will

they

York

in the country. Sales in
fiscal year ended Sept.
over
$347,000,000,
of

1954

the

tinues upward
share

the

depressed

whereby if the

New

ex¬

an

well

a

common

Stock

prevents

space

study but the following
points should provide a

company

Travelers Insurance of Hartford

Associate

salient

Repre¬

Burlington is the largest textile

When you buy convertible

Portsmouth Steel

American

haustive

Burlington Industries—4'/4% of 1975

Long-Bell Lumber of Mo.

Established

of

Lack

Louisiana Securities

of

Co., New

Dreyfus &
City. (Page 2).

York

good starting point.

Lithium Corp. of America

on

Klehman, Registered

S.

determine the price of the Bond.

KLEIIMAN

S.

JOSEPH

Gulf Coast Leaseholds

*Prospectus

4!4%

1975 Convertible Bonds—Joseph

sentative,

Corp.*

Alabama &

Selections

Industries:

Burlington

Rights

Great Western

Participants and

Their

(The articles contained in this fornra

Commonwealth Edison*
&

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

Thursday, November 10,1955

Week's

This
Forum

participate and give their reasons for favoring a particular security.

Colorado Interstate Gas

Common

Security I Like Best

A continuous forum in which, each

Associated Oil & Gas

1

...

(1966)

midst

expansion

of

its

pro-

annual

capacity, at
Continued

a

cost

of

$4

National Quotation Bureau
Incorporated

46 Front Street
on

page

12

New York 4,

N. Y.

Volume

182

Number 5480

.

.

.

The Commercial and Financial Chronicle

3

(1967)

The

Shoit-Range Business Outlook

INDEX

By DEXTER MERRIAM KEEZER*
Lt't

Articles and News
Background Facts for the "Look Ahead"
—Henfy C. . Alexander

Economist expects current
r2cord-breaking business- boom
will carry oa well into
1956, possibly at reduced rate. Pre¬

.

.

v

My

is

the

outlook

for

have

In

;

judgment,

my

business
look

3

the

audit

general

.tion

I

the

an-

that

82%

-t

of

'

tne

our

Steel Profits

itself

proceeding at
all-time

at

at

batter

a

compared

ing

I

4-6551

the

on

8

Uptrend—Norman W. Foy_

Promising Growth Picture

9

BASIC
10

Why Does the United Nations Fail to Win Public Confidence?
—William A. Robertson______'

10

ATOMICS,

11

INC,

The Next Twelve Months: What
Can Happen

curves

those

—George

thrown

much

am

less

C.

Astarita__

.

._

_

The Railroad Must
Carry On!—William T.

Faricy

11

'

Automation and Employment—Hon. James P.
Mitchell-

President's Illness

will
carry on well
.into 1956, but
necessarily at
rate,

STREET, NEW YORK

Telephone: WHitehall

Credit^—Dwight W. Michener____

Eminently Qualified for President If Eisenhower Retires
—Alexander Wilson
_!__[

simplicity

are

to

-

business forecaster.

a

WALL

Men

{an

.record, break¬

Obsolete Securities Dept.
99

.

right

Remaps, ~

have batted. And the

thrown

now

r

Current Developments at the SEC—J. Sinclair
Armstrong

■

time.

obsoletes!

your

Mortgage Credit and Economic Stability—Fred F. Florence

that in the last two

oi

us

of

way

as we

business

[boom,

•

comparison, I should
remark that in baseball, it is .a.
superlatively good batter who bats
over .300, or less than half as well

good

ticipate

£

by

remains

indeed.

r

showed

about

Industry

Bring

._

Another Look at Consumer

'

^

in

and one-half years, we were

the

period in quesfvery

audit

Gas

—Frederick W. Page.

correctly divining the
general business outlook. The last

out¬

for

outside

an

record

GUYS AND DOLLS

Cover

Railroads: A Growth
Industry—J. M. Symes

:

subject

Cover
■

•

States—Leland J. Pritchard-

Financing Patterns in the Natural

i

abysmally archaic.' Sees possibility of * Democratic party
being less of a beievnoir than pre-1952.
4
*

t'business over the short run, say
.until New Year's Day of 1957.

'

•

•

4

-

-

,

.

United

American Potash and Chemical
Corporation—Ira U. Cobleigh-

-

v

■

The Short-Range Business
Outlook—Dexter M. Keezer

r
-

('

-

Net Debt in the

'

forecasting
business. Decries great alarm over business
implications of
Eireuhower illness, or return of
Democrats, maintaining the
alarming threat of inflation wiH continue under today's politV ical leadership which regards even occasional budget
balancing
.

•

•

?

dicts resumption of
upswing after "jiggling" letdown in latter
f 1956. Cites stock market's "tarnished"
record in

'as

Page

Vice-President and Director

|

Department of Economics, McGraw-Hill
Publishing Co.

comfortable

opposition

The

in

to

Circular

12

Canadian Economic Outlook—J.
Douglas Gibson

on

request

13

•

putting
those

•

.somewhat

Dexter

M.

the

Keezer

subdued

-more

myself

who

death

boom.

than it has surged forward

position

-thus

far

as

in

1955.

I

won't

be

sur-

prised if in the latter part of 1956,
there .is some slight letdown in
j business. But, after a relatively
[brief breathing spell — a sort of
j jiggle on the curve as I heard one

[prosperity
A
'

I

in

taking

that

—Roger W. Babson

illness

is

Thoughts

consequence.

this
mar¬

bilities

ket averages seem to many people
be saying. I also put myself

feel

iimminent

be

Eisen-

regarded

retirement

his

as

from

the

'.presidency, marks the death knell
•of

the

iso

spectacularly flowered

'his

business

boom

which

has

of

during

rather

than

I

really don't mind being in op¬
position to the stock market as a
[forecaster of what's • ahead for
[business in general. For in this
tarnished
have

there

periods
War

II

since

F. W. Dodge Corp. Polls Economists

the

end

of
in

'

diametrically

opposite

direc¬

tions.

illness

the

that

will

soon

of

shock

ness

the illsharp cqtback
for "investment

will result in

of

business

in

new

plans

plant and equipment. If
expectation were to prove

this

correct,

a

drag

on

business—in the
capital expendi¬

would replace

whether my associates and I have

been expected to be the
of

tion
to

were

a

ques¬

raised, I would be forced

ignore the dictates of modesty
confess

-and
very

that

we

have

done

well at it. Periodically, we
address

by Dr. Keezer before the
Aluminum Association, New York City,
Oct. 27, 1955.
*An

-

■

Stocks

•

the

Pacif icUraniumMinesCo. *

Ultrasonic Corp.

Field___

i

;

8

1

Mutual Funds

expanding

capital

21 *

15
38

new

reach

•

Singer, Bean
&
Mackie, inc.

;

HA 2-0270

40

r

-

facilities'

total of about $28

The trend of expenditure has been

during the

up

year,

Continued

and the
on

page

ex-

32

47
;____

29

:

Security

Salesman's

The

Corner

Lisbon

16
2

A

5

Washington and You

Is Fast Becoming
Top Uranium Company

48
•

The

have

specialized in

25

Spencer Trask & Co.
Members New York

B.

Park

•

Nashville

Boston
•




Stock Exchange

HERBERT

DANA

TELETYPE N. Y. 1-5

•

•

Chicago

Schenectady

•

•

Glens Falls

to

Y.

state

corporation

and

Worcester

city

news,

news,

bank

Chicago

Offices:

3,

HI.

135

(Telephone STate

Current

•

Other

$37.00

St.,

2-0613);

Union,

and

per

$55.00

rate

per

be

year;

of

made

in

S.
of

in

of

Record

the

•

bodies

ore

being

out.

Strategic location.

Current

price around

25£ per

share

FREE

Report Available

—

Monthly,

nnd

York

GENERAL INVESTING CORP.

fluctuations in

exchange, remittances
New

Major

year.

(Foreign postage extra.)

account

<nihfir.r1nHr>nR

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permitted

mum

Publications

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year.

acquisitions.

blocked

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of
Canada,
$58.00
per
Countries, $62.00 per year.

Bank

clearings,

Salle

New

•

Rates

Dominion

Note—On
La

second-class ,matter

Subscriptions in United States, U.
Possessions, Territories and Members

etc.).
South

as

Pan-American

the
Other

by William B. Dana

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

Other

1953

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

1955

Subscription

SEIBERT, President
10,

Eng¬

ary

9576

Thursday, November

C.

Company

SEIBERT, Editor & Publisher
DANA

Copyright
Reentered

COMPANY, Publishers

2-9570

E.

t

CHRONICLE

Place, New York 7, N.

D.

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ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 2-4300

Albany

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land, c/o Edwards & Smith.

COMMERCIAL and

REctor

BROAD

1

Reg. U. S. Patent Office
WILLIAM

25

Weekly

,

PREFERRED STOCKS

Valley

Uranium

21

You—By Wallace Streete

Security I Like Best

FINANCIAL

Los Angeles

WHY and HOW

44

The State of Trade and Industry

Twice

to

^

39

Prospective Security Offerings

The Market... and

*

28

Securities Now in Registrations

will'

billion.

Chicago

5

Our Reporter's Report

Railroad Securities-

*

33

,___

Public Utility Securities

investment

Direct Wires

Philadelphia
20

Our Reporter on Governments,--

Published

For many years we

Exchange PI., N, Y.

Teletype NY 1-1825 & 1-4844

16

Observations—A. Wilfred May___

Request.

;

36

___

News About Banks and Bankers

business investment in

producing
a

_i

___.

T__

-

by business in the months ahead.
This year,

Notes

Request.

on

Ve maintain trading markets in mors
than 250 over-the-counter securities

48

Recommendations

on

**Prospectus

29

_

Investment

>

Gulf CoastLeaseholds, Inc.

Cover

_

'

FoodFairPropertiesJnc.** j
•

•

31

Washington Ahead of the News—Carlisle Bargeron

NSTA

buoyancy

done

of business. If such

\

Indications of Current Business
Activity

what has

course

Coming Events in

From

a

—

market

'<•

.

j.

Dealer-Broker Investment

business

to

tures

better than the stock
in
plotting
the
future

(Editorial)

Bank and Insurance

be

reduced

any

■

in

Atomics, Inc.

*Circular

A We See It

our

of

may

Basic

as

form
sort

•

;

office

City

Corpus Christi Refining Co.

Regular Features

at-

confidence resulting from

Of course, an

observation of this
raise the question of

,•.

■

Ray Josephs Shows How Nation's Businessmen Watch
Minute-Wasters
1.1;

'

prosperity stress their expecta¬
tion

and the stock market have moved
in

"i.

branch

Lake

'

Indeed,

World
general

19

1956 Business Outlook

on

Purchasing Agents Foresee Good Business Extending Into 1956 26

President

deterioration

in

Teletype: NY1-4643.
to

18
19

Einzig: "The Current Sterling Exchange Situation"
that

feel

Eisenhower's
reflected

considerable

business

who

Those

pretty

a

record.

been

when

budget which is
occasionally
balanced

Broadway, New York 4

DIgby 4-4970

Gold

Editor)

abysmally archaic.

1

badly

on

C. R. Smith Sees 4-Hour Coast-to-Coast
Airplane Service__

possibilities

Federal

a

least

Administration.

'line, the stock market has

19

___

illness, and what they and
must

42

.!

Richard T. Hall Finds Flaw in J. E.
Ilolloway's Article
As Money (Letter to

period to which my observations
are addressed. Among these, it
is
not
difficult
to
recognize
the >
alarming possibility of much more '
price inflation in the years ahead,
under the ministrations of politi- •
cal leaders who regard the ideali

-I

Redeemable Currency

a

Moyer___.

<

Spokane Stock Exchange

Salt

of

*.in opposition to many individuals
:who
feel
ihower's

Members Salt Lake
City Stock Exch.

18

__

Direct wire

which will be unfolded during the

President

the Restoration of

on

—George S.

would

-to

th^t

J.F.Reilly&Co.jInc.

Groves_j_________^

riov

of

conclusion

17

Atomic Energy and Electric Power Construction
Lt. Gen. Leslie R.

,

that

feel

I

14

Corporation Executives

a

major
proportions, one which might have
very
baleful
effects
upon
the
economy unless we pull ourselves!
together to prevent it. But, as I
see
it, the possibilities that the'
President's illness will, have dom¬
inating effects upon the course of
business are longer-range possi¬

^optimistic view, I put myself in
opposition to what the stock

such"

misconstrued

misfortune

national

a

Minority View
that

such

business

that

Mortgage Financing—Clarence J. Myers

Character Audits for

completely misrepresent my view.
I regard the President's illness as

expansion, growth and
to reassert themselves.

realize

President's

Any

expect the forces making for

.continued

be

great economic

feminent economist characterize it
.—I

might

sounded

the

is

Trends in

President

has

of

reason

indication

an

the

,

teat

illness

knell

The

-^rate

in

think

Eisenhower's

for

advertisements
funds.

formust

80 Wall St., N. Y. 5

BO 9-1600

4

The Commercial and Financial Chronicle

(1968)

have examined.

may

American Potash and

A

capsuled appraisal of

'

rather unusual chemical enterprise

a

with interesting and diverse prospects
There aren't very many potash
companies around, and the line is

industry is

not

glazes

particularly well known

a

popular topic for board

or

cussion.

So,
provide

let's

some

new

fodder

for

nancial
v

con-

t i

e r s a

after

fi¬

o

the

for-1

split

Standard
of

in
Oil

New

Jer¬

and

sey,

n,

3-

the

need
boron;
fiber glass
stuff; and boron uses

into glues and starches,
leathers, soaps, de¬
tergents
and
agriculture.
The
latest
APO
item
in
this field,
spill

over

metals

and

"Borotherm," introduced in 1954,
is catching on big as a fire retardant in low priced paints.
Potash, which is given feature
billing in the company title, is
naturally
important.
APO
de¬
livers

potash,

that

element

put
(cer¬

Ford

a

tificate)
Ira

U.

Cobleigh

choice

tion

or

production

talked out. Let's talk about Amer¬

ican

it

Potash, listed

NYSE where

under the nickname APO

goes

(no,

on

not

Army

There is

an

Post

Office).

tion

Well,

American

in

Potash

the
this

adage has

real significance since
the real basis of all its production
is
the
extensive
alkaline
brine
,

5

The
soda
California, but also at
River, Wyoming, in a plant

Green

of

(salt to you)

of the ele¬

one

glass.

not only proudces

in

"worth
case

This is

justify APO considera¬

detergents and

company

ash

salt."

the West Coast, and

"growth stock"!
i
Soda ash, the fourth major item
we
mentioned
above, is widely
used in insulating and fiber board,

expression about something being
its

S.

a

as

soaps,

old and well known

U.

sounding

harsh

this

on

in Hawaii.

all

all

big thing in agricul¬

a

ments that

been

of

80% of APO potash produc¬
finds its way into fertilizer

ture.

after

—

have

items

is

strong

your

box

these

and

in

future

your

7%

around

announcement
may

big buyer; porcelain
certain
porcelain

a

jointly owned by APO, with Food
Machinery and Chemical Corp.,
In

addition

the

to

foregoing,

lying in the bed of
a
dry lake (Searles Lake, to be
precise) in the Mojave desert in

American Potash, in common with

California.

attractive

APO controls and digs
arid brine by virtue of

this

in

ownership of the part of the lake
in
fee, and through
land

bed

leases

from

the

government.
event, the brine APO can

any

from this hunk

is

estimated

of lacunal

to

sustain

In
use

aridity

company

other

many

panies,
is

com¬

fields. One of these

new

Chemicals

chemical

been! expanding into

has

spearheaded

by

Division.

the
Eston
By develop¬

ing derivatives of the above-captioned
major
elements,
Eston
manufactures
fumigants,
herbi¬
cides, insecticides, aerosols; and is
the

national

operations at the current rate for

well

another 30 years.

turned

Well, what's so wonderful about
in the Mojave?
What can

alert

known

out

distributor

the

of

refrigerating
fluid
by du Pont, called

"Freon."

There

brine

been

has,

as

well

you

Total net sales for
million.

know,

terrific upsurge in the uses

1952

above

however,

should

move

last

$3.98

up

to past $6, against

of this

You

year.

It

reference

some

to

has

be

Well,

sales

net

to

top

companies

ratio

of

Trona

in

respect

research

two

are

the

and

Financial

lion

of

3%%

March.

This
not

swiftly.
fixed

issue,
be

It's

a

and it

sion

item

tures

are

in

that,

own

conver¬

a

coin

to
the

and

convertible

These

its.

a

the nose." The

on

90

at

way,

over

possesses

privilege
sells

the

at

"converts"

deben¬

that fig¬

the

can

defunct and saline lake bed, Amer¬
ican Potash delivers four major

chemical

items:

soda

ash,
salt
cake, boron chemicals and potash.
APO is, in fact, the largest Amer¬
ican producer of sodium sulphate
(salt cake) and enjoys a world
ranking as second largest pro¬
ducer of boron chemicals.

All

lovely,

very

what

do

do

you

you

with

but

say,

salt

cake?

Well Northwest kraft paper mills
have to have it, and eat it up.

It's

used

industrial

in

Both of these markets

detergents.
are

growing

rapidly.
'

And
cals?

what

about

Who likes

boron

them?

chemi¬

The

glass

listed

however,

lithium is widely used
ceramics, greases, welding and
pharmaceuticals. Well, lithium has
not passed unnoticed by APO. In
1954

was

organized Ameri¬

Chemicals, Inc. with
Antonio, Texas,
due to start functioning by the
end of this year. Its first product
a

plant

in

San

will be lithium

oxide.

is somewhat of

pany

This

a

com¬

joint

ven¬

ture

the

of

street.

that

At

interest).

The

raw

lithium for this plant is to be de¬
livered from the Bikita mine in
Southern

Rhodesia, Africa.

plant

at

chemicals

(a Colorado Corporation)
merit

with

UNUSUAL GROWTH POTENTIALS.
YOUR

broker.

Julius Maier Co., Inc.
Exchange Place, Jersey City 2, N. J.
BOwIing Green 9-4058
HEnderson 5-1300

Teletype JCY




798

little

or

peace
are

take-off

these

used

rocket.

unfamiliar

to

elements

different sort of chemical

a

essential

peacetime

variety of prod¬
use

industries

in atomics and

as

in

many

well

as

guided missiles for
It has another point of dif¬
ference from other chemicals you
war.

than

transmission

England
than
the

for

of

Also,

to

gas

New

greater
risks
transmission of gas to

in Texas

A

producer of

probably has lower

much

than

tern

dis¬

problems

involves

the

mid-west.
a

a

cents

50

who pays 25 cents.

one

the

Certainly

pays

different

wider

Because
be

must

outlet

producer

a

gas

costs

for

in

his

North

financing pat¬

a

geared to

the

risks

tailoring

All

next

would

you

displayed since 1952 for the
five years,
and you could

not escape

"B"

ask

the conclusion that the

common

shares, currently at

90, are quite modestly appraised.
Q.E.D. about APO.

it

difficult

to

stocks to the title
Before
for

in

telling

you

stocks

vestors

the addition of six cit¬

Wire System,
to 35 cities.
The

new

which

now

extends
are

and

more

I

to

why

Crockett & Co.

.ml

of

to

not in

you

largest diversified

direct

wire

to

de

we

closed-end

manage

end investment

in¬

and

These

three

assets

of

three

open-

companies—Broad

Investing,

National
In¬
Fund.

Whitehall

companies

have

net

$130,000,000 which
gives us almost $400,000,000 for
investment, mainly in common
stocks. All of our companies re¬
port quarterly, and in these re¬
give

complete

a

list

of

companies,
investors. Our

are

and
other
investment

fully publicized and
judged in comparison with

In

income,
emphasize stability,

this

investor's
in

capital appre¬
I believe

respect

in

stocks

mon

Some

emphasize

may
all want some

ciation.

major change in

the

to

com¬

15

past

years.

the

days before high tax
rates, you could compete success¬
fully for the investor's dollar by

offering

safe,

satisfactory in¬
high tax rates
you no longer can compete on this
basis with municipal bonds. They
give greater safety, and to give
the

net

same

yield after taxes,
would have to yield
the difference in

stocks

your
7

a

With present

come.

to

10%.

tax

Also

rates

gains

long-term

on

compared

capital

rates

on

ordinary income makes capital

ap¬

preciation

the

as

investor.

to

desirable

more

to

Consequently, I believe

you can compete much more suc¬
cessfully for the investor's dollar
if you offer him a stock that can
appreciate rather than one which

is

second

a

cousin

to

preferred

a

stock.

Having devoted

my entire busi¬
selecting stocks for
appreciation, I believe
I can tell you what will appeal to
an
investor looking for apprecia¬
tion. Obviously a higher market

life

ness

to

maximum

value

can

stock

only

ings

be

obtained

through
dividends

and

on

your

higher

earn¬

through

or

higher price-earnings ratio. Of
two
factors, the latter is
often more important. As an ex¬
ample of this, railroad stocks cur¬
rently sell at only 7 or -8 times
earnings, whereas chemical stocks
a

these

sell

at

often

30

times

easier

crease

earnings.

obtain

to

in your

than it is to obtain
in

It

50%

a

Co.,

Limited, Victoria,

our

competitors and

mar¬

earnings.

If

50% increase

a

ycu

obtain

can

higher earnings and an expanded
price-earnings ratio, your stock is
obviously going to appreciate. Not
only will this give you lower cost
money on your common

it will be reflected
all

credit

stock, but

in your over¬

standing, and

will

you

obtain better prices on your bond
and preferred stock

offerings.

Increased Earnings

The

first

leading to

these

of

two

factors

higher market price,
namely an increase in earnings, is
mainly dependent on economic
a

conditions, and management. But,

financing policy

your

important,
make

a

I

and

can

would

few comments

also be
like

,

Adams & Co. Formed
BOISE, Idaho — Adams & Co.,
Inc., has been formed with offices
at 205

gage

North Tenth Street, to en¬
in
a
securities
business.

the

regulated portion of

dustry there
which

are

your

only four

Richard

T.

of the firm.

Adams
_

is

a

principal

(2) reinvestment of earnings,

to

make

large funds.
We, therefore, are more sensitive
to
near-term
developments and
of

managers

address

Financial

by

Mr.

of

Forum

Page

the

before

Amerioan

the
Gas

Barbara, Cal., Oc#. 14,
also a Vice-President
of Broad Street Investing Corp.; National
Investors Corp.. and Whitehall Fund, Inc.
Association, Santa
1955.

Mr,

Page

is

per

you

share

over-all return

a

improve

can

earnings:
on

an

increase

of

your

better

capital,
(3)

capital, and

in

{pyramid. The first two
function

a

invested

lower cost of prior

(4)

(1)

in¬

ways

in

♦An

to

this. For

on

Consequently, we
a
year-to-year
showing and cannot invest merely
on a long-term basis as can many
averages.

have

is
in¬

price-earnings ratio

other

a

&

Texas.

in¬

we are

are

those of
ket

for
may

some

over

portfolio holdings. In this respect
we differ from pension funds, in¬

results

la

in

vestment company with net assets
of slightly over $260,000,000.
In

large

HOUSTON, Tex. — Crockett &
Co., Houston Club Building, has

but

you will
understand
take certain positions.

surance

Wire to Victoria

our

effort

an

sympathy,

any

prob¬

our

mention

Tri-Continental is the country's

ports
i

•

make

that

we

vestors,

Corporation, Denver, Colo.

advis¬

can

attractive to in¬

some

want

obtain

Street

neth Ellis & Co., Scottsdale, Ariz.;
and
Mountain
States
Securities

can.

look

we

stocks and

outline

to

lems.

ville,

& Thornhill, Charlottes¬
Va.; Southwestern Securi¬
ties Co., Fort Worth, Tex.; Irving
Miller & Co., Tulsa, Okla.; Brooks
& Co., Wichita Falls, Kans.; Ken¬

what

you

I

as

generally, I would like to
briefly our operations

addition,
correspondents

title

describe

order

announces

the

well

as

to how

as

Broadway, New York City, mem¬
bers of the New York, American
Exchanges,

to

you

common

Graham Walker, managing part¬
ner of Joseph McManus & Co., 39

Stock

stick

sequently, I will attempt to fit my
experience as a buyer of common

problems to

Midwest

requires

except in very broad terms. Con¬

your

Joseph McManus
Extends Wire System

industry

your

experience
in
cutting
patterns for your industry, I find

ing

com¬

pany from the standard. It starts
off
with
brine
and
boron
and

of

has

in the eyes of a friendly bank.

Marre

spreads out into

who

gas

ready-made patterns in just a few
styles and sizes. Having had no

installed

quite

ucts

tributor
his

involved,

batteries.

a

variation in risk.

tailor-made jobs. There cannot be

weeds, bleach
paper, make matches and dry cell
So here you see we have

of

wide

a

you have a pretty solid
string along with while
you're waiting. And of course the
bond is quite delicious collateral

to

For

kill

but

each

bond

nothing

you

unassisted

attention

SITUATIONS"

mean

in

Page

there is

Wyllie

Another string to the APO bow
found in its 48.2% interest in

Back

call, but

ies to the McManus Correspondent

21.25%

W.

Dakota.

sides

level you pay a little for the stock

Minerals Ltd.
a

approach

segments,

both

and

(in which APO has

the

these divisions

gas

being 50.1% owned by Amer¬
ican Potash and 49.9% by Bikita

(as, indeed, they did to
me), take note that they're vital
elements in guided missiles and

CO., INC.

15

there

Lithium

can

to

ask

been

producer of ammonium and potas¬
sium perchlorate.
In case these

EMPIRE PETROLEUM

to

has

Henderson, Nevada.
This company fits into the APO
picture because it's the largest

and

believed

and

a

a

and
distribution

and

in

a

LITHIUM CORP.

"SPECIAL

program,,
as

Western Electrochemical Co. with

UNITED STATES

are

It's a big and
factor in ■ our

key element in the
hydrogen bomb. Apart from these
urgent and vital strategic uses,

is

as

classified

there has been

mission,

priced

are

atomic

best

in

have
your
produc¬
tion, trans¬

today at 117, if you'd like to work

ure.

Potash in 1954, the expanded
(and all-time high) per share net
in prospect for 1955.
From this

The

found

but

only

Frederick

any

stocks,
appreciation.

common

single
try. You not

last

too
quite good quality

phrase, is "right
stock

by

passed

buy

Stocks

most

or

looking
buyers

sturdy,

debentures

interest

right;

is

vestor

we

and

other
indus¬

laboratories, one at
other at Whittier,

condition

more

Common

of

separate
classifications

this

by the sale of $7 mil¬

Appeal

Whenever

than any

California.

buttressed

market

industry.
appreciation,

gas
down

into

expenditure.

it has

it?

is

breaks

re¬

to

the

gas

may sell a stock at any time
if,
our
opinion, it becomes over¬
priced in relation to its near-term

industry

search, which ranks it among the

There

the

natural

future
in this industry.
1954,
APO
dedicated

of lithium recently.

of

out

that

to

familiar,

am

and

highly

make

you

I

power

of

to

outlook.

which

research.

to

good, extensive

in
3V2%

about

influence

in

continuous to project good

earning

which

Frankly, I don't believe there
any well defined patterns in
the industry. Of all the industries

are

can't cover
a
operation with¬

certainly

chemical company
out

factors

with

indicated

The

year.

10% stock dividend in Jan¬

was a

the

stocks, and applies these

common

Discusses such factors as
earnings, capital
capital structure, and management, but warns these matters
must be geared to the risks
involved, and, therefore, gas
industry financing requires a tailor-made job.

on

dividend rate is $2.50 a year. There

~

industry breaks

gas

separate classifications than any other single

more

explains

price of

the
shares

net

class "B" common

585,447

uary

down into

industry,

they should be
$25 million. More impor¬

$23.6 million net sales of Ameri¬

answer

Members, New York Stock Exchange

This year

tantly,

Vice-President, Tri-Continental Corporation 1
& W. Seligman & Co., New York
City

Investment analyst, asserting the natural

$18

were

Industry

Partner, J.

"0*

bought in, and re¬
tired, these share holdings; and
immediately began to dynamically
improve its efficiency, its product
diversification, and its earnings.

of APO is
that it continue the rate of growth

a

Natural Gas
By FREDERICK W. PAGE*

year,

should

National Distillers.

and

that

in

the

needs

dis¬

room

for growth.

and

enamels

Financing Patterns in the

earnings which is a relatively low
appraisal of earning power in this
dynamic industry.
How come then, that more peo¬
ple haven't noticed APO?
Well,
it's partly due to the fact that till
1952 large stock
interest in the
company was in the hands of two
other companies.
APO, however,

Chemical Corporation

Thursday, November 10,1955

..

common

sells today at roughly 15 times net

By IRA U. COBLEIGH

Enterprise Economist

Its

.

the

capital

are more a

regulation,

manage¬

ment, and economic conditions, so
I will

skip

over

them at this point

If,*) I

Volume 182

but

will

Number 5480

comment

vestment of
Cost

As

to

which

of

per

increased,
control

The Commercial and Financial Chronicle

.

rein¬

Observations...

Capital

other

two

in

ways

share earnings may be
do not have much"

=====

you

determined
market

mainly

by

conditions.

However,

financing policy. In the first
place, ido keep flexible and don't
get into a corner where there is

your

cies

can

entirely.

be shunned to
a
degree, but not
This conclusion is not at all under¬

such

that

issue

you

in

are

type of

any

se¬

in her month-to-month

curity and not forced to offer one
specific security when the market
for

that

dition.

security

I

also

is in

poor

their

situation,

financing

companies

ahead

plans even
though market conditions change
greatly, and this can occur in a
short

market

money
state

period

of

is

flux.

1

companies plan
of

financing

within

that

of

time.

in
have

also

seen

hell

come

or

longer

makes

expenditure, including industrial re-equipment which in 1954 was
deliberately stimulated by cheapening of money, and by the
Chancellor's provision in the 1954 Budget for "investment allow¬
ances" on new plant and machinery and industrial buildings.

AAA, AA, and A bonds has
narrowed so greatly and tax rates
have increased so materially that
there is not much to be gained
by an improved credit rating. On
the
other
hand,
common
stock
money is your high cost money,
and if ycu can obtain higher per
share earnings by doing your low
cost financing first, I think this
should
be
your
objective.
Of
course, any such pattern should be
to

have

market

offer

market

but

conditions.

good

a

a

gardless .of

bond
vice

and

always

restraint

follow

If

loan

is

funded.

ing

an

but

there

which

at

This

improving

of

fine

is

But the main

government expenditures further enough. Typically, much of the
expenditure lies in Defense and Social services areas.

dur¬

Then,

market
this

entail

that

dont's

to

the

buyer all the information that he

visit to

hold
sary

aloof
.

as

properties and don't
if he

were

a

neces¬

evil to be avoided at all
private visit during which

costs. A

he

can

ask

what

confidential

he

believes

questions

is

are

much

better from his point of view than

invitation

to

large group
meeting or luncheon. Do try to
schedule your offerings when the
financing schedule is relatively
an

a

clear and don't put an offering on
an

already overcrowded calendar.
Capital

page




Y

..

in

the

as

the

as

conclusion

latter

boost

a

dividend
sop

day than they normally would.
The' steel industry, "The Iron Age" observes, will add up

to

12,000,000 tons of new capacity over the next three-to-four years,
at a cost of something like $2,400,000,000 or more. But it will not
come soon enough to help the present situation.
United States and Canadian

automotive producers roared past

8,000,000th unit of 1955 the past week registering a gain of
44.2% over 1954 and are scheduled to reach the 1950 peak \ of

their

8,047,240 by the end of this month.

Reports," in counting 8,106,895 car-truck

"Ward's Automotive

completions for the two countries since Jan. 1 against 6,884,085
in entire 1954, said last week's output in the United States alone
reached a level not recorded prior to 1955.

a

200,482 cars and trucks, or
week's 182,531 total that finds
record 59% of 1956 model pro¬

9.8% increase over the preceding

output of the low-priced cars at a
duction.
The statistical agency

the

in

Purchase

said that Ford car output last week was

programmed at a postwar record of 40,000

let, while

a

in Plymouth Saturday work plus new
problems at Chrysler dipped Chrysler Corp.

temporary respite

equipment

Continued

will

Tax

units, crowding Chevro¬
Plymouth's assembly

peak 3,300 units daily are leaving

lines.
A

it

tax,

reduce

to

being

inferable

appears,

the

from

of

the

will

demands

on

page

34

wage

the

be

of

in¬

labor

Life Insurance Sales Boom!

distributions,

subsequent
.

Record-breaking sales in September of $3,746,000,-

be¬

000 of life insurance

,,

political factor, the agricultural subsidies are

until next spring, with the present bread subsidy

months

nine
more

than

a

50-ton steel sheathed
welded type box cars four 3-unit
Talgo

RR. Certificates Offered
Halsey, Stuart & Co. Inc. heads
a

group

offering $2,952,000 of Chi¬

Rock Island & Pacific RR.
equipment trust certificates,
series P, maturing semi-annually
June 1, 1956 to Dec. 1, 1967, in¬
cago,

3%

certificates

are

priced

in the

authorization

of

the

Interstate

Commission.

issue

of

brought the aggregate for the first

this

year

to

$34,612,000,000,

24%

or

year ago.

is

to

be

secured

the following new equipment

♦

cars.

R. W. Pressprich & Co.;
Freeman & Co.; The Illinois Co.
ing

Inc.; Wm. E. Pollock & Co., Inc.;
and

by

esti¬

diesel electric passenger loco¬

companies, sales

McMaster

Hutchinson

& Co.

mean

predict that 1955 will be the best year

history of the business.
.

^

Many life insurance stocks are below their highs

are

of the year
very

and

some are

selling at what

we

consider

attractive prices.

iT

Write

or

Ocmpar.v Opens

phone us jor recommendations

Office in Houston
HOUSTON, Tex.—Russ & Com¬
pany,

Inc., have opened an office

ing under the management of D.
E. Walton.

Mr. Walton

was

form¬

erly with the Fort Worth National

motive; 225 70-ton covered hopper Bank.

"

passenger

we

participating in the offer¬

in the Texas National Bank Build¬

mated to cost less than $3,936,625:

✓

type

Also

to

yield from 2.85% to 3.10%, ac¬
cording to maturity. Issuance and
sale of the certificates are subject

The

•

Riess &

clusive.
The

profits, and

200

cars;

Chicago, R. I. & Pacific

Commerce

30

But a day

reckoning is coming. Maintenance shutdowns, wildcat strikes,
and other unforeseen emergencies assume more significance to¬

For the stock life insurance

one

on

in pressure

left untouched.

The final way of

increasing per
share earnings
is through your
capital pyramid. Changes in your
capital pyramid can have a very

well

only

to be postponed

to

Pyramid

Continued

not

Because

in

your

It is a

of

model

havior of share prices.

requires, and don't try to hold
anything back from him. His con¬

obtaining information
and knowing your setup makes a
big difference in his attitude to¬
ward your securities. Do sit down
;with him periodically in private
either in his office or during a

pushed to the hilt and there is little chance of a let-up
in the next seven months, states this trade authority.

the Exchequer subsidies to

in

cut

leaders, but even as a brake on inflationary dividend

Do

fidence

increase

effective

improved cost of prior capi¬
give
the
institutional

an

tal.

exceeding output.

question of how long producers can maintain present levels.
Steelmaking furnaces and rolling mills obviously are being

Only blind optimism will rely on labor taking increased

lead

can

against it and despite the record production

of recent weeks, new business is

living costs lying down.
The

believe

as

The

demands, and further extend the spiral of a

wage

inflation.

few other do's and

I

drawbacks.

severe

increase

have been foreseen.
a

The mills are up
pace

the Budget

of the strenuous measures taken in

some

housing,

new

example, it would have been bet¬
to
anticipate
requirements
with a large bond issue in 1952
and again in 1954 and this could
are

In the commendable

problem remains unsolved.

effort to deflate the spending boom, the Chancellor, as
with his opposite numbers throughout the world, runs smack
into the difficulty, including the political, of curtailing current

ter

There

\ &

major

the

when

lack of steel has reached the point where

Scheduled in domestic plants are

pattern should be abandoned. For

-

Boards.

some consumers,

production line cutbacks have been necessary. For others, offers
of new business are being turned down due to the precarious out¬
look for future steel supply.

becoming increasingly realized,

Difficulties Remaining

to

time

bond

times

are

the private sector, it is

on

while the projected cuts in the investment programs
the nationalized industries have been arrived at via bargaining

with the

finance construction through bank
loans until a certain amount has
reached

difficulty of effecting greater

market rate,

re¬

is

the

intensified, probably through clamping-down by the co¬
operating private banks.
Capital expenditures can be cut by
restrictions as restraining the rate of borrowing and through the
Public Works Loan Board of the local authorities.
Now local
authorities must borrow either in the market or at the going

Another pattern that I have seen

rigidly

into

be

can

pattern.

been

runs

expenditure, which can be attacked through the
local authorities, or the nationalized public industries as the utili¬
ties and private industry through credit restraint.
Such credit

predetermined

your

companies

Butler

Mr.

in capital

cuts

market,

versa

planning, reversal of policies once adopted is not

easy!

so

Now

stock

common

poor

common

In government

for bar conversion space, this trade weekly

checking

reported
notes.
For

continually rising prices and wage rates, with the
increasing more than the former, and both outstripping
production by at least 50%.
In connection with the present
attempts at planning for deflation, it should be remembered that
the present excess of demand stems from industrial fixed capital

other commodity

picture, it reports.
High-cost conversion arrangements are mounting. Conversion
deals in the making, or making the rounds involve sheets, plates
and bars. At least 10,000 tons of sheet conversion involving two
large midwestern manufacturers are being sought. Another large
firm has done some plate conversion. Still another consumtr is

that happens to fit the

policy, failed to materialize.

latter

on

you

.'

•

Another of the most serious results of excessive home demand

much

metalworking weekly, this week.

The deals involve steel-for-steel or steel for any

have been the

between yields

spread

:

tinued support

for them. I don't believe this pat¬

geared

1954;

Importantly responsible for the payments difficulty and the
shortage of dollar reserves, was Mr. Butler's 1953 policy in stay¬
ing out of the International Wheat Agreement in the hope of a
worldwide price drop, which, because of the United States' con¬

price would be obtained

The

from

home market.

pattern

any

15%

up

of barter

turning to the ancient system

Many companies have assigned special task forces to ferreting
out odd lots of steel that another consumer is willing to trade.

operate

1920s and its objective was to get
behind the bonds so that

sense.

imports,

are

a

Iron Age," national

v

then

and

equity

tern

huge

thej textile and apparel industries.

consumers

desperation move to keep production lines going. Its another
indication of the growing emergency in steel, accoiding to "The

in

pattern

of these patterns

better

Steel

certain

a

might be
first, issue common
stock, then issue preferred, and
finally
issue
bonds
and
keep
rotating financing in this order.
This pattern was a product of the

a

tered layoffs in

A. Wilfred May
relatively small exports. The lengthen¬
ing of delivery dates of tne exports shows that
their deficiency has been largely due to the diversions from the

follows:

as

the

been

high water.
One

serious
various

of

excesses

with

The

constant

a

by

noticeably higher.

■
'
;
insurance rose slightly as a result
of flood-created unemployment in some Eastern :areas. and scat¬
was

Claims for unemployment

including domestic demand for daily
consumption
items,
consumers'
durables,
houses, and factory buildings. This has en¬
tailed over-employment, with unemployment
down to a new low record. Also resulting have

and then stick to those

very

dustries.

kinds;

financing.

way

constituted

^

steel,

in

offset by the good

output

in sterling.

use

processing industries.

1
lumber and paperboard production
showing made in the aforementioned in¬
Compared with the corresponding period in 1954, total
declines

Slight
were

position, in the

reserve

Mr. Butler has had to face up to a

keep flexible

mean

in your thinking about
I have seen officers of

plan

week's

con¬

*311

maintained
gains in

past week over-all industrial production was

high level due in large measure to the considerable

a

the automotive, construction and food

since Mr. Butler's presentation—as reflected,
along with Britain's $76 million improvement

to

Production

Business Failures

J
The
at

mined by the past week's improvement in the
public's impression occurring during the week

condition

Industry

Price Index

Auto

and

Food

new

only one way out. By this I mean
keep your capital structure in
position

Commodity Price Index
t

Budget introduced by the British Chancellor of the
Exchequer has most interesting connotations, in the areas of
politics as well as economics, on both sides of the Atlantic. In the
former, for example, it gives further evidence that political exigen¬

I

Trade

Retail

State of Trade

THAT NEW BUDGET

would like to recommend a few
do's and don'ts in connection with

Production

Electric Output

Carloadings

money

The

Steel

The

By A. WILFRED MAY

the cost of your prior
The
cost
of
capital is

ever

capital.

5

(1969)

little later.

a

Prior

the

the

on

earnings

.

.

WALTER C. G0REY CO.
Russ

Building

•

• California
Teletype SF 573

SAN FRANCISCO

Telephone YUkon 6-2332

\

-JU'jfji

6

(1970)

The Commercial and Financial Chronicle

Railroads: A Growth

$20 billion during the next
years—twice the amount that

Industry

These

Symes Foresees great annual rise in inter-city freight
movement marked by 10% increase within next decade. Main¬

meet tomorrow's

as country's low-cost trans¬
Emphasizes their increasing aggressiveness,
citing popularity of "piggy-back" service. Foresees ability to

.

ments

agency.

finance expansion through equity

10

will

years.

By DWIGHT W. MICHENER*

loco¬

and

cars

to

they

as

Economist, The Chase Manhattan Bank, New York City

After

requirements and

consumer credit,
leading New-York bank outlines the changes
wrought by consumer credit on the indi vidual. Points out con¬

capital.

that exertod

as

Needed

Money

general influence

same

the economy

on

*

by other types of credit, and involves much the

'

J

/

*

a

credit has the

sumer

us.

The

reviewing the origin and growth of

economist of

-

available

become

Thursday, November 10,1955

.

Another Look at Consumer Credit

involve

performance, and take full advan¬
tage of technological
improve¬

being recognized

are

past

.

ten
wa3

motives,
mechanized
terminals,
improved signals, rebuilt plants to

Mr.

portation

the

expenditures

rolling stock,

new

President, The Pennsylvania Railroad Company

tains carriers

during

spent

By J. M. SYMES*

.

risk of

same

creating

^oom and bust" situation.

a

Now—where is the money com¬

Says

unfortunate result of consumer credit expansion is failure fo
year.
If we.raise our ing from to do the things I am
develop adequate standards or norms. Decrys progressive
talking about. There will be three
participation as little as 4 points
% easing of credit terms to meet competition. '
—to 55% of the total—we would principal sources of supply: better
;
be handling 852 billion ton miles, earnings from bigger volume and
Business activity
this coun- 80% oj^ the- nation's commercial
increased efficiency, depreciation
or 50%
more than last year.
cash
from
loans,
capital expenditures, try at present is-probably at the banks T are" making such
/ It is my considered opinion that
over-all -level
ever Broader lending facilities for the
and as a growth industry, by the highest
55% participation by the railroad
achieved.
Everywhere one finds public have included the estabattraction of equity capital.
industry in 1965—and even before
-lishment of departments to han¬
great confiWith these things confronting
then—will be the minimum ac¬
dle
dence.
Opti¬
personal
loans, loans for
us, our new plan of management
complishment, and I will tell you
modernization
mism seems to
and
repair
of
organization that I have referred
why I feel that way:
residential property and loans for
prevail in all
to was designed both to enable us
the purchase of
areas of busi¬
automobiles, furLow-Cost Transportation
to handle more business efficiently
-niture and appliances.
ness.
First—It
is
finally
becoming and to enable us to get more busi¬
All of this has tended to place
Nonetheless,
recognized that the railroads are ness.
Traditionally,, in
railroad
the consumer in a more favorable
experience has
the
low-cost
transport organizations one department has shown
truly
that
credit position. Also, other devel¬
agency in this country, and that it been charged with performing the when
these
opments in recent years have en¬
is in the public interest that they railroad
services.
Another
de-4
boom
charhanced the spending position of
receive greater freedom to com¬ partment has been charged with
acteris tics
;the consumer. Wages and salaries
pete for business and something selling those services.
We have
rhave advanced. After-tax incomes
prevail, it is
nearer
equality in the way they abandoned that concept and placed well for busi¬
•.have improved.
Saving has not
are governed, regulated and taxed
the
responsibility for providing ness people to
-increased as fast as incomes. For
in contrast to their competitors. services and for
;
selling services review, at in¬
several
years,
consumer
prices
I think today, more than at any under one manager, and we have
D.' W. Michcner
tervals, those
have been relatively stable.
time in many years, the thinking placed that manager as close to
areas
of their
people of this nation are aware the customer as possible. .
where
own,
business
of the fact that a strong and pro¬
To do this we have organized
gressive railroad industry is one our railroad around nine
regions,;
of the greatest assets to our peace¬
which will be completely staffed,
time economy, and is absolutely
this
with sales and service units. Some
r
is
e<*ual
s?me 12 % °£
i

We

than

instituting a complete
plan of management organi¬

new

are

zation

■-

to

railroad

into

go

effect

our

on

.

am sure

some

have

you

wondered
we are

such

why

.

making

a

sweep¬

ing change at
is sim¬

answer

ple enough

—

getting
ready to han¬

we

are

dle 50%

more

business

in

"the next ten

than

years

handled

was

M.

last year—and
handle it bet-

Symes

ter than

I
before.

Perhaps

calls for

some

.

too

few

perhaps

ever
statement

that

,

explanation. There

people
in

some

including

—

our

indus¬

own

try—that overlook connecting the
railroads with the overall

of

prospects

in the next ten

omy

it

is

not

because

the

participated

econ¬

Maybe

years.

railroads

in

Jn

have

the ten

essential

years

The

cf good times that most American
business has experienced since the
end

of

World

War

II—and

sometimes difficult

thinking to
direction.

to

it

adjust

The facts

and

our

out

should

be

told

are

1965

creased

population

to

190

will

million

in-

be

people—

and that the annual gross national

product will be about $535 billion.
That means, of course, that Amer¬
icans will be using and

making,
and buying and
selling more of
everything than ever before
—

from steel and glass to
and kitchen sinks.
But

little
On

production

be

of

transportation.

basis

requirements of this coun¬
try should involve the movement
one

miles

one-half

intercity

than

more

The

and

of

trillion

ton

freight—43%

moved

was

in the

na¬

policy

the

to

nation.,

I

-

all

our

in

adequate
the

coming ten

less

of where

ing

from.

in

I

the

Also,

owners

expect that

built

be

is

com¬

and

the

better

last

year.

That

extent for

we

is

true

t'qink the plan'

will

give us the flexibility of onthe-spot sales and service admin-istraticn

that

is

possible

with

research that must

of

If

concentration

this

attention,

service

that

to

functions

"The

of

execu¬

sales

our '

the

service

Third—The

railroads

than

are

more

before' in

ever

attempting to meet the competi¬
tive
transport situation in this
country—both as to pricing and

available

is

sales

problems

and service conscious" you

for

reasons

are

our

will be

the under-

new

plan of

organization.

goods presented no
that
it
would

and
>-

.

'The

in

the

be

Leserman

III

have

Vice-Presidents

of Albert

Frank-

for

the

the

producer.

on

consumer

participation

*TaIk
cial

would,

we

in

business

more

by Mr. Symes before the "Finan¬

World"

Annual

quet, New York

Awards

report

Ban¬

City, Oct. 24, 1955.

Fourth

—

The

"piggy-back"

establishment

service

will

where there is plenty of
capacity to accommodate them/ It

Establised

1856

interest

of

safety

that this be done.

H. Hentz & Co.
Members
Hew

York

Stock

to

Exchange

mass

are

peculiarly adapted

production

—

American

Stock

Exchange

transportation

New

Cotton

Exchange

the railroads have in

York

Commodity

Chicago

Exchange,

Board

and

other

Trade

of

New Orleans Cotton

future

Inc.

heavy

is

Y.

Cotton

NEW

exchanges

Chicago
Miami

Bollywood,

Exchange Bldg.

YORK
•

Detroit

Beach

Fla.

Geneva,

•

4,
•

N.

Y.

a

Beverly

Switzerland

Amesterdam,

Holland




biggest asset
meeting the
of

trans¬

CaL

traffic

within

ten

estimate

capital
the

to

55%

of

the

total

than

was

50%
handled

I would
conservatively
that

it

would

expenditures
railroad

ni

Guenther
nounced

Law,
by

Inc.,

Howard

it
W.

was

an¬

Calkins,

on

require
the

industry of

part

a

may

more

the

to

also

young

fam-

children.

Son.e

con-

life

economic

of

a

its

retailer

banker

ley has been

movement

for

account executive

the
number

a

of

years

and

Mr.

of

wholesaler.

a

a

the

an

more

services.

credit
It

is

well

as

the

now

well

as

business.

for

be-

Even

larger banks have joined the
to

retail

barking by
expansion of branches. They

Leserman is Director of the agen¬

have prepared themselves to perform
many
specialized services,

cy's

with

special

services

department.

fully integrated organizacapable of drawing on tbe
a

tion

resources

Form Peters, Jakobson
John

In

R.

Jakobson,

the

New

and

Donald

York

H.

Stock

Peters

Peters, Jakobson
fices

at

50

&

member

all

segments

of

1930, there

banks

in

the

were

of
a-

the

part,

only about 100

country

with

con-

Exchange,,

sumer

will

ments; today, it is estimated that

Co.

form

with

of¬

Broadway, New York

City, effective Dec. 1.

of

community of which it is

T7~
*An
35th

instalment^ 'loan

-j

address

Annual

u

by

x*

Mr.

km-

u

Michener

Convention

Bankers Association,

Fia., Oct. 28, 1955.

depa t-

of

the

♦

at

tbe
Con-

Miami Beach.

entire

goods

re-

apparently

chronic "skat-

who have
in the

and

higher

' some-

present

are

are

,ers-on-thin-ice,"

income

future but little financial

use

reserve

at present,

com-

has

for

their

And there

of

their

pay

they chose. Others

stiH others who

.

^

...

_

Effects of Consumer Credit
on *"e Individual

diversified
It

to

beyond

hopes

of the

'banker for the community
as

assets

sources.

con-

have sufficient

users

aspirations

what

enable

effective

broader concept

for

come

sumer

some

be

Chairman of the Board. Mr. Lrog-

necessary to carry

years—meaning

business

last year.

of

it

designed to in¬
participation in poten¬

rail

Gables

Hills,

mass

program

crease

tial

Pittsburgh

Coral

out

more
•

and

demands

Now, what is
If.

the

portation in this country—and
simply must be reckoned with.

Exchange

Geserman

as

Fifth—The beneficial effects of
automation

Jrnu.p

n.

liquid

credit rightly used by

so

growing and the
need
Gregury

is

relatively

credit

sumer

production of goods and

mercial bank has.had to adjust to
the
new
situation, to meet the

ways,

the

are
with

ilies

dem-

of credit has meant that the

high¬

in

They

for

as

been

community.

The

interest to take the big
trucks off the
congested highways
and move them on the rail

been

$4>000 to $7,000 annual income,

has

the

public

also

well

as

of

scale

indebtedness if

the

tributor

of

has

situation

ther

grow

credit

A consumer credit complicate
£a<^ tending to

onstrated that, just as credit in the
hands of the producer may fur-

rapidly, because it is truly in the

is

broad

a

has

It

to

1965, be doing 42%

well

This speed with

,the fact that borrowers

time, credit has been

same

available

made

him

that

has- been

year

billion.

consumer

range

At the

present position.

continue

we

which

are not all
decades, consumption ,0f 0ne economic status. Various
has taken a
place in economic surveys indicate that the
majority
thought and discussion of equal -are 0f middle or moderately high
importance to that of production, income iamilies within the

tire

if

^jg

0f

ab0ve $3

rirSJy '•

recent

consumer

and

be

^

the

output,

jjrSj.

.

services,

year we

Credit,

.

coming by appropriate legislation,
should be able to
improve their

this

is .automobile /credit,
the -expansion
since the

vvhere

progr0wing in recent years suggests
Rightly used by them, it tbe need for being
watchful, parwould
stimulate
production
of
."ticularly
in
view
of
present
goods and services.
But, so the
booming business conditions.

transportation market. Well, last
handled 51% of the en¬

in

fol-

facility to be used by

a

service—and with additional free¬
dom that should soon be forth¬

share

,

ducers.

In

elected

been

some $34

advance

,

credit

.

pattern.

™

V.-Ps, of Albert Frank

$76d mil-

past s vera ^ears ls due,
™ part, to an expanding volume,
-°£ business and, in part, to the
lengthening of repayment periods,

y

early development of ecothought, was considered to

potential

big question is how will the

railroads

of

similar

a

avo

.Gregory A. Langley and Philip

has r currently
$26 bHiion mark, and

credit,

£he sectol showing most rapid

...

.

extension

fhe0cronsumerweasUto

Langley, Leserman

stalment

:0t;pas6ed'the

largely take chre of itself.
®

nomic

ri^ht, because they

origin

,

to you Towed,

suggests

Pennsylvania

and

the

tn

credit

consideration. It was
assumed that consumption

any,

ently

.

relative

Percenti*°e continues to grow. In-

a
of '

«***"■;
apparg

mination where time to think and

and vehicles.

aggressive

oornf'

Smer

^

national income, and this

p0®

so

^ volume

have strengthened our
headquarters for policy/ deter¬

tive

In

thj»-year.provided a rec-

hand,
system

consider every
phase of the railroad's business. f .

credit.

consumer

V:Early *■ treatises • in
eecmomic ?o£
theory;-especially those-which ap-- °rd monthly, increase of
peared in the latter parirof the 18thi:Jlon- - The
Century,• dealt- largely-'With pro-.-oojisumer credit is now
ducflom' Consumption gotlittle,

a

small railroad. On the other
we

at

doing, it is well to notice, first,

to

expSdtd

occSfonf^o talfe anoth"

look

nine

equipped

are

better

the

principal .users'of that high¬
way
system
will...receive from
their expenditures for both
high¬
way

some

railroads.

regard¬

years

money

service the railroads

the

I expect

that program,
will come to be

it

have likened this to

small

of

t^at

render,

pop¬

eventually,

consideration

recognized

the

high¬

increasing automobile

the

people

plan is needed, and to conduct the

recognize

more

a

system 4o .allow

way

of

for

of that

committee.

ulation greater mobility.
this highway system to

tation

of

facts,

the

of past trends—it
that by 1965 the transpor¬

means

of

recommendations

Second—We

to

would

without

use

the

baby food

the

need

railroads

growth industry. We
the experts that by

a

by

our

the

years

needs

distinguished

next ten years, we come
up with
the inescapable prediction that for
ten

changes

transportation
the

Eisen¬

these

hopeful that we will soon see
legislation enacted that will carry

by putting together the best
estimates of what is going to
hap¬
pen in other industries during the

next

President

states

am

ply

the

to

proposes

meet

defense.

report of the Cabinet

clearly

tional

national

our

recent

hower

that sim¬

are

to

Committee

is

trend in the opposite

a

by"

tes-.'b^rl1^atertBandX,13toJ-^

growth

American

our

*

'

this time. The

are

*

■

Nov. 1.1

on

of

James

last

In

any

the

regardless

case,

financial

exact

his

of

status, credit for
effects
many

^consumer

changes in his position and habits.

(a)

the

Consumer

individual

goods

sooner

would. He, of
privilege. He

credit

enables

consumer

than

to

buy

otherwise

he

course, pays

for the

pays for the risk
and for the service expense, as
well as interest on the amount of
his debt. In the long run, con-

credit does not enable thd
individual or the family to buy

sumer

goods

more

and

could be bought

(b)~

change
.

SUmer S

services

than

by using cash.

Consumer

credit

the direction of
...

A

expenditures.
7

the
r-»

may
con.

As PrOfeS„„

90

Continued on page db

Volume

182

Number 5480

.

.

The Commercial and Financial Chronicle

.

(1971)

is

Mortgage Credit and

not

enough,

"want"

must

economic
nate

Economic Stability

nations

long

known

sometimes
an

By FRED F. FLORENCE*

President, American Bankers Association
President, Republic National Bank of Danas, Texas

'

of

At

*

outset,

one

executive, stressing importance of attaining and preserv¬
ing economic stability, urges stimulation of desire for home "

ownership, but cautions against
in

terms

Though holding that

lending.

mortgage

and too liberal credit

easy

points out "a home construction industry that writes its
ticket in the credit market would be

dynamite."

of

he

tem.

Approves the Administration's credit restraint*,
credit should take

The substantial advance

would
and

function

decade.

past

is

that

These

us.

are

intermediaries

as

—

vigorous

the

generated

a

flow of income

has

that

abled

en¬

to

us

Consume

volume

y

so

a

and

variety of
products and

on

movement that should be

a

services that

nutured

by comparison

home

have

made

obsolete

stimulated.

is

that home

reason

ownership
Fred

of just a

F*

stands

the

Florence

characteristics

prime

The

property owner,

a

and it is for this

the

living stand¬
ards

' and

owner

out

as

of

one

the

of

American way of life. What better
contrast exists between our sys¬

few years ago.

•

Moreover, me prospects for the tem of free business enterprise
years ahead
appear to
be even based on
private ownership cf
more
encouraging.' It is certain: property
and
the
communistic
that

people will not be

our

with

tent

the

achieved

con¬

system in

already

progress

directs

which the government
activity and all prop¬

all

in

the
past
decade erty is owned by the State? What
through such things as the devel¬ better assurance is*there that the
opment of television and air con--* American* way of life is being

ditioning, improvements in modappliances

ern

continue

will

automobiles,*'

and

and better food and

toward

housing. They

look

to

to

recent past and

in¬

the

ther progress

genuity of science and technology
to open up new

vistas for the sat¬

isfaction of their desire for

bet¬

a

material life.

ter

The

than in the trend
home ownership
in the

strengthened

*

We

/V'•■'.V'"
remember also

should

home/owner. is

the
The

that

taxpayer.

a

of
the
home
thus''.tends
to
the tax-consciousness
Just as the privilege

broadening

elements

of human exist- t
ownership
food, shelter, and cloth-v strengthen
ing. They are equally essential in of Citizens.
a primitive society and the modof property
ence

the desire for fur¬

in that direction in

the future?
.

are

base

ownership—and it is
ern
industrial economy.
Living a- privilege that must be pre¬
standards are dependent not only r served—gives a person a stake in
upon the extent to which these
the American economic
system,
basic elements are fulfilled, but; an awareness of tax responsibili¬
also the manner in which they are * ties

him

gives

supplemented with the additional

terest .in

satisfactions

a

direct in¬

more

system.

4 As an

call luxuries.

we

important part of the at¬

American

the

political

The property owner as a
taxpayer is more likely to ex¬

of the

tainment

requisites of hu¬ amine ■ proposals
for
increased
the past few ? governmental activity and spend¬
years, the American people have
ing with greater care. As a prop¬
demanded a standard of housing erty owner, he knows that he has
that does not satisfy the require¬ something tangible to lose if a
ment of shelter alone. An integal
change in our economic system
aspect
of
our
recent
national were to occur; as a taxpayer, he
growth and progress has been the ; is more likely to understand that
drive for

comfortable homes

more

which

in

in

existence

man

live

to

richer

family

the

standards

represented

these homes because

our

by

economy

has been vigorous and highly pro¬

ductive, and because the achieve¬
ments
ency

real
;

this

of

gain for

The

for

The..position

serve

this

vigor

to

do

success

our

serving

and

Whether

efficiency.

will

so

is

dies'

to

pre¬

productive

we

shall

depend

be

upon

in attaining and

pre¬

economic

stability as a
base upon which the growth po¬
tential of the country can be ex¬

ploited.

-

The future holds great
for

mass

promise

shall

the

A sharply

the

and

groups,

standards

desire
are

and

as

a

ra¬

rising population
for

better

living

two of the most sig¬

nificant features in the pattern of
*An

the

address

Mortgage

by

Mr.

Bankers

Florence

before

Assoc'.at'on

Con¬

vention, Los Angeles, Cal., Oct. 31,

1955.




in

of statistics

detail

You

covering

point
ities

up

•

■

rising
cent

in

the

rather

than

the

the

us-in

of

to the danger signals in
housing boom; and at the re¬

cent

Annual

Convention

Association in

lution

was

is

market.

there is

that

of resources that can be allocated

to

housing in an economy that is
close to straining its existing res¬
ervoirs

material

of

of

growing

a

search

standard

Federal

for

a

population
constantly

of living.

Reserve

A

re¬

that

almost

survey

maintaining such
It is just as important,
that other groups be

adopted

conduct
j dence

follows:

as

highest

continuing flow of instalment
home
mortgage lending is

and

essential to

strong

a

economy.

moderation,

fast

that

tion

shorj; of

'

A

and

might

cause

pru¬
we

.

reac¬

a

to fall

us

ultimate goal of the
standard of housing we
our

solid

one

must

lest

to create

as

afford.

can

we

with

affairs

our

so

move

a reso¬

business; but

If

fact

learned

have

we

from

our

business

We

history, it is that too rapid ex¬
that * pansion in strategic areas of our
too
economy is most likely to lead
liberal, they may prove trouble¬ to reaction later; and the greater
some
and embarrassing to both and
more
rapid the expansion,
borrowers and lenders and injure
the more serious the reaction is

should

recognize,

when

the

credit

health

of

the

J Bankers have
to

counsel

in the

use

however,

terms

become

economy.

ger

of

only

lead

trouble later

to

An increase of 8%

on.

nonfarm

families

are

of

be

not

Those

of

us

who deal

in

of

us

credit

potential is there if we utilize it

wisely; and yet, we also shculd be
forewarned that merely-"to want"

the

over

:

/;

>

who deal in mort¬

the

have

responsi¬

bility of recognizing and respect¬
ing this situation. We should give
our full support to policies which
might seem unpopular at the time
and detrimental to our personal
interests in the short run,

sole

stable base

a

growth.
all

which

of

intent

serve

is

for

but the
to

pre¬

economic

If we can agree that we
a
common objective,
it

have

is

appropriate for us to stand be¬
hind policies geared toward that

goal.
Moreover,

iU. should

be

clear

actions to place mort¬

that

us

credit on a sound and sen¬
basis
are
not
the selfish

sible
mort¬

ignored.

Those

to

'

Inflationary Dynamite

of instalment and mort¬

whims of a few.

In various chan¬

should heed the les¬

nels

of

government having a di¬

all
times
with
the sons'of history, because the de¬
the loans 'which they mand side of the housing market
make, and should lend only cn is so intimately related to the
such terms as will provide in- ~ cost 'and availability of mortgage
dividual borrowers with proper credit.
During
the
past
few
equities in their purchase, and months, -our economy has been
enable
them
to
Its re¬
maintain. their* operating in high' gear.
finances and
credit on a sound sources have been pressed to the
and
sensible
basis.
limits, and fears have been ex¬
:
No group appreciates more fully pressed that a sound srecovery
based on growth might develop
than bankers that the health of

rect

or

indirect bearing upon the

gage credit.
cerned

They should be

gage

con¬

credit

at

quality of

construction

the

mately

related

entire

the

into

industry is inti¬

to

and

health cf
and
that

the

economy,

into

the

fabric

both

of

of

During the mild business reces¬
that began in mid-1953 and
continued into 1954, expenditures
on

new

construction

substantial

to

prop

furnished

the

tending

retard

to

of

speculation

Under

theser cir¬

is

It

¥

would

be

•

an

inflationary

market, there has de¬
better appreciation of

housing
veloped

o

joint responsibility for working
together. When the soundness, of
am
industry
so
much depends

a

ability and willingness
political and selfish
interests, and when that industry
is capable of so materially influ¬
encing the general state of our
upon

to

our

dismiss

well-being,

economic

we

statesmanlike
means

the

than

fullest

among

fortunate

wisdom

that

our

mone¬

have
and

demon¬
courage
to

recognize the danger in the situa¬
For the past several months,

our

we

must

selfish

own

—

interests

whether

other financial

as

on

(Second and final installment of an issue not exceeding $8,400,000)

Chesapeake and Ohio Railway
Equipment Trust of 1955
Equipment Trust Certificates •'
(Philadelphia Plan)

To be

*

.

annually August 1, 1956 to 1970, inclusive

guaranteed unconditionally as to payment of par value and dividends by endorsement
The

by

Chesapeake and Ohio Railway Company

MATURITIES AND YIELDS

1956

2.85 %

1959-60

3.00%

1963-64

1957

2.90

1961

3.025

1965-67

3.10

1958

2.95-

1962

3.05

1968-70

3.125

•

.

Issuance and sale

of these Certificates are subject to authorization

HALSEY, STUART & CO. Inc.
November 4, 1955

*

of

the

bankers,

institutions, mort-

Continued

$4,800,000

To mature $320,000

encourage

of cooperation

degree

those responsible for guid¬

moment

tion.

3% Serial

cannot

adopt
other than ; a
attitude.
This-

to

afford

ing housing policy, and not allow

authorities

strated

economy

market

dynamite.
tary

a

activity.

wave

employing

industry
-

by running counter to forces that
were

credit

the

them.

sion

new

a

.inflation.

cumstances, a home construction
industry writing its own ticket in

mortgage eredit is closely woven

not

fully satisfied with their present
housing arrangements. This
should serve to illustrate that the

in the cost

materials

building

gage

a responsibility
their customers

with

^

likely to be.

re¬

one-third

and

resources

thus there is less dan¬
of inflationary pressures that

could

toward

volume of

the

of

September,

and

field

the

of

master,

The net result
likely to be less
bidding for the available .supply

housing

manpower;

moreover,

Bankers Association drew at¬

f.

Our

has been more
difficult
to
obtain, has helped
credit
to
become
the
servant,

fore, the full weight of banking
and financial opinion must be di¬
stability.

in

which

under

and

money

serv¬

such subjects,

toward helping
to preserve economic stability and
thereby making it possible for our
nation to realize the potential in¬
herent

rise

to

mortgage

gage

credit

mortgage

achieve

recently

purpose

all

ot

quite clear that

of

own

My

therefore

allowed

which in¬
have been

under

policy

rates

to

plans and inclina¬
is rather to
the mutual responsibil¬

your

is

depression.

industry, and that we
stability in the
construction industry in an econ¬
omy that is itself unstable. There¬

choose whichever of their
sometimes
divergent viewpoints
tions.

of

stable economy requires a stable

you can

fits

thrust

downward

flexible
terest

Policy Commission of the Ameri¬

your¬

professional

the

of restraint has
impact upon the

mortgage market.
Moreover, the
impact
was
so
intended.
The

rected

banks

our

of

bankers

mortgage

decided

past year is something that should

credit; and
avail

can

selves of many

real

Need¬

plummeting

of

policy

economic1 motivated in the same manner.
stability
has
been
clearly
set Of course, all of us are desirous
forth. Last Spring, the Economic
of acquiring an ever»' increasing

of forecasts

consumer

like.'

ported

as

refer

not

debt,

gage

viduals,

we

this

housing starts, family forma¬
tion, the over-all size of the mort¬

and

tion.

but

the

be able to
realize that promise only if we
exercise sound judgment as indi¬
us,

fostering

of
goal

of

ices

that

people

our

a

people.

our

'responsibility

ahead

able

effici¬

productive

cpjuld be translated into

,

shall

if

the

say,

cannot

to be shared by all.

expensive government projects,
I

and

ex¬

construction

objective of
Vital

it is he who must foot the bill for

lives. We have been able to afford

closely

193*3,

85%, while

the severity of the

It
a

-

resolved,

tention

ownership

the part of the American peo¬

ple is

is

to

The Responsibility-of Banks

the

The desire for home

that

progress is

can

Home Ownership Should Be
;/
;/'V" Nurtured
:

more

the

,

the

of

could

we

easily

more

stability

in

mortgage
credit upon which home construc¬
tion
and
housing standards so
much depend.
1

has

economy

distribution

be

a

business activity, and contributed

con-:

credit

to

had

nonfarm residential

on

convention

this

construction

new

with a view toward
discouraging a credit expansion
faster than that required by sound*
stable growth.
I need not tell a
that

construction expenditures acccen-

andv

mortgage

surely approach

.

A

sound

on

has

restraint

credit

of

we

1929 and

between

policy

a

been pursued,

pe¬

a

depression,

types fell

tuated

differences

is

and

-

more

in the fields of home

proper

unfolding before
particularly im¬
people has been one of the most portant to this audience, because
significant developments of the.; they are so closely related to your
growth

the

in

what

all

less

sys¬

were

that

and

recession.

the

construction declined 87%.

highest

productive

point

understood,

struction

heed of current boom conditions..

standard of living of the American

this

mildness

of

severe

penditures

housing that can be
through the efficiency

regarding

and contends those who deal in mortgage

the,

of

of

com¬

development,

cf

run,

a

the

expenditures

our

of

If

clearly,

them

mortgage
primary factor ac¬

for

find

point should

the

dynamic

our

-

own

before

long

afforded

industry employing

an

the

standard

stable

a

requires stability in the construction industry,

economy

in

have

objective:

mon

ready avail¬

long-term
a

duration

riod

groups in

industry, under
the

Going back still further to

*.

•

All

short

in
and

of

of
was

counting

which

obscured

as ours.

the

nation

ABA

truth,

stimulus

ability
funds,

have

diversified

as

construction

the

of

fortu¬

world

becomes

be understood.

test

Less

the

The

every

the

this

economy

dynamic

because

meet

soundness.

7

3.075%

_

by the Interstate Commerce Commission.

McMASTER HUTCHINSON & CO.

page

25

8

The Commercial and Financial Chronicle

(1972)

Dealer-Broker Investment

Current Developments at the SEC Candidates Wanted

send interested parties

with the present

the following literature:

&

& Co.,

Broadway, New York 5, N. Y.

ment Securities

informa¬
Develop¬

Co., Inc., 1033 Thirtieth Street, N. W., Wash¬

ington 7, D. C.

to

is

Bulletin

—

—

the

Aetna Securities

Corporation,

vestment

Group

here

Atomics,

Inc.—Circular—J.

F.

Reilly

Inc.,

Co.,

&

Manuscripts

—

Booklet

describes

services for

31st

distributing books — Vantage Press, Inc.,
Street, New York, N. Y.

Business

Outlook—Analysis—Hirsch &
York 4, N. Y.

New

Chemical

Fertilizer

curities

Industry

Company,

Co., 25 Broad Street,

com¬

Se¬

Washington

Otemachi, Chiyoda

Ward, Tokyo, Japan. Also in the same brochure are analyses
the Japanese Oil Industry, Metallic Titanium Industry

this

and

among

Growth

Bros.

&

able is

Pointers

I.

du

Pont

Affecting Securities

—

&

Booklet

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

a

Co.,

Sutro

—

Also avail¬

study of Cleveland Cliffs Iron Company.

S.

Taxation

Conventions

Analysis — Nomura
Securities Co., Ltd., 61 Broadway, New York 6, N. Y.
Also

in the

issue

same

"Nomura's

—

Investors

Beacon"

are

discus¬

sions

of Bank Rates, and analysis of Business Results and
Outlook, and analyses of Mitsui Chemical Industry Co.,
Ltd., Sumitomo Chemical Co., Ltd., Tokyo Gas Co., Ltd.,
and Tokyo Electric Power
Co., Ltd.
Manual

Co.,

of

120

Sugar
Wall

Companies

1954-55—32nd

edition—Farr

Street, New York 5, N. Y.—$3.00

1956

Forecast—Study—National Securities &
ration, 120 Broadway, New York 5, N. Y.

per

Research

&

copy.

Corpo¬

Ill Growth

Stocks—Brochure—Merrill Lynch, Pierce, Fenner
& Beane, 70 Pine
Street, New York 5, N. Y.

Over-the-Counter Index—Folder
showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter
industrial stocks
used

yield

in the National Quotation Bureau
Averages, both as to
and market performance over a 13-year

National
York

4,

Quotation

Bureau,

•

Inc.,

46

Front

period —
Street, New

N.' Y.

Personal Property Tax Free
Long Dividend Paying Stocks—
—List of 185 isues tax free in
Pennsylvania—Moore, Leonard
&

U.

Lynch, Union Trust Building, Pittsburgh 19,| Pa.

S.
115

Industries—Five-page analysis—J.

R.

Williston

&

Co.,

Broadway, New York 6, N. Y.

Canada—Analysis—Burns Bros. & Company, Lim¬
ited, 44 King Street, West, Toronto
1, Ont., Canada.

Aetna Insurance Co.
pany, 22

—

•

•

Memorandum

John C. Legg & Com¬

Light Street, Baltimore 3, Md.

American Express

Company—Analysis—Ira Haupt & Co., Ill

Express Company—Analysis—New York Hanseatic
Corporation, 120 Broadway, New York 5, N. Y. Also avail¬

school

a

bulletin

bonds

and

State

on
a

Atlas Steels Limited

repolt

Board
on

of

Education

of

Florida

Potgietersrust Platinums.

Analysis — L. S. Jackson & Company,
Limited, 132 St. James Street, West,
Montreal, Que., Canada.

Corn

Government

Products

—

Refining

Company

—

Company—Report—Thomson

Analysis

&

Mc-

—

public interest of the
vitally important securities mar¬
kets.
These
periodic
meetings
have been part of our long stand¬
ing practice at the Commission.
There
of

—

Circular

Morgan & Co., 634 South
Spring Street, Los Angeles 14, Calif.
—

Continued

on

were

Since

page

46

some

interest

you,

I

touch

them

on

am

briefly.

illness of

the unfortunate

President

IBA

that

will

to

these

by

thinking

and,

these

going

discussed

with

Commission

the

of

number of topics

a

interest

current

groups

Eisenhower

occurred,
stock market activity and prices
have been very much

in the pub¬
eye.
You will remember that
the Monday after the bad news
came
out
of
Denver \the
New

lic

market

suffered

a

severe

break, and on several days in
succeeding weeks lesser
breaks
occurred.
Taking
the
the

as

whole, although much

a

also

of

list has

the

New

York

rities

of

have varied up and down by con¬
siderable amounts.

So, first,

thinking you may be
particularly interested in learn¬
ing something of the Securities
and Exchange Commission's reg¬
surveillance

will discuss it briefly.
tions

observes

'

so

to

as

work, I
The Com¬

market

condi¬

address
the

Chairman Armstrong
Southeastern
Group of
the

Investment

Bankers Association of Amer¬

before

ica, White Sulphur Springs, W. Va., Oct.
1955.

29,

tee.

Chairman

of

the

Com¬

James

L.

Hazelwood,

Krebs

issuer

same

under

except

a

on

an

James

Life Insurance

L.

Hazelwood

hearty

Company, extends

invitation

all

to

insur¬

executives and personnel di¬
rectors to submit names of candi¬
ance

dates

for

the

"Insurance

Men of the Year"
before

Monday,

Young
designation on or
Nov. 28,
1955.

Names should be sent to Chairman;
Hazelwood or to any member of the
board's

O.

selection committee:

Fred

Comstock, Jr., Vice-Chairman,

John

specified

Mc-

Agency, Aetna

C.

per¬
secu¬

&

Williams

Weghorn Agency;

David

Pearson, Treasurer, American In¬
ternational Underwriters; George
Bruce,

Insurance

Committee

the

Atlantic

The

Commission

stabilization

facilitate

of

re¬

securities

distribution.

These

to
re¬

quirements, like the general antimanipulative standards of the
statute,3

operate

to

prevent

per¬

engaged in distributing a se¬

sons

curity from creating active trad¬
ing or raising the price in order
facilitate

to

subject

to

closure

and

operate

to

distribution except

a

requirements
other

addition

to

dis¬

which

deception

advantage being
the buying public.
In

of

controls

prevent

unfair

or

taken

these

Fernand

Ba-

William H.

Thomas, Aetna Insur¬
Group; or to the Board's

ance

Administrative

Secretary,
Miss
McGarry,
291
Broadway,
New
York
7, N. Y.
(BArclay
7-9494).

Jean

of

specific

Mutual;

rauch, Home Insurance Company;
Diefendorf,
Home
Office
representative, Aetna Life Insur¬
ance
Company; Alan Baker, In¬
surance Society of New
York; and

John

Qualifications for Awards
These annual awards

are designed
give well deserved recognition

controls, the statute and the Com¬

to

mission's

to young men who are

potentially

the

the

of

rules

manipulative

prohibit

the

use

deceptive

or

de¬

vices and contrivances in
tion

with

the

securities.*

purchase

Under

connec¬

or

these

sale of

require¬

future

leaders

industry.

ance

awards

of

in

three

years

be

tions

be

must

York

New

must

insur¬

To qualify for the

nominees

ployed

ments it is unlawful for any per¬
son
to effect a series of transac¬

em¬

City,

have

and 36.

in

security

creating
actual or apparent active trading
in the security or raising or de¬
pressing the price for the purpose
of inducing the purchase or sale

ments

of the

who

any

security b.y others.

the

in

These

awards

business, and

the

between

the

in

of

21

form

of

ages

testimonial scolls will be given to
the young men

from various seg¬

insurance

the

of

best

are

industry

qualified and

who

best

Rule

Against Manipulative and

Deceptive Practices
The

Commission

enforces

this

exemplify the true represen¬
tative spirit and tradition of the
insurance
industry.
The
presentations

will

manipulative and
deceptive practices in a variety of
ways.
We inspect the books and

luncheon

Thursday,

records

Avenue

prohibition

and

of

our

things,

of

brokers

and

dealers

inspectors, among other
review
transactions
re¬

in such books in the light
anti-manipulative
standards.
investigate complaints coming

corded
of
We

to

us

from

tomers

and

carry

by

by

commit¬

cently adopted rules dealing with

the

public, from

from

Continued
1

*An

this

Chairman, C. J. Reid & Co., Inc.;
Guy Hill and Charles K. Bair,

out
the
mandate
against

Congressional

en¬

of

paying other
purchases of

the

conditions.2

been

on

from
solicit

to

persons

the .distribution

exchange

stock

regained, neverthe¬
certain days stock prices

an

prevent

in

of the initial reduction in market

*

Capwell

sons

the

mission

Laird, Bissell & Meeds, 120
J°^r aiT'
York 5, N. Y. Also available is an analysis
of Manufacturers
Trust Company.

Emporium

tion in

ular market

Kinnon, 11 Wall Street, New York
5, N. Y.
Deere &

us

on

security

statutory responsibility given
by the Congress of the regula¬

less,

American

is

the

Commission

discourage "bear raiding." Our

gaged

Commission on Wed¬
nesday, Oct. 26. The Commission
gains a great deal from such op¬
portunities to meet with industry
and other groups to hear about
their problems and
discuss our
regulatory problems, all looking
toward
our
better
carrying out

the

exchange which
generally prevent short sales on
a
declining market.1 This serves
to

undertaken

annually

a

effected

rules

Exchange

values

Broadway, New York 6, N. Y.

able

them-

They met with the Securities and

month
—

effect

has in effect a rule covering the
prices at which short sales may be

agencies.

J. Sinclair Armstrong

York

Uranium in

»

in

has

directly

example,

selves and

1

Investment Opportunities in Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill Broadway, New York 7, N. Y.

Japanese-U.

rules

with various

Stocks—List—Francis

Street, New York 5, N. Y.

Income Tax

week

conferring

the Cotton Spinning Industry.

Wall

in

were

of

Deflated

Commission

For

mittees of the
As sociation

2-chome

8,

The
various

cedures.

the

of

Board of Gov-

120

in Japan—Analysis—Daiwa

Limited,

Commission

ernorsand

pro¬

moting and
West

the

created.

was

Year"

mittee,

before

regulating
trading on exchanges, and the ex¬
changes themselves have many
more self-policing rules and pro¬

bers

CN

White

at

market

manipula¬

various

Broadway, New York 4, N. Y.
Book

In¬

Sulphur
Springs. Mem¬

42

is

tion, rigging, pools and the likethat
were
typical in the stock

Association

"1955

awards, a
project which

the

the

of

Bankers

The

security issues.
—

the

Young Men of

the

types of abuses

looking

s

Insurance

me

conference

be with

i

for

of

pleasure

Broadway, New York 6, N. Y.

Basic

i t

for

great

a

Southeastern

Automation Stock
111

It

new

Board

for candidates

rules; (3) the speculative enthusiasm for

on

Com¬

Youngmen's

The Trade, Inc., of New York
City, takes pleasure in announcing

stock market; (2) the results of recent Senate

information

Atomic Reactor Diagram in four colors with portfolio
tion on Atomic Fund as of June 30, 1955—Atomic

the

of

of

the implications of the

Atomic Energy Review—New booklet—Harris, Upham

Young Men of Year

Once again the Insurance

"penny stocks," particlarly those in the mining industry; (4)
Fulbright Bill, and (5) the implemen¬
tation of the new amendments relating to dissemination of

Industry—Bulletin—Harris, Upham

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

120

Commission

investigation of the stock market, and the working of the
Commission's proxy

Atomic Energy and the Oil

Exchange

and

Among current developments discussed by Chairman Armstrong
are:
(1) the Commission's surveillance work in connection

firms mentioned will be pleased

understood that the

Securities

mittee

Recommendations & Literature
to

Ins.

By J. SINCLAIR ARMSTRONG*

Chairman,

It is

Thursday, November 10,1955

...

Rule

on

page

and

be

held

at

Dec.

a

15,

at 12 noon in the Grand Ballroom

of

Hotel

the

York

and

Roosevelt,
45th

Madison

Street

in

New

City.

.

II

n

POWBll

J3HI6S

Celebrates 33rd
nnim

46

Wedding Anniversary

X-10A-1.

2 Rule

cus-

brokers

on

X-10B-2.

3 Securities

10(b)

and

4 Rule

Exchange

15(c).

X-10B-5.

SAN FRANCISCO. Calif.—GerAct,

Sections

aldine and James B. Powell (Har¬

ris,

Upham

celebrated

their

of

&

Co.)

the

33rd

wedding.

on
Nov. 6
anniversary

They

are

the

parents
of
a
daughter,.
Frances Lee, and a son, James, Jr.

proud
An

Uomimt $mt*itles

Primary Market

anniversary dinner was held
California Country Club.

the

at

©0., ltd.
Member

National Homes
A

&

N.A.S.D.

Broker and Dealer

B

Material and Consultation
on

Japanese Stocks and Bonds

Troster, Singer & Co.
HA

2-

2400

Members: N.

Y.

without
NY

74

Trinity Place, New




obligation

Security Dealers Association

York 6, N.

Y.

1-

376

61

Broadway, New York 6, N. Y.

Tel.|

V
I
I

Phila. Sees. Assn. To Hear
PHILADELPHIA, Pa. —Donald
Reichelderfer, Controller of ArmSteel

co

Corporation, will be guest
a luncheon meeting of
Philadelphia Securities Asso¬

speaker at
the

ciation

Mr.

BOwling Green 9-0186

.Head

Office

Tokyo

on

Warwick

be

Tuesday, Nov. 15, at the
Hotel.

Reichelderfer's subject

"Looking Ahead

Steel."

with

will

Armco

Number 5480

182

Volume

have gone back into the

Steel Profits

the

on

In

Uptrend

1946

industry

net

did

1954

to

out

pay

Earnings

1

Republic Steel Corporation

its

of

Vice-President in Charge of Sales

business,

only three of the nine

from

By NORMAN W. FOY*

earnings

steel

the

much

as

years

half

as

dividends.

as

panding and improving its facili- the government announced a
ties.
The growth of production change in taxing policies "which
capacity was a miracle such as the have their effect on expansion.,

small during the

were so

years—the four years immediately preceding this period—that

have enjoyed,
measured

by

sales.

of

lean

many

only

are

years,

they

beginning to reach the level most business corporations

now

Mr. Foy traces profits in the steel industry

per

Wars

as

steel

omitted from
not

are

be.

to

our

profitable
would

industry,

them

cent return on investment and as percentage

Foresees continuing increase in

were

we

the

aged about three cents

aver-

the sales

on

dollar.

by steel companies to expand production in order to meet
rising consumer demands.

them

six

In

of the

nine years in this

since

Ever

Adam

driven

was

aged

to

was

return

in-

total

on

dends, while from

That

penalty for violating the

his

net

ufacturing industries. On this ba-

work

had

9.2%

a

no

for

living.

a

law

of

God.

And

in

many

sis

As

late the

man

as

of

further,

earth,

30

bility to its customers and to the

through 1945.

figures

industry

steel

the

neglected

even

that for the last

find

we

years

back

and the

stockholders—were

the

during

war

depression

years.

been behind "all manufacturing."
Nevertheless, when profits sub¬
Moreover, the figures at which
improved
and
other
fixed assets are carried on the sequently
ing animals or books are far below present-day factors in the production picture
by hunting the replacement costs.
Hence, earn- demanded,
and
got,
increased
wild, beasts ings are stated at a much higher shares, the owners plowed large

only by
growing vegetables, or rais-

he
Vv.

existence

roy

^'binh

committed.

he

rials

he dis-

puted

i+u

human clever¬

With traditional
ness

.

this

and

.

.

happened

so

hadn't

in the game that it
time to become a tradition

early

.

he

.

.

also learned that by

supplying the
capita] he could employ others to
work for him and perhaps earn a
profit from their labor.

In the

through
age(j

a

A

in

was

that

this

day he measures it in dollars or

profits bv this measurement
a

Meanwhile,
grown

the

until

who

man

complex

more

could

than

the

survive

it is obvious,

of

Ures

were

average

the

reliable

most

and prosper in

banking institutions in the

out

try that the steel industry's prof-

this country withregard to the lot of his neighbor has disappeared along with

the

drives

basic

the

remained

have

same,

seeking

of

instead

but

Our

rifle.

flint-lock

and

food

its

the

over

last

modest indeed.

30

as

when these earnings

maintain

standard

our

of

for a common business
such as a corporation, we

together
purpose,

a

little more money

spend.

In the case of the
would call that

take in

must

than

we

individual,

we

savings; in the case of cor-

money

porations, it is called profits.

-

'

would like to dis-

That is why I

Once the plant began operating,
however, the law permitted the
owners to write off their investment at a more rapid rate than
would normally be allowed. The
net effect of this did not neces-

m,

,.

,

.

,

this new round
fired just last
when Republic announced

expansion

month

*

Iqo/
.

.

This

,

is

creased
have

money

for

period

our

what

over

they

,

^o

J10™

problem is

de*ined, the fact remains that it

a^ays J]as

en
,1S ma"~
agement s responsibility to make
decision

for

or

$90,000 worth of
each
individual

for
there.

But|

were

was

four

$100,000.

over

Tairless pointed out,

Mr

thft i/nniv
SOnrces

That

The cost today would

ago.

well

of

the

hL
iron

hLinnine
to

rlevelon
onen

ore

The

Let's

spent since the end of World War try took the gamble of expansion
II for growth, $2.7 billion, or 42% .and paid very heavily for it. The

of the total, was available from
earnings. The rest of the money
had to be borrowed. But you can
borrow from banks only if you
can assure them that you will be
able to pay the money back. You
can raise money from individuals
through sale of stocks and bonds,

T,

the

1946

1954, the industry
$6.4 billion in ex-

through

invested

over

with

is a profitable busi- half times the percentage increase
record of paying a in capacity Except for 1953, the

a

return to investors.

postwar expansion were, and con¬
tinue
to
be
tremendous.
From

207% above the debt burden
which the industry was carrying
at the end of 1945. This, you will

your company

new

industry's

steel industry added 37% to its
steelmaking capacity between the
start of 1946 and the end of 1954.
By the end of 1954, steel's longterm debt had risen to a level

Btrt again youhait'timthe ™r"entapea"ncr°"se

ships and

on

In the postwar years the indus-

Of the $6.4 billion

"ess

The costs of the steel

Steel Industry

how it was done in the t

see

it

,,

,

,

industry s debt rose steadily in

the postwar period until it reached

.

capita? and

must

borrow the funds
then it
adequate profits.

have

*L5 biUion at the
'

expansion,

for

needed

,

.

.

was a

strongly

All of these

time

in

recent

weeks when

appears as a

not, of course, be permitted to
continue. Many things were and
are

shares having been sold, this advertisement

labeled

such!

as

NEW

matter

of record only

November 7,

ISSUE

1955

expected of the steel industry,

As the foundation of

.

standard

our

living, steel, and plenty of it,
must be provided to meet our peopie's

needs.

shown

These

steady

a

needs

growth

as

4,1

V

'/-•i

of

500,000 Shares

have
the

trend line of individual consumpThis trend line has
cpx/pfol

profits

Steel

are

years

Profits

Steel

in

Rise

after

Not

lean

many

only now beginning to

mands

on]y ha,,e individual de.
increased but our rapidly

increased

porations have enjoyed for a long

steel.

time.

to

But what are we talking

talk about profits? There

we

two

about

of measuring prof-

ways

6% Non-Cumulative Convertible

expanding population has further

reach the level most business cor-

when

METALLURGICAL RESOURCES, INC.

flppsHpC

the

outstrip

for

demands

Demand

present

leaps

and

percentage of return on
investment or as a percentage of

build

sales.

(Par

Value

$2

Per

Share)

but

supply,
grow

in J

bounds for decades to

H:

Price:

$2 Per Share

M. S.

"

come.

Preferred Stock

more

not only threatens

promises to continue to

GERBER, INC.

the

its—as a

Let

us

take

the

figures of the

National City Bank of New

First
York.

.

In the

both
a

meet

a

iron

Oct.

this

needed

to*

great demand, *

industry either must earn it,
or
borrow it and then pay the
lender interest for the use of the
money. Either way our ability to

war

peace,

and steel industry aver-

the needs of the nation.

Contrary
♦An

Drop

money

increase production depends directly upon the profit that we can
make. A healthy, profitable steel
industry, therefore, is our best asof tremendous expansion-, surance of sufficient steel to meet

as

period

the

to

the

which covered
period of little building and

well

as

get

16-year period from 1939

1954 which covered

through

To

address

Foryine
27,

by

Mr.

before

the

Chicago,

III.,

Foy

Association,

iS55.




to

some

opinions,

a

substantial portion of the steel in¬

dustry's

profits

in

recent

years

.

.

The tremendus rise in long-term

debt highlights one of the most
The
importance
of adequate 4mnnrfonf factors in steel exnanimportant fortnrs in steel expanprofits was emphasized even more
Continued on page 34
.

.

.

m,

situation which could

a

ex-

company

new

ne'w

£or

coa, mj

advanced steadily during the past

particularly, steel profits.

against

pansjon an(j then raise the capital
^

leading

were

"excess" and taxed
This is

would

,,

the average for all manufactur-

ing industry. Yet there
as

ended,

been

'

the

,

.

.

lot of

a

amortization

was

$130 million program which will
increase our steelmaking capacity
y

rapid

the company's tax payments in-

Steel's Expansion

The first gun in
of

sardy ™ean a reduction in tax
Payments but at most a postponement of these payments. When the

profits with you today—more* tion showed.

cuss

are

1954, but now

the pack, the industry in the past
three decades did not earn as much

things—money.
To

coun-

years

from

Far

clothing and shelter directly, we
seek the means of purchasing those

living—whether we be individuals,
or
groups of individuals banded

be

so

then, from the fig-

of

one

Works of
Corporation

being built, Ben Fairless said
the corporation would have

years

has for all industry.

economy

our

and

more

better

Steel

employed

po"nds or Pesos-

shade

Fairless

production worker who would be

comparison

and

labor

the

equipment

More

ingenuity js the fact that the steel industry
man
has
continued
to produce in recent years has shown a trend
wealth. Instead of measuring that toward more satisfactory profits.
wealth in bearskins, however, to- in four of the last six years, steel
Through

was

horns

Republic

And

tools—the furnaces

to provide about

Toward

Significant

enormous.

States

United

Satisfactory Profits

centuries.

benefit unless profits are realized.

years

There

postwar years.

When

industry averreturn of 5.8 cents on the
all

Trend

bilUon

and immediately raises required to finance it.
the question—where is it going to
come from?
The Debt Structure of the

ayeraged 5.5 cents.

man

the inbillion

have yet to sketch
drawing boards.

their

to

was

try one red cent of capital toward
the construction of a new plant,
Rapid amortization did not even
apply until the plant was built,
and, as you all know, is of no

mini-

hospitals and new highways

on

law, of course,
the building

of new
plants by making financing easier.

which engineers
in

this

encourage

is taking the
and building
capacity which will provide
backbone
for
new
schools,
the

by

new

industrial

ally useless in the steel business,

saies dollar while the steel indus-

has continued to
operate in this fashion through the
Basically

is

steel

mills, the raw materials
and the fuels—even the strongest
and most skilled worker is virtu-

16-year period from 1939

1954,

of

again the industry
bull

must now

and the

to average.

up

skilled steelworker

a

without those

manufacturing industries, the iron
and steeJ incjustry fares better in
this category, but still does not
come

make

to

percentage

a

required to provide

money

the tools for

of return
In comparison with all

as

sales.

on

new

this increased his wealth.

All

The

Net earnings also may be corn-

in

tax purbe carried on the
for

years

life of the facilities. The purpose

a

dividends.

ment cost,

was

developed new mateways to use them,

or

and
:

All

to

Eventually he learned

how to improve his lot as
covered

the

sustain

portions of earnings back into the
business instead of taking them as

percentage figure than would be
the case if they were based on
current construction or replace-

and fowl could

Norman

the $3

came

slowdown

some

new

Plowing Back Earnings

that

Then

the

has

half

of 1951, 1952 and 1953.

could

few

with the That is all it did. The governBy ment did not give the steel indus-

can you

a

written

be

which

War.

when

years

averaged

a

books for the estimated

dollars for expansion in each year

responsi-

management

came

however,

means,

ceding four

strong
.

sign

a

jump

the Korean

of

in

p0ses

mize the achievements of the pre-

dustry

Certainly that is about

business—the

1942

Tracing the

learned

he

of

future needs of the country as
can be found.
The owners of the

to popu¬

came

62%

from

good for

him.

54 to

reinvested in the

for all industry. The over-all average of the steel industry was
reduced
by the wartime years

respects it has
been

was

business.

25% behind the average

we ran

earnings

Plants
off

anyone

sleepless nights.

many

outbreak

vestment. This compared with a
12.5% return annually by all man-

that

The biggest

period, stockholders received less
than half of net earnings as divi¬

from the Garden of Eden, man has

now

made,

were

assurance

no

want

it

there was
would
buy the steel produced by the increased capacity, and still fresh
in the minds of many executives
were the long years when silent
mills and idle capacity brought

decisions

those years—1942

In

through 1945—net earnings

demand for steel

production, and calls attention to reinvestment of earnings

chart.

for

nor

The effect of that change was to
sharply limit the rapid amortizaseems that no other
step could tion program for new construclogically be taken. But when those tion in steel and other industries,
before.

world had
never
seen
Looking back, of course,

war

Staling that steel profits, after

9

(1973)

The Commercial and Financial Chronicle

.

.

.

G. K. SHIELDS &

CO.

JAMES M. TOOLAN & CO.

10

The Commercial and Financial Chronicle

(1974)

Sen.

THE EDITOR:

LETTER TO

Ranks

Byrd

Democratic
On

Men

Eminently Qualified fox

tor

the

High

Why Does the United Nations

side, Sena¬
Byrd.. would

Flood

Fail to Win Public Confidence?

make

President If Eisenhower Retires

an
admirable
candidate,
possessing as few men do, a wide
and practical knowledge cf na¬

By WILLIAM A. ROBERTSON

tional affairs and the fundamental

requirements necessary fcr

Pending the outcome of President Eisenhower's personal deMr. Wilson draws

sires,

tinuance

sympathetic picture of the Presi-

a

his

political future, reciting record
country and to mankind and emphasizes

our

concilitory efforts to establish Peace

President

Eisenhower's

wishes

Secretary

Wilson,

tor

successor.

whereas

;

bril¬

a

Harry

F.

like

men

Byrd

ments

'

the office with

of

diiional

;

"One World" concept, and concludes "we

,

Chronicle:
Much

Fix

has

weeks

and

been said

about

the

his

and

President

unfortunate

But politics and

past

possibilities

of

consequences

Eisenhower's

these

illness

be

can

on

ruthless

in

their

demands

country's idols and heroes
especially when there is an

our

and

election

pos¬

political parties

be

to

and

won

sible

retire¬

of

ment

from

horde

a

tinued in office.

party officeholders to be

con¬

,

10 years ago.

almost

on

his

sonal

there is

per¬

and

success

in

4 i

o

the

ful

asset

best

of

tinuing

another

President

and

in

Party

four

Eisenhower's

Charm

His

is

Republican

for

power

Alexander Wilson

con¬

the

actually bursting during tne
exigency with
capable

M.

Personal

John

Foster Dulles Well Fitted

Republican

a

need not look any

President
where

of

all

in

men

sorts

this

and

great

country of ours regardless
party affiliations and ties. He

of

is

first

His

critics

have

admit

to

Eisenhower's

qualities of

heart

and

that

personal
mind

and

his

acknowledged capacity and
ability as the head of the Allied

and

American

armies

was

suc¬

cessful in delivering Europe from
the strangling clutches of Hitler
and

Mussolini.

Eisen¬

Indeed,

hower's selection

Commander-

as

in-Chief of the Allied Armies
another

and

a.

to

should

President

than

hower's

Cabinet,

other choices of
calibre

tial

in

I

The price which the United Na¬

have

Secretary

accomplishments
than

older

at

ages

It

is

possible

quite

political

observers

President

that

In'the

he

is

a

not

some

Weeks, all heavyweights and

men

his

after

second

M.

the

Dulles

event

be

cannot

lead

his

tion,

that

John

at

prevailed
the next

on

to

Court

seem

that

as

we

ap¬

and

public services, he has richly
his country and mankind,
having to undertake an¬
other strenuous job of leading the
Republican Party to victory again

served

without

should

be drafted to

not

order

the

of

Presidential

in

the

spending the autumn of his
steering the Ship of State
four

ketfull

of

aspirants

California

of

eligible

would

be:

(1)

ism

in

men

in

alone

the

peace

and

still
to

our

thinks

him

loves

Nature's

is

attack

which

and

and

him

so

the

recent

Presi¬
heart

clear warning
nation, which

well, that the time

persuasion

cajolery should be abandoned
to
the President's

deference

own/

to

The
States

that

f]as arrived when party
in

are

dangers

many

Eisenhower's

dent

wishes

retire

well

to

earned

if

Writer

he

should

choose

private life and to a
rest




on

his farm

at

on

WILSON,

Political

the

State
other

and

Senate

who

prosperity.

Sons

Who

May

favorite
who

will

Presidential

sons

be

of

Subjects and
International Problems

Millburn, New Jersey
7, 1955

Henry

various

Trust Go. of

Georgia
Promotes Forestry

ATLANTA, Ga.—The

board of

be

institution.

(Mass.); Gov. Goodwin J. Knight
(Calif.);
Senator
Knowland
(Calif.);
Senator
Saltonstall
(Mass.); Senator Styles Bridges
(N. H.); John W. Bricker (Ohio)
and

Senator

Dirksen

(111,).

-and

us,

Our
own

our

—

personality

projected

of world life and

to

country,

a

is

to

of

Phila. Bond Club
Luncheon

ing.

of

the

45

United

requires

Na¬

mem¬

immediately avail¬

i,

Meeting

Dr.

Warwick

Hotel.

Cyril F. James, Principal and

Vice-Chancellor

of

McGill

Uni¬

versity, Montreal, will address the

meeting
of

on

Economic

the

obligations

means

in

the price

to fulfill his

action,

.

de¬

when

the

Does

Nations Ask

Member to

a

Security

to

is

clothed

the

with

The General

act.

than

more

is

;

Council

Nations

is

a

the

of

part

of

it

real -power

Assembly is
glorified de¬

one of

reported

sections

chapters.

by all the members of the United
Nations," or only by some of them,
determined

as

soon

and

be

Security

Council

types

of

negotiated.

as

Council,"

between

the

to

be

Security

and

members," or groups
members, and "shall be subject
ratification by the signatory

states

in

accordance

respective

with

their

constitutional

,

proc¬

esses."
This

Means
render

Unconditional

of

a

Nation's

Ponder this with
facts

in

the

face.

Sur¬

Self

Look the

care.

There

must

be

unconditional surrender of al¬

an

most

everything

holds dear in

that

the way

nation

a

of its

own

liberties

and

authority,—its right

war

or

make

people

are

of

these

in

what

the

Se¬

fit.

member nation has

a

dispute

or

misunderstanding with other na¬
tions, the Security Council may,
what

volving the

measures

use

not

of armed force

would

It

may

call

upon

nations

to
apply such;
include complete
interruption of eco¬

"these may

partial

and

defense. If

be within the power of 11

persons,

for

that

is

the

number

individuals composing the Se¬
curity Council.
of

Who is ready for this?

relations and- of rail, sea,
air, postal, telegraphic, radio, and
other
means
of
communication,

Abject Surrender

to Be Made?

What

entire

is the composition

of the

body

to whom this tre¬
mendous surrender must be made?
What claims upon our confidence

credulity does it possess? "The

going,"

man

is

looketh

advice

well

urged

15),

v.

and is supported
experience.

own

of

to

upon

by the Book of Proverbs

in¬
are

employed to give effect to

decisions."

The

to be stripped of their

offense

To Whom Is This

contained

Realize

have peace.

the whole world were included
in the United Nations, the welfare
of
untold
hundreds of millions

its high

By Article 41 of chapter 7, when

member

to

"concluded

prudent

sees

be

Council.

possible "on the initiative

as

the

of

numbers
are

or

to

the

3, that agreements to "gov¬

the

ern

forces"

if it

its

by

Article 43 provides in
paragraphs

curity Council is authorized to do,

"decide

of

that

says

to have said

"

closely at the Charter of
the United Nations, especially at
chapters 5, 6, 7 and 12. Scrutinize

a

limits

required to carry out the

48

Council's decisions must "be taken

Look

the

the

actions

means

United

Surrender?

United

within

43.; Article

to

Exactly What

The

the

of

for their
be "determined" by

to

are

strength

plans

Article

are

manded.

and

the

severance

relations."
matters

in the

of

of

Control
vital

diplomatic
these

over

importance vests

Security Council.

By Article 39 of chapter 7, the
Security Council "shall determine
the existence of any threat to the

breach of the peace, or act
aggression," and may; decide

peace,
of

"what

measures

accordance

"Responsibilities

Leadership."

as

and

Council

"The

readiness"

his
us

(ch. 14,

by

our

The United Nations is
composed
60 members or countries. The

complete list is. best appreciated,
if it is broken
up
into groups,
showing to what parts of the earth
the

various

members

belong,

as

follows:

nomic
f-

meeting of the Bond Club of
Philadelphia
will
be
held
on
Thursday, Nov. 17, 1955, in the
the

com¬

Such loss and surrender

if the member

of

The

spells k

membership. This must be paid,

''

PHILADELPHIA, Pa.—A lunch¬

of

self-

individual.

an

either

mands of its members

and

eon

Ballroom

what

just,what the United Nations de¬

t

i n

action

us,

the

of

affections.

our

canvas

t

.

■•J

before

Stassen; Gov. William G. Stratton
(111.); Gov. Christian A. Herter

rest

claims upon

ourselves

degree

the

plete loss of character and stand¬

used

during the next two
or
three years to promote fores¬
try and the development of for¬
estry resources in the State of
Georgia.
An elaborate brochure
discussing the aims of the pro¬
gram and the forestry resources
of the state has been prepared by
to

as

Dewey (N. Y.);
Lodge; Harold E.

"hold

forcement action."

of

respect

or

mentioned

of

Article

to

able national air-force
contingents
combined
international
en¬

<

officials

.

t

Tom

Cabot

the

bating society; and

Nov.

the Republican Convention meets
in 1956 will very likely include:
Ex-Gov.

is

little

Receive

possibilities

is

the

that

Consideration

in¬

country and to the world.
writer

The

to

with

fraught

ALEXANDER

the

Favorite

its

in

absence

Georgia has appropriated $50,000

have plenty of background to win
on
the i Eisenhower
record
of

of

years

more

difficulties

ternational

members

tions."

2 and

This feeling is not mean or self¬
ish: far otherwise. True national¬

succes¬

situation
Vice-President

in the

and of

through

of

to

present

sion

directors of the Trust Company of

highest office within the gift of
the people.
Then there is a bas-

independence

everything to

above

distinctive

generally known that

Warren

serve

and

its command of

upon

indi¬

as

thought.
is

elec¬

and

Earle

far

country

Succession
It

Foster

was

Justice

is

world

Baruch

We

proud of the

are

substantially this.

man

when

ourselves

we

America is

own

country.

beloved United States. Our

our

and

and ex-President Herbert Hoover.

or

party

own

individualism
of

gins, to join the country's "Elder
Bernard

of

minds

deep-seated

a

own

his

to

viduals, and

be¬

term

of Presidential stature.

In

necessary,

"Such action may include demon¬

contingents

and

is

jealous of

are

inca¬

pacitated, with John Foster Dulles
his running mate to succeed him
and then ethically resign some¬
time

extends

renomination

totally

price

personality,—
his individualism; and this feeling

could

.

as

Charles

clair

hearts

there

feeling of his

conclude

may

Eisenhower

honorably accept

provided

that

That

pay.

personality.

own

everyone

Erwin
M.

demands

Dulles'.

Mr.

three

Wilson, Secretary George
Humphrey and Secretary Sin¬

further; for the

thinks

strations, blockade, and other op¬
by air, sea, or land forces

is its

Mr.

78, consummated their highest

of Presiden¬

men

crisis

occasion

praise President Eisenhower's life

life

explain.

tions

78, Toscanini
AlbertEinstein 75,

Eisen¬

right

a

tory.
would

the

win

not

at

Cabinet

choice

world

the

meet

was

tragic period in the world's his¬
It

does

a

and

Secretary Wilson or Sec¬
retary
Humphrey
or'
Secretary
Weeks do not respond.
Supreme

historic

where

found

drawing card. "For
it

of

if

may "take such action by air, sea,
or land forces as
may be necessary
to
maintain
or
restore"
peace.

ing country wil

late

candidate,

properly
be
the
of
Secretary
State, Johji Foster Dulles, who
has handled our international re¬

further

future World War III.

President

This

it

bers

.

a

great

ef¬

more

war.

even

Council,

:

,

erations

Baruch

XII

Nixon; (2) the Speaker of the
with
such
distinguished House; (3) the Secretary of State;
generally regarded by the elec¬ lations
ability, recalling the prescience (4) Secretary cf the Treasury;
torate as typically American,
a
(5)
Secretary
of Defense;
(6)
type of President such as we have and diplomatic skill of a John
Attorney General; (7) Secretary
not had in the White House for Hay, Benjamin Franklin, Richard
of the Interior;
(8) Secretary of
Olney,
Elihu Root
or
Charles
many a day.
Agriculture;
(9)
Secretary
of
Evans Hughes in their hey-days.
His varied experience with our
Commerce; and (10) the Secre¬
No man is more familiar with
War II allies and other foreign
tary of Labor. The Secretary of
nations and his familiarity with President Eisenhower's policies or
Health, Education and Welfare
their problems has fitted him in peace objectives than John Foster
would
not
be
included
in
the
an unusual way for world leader¬
Dulles, who has specialized all Presidential succession as estab-%
his life in the study of inter¬
ship and the pursuit of a peaceful
lished
by Act of Congress ap¬
national law.
Without going any
solution
of
jthe harrowing cold
proved July 18, 1947.
war or

to stop

was

reason

far

be

to

V

-

ticle 42 goes

of a member is
something which no self-respect¬

Pope P.ius

further than

Eisenhower's

my

our

for

83,

What Is the Order of Presidential
For

fallacy in the
endangering

are

nation.

a

to

For the Job

we

Sees

large part of the
American people. Why is this? A
plain statement of facts will help

such

Bernard

its

some

Churchill, the
late Georges Clemenceau, Herbert
79,

launched

was

It followed the old

was

confidence

Winston

Statesmen":

Capacity

to

big enough today

present

endeared
condition

as

account of

(67) when it is
world| states¬

age

that

as

men

It

ficient; it
was

that

him now,

and his business moderation have

him

assume

Presidential candidates.

years.

homespun
qualities,
his
and unassuming manner

modest

man

to

Republican Party to suc¬
which is like say¬
ing that this country will never
again
see
another
Washington,
Jefferson, Lincoln, or a Robert
E. Lee when the country in truth

make

n,

no

is

the

ceed

a

Administra-

him

assume

Eisenhower

D.

popu¬

larity,

that the

Republican
Party cannot win the next elec¬
tion without renominating Dwight

hand

every

that

To

con-

ceded

recalled

such

man
on

element in

disappointing League of Na¬

tions.

hestiation

no

any

Foster Dulles

mature

86,

Election?;

is

It

be

seU.

things^-intellect, resourcefulness, the quality of
know-how," all of which constitute the spiritual and personal.

The United Nations

sagacity

nation's

a

and Chancellor Konrad Adenauer

Can Another Republican Win the

his

present term

expires.

nominating

John

his

Hoover

political life
when

in

should

cf

,

Age Is No Barrier to Nomination
There

surrender

*

and foresight.

Gettysburg during the remaining
years of his life.

v

best

own

Sena¬

and

Editor, Commercial and Financial

Bar

r

Senator

or

of New York

Asserting the price the United Nations demands of a member,
i.e., the price of i-s own personality, is something no respecting
country will pay, Mr. Rcbertson says this price means uncon-

versatile

Walter F. George seriously would
meet
the
day-to-day
measure¬

Humphrey, Secretary Weeks,
Supreme Court Justice Earle Warren and others as being well
Secretary

qualified to be Eisenhower's

Stevenson, while

and

rhetoric

Sees John Foster Dulles,

reasons.

pros¬

gentleman,
has since his former
candidacy
lost a lot of caste for his levity
and humorous but witty political

regarding a renomination
he desires to be relieved of

should be respected in the event

responsibilities for health

Adlai

liant

Believes

Earth.

on

iviember

a con¬

country's

perity and business confidence.'

dent's physical condition and
of his services to

the

of

Thursday, November 10,1955

..

fcr

Nomination

Democratic

Harry

.

42

to

with

maintain

shall be taken in

Articles
or

restore

41

and

inter¬

national peace and security." Ar¬

The

Membership of the United
Nations Shown According to
Countries
,

Asia

(14 in all)

A.fghanistan;

Burma; China;
India; Iran; Iraq; Israel; Lebanon;
Pakistan;
Saudi
Arabia;
Syria;
Thailand (Siam);
Turkey; Yemen.

Europe

(16 in all)

Belgium; Byloe Russia; Czecho¬
slovakia;
Denmark;
France;
Greece; Luxemburg; Netherlands;
Norway; Poland; Sweden; Ukrain-

Continued

on

page

26

,.d«wK.»i ><»****

Number 5480

Volume. 182

The Commercial and Financial Chronicle

...

has

5

The Next Twelve Months—

served

only

process to

a

as

catching-up

compensate for

deficiency which has existed

for

What Can

The Railroads Mast

seri¬

a

ous

30

Also, future
population, growth should justify

Happen

or

so

years.

Boeltcher and Company, Colorado Springs, Colo.

President, Association of American Railroads

continuance of the present level of

-

Spokesman for railroads, stressing need for improved facilities,
more than $1
billion annually on capital improvements and new equipment.

points out railroads in last decade have spent

tion facilities, then, despite popu¬

Members, New York Stock Exchange

lation
seem

Stock market analyst discusses the pros and cons

regarding
.the business outlook for the coming year, and concludes that
if one is to adopt a neutral attitude toward the; immediate
future, he should not expect any large advance in the stock
market on top of the rise already enjoyed. Looks for a long
period of, fairly quiet markets within a narrow trading range.

growth, it would hardly
probable
that
productive

•

Sees

difficulty in obtaining needed capital to compete with
lists the sources of capital
funds. Advocates more freedom for railroads in rate making.

capacity will continue, to expand
at the same1 rapid rate. Rather,( a

other forms of transportation, and

leveling off is to be expected and,

therefore,

expanding

an

impetus

In the 10 years—1946 through
tor,therefore, should be regarded 1955, both inclusive—the railroads
as more stabilizing than dynamic^ have
spent nearly $11 billion in
at least for the next few years.
capital improvements. They have

$1 Billion

will have been-removed. This fac¬

;•

,* With

booming

our economy

greater than ever before in his¬
tory and virtually all the world
also enjoying unprecedented prosperity, the
great debate

no

to

it

can

last

into

is

Pessimists

1920's.

upward

trend

contend

this

that

is

which

the extent that
will always exist.
that the Federal
money

be realistic,

To

the

with

a

we

the

in

should

more

than

in

times

20

some

tives

cf

and

con¬

trols

quered

and,

C.

Ueurge

>\starua

'essimists
food times will believers in the
last indefinitely,
and

pattern"

in

far

so

to

keep

time

human

as

con-,

creates

which

in

turn

serve

munism

and the redistribution of

business

tary experience gained

during the

there would

seem

to be little like¬

So

it

how,

.

f

o

have

moment

to

see

-source

which first and most

That's why such charges

charges.
are

billion

dollars

of

where, the funds have
found during the past dec-

naturally comes to mind is the
depreciation and retirement

more
a

becomes

and

! The

cars.

spent

than one billion
capital improvement..

more

for

ade>

r

new

tnan

adjustments. I do think, however,
that
government
controls
over

purchasing power now present in
prosperous,
the optimists have our economy will serve to prevent
the better of the argument. More a serious depression.
Because in¬
important, however, is the mone¬ ventories are now not excessive,
can

s

They

business

credit, the necessity for maintain¬
ing a strong defense against Com¬

dollars

freight

inventories

ferment

10 years,

progress

siderably

580,000

human greed

excessive

'

000,000

shall

nature

1

do

pace

year con¬

most¬
s e

the

of the past

spent $3,000,-

war.

be changed, because

require¬

monetary

as

major

d i e

to

are

continue

than

they still must find each

been

has

pattern"

every

such

de¬

margin

ly

—

railroads

the

more

0f

for
21,500

locomo¬

new

operated
I must
conclude that business cycles will
not
be
wholly eliminated until
after

For this reason, therefore,

ments.

business cycle

therefore,

"classic

de¬

the

with

ending

termination

has been

cf bank

guarantee

and

posits

the

"classic

occurred

considerably broader, starting

are

in

era

new

a

acknowledge that monetary con¬
trols
of
the
government today

a

long

say

controlled

Reserve

compla¬

by

business

good

lulled

cency

000,000

managed economy and that gov-; the past 100 years — some mild
ernment controls
mainly those and some severe, but all following
dealing with credit—will smooth upon -the heels of booms.
The
busmess cycles to

being w£ged.
Optimists and
those

that ours is

Optimists claim

$3,3110,-

spent

history is on the side
Recessions have

Finally,

of the pessimists.

—

whether

as

cycles.

if

But

,

-

business

trol

of Capital Improve¬
Annually

ments

.

whether the government can con¬

Carry On!

By WILLIAM T. FARICY*

heavy industry expansion. If we
are
nearly caught up in produc¬

By GEORGE C. ASTARITA

11

(1975)

made—to furnish funds to

re¬

place plant and equipment when

on

it

other types

is

longer suitable for

no

serv¬

of
improved

t.

wHUam

equipment

Faricy

ice.,

price levels, depreciation and re—

with

But

the

increase

in

$3,300,: tirement charges on roadway and
e(*ulPment now furnish less than
structures
such things bs elec- W the
needed for replace2 "[]v -rmirfrw r>if«cifinQiinn ment—so we find that in the past
vawdc
Zi
nnf miipi nf 10"years depreciation and retirecentralized traffic control
ment char§es have averaged only
It h asnot been easy to f?nd the $4™>000,000 a. year, or less than

They have spent another
000 000

improved roadwav and

on

-

n

new

and the willingness lihood of- a business reversal in
funds for such an improvement
breed busts and we are nearing to use
promptly all available con¬ the near future. A change of ad¬
program—but the very things that 7
es*
the
end
of
this
one.
By
the trols.
During the mild recession ministration, however inflation¬
have made it difficult have made
<
T° cover partially the remain"classic pattern" is meant a boom of
1953-4, such controls served ary the new one, might undermine
it absolutely necessary that it be
,56%, the railroads have induring war, followed by three to bolster the economy and to confidence to the point of provok¬
done. For in these same 10 years, creased their outstanding equipyears of adjustment, and then a prevent what might have been a ing a sharp and short-lived reces¬
the average hourly wage of rail- ment debt in the past 10 years by
record boom for ten years or so more
serious
business
decline. sion but technological develop¬
road
employees has more than an average of $180,000,000 a year,
to satisfy
the backlog of needs Now monetary restraints are be¬ ment and population growth, both
doubled and the average level of or nearly 17% of the outlay for
created
during
the
war. * That ing
applied to prevent a boom of which factors work for us while
prices of materials - and supplies j capital improvements,
mythical ten-year period is now and bust.
In addition,-built-in we sleep, should shortly thereafter
has. very nearly doubled.
Com-j • Withdrawals from working
about due to expire. With as little stabilizers serve to cushion busi¬ take the economy to new heights.
bined, these two factors which are capital have averaged $80,000,000
recessions
and
we
know Perhaps the best approach to as¬
prejudice as possible, I shall en¬ ness
responsible for more than 90% of a year — or 7.5% of the annual
deavor to analyze the arguments these to include: employment in¬ sume now is one of mild confi¬
railroad oeprating expense have outlay for improved facilities. The
tinged with a degree of
of both sides and draw some of surance, old age insurance, farm dence
that

say

booms

last

25

years

pxDehdifrrrpfV^age-year's capital

jpore than doubled in the past 10
years. In contrast,, fhe increase in
the stock market is "freight charges as measured ' by
all, and most important,
it can be said that if the pessi¬ sion of private retirement funds. concerned, if one is.'to adopt' a
the average revenue received for
works, now blueprinted, fairly neutral attitude toward the
mists are right and we do go into Public
hauling a ton one mile has been
are
ready for instant execution economy for the next 12 months,
a tail spin, our nation will suffer
only 45%. The gap between rising
conclusions.

my own

social

a

of

and

addition
the

political

and ,in

probably lose most
free
world

of
to

For

else,

this

the

Communism.

on

revolution

proportions

remaining

nothing

optimists have

reason,.

if

their side all the resources and

the

the

of

power

world.

nation

greatest
far

So

the

as

in

possi¬

of another 1932 goes, that
argument in itself precludes such
a
recurrence.
Depressions need
bility

hot be

so severe

to hurt,

however,

the possibility of a
not drastic business

and therefore,

sizable

but

.

be

will

decline

considered.

pattern" is to be
had better stir our

prevented, we
stumps
because

have

we

had

ten-year boom since the

a

end of the

In the past, tech¬

war.

nological development and
of

growth

a rapid
have not

population

prevented workings of the busi¬
ness cycle
and certainly not op¬
These

"classic

the

are

long-term

in

consequence

cline

pattern."

combating a
from boom

resulting

have

de¬
ex¬

cesses.

If

excesses

in satisfying pent-up de¬

mands

we

in

and

doing

to

gone

have

so

ex¬

panded installment and mortgage
debt
to the breaking point, we
be

shall

knowing

in

for

the

trouble.

Without

it

answer,

can

be

pointed out that these debt fac¬
tors are not high relative to the
size of the economy and present
level of personal income but they
would

be high were the economy

to suffer
son,

a

relapse.

For this

rea¬

government officials, during
have been tighten¬

recent months,

ing credit in the hope of prolong¬
ing good business. To the extent
.that
brakes are applied during
the boom, to
props

be

the same extent will

available

tide should the trend

All

of this

military expenditures can be

and

expanded or contracted at will..

High wages and the redistribu¬
about in the

much

to

stem

the

be reversed.

raises the question of




i

advance

expect

not

large

any

of the large rise

top

on

already- enjoyed.
Only the out¬
chance of President Eisen¬

tion

with technological devel¬
and
rapid
population
growth will produce a consider¬
ably larger economy in the years
ahead.
An
economy
twice the
opment

present one 20 years
hence is a good probability.
In
the
meanwhile, however, pessi¬
mists say,
and rightly so, that
of

as

should

he

business and

sustain

to

far

So

„

side

along

size

,

brought
past two decades will

tion of purchasing power

do

caution.

insur¬

expan¬

the

relation to the numbers

only in

employed.

nomina¬
could
take the market to new highs in
the near future. Even this even¬
hower's candidacy or the
of

his

Milton

brother

would produce .a rise of
character and only the
nimble trader would be able to
tuality
frothy

capitalize upon it.
Arguments
market

of

prices

ing
the

imposed

result

the

needs
there

con

earnings and

With respect to

assets

dividends, the market is

Provided

lost.

was

shakeable.

that

his¬

government

realize the

.

this is largely a
with
institutional

It is true that

market

cash

supplying strong support on
reactions.
For political rea¬

funds
all

individual income taxes will
cessity for encouraging business, probably be reduced next year.
present high wages will buttress Inflation at the moment is gain¬
the economy against
any sharp ing headway. Earnings are tend¬
decline.
ing upward and dividend increases
are
becoming commonplace.
In¬
Then there exists the argument
will

continue

to

ne¬

our

cause

productive capacity, be¬

of record expenditures

since

overbuilt and
that, therefore,
heavy industry
must
suffer
a
set-baCk.
This
would throw out of work heavy
construction
employees whose
lack of purchasing power would
adversely affect home and com¬
mercial building, the automobile
industry and others with the re¬

the

sult

war,

is

now

whole economy
collapse. To this argument,

that

the

vestment funds are
of

All

still plentiiul.
however,

be

prices during recent
bargains of yesterday
er

available and consequently

vestment

at' this

level

in¬

assumes

greater risk.

tors involved leads me
a

bullish

to conclude
nor

bearish

approach
need be
adopted.
the optimists answer that we are Rather, I look for a long period of
not overbuilt in productive capac¬ fairly quiet markets within a nar¬
ity and that the feverish activity row trading range. Because, how¬
potential during
in that field during recent years ever, the upside
would

10

been

years,

the

mates

meet

expenditures.
Indeed,
been competent estithat if the railroads are to
to the full the needs of a
for

have

growing nation, in war as in peace
and are to take full advantage of
the technological changes which
will
make possible, ever better
service at the lowest possible cost,
they could well

spend on capital

improvements
in
the next
10
years twice as much as they have
spent in the 10 years just behind
us.

,

doubt if expenditures for the next
five

years—that's as far ahead as
going to try to look—can be
held to such a figure.
For one

I

am

thing, the increase in the level of
and prices has been such
that just to do what was done in
wages

the past 10 years would cost an
of $1,200,000,000 per year
during the next five years,

average

.

Boards,

scry

Pittsburgh,

Pa.,

13,

Oct.

1955.
'

—

the

next

12

months seems rather
policy of upgrading

.

.

_

Freight Car Situation
Thenfl too, there is the need for
improvement in the freight car
situation — a situation which is
troublesome to shippers and railroaders alike. In the year 1954

.*

the

Na;fonafi7s"i»««r»rashipp«i°Advi:

railroads

had

enough freight

carsjto handle the business offered with an
average

daily

sur¬

plus, in fact, of 90,000 cars. But
since Feb. 1, 1954, when freight

rea^hed the high

caV

pomt of the last 18 years, retireportfolios
as
a
precautionary ™ents have exceeded new instalmeasure
is indicated.
I am not lotions by appioximately 7o,000
believer in holding cash when pai^s
anc*
railroads have not
limited,

a

a

the
as

future is as bright
therefore, I would
defensive issues possessing

long-term

and,

now

^

„

Stocks har-

Gas, to name a few.

developments

favorable

boring
always

Consideration of all salient fac¬
that neither

past

had. enough cars to handle the
basic business of 19o5. To over'seek
come the present deficit in freight
years.
The growth possibilities such as Cecar car ownership will requiie t e mand Columbia stallation of an average of 7o,000
are no long¬ Cola, Woolworth

factors,

regarded in the light of
tremendous increase in stock

must
a

these

the

in

sons,

„

that

made

have

which

expenditures

relationship

and

the

assets,

to

dividends.
and

pro

embrace

remaining $340,000,000^ or nearly
32% of the annual capital expenditure, was financed ; from Ire-

tained earnings which were withheld from funds available for
dividends, and from miscellaneous
costs and lagging revenues could sources, including the sale of sehot have been bridged if the rail- curities other than equipment obroads
were
still operating with ligations and disposal of company
their 1946 plant and equipment, assets
such as lands, buildings,
To bridge it, there had to be better and investments,
facilities, and the better methods ' That is where the average capwhich better facilities make pos- ital expenditure program of $1,sible.
070,000,000 for each of,the past
But even with the tremendous
10 years has come from.
But I

railroads face further tremendous

They cite efforts of the Roose¬ torically high and the relationship
to earnings is average.
Earnings,
velt Administration to stimulate
business by increasing consumer however, could be adversely af¬
fected by only a slight downturn
purchasing power and the dismal
in over-all business and, there¬
failure
incurred in that period.
Actually,
pump
priming failed fore, it can be said that the props
supporting the market are not unbecause punitive taxation was be¬

concurrently with
business refused
to
expand facilities and in so
powerful factors for
growth but of little doing, a valuable economic prop

of

eration

the

high wages are important

If the "classic

nearly

and

ance

mean

no

mortgage

tremendous

supports,

crop

First of

(

merit

consideration.

•

eral

market

hoping for a gen-

rise

on

top

each of the next five

and ^at means about
$525,000,000 a year in capital out-

years

—

In lay.

short, the investor should not buy
leading stocks

new cars in

of that

^^^KVro^dwaTPand
structures>

including

yards, new signals and

terminal

communi-

already witnessed, but investment

cations, and the like. If no more

special

*s done than has been done durContinued on page 33

in

defensive

issues

and

situations should reap rewards.

12

The Commercial and Financial Chronicle

(1976)

lieve, however, that it will be in¬
troduced only gradually in view
of its high cost and the long period

Automation and Employment
By HON. JAMES

MITCHELL*

P.

ing

Secretary of Labor

After discussing the

only
larger companies producing standardized good* for an expand¬
ing market have been able to use the more advanced types
of industrial machinery. Holds effects of technical1 advances'
has been a decrease of unskilled workers and rising number
of semi-skilled and skilled workers, but contends there is not

technological de¬
velopments,
including the
one
termed automation, can be seen
pretty clearly by looking at the

applied

the

to

word

automation before this committee

elsewhere

and

indicate

to

seem

that the word
itself defies

defi¬

accurate

nition.

I

lieve the

Our

In. the

this

two

aspects,
which

of

one

is

subjective
and, therefore,

insurance

which

company

an

electronic

from

com¬

puter to process some of its rec¬
ords.

The company

panies

on

the street thinks it means, for

to

a

great

which

it is a word
various sorts of

extent

produces
in

fears

various

sorts

of

indivi¬

duals—fear
of
change, fear of
technology itself, fear of displace¬
ment, fear of unemployment, fear
of machines, fear of science in
general.
In this sense, automa¬
tion is nothing new, since these

fears have

same

form

one

the first
I

or

been with

another

in

us

since

ever

resented fire.

cave man

Committee less than 20 years ago.
The

discussion centered around

<

that

would

have

a

re¬

quired the Secretary of Labor to
draw up a list of labor-saving de¬
vices and a parallel estimate of
the number of people probably
unemployed as a result of their
use.

So the present discussion is not

within

unfamiliar context.

an

Taking the second aspect of the
word, the technical one, we find
that in a general way the word
represents technological change,
which

surely is nothing

represents
old

as

as

a

movement

new.

on

can

best

the conlputer

itself.

To

operate the high speed electronic
computer
a
number of people
were

selected

from

the

staff

for

training and

assignment as pro¬
analysts and
New jobs that never

and

grammers

operators.

existed before electronics
troduced
in

the

were

created

company.

stallation

of

machines,

the

the

was

in¬

elsewhere

Even

after

electronic

company

in¬
a

1950

to

rose

from

stimulus

the

under

of

improving technology.
Unskilled
the

farm,

mine

workers

the

and

site,

building

activities.

other

the
Our

current

high level of wages and
employment indicate that they are
successfully making the transition
to higher skilled jobs and better
pay classifications.
Improvements

industrial

in

technology will reduce the

num¬

ber of

boring, routine and repeti¬
jobs. And, I believe we can

tious

that

expect
workers

to

this

will

move

all

higher level of at¬
tainment
and
self-development.
We can expect to see increased
demand for workers with a high
sense of responsibility and versa¬
tility, for mathematicians, engi¬
neers

It

certainly

We

found

situation in

a
a

somewhat

similar

radio and television

manufacturing company that had
introduced printed circuitry and
automatic assembling machinery.
The company eliminated a num¬
ber
of
hand
assembly jobs in
which women worked, and set up
a number of higher paid jobs for
operating
machinery.
No
one,
however, was laid off on account
of the change.
All job readjust¬
ments

were

made without disturb¬

ance, according to the seniority
probably older. Now, tech¬ and working rules of the union
nological change varies, as we all agreement. The company timed
know, in rate and degree.
Its the installation for a period of
latest manifestation, coming as it
seasonal expansion and company
has
in
a javorable
setting of growth. * ' <•'«
•
.»' - growth and prosperity, has ap¬
These two case studies are be¬
peared with relative swiftness and
in some ways spectacularly. It has ing submitted to the committee.
These examples, of course, are not
come with such devices as com¬
necessarily representative of all
plex automatic systems, electric
or
business.
We are
controls and regulators, feedback industry
planning to prepare additional
systems, transfer machines, con¬
studies of other firms and indus¬
veyors and the like.
It has been

tries.

inition

of

this

second aspect of
However, we can all
agree that it is the latest develop¬
ment in the progress of industrial

word.

the

technology, the latest step in the
long

search for

ways

to

replace

human energy with mechanical
energy.
♦Statement
the

of

"Economic

Oct.

by

Subcommittee

zation

the

Secy.

-Report,

Mitchell

Economic

on

Joint

before
Stabili¬

Committee

the

on

-Washington,. D.

24/1965:




-

-

-

C..
-

7.

our

man¬

most valuable
have wasted

our
as

re¬
our

we

other resources.

this

connection,

cannot

we

discrimination

afford

tential

skills

groes.

Neither

of

the

in

uti¬

million

six

can

Ne¬

afford to

we

neglect the skills, aptitudes and
experience
of
mature
workers
45

over

of age.

years

effort must be made to
the American worker for
the changes which lie ahead. Cer¬
tainly in this respect education
and training are of primary im¬
portance. And when a worker is
qualified, certainly every effort
Every

prepare

and technicians of all sorts,

utilization

est

regardless

his race, his religion
place of national origin.
age,

of

his

or

his

disposition within

no

the Department of Labor to min¬
imize the problems that

might be
created by accelerated technologi¬
cal

development.

time

feel

we

the

At

there

are

grounds for optimism

same

abundant

and confi¬

opportunity,

are

con¬

and
vibrant industries are puushing
out our horizons. This is the story
of

worker of the future will

new

continue to be.

better

basic education

training than he gets

require
better

and

now.

knowledge is not at pres¬
complete enough to determine

result

not there will be hard¬

or

in

problems

difficult

transitional

for

women,
many
of
employed
in
these
kinds of occupations. This is one

whom

are

of

areas

the

which

ment of Labor is

the

Depart¬

studying at

pres¬

ent.

Perhaps the most sensitive in¬
dicator of the over-all rate of ad¬
justment which is forced

We

on

the

new

America,

and

will

learning, too, that con¬
are expansible. The
products emerging from in¬
desires,

dustrial

research laboratories

The

does not lessen

individual

our concern

worker

who

are

most utilized, indicate

post-war trend of pro¬
ductivity has been, somewhat ir¬
regular—perhaps a little higher
than the previous long-run trend,
but not higher than we have ex¬

perienced in periods of compara¬
ble length in the past.
Another effect of
of

can

be

seen

technological
in those

areas

with

of

industrial

-

tech¬

nology have always, brought with
them a higher standard of living.
There is-no

to suspect that

reason

this will' not be

so

Indeed,

every

have

I

believe

that

the

in; the

future.

to

reason

workers

country will continue

of

this

receive

to

their fair share of the fruits of their
work.

Management

have

reached

labor

and

degree

a

of

ma¬

turity and understanding unprec¬
edented in our history, and I be¬
lieve

have confidence that

we can

they

will

continue

their

successfully

to negotiate
differences at

the collective bargaining table.

The

industrial

relations prob¬
technological change are
always critical ones. Our studies
lems

of

have shown that companies which
new automatic ma¬

have installed

chinery with

a

minimum of indus¬

problems of the individual worker
in

making the change. This per¬
planning is as essential to
modern industry as are the new
machines, and I am sure that
American management and labor
sonnel

this.

realize

a

responsibility

to

help provide the proper climate
in which growth can take place,
industrial and otherwise. I believe

that

this

of

conscious

are

we

responsibility and that we will be
able
to
maintain
the
present
climate in which our country and
its

people
in

so

have

grown

so

much

many ways.

Continued

The

from

page

2

Security

I Like Best
million, to be completed August,
1956.

(3)

a

size

the

lineate.

gypsum plant twice
that operated hereto¬

new

same

We

making, as I said, case
studies of plants that utilize the
new technology.
This program is
are

small this year, but we hope
it.
are also initiating a series

very

to expand

We.

fore

in

area

is

of

the

San

Francisco

Bay

being constructed in the

vicinity; cost $5 million, to
in the Fall of 1956.
capacity will pro¬
vide enough gypsum board, etc.
for more than 32,000 homes per
be completed

combined

The

year,

with the marketing area to
Northern California, Ne¬

include

vada and Utah.

(4) The present Long Beach
gypsum plant is being expanded
We hope to 60%, cost $3 million, additional
determine the human, as well as capacity to be completed in April,
technical, aspects involved in such 1956.
areas
and to, investigate those
With its existing and projected
practices that were not successful facilities it is clear that Perin meeting the community's prob¬ manente is a dominant factor in
a

reduction in employ¬

opportunities.

ment

-

lems.

the

giving close study to the
development of the skills of the
work force, through a pilot pro¬
We

are

authorized this year by
country where we have Congress. In this field we are broad¬
pockets of unemployment. WJflLe ening our long-standing appren¬
this problem involves many other ticeship programs.
The problem
change

velopments

described in
considerable
detail, the human
aspects are often difficult to de¬
such changes can be

been

the

Wave you

this thought: In the past the de¬

might be

displaced. The Department of La¬
bor has a deep and abiding inter¬
est in our changing technology.
While
the
technical
aspects of

has

that

would like to

for the

tivity.
niques

Conclusion'
I

prospect of such expansion

readjustment stud¬
selecting towns where there

ing, where newest industrial tech¬

for

work

tiveness of these programs.

creating the demand upon which
entire industries may be erected.

ies,

manufactur¬

find

are

of community

for

insurance

immediately. The States this year
substantially increased the effec¬

and

economy by technological change
is the index of industrial produc¬

Studies

unem¬

program

are

sumer

Our
ent

industrial

The

cannot

Government has

stantly opening up new areas of
industrial expansion. While older
and declining industries may show
reducing

income
that

workers

dence about the future.

Science and invention

workers.

compensation

trial relations problems have done
so
because they considered the

Program
is

There

for scientists and researchers. The

gram

our

self-regulating
So far our studies show that
processes which have reduced the
besides
number of workers needed to per¬ only large companies producing factors
technological
form a given job. When you get standardized goods for an expand¬ change, it is part of the whole
down to specifics there is some ing market have been able to use picture, and certainly every
.ef¬
argument about the precise def¬ the more advanced types of in¬ fort should be made to prevent
many

power,
source,

a

whether

ogy.

waste

not

should be made to ensure his full¬

leaving

are

ships to specific groups as a re¬
sult of modern technological de¬
velopment. As I said at the out¬
set, we do not foresee any over¬
whelming problems of readjust¬
ment. However, the application of
new machinery to
clerical, opera¬
tive and assembly type jobs may

shortage because of
ever-expanding volume
of
business.
It is still going to em¬
ployment offices for female cleri¬
cal help for office work, as it did
during the days of older technol¬

the industrial revolution

to

force.

the

and

attached

labor

they represented
Semi-skilled workers

expect these trends to

can

continue

data

faces

the

of

clerical labor

reminded, in fact, of the
hearings held by the House Labor
am

resolution

work

that

up

ago

1910

We

example, the Department
recently completed a study of a
installed

moved

have

do

we

.apparatus for the,1, re¬

an

location of

adequate training programs
up.
We must make sure

that

displacement^. -Secondly* they

provide

set

We cannot afford to waste the po¬

roughly 15% to 25%.

Applications
For

large

dustry grows more complex, this
shortage is bound ta increase un¬

semi¬

decreased,

areas,

36%

years

from
Some Examples of Electronic

(like all com¬
utilize the
individual
to
new technology)
is an expanding
individual.
one.
Since it takes a long time to
The
other
is
activate the complex new equip¬
James P. Mitchell
technical and,
ment, the company has been able
t herefore,
to plan carefully the reassignment
requires study and attention.
and retraining of the workers af¬
Taking the • first aspect oi the fected, so that no one will be laid
word, we find that in some off. The company has transferred
ways
automation
means
pre¬ some employees to other types of
cisely what each individual man work and retrained others for
varies

sented

only 20%.

readjustment.

has

furnishes

lization of the skills of any group.

and skilled
workers have approached the sta¬
tus of technician. In 1910, for in¬
stance, unskilled workers repre¬
Five

rea¬

carries with it

believe that

phase of technology will
problems

new

Preliminary itudies made by
Department indicate that we
have a shortage of skilled work¬
ers in this country today.
As in¬
the

unskilled

meant:

workers

skilled

result in overwhelming

be¬

that the word

into

of

for this is

son

to

reason

has

workers" have

preliminary studies in the
no

ployment

In

im¬

technological

past

provement

Department of Labor indicate that
there is

individual fulfillment.

historical record.

Application

which

definitions

local

less

The effects of

Thursday, November 10,1955

..

in industry, so grows the oppor¬
tunity for every worker to move
to higher levels of attainment and

are

whether hardship* to specific
result ' from technological development. Concludes,
not foresee any overwhelming adjustment problems."

several
been

tech¬

The Effects

skilled
The
have

History

broad

industries at different times.

yet sufficient data to determine
"we do

that

place in stages, affecting different

electronic and other automatic devices, and points out

groups

indicate

nological
changes
are
seldom
abrupt, but rather that they take

of installation of

cases

installation.

and

would

definition of automation and its applica¬

Secy. Mitchell cites several

tions,

time needed for custom build¬

of

.

older worker who is par¬
ticularly vulnerable to the effects
of changing technology, is the tar¬
of the

cement

on

the

and

Pacific

gypsum

Coast

business

from

the

Canadian to Mexican borders, and

reaching out
the

over

2,000 miles into

Pacific Basin.

Not

only is the West Coast the
rapidly growing section of
the United States, but due to the
most

preponderance of
public
such as dams, irrigation
projects, etc., the highly motor¬
get for a study just begun.
ized population and distance be¬
dustrial machinery. Operating in an
increase
in the
I want to mention in connec¬ tween important metropolitan
number
of
a context of high business activ¬
workers
stranded
in such
dis¬ tion with these tasks being under¬ centers
which means a great
ity, with near-full employment, tressed areas.
taken by the Department of La¬ need of extensive highway sys¬
and indeed overtime in many in¬
This is a problem which must bor the increasing activities in the tems—the per capita consumption
dustries, with widespread demand be met by management, labor, States. At the local level, where of cement in the three Pacific
for products ranging from con¬
government, and perhaps most technological change is first felt, Coast States, amounting to about
sumer
goods to new factory importantly by each individual it is very important to have an 2.5 barrels per annum is 50%
buildings, these companies have community. Like other problems alert and/ effective system of em¬ greater than that for the country
been able to keep to a minimum arising out of
technological ad¬ ployment offices, and a strong and as a whole.
the dislocation which has some¬
vancement, it indicates the need well-administered program/of un¬
Capitalization consists solely of
times accompanied technological in our country for the develop¬ employment
compensation. These 2,800,000 shares of capital stock.
change in the past. Some fear that ment of every worker to his full¬ offices perform many important The stock is traded in the Overthe diffusion of automatic produc¬ est potential. As our scientists de- functions. First, they provide an
the-Counter market and is. cur¬
tion will be too fast. Others be¬ Vise new* methods and techniques alarm system by Which to gauge
rently quoted at about 33.
great

works

—

Voluipe

182(: ?Numbier 5480

The Commercial and Financial Chronicle

. .

.

in underestimating the

error, was

The

extent and breadth of the upsurge
in U. S. business conditions, which

has played such an important part
in stimulating Canadian economic

By J. DOUGLAS GIBSON *
Assistant General Manager and Economist

effects

attitudes of

Gives credit for much of Canada's advance

vestment

Canadian

of

you

lar

long in¬

a

experience in

of

about

have

you

are

and

well

very

variety

a

securities

some

informed

particu¬

Canadian

industries. Be¬
of

cause
s

last few

your

lation

ciali zed

p e

knowledge, I
am
going to

For

2V2%

tion

indi->

about

vidual
tries

broad

the

picture

The

Canadian

of

J.

Gibson

Douglas

behind

it

also

and

about

few

a

economic problems which concern

lief

rather widely held be¬
certain quarters
in the

a

in

United

that

States

country with
least

is

Canada

a

problems, or at

no

that

none

need

taken

be

seriously, Canada does have some
real
economic
problems
which
generate
and

a

some

good deal of discussion
political heat.

problems,
I must open my remarks b,y con¬
firming the opinion which you
already hold—that we in Canada
have been getting along and still
are getting along pretty well.
The
years since the end of the war
However, despite

have

teen

riods

of

Canada.

our

the

of

one

great

pe¬

expansion

economic

for

You may be surprised to

know that

in Canada have had

we

three major periods of ex¬
pansion in our economic history.
That may be one of the reasons
why we are inclined to be a lit¬
only

conservative

tle

expansion,

assessing

in

our

The first period

economic future.
of

which

settlement

plains.
era"
from
is

of
pur
western
The second was the "new
covering
the
brief
years

1925

And the third

1929.

to

the present

of expansion

wave

which dates from 1946.

rate

The

hope

terms of the

rate

of

growth,
the present period of expansion is
about the

same

as

that of the late

'20s and somewhat less than dur¬

ing the period prior to the First
we were settling
an
almost
empty country.
In
terms of duration, the present ex¬
World War when

pansion has now lasted twice as
long as that of the '20s and we
hope it will last even longer than
the 16 years of growth up to 1913.
In terms of breadth and

diversity,
the'.present period of develop¬
ment far
surpasses
anything in
the
pasi,
for unlike preceding
booms, where one or a few com¬

with

American

recent

name

will

to the rate of

traditionally

figure of 1%%.

statistic

second
you

which

I

relates

remember

capital expenditure.

Since the end of the war, the pro¬

portion
which

of

national

the

has

been

output

going into addi¬

tions to fixed

physical capital, ineluding buildings, machinery,
roads, houses and so on, has av¬
eraged

over

In the last few

20%.

the ratio of fixed capital
expenditures to the national out¬
years,

put,

the Gross National Prod¬

or

uct, has been over 22%. This pro¬
portion compares with something
like

in

17%

the

United

States.

Though higher ratios of
expenditure
to
national

capital
output
have
been
recorded
recently in
Germany and also in Australia in
certain

major
surpass
the
capital

Canadian

the

as

can

record

of

taking the whole
since the end of

period

war

which

country

growth

10-year
the

I doubt if there is

years,

any

basis

of

com¬

parison.
The

thing

about

the

been

ac¬

fairly diversified

manufacturing development.

terms, of

of

the Ca¬

course,

business

picture does not
impressive to American

which

are accustomed to fig¬
running to several hundreds

ures

billions

in

regarding

Our

economy.

their

national

gross

While
tiresome

too

statistics are
difficult to remem¬

ber, I want to give

you

two s'm-

ple figures which provide
♦An

address

American Life
Oct. 14, 1S5S.

by Mr. Gibson

Convention,

a

pretty

before

Chicago,




the

in

unemploy¬
localities

some

standards.

point

of

From

view

billion mark is

Gross

Product this year is the

record,
than

being

that

above

of

on

1953 which

was

the

former peak year. As a matter of

interest, the
is

five

$2*5}/2 billion figure

times

figure in terms
physical
output.
So

prewar

actual
have

we

made some very real prog¬
despite the considerable de¬

in

The

the

most

the

course,

the

cession

year

value

of

our

1954.

has

been

In

Canada's

pansion,

greater
many

than

was

Canadian

cluding myself.

of
re¬

recovery

significantly

anticipated
economists,

My

mosit

pendence
We

on

were

United

by
in¬

serious

her

increasing

the

concern

some

U.

the

lest

concerned'

■

States

should

de¬

market.

S.

prove

an

unreliable outlet, as it had proved
to be in the '30s.
However, we

in

found,

fact,

much

a

larger

United States market for our for¬

rapid

postwar

ex¬

the most important and

primary commodities which Can¬
is able to produce

ada

in volume

—for

the products of the mines,
forests, the seas, and many of
the products of the farms.
The

the

state

the
ada.

the

of

basic

world

commodities

market

is

products, minerals, fish and
cattle and though we have faced

threats and difficulties in some di¬
rections

that

in

have

market,

our

ex¬

steady and
growth. U. S. de¬

notable

very

of

greatest importance to Can¬
Something over 20% of our

a

exports compared With

of

For this

related

our

in

reason

de¬

imports, the level of

on

prices and tfye

general

economic
climate
in
Canada
are
closely
geared to external conditions. So
when

world

markets for

products are strong

primary

and

expand¬

thrive, and when they are
contracting, we have
difficulty as we had in the '30s
and* for
a
long period of our
ing,

we

weak

and

earlier

economic

gradually di¬

economy has
minished.
Though
a

there may be
lingering doubts — for the

few

history prior to

is

rope

for

ahead.
in

the

of

one

Much

reasons

in

looking

been

has

rebuilding

achieved

international

an

economic system

and in this prog¬
and

assistance

American

ress

great

encouragement

-

Eu¬

in Western

self-reliance

and

operation has played

co¬

vital part.

a

"

The

other

panding

in

major factor
is

commodities

ex¬

basic

for

demand

the

world-wide

the

population
and the
rapid trend toward industrializa¬
tion which is becoming character¬
growth

of

countries

appears

curtains..

"Bamboo"

coun¬

and

"Iron"

the

behind

Mounting

and
industrialization
reducing the amount

population
been

have

and

characteristic of

to be

also
tries

underde¬

so-called

the

of

istic

veloped

of basic commodities available for

export in many countries, such as
and

India

Argentina,

Pakistan,

China, and increasing the reV
quirements of most countries for
imports
of
basic
commodities.
This is a process which is almost
certain to be
sustained, if not

and

gather momentum, and it sug¬

to

gests

a

strong and mounting de¬
materials,

mand for industrial raw

also

and

in

foodstuffs,

dec¬

the

ahead.

ades

Canadian

and

Demands

World

Resources Development

of the great depres¬
sion is not yet entirely forgotten

experience
—we

what

in Canada are well aware of

of

maintenance

the

an

ac¬

tive American economy for a

full

for

growing U. S.

industrial

materials,

the world markets for basic com¬

been

have

strengthened

the
thinking,
one of the most encouraging de¬
velopments of the last few. years
has been the way in which Britain
my

all

growth

world.

To

of

most

and

of Western

over

of

way

the

other

countries

Europe have been re¬

gaining their economic strength
and freeing the operation of their
economic

tries

Indeed,

systems.

growing

rapid postwar growth of the
economy
would -not

the

Canadian

Develop¬
just

the

develop.

to

resources

new

discovering

of

question

a

fact is that we have known

a

The
about

that

good many of the resources

recently for

have been developed

long time and the crucial
their development
has

factor

in

bec-Labrador,
of

the

new

been

Iron in Que¬

the state of demand.

of the sites
developments,

many

power

forests which are
the new pulp and

and most of the
the

basis

for

and wood products indus¬
tries were not recently discovered.
Such resources were known but
paper

tne

demand

of these coun¬
probably the main fac¬

strength

was

practicable.

been

been

a

the recovery of Western Eu¬
and by industrialization and

rope

population

expanding world
commodities,

basic

for

ment of our resources has not

In addition to the

demands

the

Without
demand

have

decade has meant to us.

by

because

less
As the

before the war.

your

compared with only about 5%
and

Canadian

basic

development and large enough to
absorb
over
60%
of
Canada's

modities

pendence

a

prod¬
ucts have been sufficient to stim¬

national production is exported as
the United States.

shown

for

matter

a

tor

est

was

sufficiently

not

Continued

on

page

the

beginning of the century.
The
outstanding influence in
the
growing world demand for
industrial
materials, if not ior
foodstuffs, has been the great en¬
the

and

the U.

of

need

The
on

S.

for

industrial

in

300,000 Shares

materials.

report of a few years ago
prospective requirements

M0DER-RATE HOMES, INC.

the

industrial

materials

looking

Paley Re¬
written for
certainly
paints a glowing picture for the
development ' of
Canadian
re¬
sources.
The products in which
the Paley Report envisages the
years ahead
port—though it

ous

was

scarcity sound almost like a

iron

petroleum,
the

of

titanium

Common Stock

the

—

purposes,

own

your

for

than

$1.00 Per Share

Price

BUSINESS: Moder-Rate Homes, Inc. was

sections

of

community

the

of

of planning, constructing
country.

homes

It

in

;

like

Copies of the Offering Circular are

Obtainable From:

average

growth; the traditional base met¬
als, copper, lead and zinc, for
increases in demand; and
wood and pulp products for a
state Of comparative scarcity. Of

William T. Bowler &

1. o. o. F.

Commodities

Bradford, Pennsylvania

subject to

wide

a

of error, but the broad
pattern of demand for industrial
margin

in

indicated

the

augurs

Telephone:

well for Cana¬

I'lcase

send

The

the

growth of the American
in the past ten years has
considerably reduced one of

serious

the
with

worries

Canadians

war.

' We

restricted

traditional

at

were

which
the
then

buying

overseas

3464

52 Broadway
New York 4, N.

Y.

BOwling Green 9-4898

Paley

NAME

economy
very

Bldg.

economic

good

makea

and

Co.

Investments

projections of the future
$tatd; of demand for individual
course,

Report

develop its first
Park, Indian River

plans to

Oslo

County, Florida.

sizable

materials

incorporated

and develop¬
ing communities of moderately priced homes in various

for the purpose

and

ore
metals

new
more

are

ISSUE

NEW

ISSUE

economy

increase

consequent

NEW

dian development.

is,

that Canada turned

have gone by, our concern
about the
alleged instability of

basic factor has been the growing
world
market
for
most
of
the

cerned

III.,

say

reluctantly from traditional over¬
seas
markets
and
viewed
with

years

World Market

sense

from the

The

is true to

than 40%

Most Basic Factor: Expanding

money.

picture

recovery

today, though some of
have a way of
reviving them when they discuss
special protection for base metals,
oil or fish, not to mention agri¬
cultural products.
But I think it
politicians

your

total

feature

encouraging

current

of

this

of

rather silly

great deal of new resource

some

highest

healthy

and

These doubts may seem

economy.

ulate

mining,
primary textiles, farm
implements and some other kinds
of machinery.

our

higher
nearly 5%

and

as

States

for

nickel,

National

growing

a

*

mands

continuing difficulties of
certain industries, including coal

$25

7%

some

1954

that of

the

landmark in

The

progress.

Canadian

a

passing
a

United

from the

catalogue of the major Canadian
resource industries — aluminum,

by anything but Ameri¬

have

to

doubt

some

the

ports

amount
can

about

many

and

problem

an

greatest growth or the most seri¬

cline
Growth

as

product this year will be in ex¬
of $25 V2
billion — a sizable

cess

ress

Rapid Population and Capital

ment

is

25

appear

some

not

whether

in

were-still

to

arising from a slackening in some
types of defense production and

absolute

the

a

there

and

for

nadian

and

are

as

down

is, therefore,
its
high rate
of
growth and the way in which the
high rate has been sustained.
In

ent

companied by

they

in¬

they were a few years
ago.
It is a fact that despite the
general prosperity, farm income is
good

its

ttihJ prewar level in
money value and nearly 2V2 times

of commodities and has

farmers

most

earners,

largement

striking

modities

predominated, the pres¬
expansion extends to a variety

wage

considerable group,

a

cluding

Canadian economy in recent years

eyes

In

to

birth rates.
The Canadian
of 21/2% compares with the

from

dated

before the turn of the cen¬
tury to 1913, was the great period

just
of

11/2 %,

barely

than

But for

in

and

countries

is that,

For the truth

Canadians.

despite

India

in

two

influences

the

is

rate

high

of

some

recent

Japan

development,
about

coun¬

tries, including those in the Far
East and Latin America, you will
not find many as high as 21/2%.

talk

about

per

may

population growth in other

indus¬

and

Now

not at first sight seem
impressive. But for popula¬
growth, it is a high figure.
you look at the recent rates of

year

If

3%.

and

capital

times
have
never
been
they are today. For
some, they are about the same as
in the former peak year of 1953.

the rate of popu¬
has been between

years,

a

exports

of

large majority of Cana¬

a

better

rate

recent

in

wave

dians,

very

comment

the

growth

2i/2%

avoid detailed

of

increase

renewed

a

the year.

of
economic progress in Canada. The
first
is
the
rate
of
population
growth. In the 10 years since the
end of
the war, our population
has been growing at an average
rate of over 2% per year.
In the
idea

good

and

expansion, the trend has been
strongly upward since early in

problems Expresses faith in Canada's ability to adapt her
.economy to changes in world demands.
of

the

on

businessmen

our

Largely because of

and

investment and know-how, but says program of disposing
of U,. S.>:surplus wheat is aggravating the Canadian export

Many

its effects

indi¬

substantial

U. S.

to

and

consumers.

has ceased to take the lead in promoting freer trade and ex¬
change. .Calls attention to Canada's population increase and
capital growth, and that nation's need for an expanding world
-

exports

our

on

rectly through

Canadian bank economist, stressing the great influence of the
trade policies of the U. S. on the free world, contends the U. S.

market.

both directly through its

recovery,

The Bank of Nova Scotia

in
sustaining world . com¬
modity markets at the (time of
would provide a large endugh 0Y the ruild" U.' S. -recession' of 1954.
reliable
market
for
our
basic The economic recovery and the
products to allow us in Canada gradual restoration of confidence
we

con¬

end

of

faced

power

markets

in

and

ADDRESS

me

Offering Circular relating

to Moder-Rate Homes, Inc.

24

14

The Commercial and Financial Chronicle

(1978)

companies'

Tiends in Mortgage

Financing

proval upon what the market was

ten

already inclined to do.

about

And

Mr.

in the

such

expansion of mortgage credit during past decade, in

which

V

an

we

have

ness

lar

in the appraisal profession
in the life insurance busi¬

and

interest

—

real

estate

mort¬

some

cash.

To

we

in

U.

To

paid to

tors

of

we

interest

with
the
financing

So

that

J.

ac-

Myers

*

tivity oi life insurance companies
might be the most fruitful sub¬
ject of common interest. I want
to

stress

our

objectives, oppor¬
particularly
our
this field, because

and

limitations
there

in

occasionally

arises

misunderstanding about
do,

can

some

what

we

trying to do., This
as an important
thing, because the
life insurance
industry now owns
$2^ billion in real estate and
$28 billion in mortgages.
or

are

So you see, life insurance

com¬

panies loom large in the mortgage
field.
In recent years
they have
contributed about one-fourth of
theftotal mortgage
money that is
used in findndng the Teal' estate
of the American
economy.

.sector

Obviously
sizable

contribution

our

And

one.

it

siderable attention
reasons.

gage

For

money

one

homes

for

a

cross-section

people.

a

two

other

real estate

representative

of

And of

the

American

course

housing is

a very personal
thing—everybody
is concerned with its cost and its

availability.' For
construction

dependent
and

on

another thing,
activity is- largely
mortgage financing;

business

general

turn, is affected

to

activity, in

an

important

degree by the incomes and de¬
mands generated in the construc¬
tion' industry.
For these reasons,
when we invest
money in mort¬
gages, we are conscious that our
actions affect the public in
many

important ways, directly and in¬
directly.
Life

Before I go

further, let me give
background about life

insurance that may be
helpful in
relating our business as a whole
to

the

subject
mortgages.

First,

the

of

investing

in

of

have

ag¬

which

has

been

used

to

buy mortgages and the balance is
in
securities,
chiefly
bonds
of
companies furnishing transporta¬
tion, communication, public serv¬
ices, or engaged in manufacturing
or

production of
Life

nish
and

materials.

raw

insurance

companies

livelihood

a

to

women

agents.
in the

380,000 men
employees
or

as

States

policies.

more

fur¬

Four out of five families
United

have

one

Incidentally

or

I

the ownership of life insurance is

$1,900 per capita and
*An

address

praisers,

and

From

to

our

nearest

York

Mr.
of

City,




Myers

Real

9,

invest¬

our

ready

mar¬

return

the

of

and

their

at

upon

the

After

all,

business

are

whole.

a

insurance

trustees

owners

Ao-

1955.

form.

will

investment

of

nearly depend on the com¬

million

93

cannot

We

are

an

be

in¬

separable part of the economy in
which we operate.
Now let me. mention

briefly

which

misunderstandings

yield.

safety and

some
occar

;

,

Financing
third

The

which there

in

area

be need for a clearer under¬
standing is that pertaining to the
influence
of government policy
may

area

which

in

miscon¬

a

ception is apt to be found is that

For instance,

there

pegging of the

un¬

government bond
Prior to

market in March of 1951.

having large holdings of govern¬

could purchase mortgages
exchange for bonds to be sold
par

sometimes

ment

the

in

we

talk

insurance

though

as

business

can

control the total volume of these
Of

funds.

cash

The

flow

isn't

this

course

of

life

so.

insurance

is simply part cf the
savings <of the American people.
companies
We

have

We
ment

this

determine

not

do

available

only

flow.

ments,

Misunderstanding Regarding Dis¬

of frequent

mis¬
understanding relates to the dis¬
this

a

investment

There is

to

overlook

force

tendency, per¬
the
driving
determining that distribu¬

tion.

We

live

money.

a

in

world.

a

highly

There

com¬

are

over

I,000 life insurance companies, all
acting independently. They face
an

ever-changing set of compet¬

ing demands for their funds. Con¬
sideration
to

must

always be

relative

the

given

attractiveness

of

putting money into bonds, stocks
and
mortgages, to the relative
merit of loans for housing, for
expansion of chemical factories,
for power plants, toll roads and
so

forth.

As

conditions

mostly

represented

yields,

the

is

bound

There

ample
II.

In

more

fact

field since

1945,

change,
changing
funds

of

change.
no

the

of

mortgage

distribution

to

is

by

as a

blackout

striking
than

in

World

result of the

on

sell

to

governments

.loss and because,

at

credit gen¬

as

erally tightened, yields

on

rate bonds became

attractive

than the

more

corpo¬

relatively fixed rates

on,

FHA and VA mortgages.

residential

ex¬

the

War
war¬
con¬

do

for most of

not

valuations based

timism

has

ture
we

special

human

are

and

with

concerned

interest
is

Reserve Eank to make credit
ier.

eas¬

Declining

yields on bonds
mortgages relatively more

attractive.

Most

important,

regulations

permit

were

of

rates

gov¬

changed

interest

on

simism

referred
that

figures

some

fact.

while

a

the

back

mortgage

result

the

end

cf

began

to

move

toward

yields

this

but

business

With

1855.

hold
with

time

their

up

mortgages

own

in

again;
could

competition

securities

ether

bond

because

that

lion.

net

a

It is

this

as

we

think of

us

of

the

Federal
of

steps

early

part

Reserve

designed

of

1955

If

gages.

in

money

one-third

of

began
to

a

series

tighten

the

terms of credit generally. In July,
both the FHA and the VA raised

$7 billion,

to speak,

so

total

our

assets'

from

rose

32% during the past 10 yeavs.

hardly expect the next 10

can

to -witness

'17%

still

points,

We

years

another ,rise

which

of

bring

would

49%

to

up

to

15%

of

total

assets.

connection

demand

of

for

that

is

it

much

worth

the

of

supply

nature, just as
money was partly

of

Construction dur¬

npn-recurrent.
ing

the

large

past

10

years

in

served

make up for the

measure to

that

accumulated

had

expect

greater

flow

funds

of

stability

in

the

You

will

recall

"stop-and-go

that

are

flexible.

much

driving"

the

ahpad
of

the

the

on

traveled during the oast

we

reflected

years

of

days

when terms of credit

to

arbitrary limi¬

tations and interventions by gov¬
ernment

the

life

insurance

busi¬

rather proud

of the part
play in channeling a substan¬

ness
we

agencies.

in

are

tial

share

of

the

individual

sav¬

flow

terms

the

was

absence

of

tion.

only

largely put

The

inevitable

even

government

the

interven¬

government's
an

in

and

actions

official seal of ap¬

we

have
of

been
our

intricate

pattern

to

and

fast

of

nancing.
We

able

mortgage

could

adapt,

the

to
changing
home fi¬

money

demand for
This is not easy to do.
not

do

it

at

all,

on

a

for

Reasons

Let

of the

some

ever

First

of

Optimism

you,

this

on

briefly,
being

very

for my

reasons

convinced

so
■

tell

me

4

score.

all, American

produc¬

tivity, which is the foundation for
our
well-being, has continued to
go steadily up and up—and I fail
to see anything which convinces
me
that it will stop going up in
the years ahead. Also technology..
Who can say where our horizons
lie in this great field? You and I
attempt

of

research

atomic

takes

indeed

men,

if

we

predict

to

discoveries

our

this

foolish

be
to

were

limit

the

still

to

come

laboratories in

If

age.

production

and machines,

money

how—looking at

our

labor supply

and labor

our

financial

skills,

and

sources

hearted
future

re¬

advancing tech¬

our

nology —how

can

faint¬

be

we

this

about

country's

capacity to produce?

Some
reason

busi¬

American

when

before to accomplish great things.

well housed.

Furthermore, there is

enter¬

are

we

is better prepared than

postwar housing was- from

non-recurrent

a

the

a

It, will be

I. firmly believe,

new era,

time

a

ness

would

this

In

remembering

ning ahead of the supply of funds,
the tightening of
mortgage credit

requirements

at

was

which declined $ll1/2 billion dur¬
ing this period.
The percentage
postion of mortgage holdings in

entering

now

And

progress.

ing this

obtained by reducing our holdings
of low-yieM
government bonds,

reduced maximum payment of
pe¬
riods. With demand already run¬

payment

for

gone up just $14 bil¬
during the 10 years period.
Instead, our mortgage
holdings
actually went up $21 billion. The

are

period of wonderful possibilities

new

would have

we

epoch of history.

new

lion

extra

In fact, taking a somewhat

believe

a

ings of - millions of people into
productive investments, both large
and
small,-scattered< throughout
North America. We are also proud
of the increasing skill with which

down

I

had been used to augment
mortgage holdings, the latter

our

con¬

ahead, I see on every
grounds for much optimism.

side

mort¬

this

it

long look

assume,

money

We

the

simist.

of

our

welcome

to

accept

As you can see, I am not a pes¬

,

seeking addi¬
Let

reason

challenge—to

fidently.

bil¬

growth of $43

money

sake

one-third

10

In

this

illustration, that
normally want to keep about

route

•

even

an

!

think there is

the

years

convenient to

new

the

and VA mortgages—a

cated.

economy on

our

Responsibility for the construc¬
tion and financing of an adequate

that

illustrate

During the last 10

of the flexibility of yields on FHA

policy, inci¬
dentally, that we in the life insur¬
ance
business have
long advo¬

keeping
keel.

assets of life insurance companies

recovery

1954,

ap¬

praisal of real estate values, you
can contribute very effectively to

the

to

during the war. Never in the his¬
tory of our country have aU levels
of our society been relatively so

The

general price
Obviously,

is'/falling.

through the sound, objective

market
was dip¬

competitive

levels.

excessive pes¬

on

the

under¬

supply of housing is a real chair
lenge for the housing and mort¬
gage lending industries. With the
during the last 10 years
fine cooperation that prevails to¬
ping into a non-recurrent source
day between government and our
of life insurance funds, the sale
business, of which the professional
of
government bonds. Here are
appraiser is an integral part, I
I

shortages

heavy flow of funds into
the
mortgage
market, which
gained
momentum
lasting
into

when

rising

of

avoid

to

valuations based

because

mortgages to become adjusted to
a

also

and

level

naturally
going to

are

what

de¬

excessive op¬

on

periods

during

prices

the immediate fu¬

us

If we
boom-

a

economic

of

it is incumbent on
connected with the in¬
process to avoid
over¬

vestment

I

avoid

to

are

course

everyone

two

immediately

mortgages

However, in the summer of 1953
situation changed as certain
steps were taken by the Federal

struction,

mortgages represented
15% of the life insurance

"ahead"

say

particular¬

a

velopment,

ahead. I
think we should • take
a
longer
look, as well.
I appreciate tnat

the

was

haps,

Un¬

both because the companies were
reluctant

to

of

no

pegging the market cut the avail¬
ability of mortgage funds sharply,

ernment

tribution of Investment Money

tribution '

was

need to watch the cash flow.

made

area

There

better.

or

invest¬

for

much money as
policy owners entrust to our safe¬
keeping.
That
is
a
relatively
fixed amount, as I have said, and
it is not of our choosing.
as

I

just

mean

for

the

was

at

of

When

nation

a

and-bust

so

or

word

a

tional investments.

in

in-flow

as

enough
make

me

appraiser has

taining economic stability.

'

ernment influence.

our

the

to
For

The

ly important part to play in main¬

be ahead.

showed

example, those who
are
impressed with the way our
funds support economic develop¬

relating
funds.

venture

Without
going into details, let me cite a
couple of examples of strong gov¬
financing.

mortgage

sionally arise .in connection with
that date the Federal Reserve Sys¬
the* ihvestmfent^pf life insurance
tem had been supporting the gov¬
funds, and particularly with re¬
ernment
bond market at prices
gard to mortgage investments.
above par.
The life companies,
One

to

as

about what may

fact

Government Policy on Mortgage >

on

gain

our

expense.

policy

today,

talked

line—let

profession,

your

ards of

flexibility and
government
the case during
after the war.

I've

now

this

in

that is creating ever-higher

direct
was

spirit prevail¬

progressive

a
spirit
stand¬
training, performance and
ethics among the members of the
various appraisal societies.

ing

petitive division of the net growth
happen to us next. But you will
cf total assets. The truth is, then,,
agree with me, I am sure, that
that
we
won't, have
as
much
from the viewpoint of intelligent
money
for mortgages
and the
planning and sound leadership, we
amount finally invested will de¬
need to take a larger view.
pend to a large extent on how

aware¬

an

influence

as

the

in

act with

also
our

economy
we

security

but,

of

ness

the best com¬
and rate of
because of our size,

of

must

we

the expansion of

be expected that

they score in the final measure of

before

Estate

Nov.

of

their

on

Our aim is to get

bination

time
by

Institute

New

mortgages
vestments.

more

yield

bold

other private in¬
now on, it might

con¬

furnish

ketability.

might add that in North America

American

with

each

than

petitive

companies

gregate assets of $88 billion, onethird

hence

And

But this period of

our

and

ments

A second

Insurance Investments

you a little

the

because of the size and
constant growth of our assets we
can
put more emphasis on the

con¬

thing, our mort¬
largely into the

goes

for

is

attracts

financing of residential
—

pro¬

from

the

to

The Future Mortgage Outlook

along

readjustment
has ended.
Sale of government
bonds can no longer provide sub¬
stantial
funds
for
purchase" of

the

in

job,

our

progress

is in

economy

condition

of this

reason

controls, than

billion.

by $21

national

the first six years

mortgage portfolios have in¬

our

the real
building industry.

safety

in

government
holdings have
by $11 Vz billion and

creased

Also,

mortgage

tunities,

hold

can

to

important

by

freedom

decreased

construction.
financial

future

aspect of

and

estate

about

lending

our

the

and

us

make

to

for
an

operations

me

Clarence

the

the

accuracy

to

assets

that

and

ter

capital

healthier

much

government securities is down to
10%.
Thus, during this decade

as

we

commitments

money

few

a

words

able

are

This is

it

relative

of

The

tem.

securities.

a

proportion

the

the

dangerous to the smooth function¬
ing of our private enterprise sys¬

government's
less urgent

for

need

under

time

for

policies, we
and invest it.

funds

of

fidence

mortgage
to

pro¬

the

with

flow

our

through

loans.

such

business that

our

ject

real

arises

seems

are

So fundamental is the character

main

our

billion

$11

called

of

terms

are

estate, but

of

Until

is

inves¬
in

per

annually for this

us

this money

insurance
direct

$400

at

believe

better each year.
This
is partly traceable to the
fact that we are learning to use
professional services more effec¬
tively, not only in the initial lend¬
ing but also in periodic review of
our holdings.. And it is
due also

in

play of those forces and to assure
an
orderly market.
Rigidity is

specific, in '1945

government

I

largely to assist the natural inter¬

had 46% of our assets invested
S.

be

in

mortgage field, is being done bet¬

on

markets
should be
determined primarily
by supply and demand. Govern¬
ment policies should be directed

com¬

of

govern¬

placed

flexibility of in¬

years

ditions

abnormally
large
governmentbonds
that could be disposed of after
the war and thus provide a source

one,

Premiums

money

extent,

companies

England

tection.

gageable
values.

is

insurance

have

nationwide scale,
without
help from a large number of in¬
dependent professional appraisers.

truly

terest rates is most desirable. Con¬

it

panies
had
holdings
of

capita.

subject of particu¬

one

mutual

rival

make

made possible

was

life

the

Today
You

and

should

I

which

emphasis
authorities

recent

clear at this point that

change

a

because

abnormal volume of funds to
the financing of postwar construction. Says there is increasing
cooperation between the government and the mortgage lending
industry. Defends recent mortgage credit restrictions, and
expresses confidence that the productivity and stability of
our economic
system will continue to advance.
they have contributed

think

I

The
ment

extraordinary change.

a

perfectly

Myers reviews role played by life insurance companies

mortgages

32%.

This is

President, New York Life Insurance Co.

in

invested

assets

our

is

By CLARENCE J. MYERS*

total assets.
Today,
later, the proportion of

years

Thursday, November 10,1955

...

of

agreeing

you,

me

regarding

to

with

produce,

nation's capacity

our

may
possibly have
misgiving about the maintenance
of our capacity to consume. I am

just

as

optimistic

mand side of

about

de¬

the

the

picture as I am
about the supply side. To be sure,

we
will occasionally have short
periods of inventory readjustment,
price readjustment, and readjust¬
ment to changes in the defense ex¬

penditure
we

fail

program.

have

to

a

But how

can

strong upward

trend%in all the basic factors that
demand

create

for

consumers'

goods and services?
The remarkable upsurge

growth

the population

of

continuing.
the

The

distribution

comes

has

needs

are

sinking shift in
of

created

middle-income

in the
is still

personal
a

market,

vast

in¬
new

whose

far from saturated. And

Continued

on

page

35

Volume

182

Number 5480

.

.

The Commercial and Financial Chronicle

.

The National

Supply Company

Pittsburgh, Pennsylvania

From

never

him

.

that he

can

pens

tremendous

sing and he

bounce

play the piano

who

will

It

-

1

sing

hap¬

28

72

130

304

of

29

73

137

313

377

427

55

so

75

138

320

378

76

139

321

379

man

a

A:

President Eisenhower's

582

598

622

658

732

783 851

866

885

916

948

974

1015

1048

1075

1090

1114

1135

566

583

599

639

660

733

785

852

867

887

917

949

976

1016

1052

1077

1091

1115

1137

428

569

584

600

640

664

738

837

854

868

888

921

S50

977 •1018

1053

1078

1092

1116

1163

430

372

571

586

602

641

685

740

839 855

870

8S9

922

951

981

1019

1C57

1079

1093

1117

1169

1094

1119

1173

426

564

57-

71

140

322

381

431

572

587

603

642

687

752

841

856

952

983

1021

1051

1080

58

Yet out of all the speculation that has come

out of

the prefix NP

each preceded by

'

'

or

100 shares

Certificates representing

53

either
-

to by

inclined

are

piay the piano and is

can

occasion.

upon

They

who sang his way into office.

as a man

is

called 100,000 shares of its 4]/2c/c Cumulative
at the redemption
price of-$100.84, of which

been looked

the Washington correspondents for
sage advice.
to look upon

Hereby Given that The National Supply Company, a Pennsylvania corporation, has
Preferred Stock for redemption on December 8,19a5,
84 cents per share is an amount equal to the dividends
which will have accrued thereon to the redemption date.
t
"
As provided in the Company's Articles of Consolidation, as amended, the shares to be redeemed
have been-selected by lot. The shares so selected and called for redemption are represented by the
following certificates: '
:.'
■'/ *- ' '
Notice

By CARLISLE BARGERON
Senator George Bender of Ohio has

of 4V2% Cumulative Preferred Stock

Notice of Partial Redemption

Washington
Ahead
of the News

78

143

324

382

432 573

588

604

643

688

755

843

857

873

892

965 953

984

1024

1062

1081

1095

1121

1175

897

926

954

985

1026

1063

1082

1097

1123

1176

872

891

924

illness, Bender

59

79

191

325

383

446

574

589

605

644

715

760

844

858

874

has come forward with the most sensible state¬
ment of all.

64

83

233

326

384

447

575

591

60S

645

716

770

845

860

876-898

927

955

988

1027

1054

1083

1098

1126

1177

65

87

234

343

385

455

576

592

607

646

725

772 846

851

878

903

929

956

993

1029

1056

1084

1104

1127

1178

66

123

235

344

397 469

577

593

608

648

728

776

847

8c2

879

905

934

957

994

1031

1067

1085

1108

1128

67

124

236

337

399

470

579

594

609

650

729

777

848

863

881 906

942

961

995

1034

10C8

1085

1109

1131

70

125

254

358 400

562

580

5S5

610

652

730

778

849

864

883

911

944

971

1010

1045

1069

1087

1111

1132

71

125

274

339

425

563

581

596

611

655

731

779

850

865

884

915

946

972

1012

1047

1074

1088

1112

1134

The

President,

because

a

away."

For his

to

wear

man

away,

f

does, too.

said,

will

run-again

part, said Bender, he prefers
and he believes the President
-/v

doesn't

claim

to

anything
about what's going on in Eisenhower's mind.
He simply knows what's going on in his. And

job; he
«;

to the White

Carlisle

Bargeron

for

run

a

It has been

bad theme.

a

That

was

the exacting duties,

associated

132

142

170

143

194

228

just think about it,

the

big

upon

retiring at 61 have

fcuilt

so

much around

gone

the

Now, if

farm?

a

from

:

breed.

' ■/

.■/

One of

our

make

them

of

heads

them

such

innocuous

of

649 1243

755 1313
773 1317
822 1353
825 1355
854 1359

1271

442

898 1370

475

insist

we

907 1372
912 1 379

;

dealing with

their

agencies

reserved

though

have

we

notwithstanding that

all just forced upon

he

him.

particularly the Presidency,

now,

939 1405

547

943 1459

553

976 1490

575 1013 1491
592 1035 1519

593 1033 '1543
€00 1033 1609
603 1120 1 655

assumed

a

have

'!

Certificates representing less than

jumped pretty much

a

112

178

248

314

373

436

119

187

262

315

375

440

54

129

200

264

320

.398

475

324

400

476

remark, that

sage

have

.

street

never
car

man

known

a

can

retired in wealth

man,

conductor's pay,

wear

or a man

a very

away."

retired

who would not prefer the latter.

away."

is that

men

All too

many

so

Those, who have been

saying,

even

„

on

He has had

things easily, It is inconceivable to
a

long training

on

it would

seem

he

can

run

can

for another

attack,

how to take

out his present

Russell With Kinnard

tgrm,

one.

To Be

(Special to The Financial Chkonicle)

Neb.

OMAHA,
Russell

-

has

—

Edmund

become

P.

associated

with John J. Kinnard & Company
of

Minneapolis.

formerly

Mr.

Omaha

Russell

manager

Waddell & Reed, Inc.




Risser, Harmon Co.

Effective

was

for

Dec.

retirement of
the

pold

firm

&

Co.

of

will

M.

James

be

630

705

765

824

908

969

1143

1516

1960

2345

2601

2979

588

631

707

768

1151

1548

1975

2379

2612

2981

328

405

491

539

591

633

713

770

835

939

986

1158

.1632

1992

2385

2622

2982

332

407

'492

542

595

640

715

776

839

940

987

1180

1637

2132

2419

2623

73

155

226

302

340

413

497

544

598

643

720

781

844

941

1003

1206

1698

2133

' 2444

2639

414

350

503

602

549

Leopold,
M. Leo¬

changed

649

735

784

830

853

925

975

946

1 009

1 224

1 699

229

304

45; 76

159

231

305

359

416

509

550

612

651

741

787

854

953

1031

1271

1718

2230

2495

2807

93

169

239

306

361

422

510'

558

613

664

744

802

886

954

1045

1278

1747

2267

2496

2809

158

45+74
47

Certificates representing

2228

2471

2737

less than 100 shares each preceded by the prefix PPO

72 192 230 280 333 403 458 505 545 562 572 599 621 635 648 666 676 699 716 726 745 766 775 796 810 829 839 847
73 193 248 281 336 404 462 512 547 563 573 603 628 636 649 667 682 704 717 727 748 768 777 801 813 830 840 848
_

194 252 285 337 406 463 513 549 564 575 608 629 637 651 668 684 705 719 728 750 769 779 802 814 832 841 849
87 195 253 305 345 408 469 524 551 566 576 610 €30 639 654 670 686 707 720 731 753 771 786 803 824 833 842 850
195 255 308 356 427 494 536 553 567 577 612 €31 641 655 671 689 708 723 733 754 772 787 804 825 834 843 851
79

497 539 560 568 580 616 632 642 656 673 690 710 724 736 761 773

224 274 332 371 446 504 542 561 570 581

191

793 805 827 835 845 852

620 634 644 662 674 695 714 725 742 763 774 795 808 828 838 846 853
854

Certificates
1

46

22 70

representing less than 100 shares each preceded by the prefix TPPO

103 208 237 255 281 298 319 348 385 408 422 433 453 472 504 518 530 550 598 626 €51 675 699 725 793
85 104 210 241 259 283 299 325 356 389 412 424 443 455 496 505 519 537 557 600 628 652 677 701 728 808
99 117 213 242 260 284 305 325 358 391 414 426 444 458 499 510 520 539 581 €01 €31 653 679 703 748 814
84

514 525 540 584

309 330 364 396 415 430 446 459 501
365 400 416 431 447 461 502
81 102 199 221 248 278 293 317 344 373 405 418 432 449 462 503
71

100

128 214 246 266 291

101

198 219 247 276 292 312 338

40

515 526

541

611

633

658 689

592 612 635

516 527 548 595 621

752

712

661

6D0 714

673

646

697

867

766 898

724 785 909
926

Certificates representing more than

175

169

179

177

180

100 shares each preceded by the prefix TPPO
182

190

468

470

487' '

488

*491

493

representing more than 100 shares each preceded by the prefix PPO to be redeemed in partt

■j'n

450

Ctf.

Shs.

Ctf.

Shs.

No.

Called

No. Shs. Called

1730

'

tlinn 100 shares each preceded by the prefix TPPO to be redeemed in partf

Ctf.

Shs.

No.

Called

No.

Called

173...100

120...400

800

112

>

'Ctf. N'o.
844

NTo. Shs. Called

Ctf. No.

No. Slis. Called

x0

.

170...

5

174...

5

.

171...

5

176...100

.

Ctf.

Shs.

No.

Called

.

Ctf.

Shs,

No.

Called

Ctf.

Shs.

No.

Called

ctr.

Shs.

No.

Called

Ctf.
No.

5

464. ..100

467. ..100

473. ..600

483. ..100

495.

5

465. ..100

469.

474. ..411

492.

497.

5

466. ..100

471. ..100

486.

494.

tUpon the surrender of these certificates in
will be paid for the shares called and a new

..

5

..

5

5

..

Shs.

.

Called
..

5
ro 00 01

5

..

the manner provided, the redemption price
certificate issued for the remaining shares.

required for the payment of the redemption price of the shares called for redemption
deposited bv the Company, in trust for the holders thereof, with Bankers Trust Company,
New York, on or before December 8, 1955. Upon such deposit a restriction against transfer will be
enforced against certificates representing shares called for redemption.
Stockholders whose shares have been called for redemption will also receive a notice by mail and
must surrender the certificates representing such shares at the office of Bankers Trust Company,
The funds

will he

Street, New York 15, N. Y., in order that the redemption may

Company's Articles of Consolidation, as amended, from and after the redemption date,
shares so called for redemption shall Cease to accrue, and such shares shall no longer
be deemed to be outstanding, and all rights with respect to such shares shall forthwith cease and
determine except only the right of the holders thereof to receive the redemption price therefor, but
Under the

all dividends

1, following the

James

name

2883

301

Corporate Trust Department, 46 Wall
.

2843

2600

294

never

that he will lightly give up

serve

2597

2331

1779

272

Certificates

second term in the White House, his Gettysburg farm notwith¬

standing. -As for his health, if he
j

a

me

2330

1928

225

him to where he is.

drawn from his health.

1904

1481

209

Certificates representing more

mindful, too, of the fact that the Presidency has

1474

1107

a

burg iarm are not very cognizant of the ambition which has brought

am

1106

965

895

206

The

that General Eisenhower would like to "rust away" on his
Gettys¬

I

2548

931

900

808

147

168

.

before his heart

2274

898

822

142

I

few have the opportunity of "wearing

of them just have to "rust away."

1433

809

764

136

Ctf

tragedy of old

1082

749

68

34 79

or

957

699
704

66

23

"either rust away

2842

745

625

67

184 197 273 311 365 439

Presidency in the first place, having found it

a

100 shares each preceded by the prefix TNPO

574

534

309

116

The general assump¬

opinion, is where George Bender has made

7031

25

It

after his heart attack, he would manifestly give that

my

7014
7015
7016
7017
7021
7026
7028
7029

626

533

armies in

for not running again.

There, in

7008
7009
7010
7011
7012
7013

6898
6899
6900
6904
C907
C908
6921
6923

6461 6625 6783
6466 6626 6784
6467 6628 6737
6469 6641 6791
6471 6645 6792
6475 6651 6793
6480 6652 6797

6298
6300
6305
6305
6307
6311
6316

565

521

6 59

reason

.

6286 6457-6617 6779
6292 6459 6618 6782

573

516

51

utterly ridiculous to this writer's mind, is that having

onerous, now

199
200

29

Eisen¬

good fellow.

197
198

621 .673

559

515

177.240

21

be

overnight

our

423

371

103

5. 50

■

General

195
196

39

to

come

''

that

favor, being

150

representing less than 100 shares each preceded by.the prefix NPO

48

11

And he has accepted these honors,;

as

156.165
163 190

142

10 shares represented by Certificate No. NP06823, nine shares are called for
redemption. On the surrender of said certificate in manner provided, the redemption
price will be paid for nine shares and a new certificate for the remaining one share issued.

8

energies

134
140

*Of the

organizations rather

or

lot of nonsense, of course.

a

been bored with the

as a

130

■Cf

4

Europe, to President of the United States, didn't like any of it.

tion

935 1403

537

We may

had.

has

;;::V'\

This is all

932 1397

525

unusual

an

922 1394

524

i

-

913 1388

485

which is

economy

from Lieutenant Colonel to General in command of

was

128

123

6924
1859 2520 2979 3495 3819 4458 4717 4938 5099 5300 5570 5743 €006 6193 6317 6489 6653 6800
6926
1904 2530 2984 3512 3828 4463 4723 4949 5100 5305 5573 5746 6010 6194 6324 6^95 6655 6801
6928
1918 2537 2985 3514 3855 4471 4769 4950 5101 5318 5577 5747 6021 6195 6325 6497 6656 €821
6932
1925 2540 2997 3558 3862 4472 4773 4951 5127 5359 5578 5753 6022 6193 6328 6502 6359 6822
6937
1928 2588 3013 3593 3873 4489 4781 4952 5129 5335 5580 5782 6023 6210 6329 6505 6662 6823* 6938
1937 2590 3078 3596 3921 4497 4788 4966 5130 5381 5581 5797 6024 6215 6338 6509 6677 6824
6939
2031 2601 3087 3599 3962 4503 4792 4976 5131 5392 5582 5798 6027 6218 6339 C510 6678 C827
6946
2049 2609 3148 3S02 3977 4507 4795 4977 5135 5394 5584 5802 6031 6219 6342 6514 6700 6829
6951
2054 2632 3161 3310 3998 4527 4802 4978 5139 5395 5585 5803 6038 6221 6347 6516 6701 6830
6958
2038 2660 3162 3611 4011 4537 4805 4979 5140 5418 5585 5804 6039 6222 6349 6524 6702 6841
6934
2069 2693 3184 3515 4017 4554 4826 4983 5141 5426 5588 5805 6040 6223 6352 6528 6703 6849
6957
2100 2695 3210 3661 4023 4584 4828 4990 5142 5434 5598 5830 6041 6243 6353 6529 6704 6850
6959
2104 2712 3218 3670 4031 4590 4839 5005 5147 5435 5605 5835 6045 6251 6333 6534 6705 6855
C970
2105 2735 3219 3672 4084 4591 4847 5012 5148 5437 5612 5837 6057 6266 6372 6539 6706 6857
6972
2114 2755 3226 3673 4108 4592 4850 5022 5151 5455 5615 5839 6058 6267 6378 6553 6707 6858 6975
2139 2790 3249 3674 4151 4616 4853 5023 5166 5457 5626 5858 6060 6277 6383 6563 6708 6859 €973
2143 2803 3303 3683 4181 4617 4855 5025 5169 5497 5632 5859 6069 6278 6406 6568 6741 6863
6978
2160 2804 3304 3684 4192 4618 4856 5026 5170 5498 5634 5854 6070 6279 6407 6581 6747 6878 6979
2169 2809 3305 3688 4193 4632 4859 5040 5183 5499 5539 5868 €071 6280 6412 6586 6754 6880 €980
2197 2830 3345 3699 42t6 4633 4854 5044 5187 5501,5540 5871 6079 6281 6429 6611 6755 6885 6981
2202 2836 3357 3721 4225 4644 4869 5045 5193 5604 5556 5889 6080 6282 6430 6612 6775 6885 6999
2247 2840 3361 3723 4230 4647 4870 5048 5195 5529 5655 5895 6081 6283 6444 6613 6776 6890 7000
2253 2842 3364 3724 4243 4658 4899 5049 5196 5533 5672 5897 6088 6284 6445 6616 6777 6891 -7003

656 1264
671

478

They have been too energetic to be dismissed;

with

Apparently,

hower,

104

103

636 1223 1852 2518 2971 3485 3817 4453 4716 4936 5095 5286 5569 5740 €005 6183

327

get jobs with industry!

Eisenhower

as

•nuisances.

/

101

94

problems in the past has been what to do with the

than dismiss them.
some

56

55

''■

of accomplishments

men

;

•

are

54

44

635 1222 1815 2485 2960 3484 3816 4439 4715 4935 5077 5269 5567 5739 5984 6174

326

Does he consider his days cone

you

43

42

633 1206 1790 2293 2943 3452 3791 4385 4703 4920 5070 5221 5563 5702 5972 6137

259

industry at

Not by a long shot.

them, then

41

39

634 1214 1813 2310 2949 3455 3801 4427 4713 4927 5076 5249 5564 5707 5983 6146

232

at his age of mid-60's is tired, wants to pack up his accomplish-'ments and rest upon

37

35

632 1173 1780 2291.2920 3423 3790 4381 4679 4916 5068 5219 5559 5689 5969 €098

243

accept the proposition! that General Eisenhower,;

you

33

32

222

>

and want to retire to

28

27

207

itching to get

was

new

government to

Take the controversial McArthur.
•

our

23

22

202

placed in the

man

military officers whom

out in

100 shares eacli preceded by the prefix TPP

21

47

479

The

550 559 567 577 594 C02 609
551 561 570 579 595 603 611
552 562 571 580 597 604 612

5673 5905 6089
5550 5675 5914 6094
621 1137 1714 2267 2857 3404 3769 4337 4672 4907 5050 5208 5553 5676 5926 6095
631 1138 1766 2289--2914 3406 3770 4376 4678 4911 5066 5217 5558 5684 5941 €098

440

the lawn.

mow

547 553 563 573 583 598 605 613
548 555 564 574 589 599 607

549 558 566 576 591 601 €08

144

of them of whom I know is contented to just sit around

the house and

507
509
511
512
524
546

132

been built around

retire

495
497
500
501
503
494 505

607 1135 1672 2256 2855 3385 3758 43c0 4668 4904 5054 5207

372

have had

486
488
489
491
493

470
471
474
475
476

60S 1128 1660 2254 2843 3384 3751 4249 4666 4903 5053 5204 5538

45

dissatisfied, didn't like his job, the

men; we

455
456
462
463
465

17

Certificates
2
45

had before them.

Consider

435
441
443
449
451

16

ever

of the most amazing contemplations they

one

representing 100 shares each preceded by the plefix PP

15

238

with it,

.

362 403 414 463 485 511 542
377 404 418 483 506 534

351
358

239 270 309 344
265 296 341 345

227

135

§

to his Gettysburg farm and golf; that is one, if people will

no one

129
130

Certificates representing

a

hours

65;

127

128

It is true

second term.

highest office of the land

ever

122

126

and die.

unmistakably true.

The whole Republican party structure has

have

87

94

479
480
481
483
484
124 319 328 334 344 353 359 365 376 409 417 425 434 452 468 477 485

temporary service; that he longed to

a

retire; would probably not

away

84

85

"

Certificates

House, that Eisenhower didn't like the

just rendering

that theme.

82

83

\

came

was

72

73

'58 126 320 329 337 347 354 360 366 378 411 418 426
67 127 322 330 339 348 355 351 367 391 412 419 427
C8 146 323 3311341 349 355 362 368 402 413 420 428
69 317 324 332 342 350 357 353 372 403 414 423 430
123 318 327 333 343 352 358 364 375 404 416 424 433

men.

since he

39

51

•

Unfortunately for the Republicans, the story has been

o

,

27

38

+

'

that is to keep doing.
i
The only reason Bender is in the United
States Senate today, is that he kept "doing."

of most

12
17

52
62

1
2

know

When you quit "doing" you
dry up
That is Bender's philosophy and it is

representing 100 shares each preceded by the prefix TNP .■',/

Certificates

.

Bender

i

he

"either rust
away or wear

can

on;

without interest.

to

THE NATIONAL SUPPLY COMPANY

Risser Harmon & Co. Earl T. Ris¬
ser,

member of the Exchange, will
a partner in the firm.

become

By Robert \Y, Eii.er, Secretary.
November 7, 1955.

•

•

16

(1980)

The Commercial and Financial Chronicle

tors, largely because sales

...

Thursday, November 10,1955

are

markedly over last year
and the holiday season with
up

THE MARKET... AND YOU

its boon to sales is imminent.

Liberal

STREETE

By WALLACE

The stock market
in

the

election

change

little

saw

results

anything

basic

crafts

been

had

that

thoroughly deflated. It helped
and this group since to s h o w
to

yields

other,

are available,
inducement; for an¬
the issues have been

quiet

all

for

hifer above-average stability and £"fa^terttog1tTsta^
lrUt°n °CCf'°n?1 defmlt® fav°ntlsn? up in some of the more seriweek. The as the large orders for jet

?£ ,S tgh
upside this
the

£

interest

,

SECURITY

that the

*

from

*

Traders Association of New York, Inci: announces
following candidates have been nominated to hold office

for the year 1956:

President—Edward J. Kelly, Carl M. Loeb, Rhoades & Co.

^

First Vice-President—Nathan A.
Second

Mail Orders Spurt

meetings with investors quite put a more hopeful face on
Mail order shares occasionobviously expecting to share the civilian activities of the apy were abje i0 put on a
to
a
greater extent in the plane makers. Boeing was the
g00d show of market popubooming business of this year, week's recipient of a fat order farity, a bit of the play in
*

TRADERS ASSOCIATION OF NEW YORK

Security

rip„resspH

y

centered

transport fleets from the dothe year-end dividend mestic
airlines continue to

on

Notes

aren't

and

year

among the issues that will
have to weather tax-loss sell-

t0 ™rk

paramount

NSTA

one

Krumholz, Siegel & Co.

Vice-President—Henry Oetjen, McGinnis & Co.

Treasurer—Daniel G. Mullin, Tucker,

Anthony & Co.

Secretary—Barney Nieman, Carl Marks & Co., Inc.

Airlines

American

Montgomery Ward stemming
stock split hopes now
ternational Paper, the cash better showing. The airlines that a more
aggressive merand stock
payments were the themselves, despite favorable chandising policy is starting
Where,

in the

as

case

of In-

which

helped

it

put

on

a

from

last year, market re-

earnings, have had little fol- to show results. Sears, which
Chrys- lowing, possibly because of aiready has planned a split
ler, which had hoped for at the huge financing ahead to with the special meeting to be
least a partial return to the acquire the new fleets. Where held next week to
ratify it,
old dividend rate that had to some other favored issues was able to
keep pace on daily
same

as

action

immediate.

was

be halved last year, was held

have sold at 25 and 30-times gains, but, unlike Montmomentarily when the earnings, the air carriers are gomery, made no serious atlower rate was continued, but prominent at the low end of
tempt to forge into new high
a dollar extra tossed in for the
this measurement, currently territory.
year-end helped to salve the running below 10-times earn¬
holders partially.
ings.
One issue, held back mar;

Edward

back

The GM

General Motors fared well
when the company authorized
the first payment on the new

issue—a dollar year-end dis¬

bursement,

or

payout

a

nearly $300,000,000.

of

The

stock's first chance to
respond
to the
payment wasn't until

the

day

"the "elections

after

and it built up a fat' 35,000share opening trade in the
issue.

It

of

$3

to a degree by the
large need for expansion
Standard Oil of New Jersey
capital, is National Gypsum
was
buoyed by its official which has held in about a 15split proposal and helped the
point range all year. The com¬
other oils stand out as some¬
pany has been engaged in ex¬
what above average in mar¬
panding its gypsum reserves,
ket performance. Warren Pe¬
including one deposit which is
troleum, however, which ennow
completed that has re¬
joyed a rather long run in serves
to carry the firm for
popularity, was hard pressed; l^Z^entu^Ats miff prooccasionally naakirtg it some- granlhas a bit to g0 yet but
w.hat obvious on the casualty thi| ^ expected to be corn-

year-end payment
against the $2 paid last year

side. On a times-earnings
basis, incidentally, the oils
wlth thelr heavy depletion

but

the

allowances feature

the

casional statistical game of
r.efiguringthe price on a
times-cash-flow basis. The ac-

a

was

left

the

"regular"

the

equivalent

of

amount

quarterly

on

stock up in the air until
the next directors'
meeting.
new

*

in

in an oc-

tual cash flow of Jersey, for

*

old

stock

of

pleted. in midyear
f

d

h

d

.

%

From

General

the

technical

stand-

>

point, the fact that the market
has

shown

it

can

still

surge

period of inertia

a

to

against

the

old

sedate

basis

Unlike many is¬
that have reacted
quite

sues

eight-times-cash

an

the

trading sessions for
earnings.
stock were
highly

13-times-

the

their

industrials
swift,

rebound

reached

but

from

on

momentary,

the

Sept. 26
deluge is considered the first
crucial point to breach before

ones.

Split Candidates

enthusiasm will

become

Among the chemicals it was
markedly recently, the GM
largely a case of stock split somewhat rampant. The going
old stock was
sturdy through¬
candidates that did most of became a bit stiffen as the
out. It posted its
high subaverage approached this area.
sequent to the late September the.work' DuPont, whose di- How
much this was due to the
trouncing given the market rectors meet early next week,
intervening holiday for Elec¬
generally, and ended its trad- Wf th® c®nter °f most of the tion
Day and how much to
ing life a scant half dozen mterest. Hopes for some divi- technical resistance was still
points under the best, or some
50 points above the 1955 low.
*

n„P™+

the

t

nrocn't

ut

$63,000,000 that

declaration

treasury
and

on

the

will

i

off as a matter to be attended
to next year. In the chemicals,

how

th^GM °lm Mathleson' one of was
the
of the
giants,
newer

add

its

to

available

at

stock

was

able

occasion

around

to

to

run

slightly

than

the

in the division. The

re¬

two-thirds

a

pany

of

more

the

picture
much

But

and the end of the yean
such

usual
com¬

erupted to giant stature

selling

erally agreed

as

was' gen¬

being

fluence not present

an

in¬

last year

only recently after the Math- to any considerable degree
ground it had lost in its ieson
Chemical-Olin
Indiis- and one
likely to keep the
reaction of recent weeks.
the

tries-Blockson

*

i'f

Chemical

*

traditional

year-end rally in

a

pushed it into fourth somewhat narrower
pattern
Quite a few issues have siz¬
place in the industry.
able gaps between their
than usual.
year's
*
*
*
best
postings and current
[The views expressed in this
levels. A good
Department store issues article do not necessarily at any
many had remergers

acted

ber

even

break,

before the

notably




Septem- continue
the

air-

some

of

to
the

be

favored

market

by

specta-

time

coincide

with those of the
They are presented
those of the author only.]

"Chronicle."
as

of

Gratuity

Fund

(Two-Year

Term)—Edward

L.

McManus & Co.

Nominating Committee
ard

(Four members to be elected)—Rich¬

F.

Abbe, Shearson Hammill & Co.; Murray L. Barysh, Ernst
& Co.; Joseph H. Billings, Cowen & Co.; John C. Blockley, Harris,
Upham & Co.; Walter L. Filkins, Troster, Singer & Co.; Thomas
Greenberg, C. E. Unterberg, Towbin Co.; Charles H. Jann, Estabrook & Co.; D. Raymond Kenney, D. Raymond Kenney & Co.;
Joseph D. Krasowich, Gregory & Sons; Paul J. Lane, Kidder Peabody & Co.; John Vincent Lytle, Shields & Company; John N.
Manson, Hardy & Co.; Theodore Plumridge, Eastern Securities,
Inc.; Stanley Roggenburg, Roggenburg & Co.; Robert A. Torpie,
J. C. Bradford & Co.

Nominations
Committee
endorsed

other

be

than

those

selected

by

the

Nominating

made

by a petition presented to the Secretary
by 15% of the members eligible to vote for candidates.
can

All nominations shall close

15 days

prior to the Annual Election.

Respectfully submitted,
Members of the Nominating Committee were:

Leslie Barbier, G.
Thomas L. Curry,

A. Saxton & Co., Inc.,
Stone & Webster Securities Corp.
Fleckner, Merrill Lynch, Pierce, Fenner & Beane,
George V. Leone, Leone & Pollack,
George V. Hunt, Chairman; McLaughlin, Cryan & Co.

obscuring
somewhat was
tax-selling will

have to be absorbed between
now

Barney Nieman

A.

National Committeemen
Samuel Magid, Hill, Thompson &
Co., Inc.; John J. O'Kane, Jr., John J. O'Kane, Jr. & Co.; Harold
B. Smith, Pershing & Co.;
j. .
■ ■
National Committeemen Alternates—Samuel F. Colwell, W.
E. Hutton & Co.; Stanley E. Dawson-Smith, Cruttenden & Co.;
John D. Ohlandt, New York Hanseat.ic Corp.; Stanley M. Waldron,
Merrill Lynch, Pieree, Fenner &
Beane; Graham Walker, Joseph

far from clear. Also

,,e

the shares it holds liberal
yield

celebrate the
cover

•

Alllecl Chemical
skares had largely been put

S!on

Mullin

—

*

3-for-l

last few

Oecjen

Chapman, Spencer Trask & Co.; Salvatore J. Rappa, F. S. Moseley & Co.

h

i'fi

,

a

G.

(Two-Year Term)—Edward

^Trustees

with the

Motors

as

Henry

Horn, Kuhn Loeb &
Co.; Reginald J. Knapp, Wertheim & Co.; Wilbur Krisam, John C.
Legg & Co.; Lewis H. Serlen, Josephthal & Co.

pany's funds.

uphill after

splitup became effective. The price

ISatban A. Krumho.z

Daniel

Directors

insianc?< will probably be $6 was encouraging but not"
disappeared from moret tban the fo™al renecessarily decisive yet. The
trading after the week's ini- P 0 r t e d earnings this year,
which
reduces
the
market high-water mark of 475. which
tial
session
The

Kelly

ketwise

Jersey Stimulates Oils

Payment

J.

Wm. L.

SECURITY

Security

TRADERS

Traders

ASSOCIATION

Association

Bowling League standing

as

of

New

OF

NEW

York,

of Nov. 3, 1955 is

YORK

Inc.
as

(STANY)

follows:

Serlen

(Capt.), Gold, Krumholz, Wechsler, Gersten
Manson (Capt.), Jacobs, Barrett, Siegel, Yunker
Barker (Capt.), Bernberg, H. Murphy, Whiting, McGovan—
Leinhardt (Capt.), Bies, Pollack, Kuehner, Fredericks
Donadio (Capt.), Brown, Rappa, Seijas, Demaye
Meyer (Capt.), Corby, A. Frankel, Swenson, Dawson-Smith_
Growney (Capt.), Define, Alexander, Montague, Weseman__
Bradley (Capt.), C. Murphy, Voccolli, Rogers, Hunter
Krisam (Capt.), Farrell, Clemence, Gronick, Flanagan
Leone (Capt.), Gavin, Fitzpatrick, Valentine, Greenberg
Topol (Capt.), Eiger, Nieman, Weissman, Forbes. Klein
Kaiser (Capt.), Kullman, Werkmeister, O'Connor, Strauss__
200

Point

Duke Hunter

Club

______

5 Point Club
202

Mike

Growney

Walt Bradley
Joe Donadio

;

32
26
25

24
24
22

22
22

21^
21
15

14

182

Volume

Number 5480

.

.

.

The Commercial and Financial Chronicle

(1981)

course,

Character Audits (or

am

example

happy

very

which

with the

President

of

the

Bible,"

Eisen¬

by attending
regularly
and
trying to make Sunday different

has

Church

from

set

admitting
students ' to
Institute, we do not ask
whether
they
are
Protestant,
Catholic, Jewish, Hindu,/ or Mos¬
lem, but we are greatly interested

other days.

I also

appreci¬
opening his Cabinet meet¬
ings with silent prayer. Certainly

in

the habit of

out, also, it is important to build up our spiritual resources,
and

schools should be retained.

character.

caution and wisdom in

more

consuming

have

where

we

serves

of

natural

caution

more

consume

our

wisdom.

Un¬

"

spiritual

our

looked

practical
this

upon

vast

method

nation

Spiritually

are

asking

of

little

for

I,

;

effort

of

the

I

Bible

crease

a

developing

spiritually.

de¬

am

Bibles

such

as

just

in¬

the

led

of

as

the

they

most

Con¬
"Soul

to

by

(Special to The Financial Chronicle)

CHARLOTTE, N. C.—Robert H.

the

of

day

Morrell With Bristol

corporations will

character

leading

Morrell

we

continued

The

financial

perhaps

important thing

BOSTON, Mass. —Walter S.

and

executives

give

now

(Special to The Financial Chronicle)

stockholders

to

This, is

assure

our cor¬

men

forecast

the

statistics.

especially

reading of the modern

densed

indicating

for the

making to

reading,

' ;

has

Bristol

Chamber

the

Mr.

could do

of

&

Co.

and

Co.

as

nature's

gifts,

a to many of
to

used

be

as

desired.

minerals

SUNLIGHT

Our

POWERS

TELEPHONE

CALL

FOR

FIRST

TIME

and

forests

have

therefore been
used

too

freely,

al¬

though

we

have achieved

Roger

W.

Babson

of

one

the

highest stand¬
ards of

of

living.
Through our skillful utilization
coal, iron,- aluminum, copper,

and

other

materials,

raw

work

has

have

this

leisure,

our

easier.

We

mere

been

made

leisure, so that we may
follow cultural pursuits. However,
be

to

meaningful,

should include pursuits which add
to

our
spiritual .values and not
just
those
which
further
our
pleasures or promote more tech¬

nical

achievements.-

Natural

Resources

May

Be

Depleted
'

The

wisest

have

begun

whep

some

ural

industrial

look

to

leaders

the

to

time

of our precious nat¬
will

resources

be

depleted.

;With plans for solar,-atomic,

and
still only in devel¬
opment stages, for .war or peace- Vi'.YlT'/time uses, we especially need to
•
•

gravity

power

conserve
we

our

i

resources

that

so

-

of

fore, be more careful of our ore,
/forest, and oil reserves. We are
already replenishing our woodlands

by

reforestation

and

—

tivation
land

that each

so

will

yield

have

also

'

•"**-

——

k

are

using better methods of soil en¬
richment, fertilization, rand cul-*

,'Y

of farm

acre

efficient

more

*

crops.

We

search

must

tional

realized

for

of

only

not

that

and

new

reserves

sources,

all

*

make the. best possible'i1them.
We--should, •there'

may

iuse

we

addi¬

natural

here,

re¬

but

also

the world. More countries

over

Bell Solar

will then be able to develop their
own
industries
and
agriculture,
that

so

therefrom.
to

Each

those

produce
able

people

more

turn

out

telephone pole

at

Americus, Georgia, to

power an

amplifier

on

rural telephone line.

will

which

most

on

benefit

may

country

items

Battery is mounted

it

Bell

is

efficiently.

Then, these products will be ex¬
changed so
that
all
industries
may

be

tage

TAKES

Solar Battery
ANOTHER

STEP

FORWARD

of everyone, everywhere.

used

The

The
use

the

the

best

Ultimate

utlimate

advan¬

Bell

Goal

goal

of

convert

sun's

of natural resources is to raise

used in

interesting test.

standard-of-living,

mind.

up

to

this-goal

emphasize

is

as

the

Our

in

its

in

our

conserve

natural

order

attain

we

doubled and its usefulness extended.

telephone service and in

as

spiritual

attempt

resources

material

to
in

well-

must emphasize the dig¬

nity of the individual.

This coun¬

its

efficiency has been

interesting test of the battery's

possibilities is

now

under

way

at

Americus, Georgia, where it is
as

of

nation's

An

*

other fields.

then

were

Archimedes,

searching for

men

a way to put

almost limitless power

of the

the

sun to

use.

has been

brought closer to realization

The dream of centuries

by the Bell Solar Battery.
It

was

developed

at the

pow¬

ering

rural

an

Bell Tele¬
re¬

on a

Mounted

on

opening of
can

a

glimpse exciting

the future.
cess

in

the Bell

of the

We have proved

leadership in industry.
now

show

our

We

leadership




our

must

by

new

more

sun

and

has

we

things for
suc¬

more

of

from

come

Telephone Laboratories de¬

a

telephone pole, it

furnishes electric power

light hours. At the

during day¬

same

time it

THE

BELL

dient of

battery to provide
power for nighttime operation and
periods of cloudiness.
a storage

SOLAR

BATTERY

is made of

specially treated strips of silicon,
common

are

nothing is consumed
no

no

or

SYSTEM

a

long

moving parts and

destroyed.

fuel other than the light of the

BELL TELEPHONE

thin,
ingre¬

an

sand. It should have

life because there

try has become the richest nation
in the world.

far is the

Increasing hope for

harnessing

the power

so

door through which

velopment of the Bell Solar Battery.

telephone line.

charges

phone Laboratories after long

amplifier station

What has been done

1954.

pos¬

Has wide

practical

Therefore,

being,

for

search and first announced in

Since

im¬

strength.

to

sibilities
many

to

now

into electricity

build¬

resources

resources.

power

is

in

As far back

of spiritual

physical

it

and

rays

I*

keep

Moreover, it is just

portant

true

the

Telephone Laboratories invention

wise

important | to

ing

to

Needs

sun

staff

itself.

of

Company,

Building.

formerly

was

&

Freeman

the

Commerce

Morrell

Sheehan

prosperity

joined

Securities

re-

sources

readers

I

statistics

health

of myself

must see that
are

when auditors of

report

ashamed

we

porations

the stake Feb. 6, 1555, for trans¬
lating and distributing the Bible,

and

resources.

How to Develop

Most

have

these

up

other human

fortunately,
us

further;

When

think of my ancestor, Reverend
John Rogers, who was burned at

company's leading executives.
building

re¬

business

nation

I

with

resources

and

on

was

I feel

approached the stage
must

which I

Points

our reserves.

predicts auditors of corporations will in future report

the character and health of each
We

urges

severe

character and hope theyMorrison is now affiliated with
to the Universal Father, The Southern
Investment
Company,
must, however, go even Inc., Johnston
Building.

pray

be depleted, Mr. Babson

resources may

a

With Southern Inv. Co.

their

family prayers, under
trained, was a great
factor in my life.
I believe that
Bible
reading
in
the
public

Warning natural

avoid

pression.

When

us

services

ate his

By ROGER W. BABSON

and

Babson

hower

Corporation Executives

"Reeve's Brief

or

Bible."

17

with

Boardman,

18

The Commercial and Financial Chronicle

(1982)

capital

Atomic Energy and
Electric Power Construction
(Ret.)

By LT. GEN. LESLIE R. GROVES

Director of first atomic energy
of atomic

Points out

project discusses peaceful

possible effects of atomic

electricity, and states atomic

I,'

upon

broad strokes

explosion of the first atomic
bomb and the two that brought

demands for electrical

our

have

been

and

I

that gave us a

the immediate surrender of Japan

—but

destroyed the complacency of the

and time

the

average

fuzzy and hazy.
picture
is
still

very

the

Frankly,

man

towards

-

the

in

blurred

details

of

delineation

was

*

areas—but here

many

will

sure

Three

No

there

and

and

science
t

of

beginning to show
cut ideas

echnology.

still

been

great

see

that

the world's

are

not far

on

thinking that
today we find
sane, practical
scientists

earlier

an

flight within

reasonable
like

to

while

observe,
do

I

however,
wish

not

to

views,

have

to

attempted

reservations for

a

be

the

save

possible and
of

tens

fellow

our

and

to

stop

on

our

than

war

lives

of

drain

the

of

Ameri¬

to

not

are

left

irt

too

when

return

of

Peace

Use

Time

be just

well if

as

engaged in

we

little less speculation

a

about the

exact details of the future and

down

to, brass tacks and did tnings.
all, that was the way i the

After

Manhattan
did

got

do

Project operated.
little

a

We

speculating

from

dent to us,
war

our

speculating to interfere with
immediate objectives.
At this

time

no

atomic

really knows whether

one

generating stations will be
central, costly plants or

large,

whether

there

will

be

numerous

era

itary.

ports (this

will

be

a

or

not

there

tendency towards

con¬

stated

we

by yno

cause

impact

industry.

were

member—the

uranium

this uranium will greatly increase
the

effectiveness

this

of

efficient

more

supply.

is not de¬

use

minor engineering and

on

operational improvements, but in
the main, will

spring from major
the devel¬

as,

time

other

industries, such as in
sterilization of foods, etc.

the

production

by

or

our

this

In

fact,

feasible.

in

we

carried

end

big

these

about

questions?

Free

.

enterprise has made this country
great and it will continue to do
But let

so.

remember the word

us

—ENTERPRISE.

It

doesn't

long-winded conferences,
it

mean

tion.

To

tinue

mean

nor

does

endless talk and specula¬
most of us it will con¬

to

GET-UP

mean

and

GO,
promptly, and

making decisions
forcefully and courageously
carrying them out. I hope that

then

this will continue to be the Amer¬
ican

doctrine

as

the

Atomic

Age

unfolds.
are

more

the tremendous transition that has
been

going

on

in the world from

the days of the first A-bomb. And,

today
there
tne

there
will

rate

is

be

for

lighted
small

slow

that

down

were

its

much

very

interested

in

was

results

ura¬

the

achieved,

were

field

of

radio-active

isotopes.
Here

terested

you

to

as

industry and

six

we

commercial
months

Less

use.

after

than

V-J

Day our
completed
and not too
long after that the
distribution had begun. Since that
day. tens .of thousands of ship¬
basic organization

was

ments of these isotopes have been
made
sand

a

short

period

had been

by power generated by a
power plant.
Who

housewives

would

some

day

eggs, or boil coffee or run
vacuum
cleaners with the aid of
atom?

-

Our atomic power
was

started

to

something

institutions

development
with

*An address

large

by Gen. Groves before the
National Electrical, Contractors Associa*
tioa, .New York City, Oct. 31, 1955.




over

in

a

thou¬

the, United

States, and

many more have been
sent abroad.
Private

been
for

a

Like
most

now

other

most

vitally

are

the

just

where

atomic

energy

people —
probably won¬
this

and

new

power

It

which

in

tion.

-

greater
much

whether

it

be

will

open

to

require

areas

'

I

said

of

would

im¬

this

really
prised

opens

remembered

British^.

exchange

•

ganizations
mental

have

We

greater availability of coal

a

at reasonable cost, and we have a

plentiful

more

fuels.

eum

supply

of

petrol¬

Despite

these differ¬
the United States are

all

be

rapidity

learn

to

do not,

you

work

sur¬

with

the

funda¬

will find that the

you

involved

will,

at

least

in¬

itially and possibly for a number
of years, be in the hands of those
who

prepared.

are

of the lesson

you

May I remind
learned dur¬

we

ing World War II. An organization
cannot

move

into

field

new

a

suc¬

cessfully unless it is prepared.
the

larger War

Denartment

projects, such as, our big TNT and
powder plants, we had to use elec¬
trical

contracting

erations

States.

the

sure,
power

construction
of
these plants.
I
would advise you to prepare your¬
selves for that time to come.
If

that

United

am

principles involved in the

ferent

the

I

atomic

will

we

with

problem, the situation is quite dif¬
in

of

which it progresses. It will be too
late then for individuals and or¬

In

that,

before,

era

were

used to

and

organizations
large scale op¬

were

by experience

known to be technically qualified
to perform their part of the work.
We could not take

organization that

chance

a

on

an

did not know

we

could and would do the job.♦ You

plants. In some of these,
the engineering is well along and
it should not be too

long before

I

field

your

work

will

than

care

normal, not

of

the

of

nuclear
in

work—just

difficult

to

how

The

say.

reactors

this

much

subsidiary

to

understand
reactor

the

is

sufficiently to

advance in the gen¬
eration
of
electrical power has
meant new and sometimes compli¬
cated problems for you and your
tools and

new

inventory.

equip¬
higher materials

Your

taught

you

money

to

your

the

experience

that

it

operate

and that it takes
on

of

your

more

your

as

and

men

had

unusual

And

while

to

theory

only
in

a

us

the

think

wise

of

the

virgins,"

future

so

"While
we

knowledge

ability

more

on

Ap¬

knowl¬

than journey¬
few

many

years

trades

ago.

the

as

money.

bushel

of wheat is worth,
say,
dollar, this dollar should al¬

like

value

from

as

its

supplies because

these

its value

money."

as

its

My

comment
the

it

(Em¬

above

item
be

or

has

has

used

so

value

long

and

as

revert

to

makes

The

sound

number

of

status

monetary units

a

the

commodity

never

change.

commodity
all

other

of

the

weight

given

The

money

money

Fewel Adds

of

of

a

standard is that

a

to

Staff

(Special to The Financial Chronicle)

LOS
E.

ANGELES, Calif.—Albert

Nave

staff

of

has

been

added

to

the

Fewel

& Co., 453 South
Spring Street, members of the Los
Angeles Stock Exchange.

are

to

be

fixed weight

commodity.

If

Rejoins First California

of

should

intent

commodities

valued in terms

So.

money.

representing
money

which

Botolph Street,
Boston 15, Mass.
Nov. 3, 1955.

can

it exists

commodity

a

it

manipulation,

have now, without the

RICHARD T. HALL
177

a

form of coin. It is a money's
capacity to become not money and
to

we

commodity standard.

no

as

in the

that

currency

is what

standard. Money

no

value

is

To deviate from

the

nearer

never

will

material
no

is

given

a

monetary base
have

the

on

reverse

If

to

flows

purposes

phasis mine.)
that

a fixed weight of
commodity;
never

principle is merely to revert

money

subsidiary
dental or

ornaments,

lor

money

this

serves

disregard

can

stand for

the

more, never less.

gold

bookbinders'

has

business

ornaments, gets value from

ways

the following from Dr.
Holloway's article (issue cf

E.

more

workers.

prentices must have

edge

takes

more

part and

part

usu¬

as

gold

Oct. 6, 1955):

prob¬

new

often

Like

must

note

I
J.

value

and

virgins,
you

one

truth.

means

strike

that, like them, you will be ready.

Chronicle:

you

You know that it

of

use

Editor, Commercial and Financial

be of value to you in this connec¬

associates.

of gold, such

uses

the

uses

more

have, the better qualified you will
I think that you will find that
the
average
electrical
engineer
graduating from college today will
able

should

remind you of the
parable of the wise and the foolish
me

Richard T. Hall of Boston takes issue with the statement that

phase

be.

be

Let

war

THE EDITOR:

so

of its

required

TO

require

working with¬
slightest difficulty. I would
imagine that a certain amount of
be

competitive

if

Holloway's1
Article onlGold as Money ' 1

same

out the

would

become

atomic

Armed Forces must be

as our

ready

Finds Flaw in J. E.

installation

knowledge

when

will all be surprised with

we

LETTER

the

difficulty, as
the importance of the

one

all,

does

power

that

that

just

again.

is started.

believe

industry must be prepared
ready when the time comes

part that your

In

because

entire

ally

are

specialized field,-or

will

be

ever-present

the

This

ment

You have wondered whether it
a

must

additional work, primar¬
field of instrumenta¬

some

ily,

age

going to be affected
and how you are going to fit into
the new possibilities which are
enfolding.

will be

fuel

of

without consideration of the

as
you now do in
any new big
generating installation. There will

de¬

velopment is going—and in your
case just how
you, the electrical

contractor,

plants in isolated

:

in¬

will play in the

you

involved.

Every

thinking
have

sources

As

mediately be entirely practical.

tion.

.

Energy and Power
Development

of you

dered
of

be

industry has lems of the

operating in this field'
number of years..

would
completed the first of their
scale generating plants and

that the engineering knowledge
gained in this would be so great
that plants fully competitive with

construction of nuclear power fa¬
cilities. There is nothing sirange

because of

made plans for the dis¬
tribution of these for research and
even

they

the suddenness with which it be¬

possibilities.

Naturally,

be

prompter

television, and
us of a town

atomic

picture

the

Another example, and one where

Atomic

fry

Em

of

use

in

would have dreamed 20 years ago

that

greater

nium.

of transition.

recently told

that

evidence

no
any

The newspapers,
radio

much

.

all aware, some of you
intimately than others, of

You

of

developing the socalled breeder pile which makes
so

decade

this

of

have

on

in this field during the war

work

and

perfectly

was

bulk of the work will be the

ing

saying this,
referring to economic

am

construction

that

uranium

should be productive hours worry¬

I

known

weapons.

knowledge
development
of

or

that

and

not.

big generating stations or
Why should we spend what

at

research

emphasized his belief that by the

about much of the work that will

activities

predict, to¬

would become generally economic
throughout
the
United
States.
Please note that in

be

means

around

industrial

i

atomic

Harwell, England, outlined their
plans for the next few years. He

ences, we in

thoughts as to the practicability of
using thorium as a supplement to

centrating

to

say that it would be
sometime after the middle of the
next
decade before
this

when

approaching
that
She may well be the

their

of

even

development that will

becomes

power

day, I would

In

is

now.

head

opment of the breeder pile.

undoubtedly come, and I hope not
too long hence, will be revolu¬
tionary improvements in the han¬
dling of radio-active wastes in¬
cluding
possibly
their
use
in

this
asked

were

in your

known

further

of

supply

Re¬

is great, and more efficient use of

studies look¬

on

the true

I

of large

of
in quantity whether by the

of

use

your

If

actively planning the construction

in the reactof field where

was

carrying
towards
the

we

upon

before

pass

truly economic.

Tihere is also the distinct possi¬

without interfering with our ob¬
ject we were planning for these
developments.
One example of
this

replacement.

put

decades

was

One decade has passed and

away.

bility of the use of thorium, in ad¬
dition
to, uranium,
as
a
basic
power
source.
We
have
long

long before the first bomb
exploded over Japan
and

was

to

was

I

I believe that another decade will

eft. atomic

And

power

whether

in 1943)

restricted to military

very

know

would

energy

ing

not

was

ultimately tn£ value

smaller

plants aimed at serving
restricted territories. We do

the advent of atomic

into fields other than mil¬
In one of the earliest re¬

energy

time to time, but we did not allow
that

however, that the post¬
might well be profoundly

influenced by

uiax

for

not

Another

it become evi¬

on

Progress

Energy
England

England

can

It is this which will

of Atomic Energy

As time went

may

we

developments, such

Development

flight.
to,

expansion,

pendent

neither

I
say, a comparatively simple sub¬
ject like atomic energy, it might
we

much

then, I felt that it

power

Atomic

States.

limitation

definite

a

As

the world.
The

increase
first country to make widespread
our use of petroleum, and even of
use of atomic power.
Last week,
coal, for the production of electric
in a speech in New York, one of
energy.
Atomic power will not
our old British colleagues in this
displace these forms of energy.
Atomic power will be used for field, Sir John Cockcroft, now the

structure

economic

"

But

is

how

This

nation.

any

There

just

Today,

not many years
sections
of
the

world.

hydro

many

United

the

power

corner.

in

believe

not

economic atomic

just around the
it

optimist

did

I

stationary plants. -1 am not referring to the propulsion of naval
vessels, nor am I referring to

this

There

that

undue

an

1945,

power under normal conditions in

off ; in

appetite will continue because
electric
power
means
a
higher
standard of living.

am

In

our

believe

not

power

were

certain

I

do

I

it

appetite for electrical power. And,

as

that

life.

electrical gen¬

new

installations.
if it

sites

scene

"T" and

predict accurately

can

looks

excessive

which, if continued too long, could
greatly impair our strength as a

that

make

such

Manhattan

the

to

otherwise

thus

cans

dispute

publicly with their
I

to

a

two

entirely
I would

expectation.

the

time

end

thousands

an

can

we

daylight

away.

the

would

as

but

then

organized in the late
summer of 1942 we had only one
mission. That was to bring about

and

or

We may

was

cussing interplanetary
decade

dark

are

clear-

up some

and

dawn

From

Project

engineers dis¬

Leslie R. Groves

the

in

be

strokes

to the future.

as

The effect has
so

brush

the

one

able factor in

-

advance

fall

with

work

to

just when the Atomic Age is going
to develop to the point where nu¬
clear energy will be an appreci¬

insatiable

an

foot¬

a

split "T" formations today.

power

continue

use

the

dominated

have

You

erating

have

We

in

advances

To

analogy you can't coach a
today along the lines of the
flying wedge which was so effec¬
tive in the
days when the Big

increasing enormously

am

field.

ball '

heav¬
time,

At the same

ily into ours.

If you are

team

and

resources

atomic

the

There

have been dipping rather

greater.

even

the scientific

ignore

cannot

of

limits to natural

are
we

pic¬
what the future might hold

ture of

power

indefinitely.

sources

increased

this.

yours

going to be prepared you cannot

It does not take

important factor in

an

economic

in

this need

which

your

of power.

increase.

The

influence

industry will be
the effect of bringing into being,
and hence into availability, a new

be

becomes truly economic.

power use

principal

the advent of nuclear power will

existing

will not displace other
forms of energy, but will be used for expansion. ; Finds, how¬
ever, in using atomic energy in generating electricity, there will
be additional construction work, primarily in field of instru¬
mentation. Concludes another decade will pass before atomic

comes

The advent of the atom will make

great intelligence or knowl¬
edge to realize that our use of

power

has les¬

s;kill

the

Thursday, November 10,1955

.

need for
greater knowledge has increased.

sened,

average

any

in generating

power use.

organization,
firm can
reasonably competitive

a

The

for individual

need

large

a

position.

source

uses

and the prospects of further development.

power

enjoy
4

have

Vice-President of Remington Rand Division of Sperry Rand Corp.

and

whether the

or

..

a

(Special to The Financial Chronicle)

LOS

ANGELES, Calif. — David
Meherin has rejoined the staff of
California Company Incor¬

First

porated, 647 South Spring Street.
Mr.

Meherin

with

H.

/

L.

has

recently

Jamieson

Co.

been

/

Volume 182

Number 5480

.

.

The Commercial

.

Chronicle

help
L. K.

bmith, President or American Air Lnes, says, despite its
,,
enspite

operate cheaper.
In an'address at Los Angeles on

non-stop flight service
'

>•

generates.

four and

used

one-

half hours. In

the
h

i-s,

domestic air-itraps-;:

in

soon

1

should

"We

be

to

remarks, C&lifarnihTn:^^

Mr.

Srait h"^'

stated:
be-

are

currency

demands by
aircraft

"We

the

Lockheed in

Electra

built

•-

Burbank'.

—

•

potential-

"In

1959,

irredeemability,"

rectly,
which

is
•

the

has

new

received

considerable

publicity, that debts and other
isting obligations have
since

cance

have

a

other

known

demption

device.

should

be

Such

'

apparently
be ig-

can

'•re*'

initiated

owed

are

~

hpthing^conceivably inflicts as
r4nncbldamage upon the economic

-

-

ex¬

signifi¬

no

these

'

-

r

related

if indi¬
economic
heresy
even

Aside from the havoc wrought and economic relations, and to enassumption
would
speeds by ra-protracted.and ruinous war, courage confidence,, than any maintnT thofvilt?

should

we

Another fallacy that is
to

establishing conditions approximating stability;

by

This

gifihiag^o transport will cruise at
4nn miw npr hmir
t h ink ^abdUit' Past 400 miles per hour,
the

r

.

operating

large measure such re¬
demands, through estab¬
lishing conditions approximating'
stability.
current

a courageous restoration of redeemability of
would apparently ^accomplish more to-stabilize
prices and economic relations, and to encourage confidence,
than any nther known device. cSays: a redeemable currency
would opiate Jo correct in large measure recurrent higher wage

.Utf'iy,

,

a

*

correct in

Mayer holds

our

with

connection

variety of fringe and other usually
recognised- benefits.;. RedeemaWlity would obviously operate to

Frecburg, Pennsylvania

■

Dr.

/itv.

Both of them will be

portation.

of

course,

r

in

vances

■

Redeemable Currency

a

example,. why

explain,. for

labor has requested frequent ad¬

■

By GEORGE S. MQYER, PH. J>.

a

through • the'^thrnst^fhat

ates

continent in

■

Of

;

the other

the

across

;

types,.,one-4h&*turboprop* atur.bine engine with a propeller and

Oct. 28, C. R. Smith, President of
American Air Lines, predicted a

ihertestoralion

*

'present efficiency, the modern airplane must da better and

19

(1983)

-*u

j?° S2?r

at

ities

^airplane when
we

c

fuel
oT

terms

o-unce s

rather

C. R. Smith

when the

_

in

ma n

built

Seattle.

?

Mr.

"Today,

on

nonstop

a

flight

nf tnrhinp

awe

"real
real

plane load must be devoted to
transportation of
fuel,
leaving
only 40% for revenue producing

tion

mail and

passengers,

cargo

learn

must

for

the

its
its

iciauvc
relative

to

do

modern

airplane
i<?
is
efficiency, is

nnt
not

not

Maamirftiio»
MoomirVtiio"

♦i>'ir*DnnT+'ifinn

a
a
a

ivTr
iv/Tr

Meanwhile,

transportation.
reoorted
reported,
is

Mr.
Air
Air-

"American
American

into

moving
s

engines.

the

There

of

use,

two

are

Economists' Views

"

revolution,
revolution,"

detailed

four

on

Business next year will be even
better than this year, with greater

w**v

oftatag
greater speed

resistance and

less

frpmpnHmiQ

wpiaht

forecasts

UlUlfJ
unit,

zation

qflV.

are

equally potent

k

consultants

.fiat

—

by t h e
Dodge organ¬

..

con¬

out¬

look to be
u

j

leased

by

George

Smith

c

88 from other
44 from colleges
- -w.

~KT'

/-<ia

'

Vice-Chairman

economisfs gl°neraliragreedS that
totaTmitout ^measured
National

Product

will

bv

Grow

riL

to

a

members of

re-

the

to

year s

slight decrease below

said, shows up in the forecasts for
Federal

Reserve

Board's

in-

dex of industrial

production.
In previous polls this panel accurately foresaw the mild downbusiness

of

turn

^

OI ine yea! tower llldll in
of the year lUWcl than 111 the
UlC
.

,

thp

fln

nanpl

that

fppi

in

1954

and

the

Eisenhower's

unfortunate

The

ouestion
**

.

is

^

i

this
♦

'

-t

event affected replies received
later, or would have caused earlier respondents to change their

though

tion that will occur in connection

achieved. From;

with su^h extension.
tization * apparently

that

the

no

answer

to

scientifically

this

auestion

to

increase

effective

at

higher levels."
The economists

the

current

year;

and

participating in

survey

include 31

in

financial organizations and insur-




the

extension of. inflation,

of

composure,

eminently

nomic

:

^

Experience

fiat

than

currency
.

,

tion*.

cordin.^e
^ fargel "

.•

have

is

tually

factor

pools.

|

were

than

substantially^
.

„

economic

rpudpr

h

their

Iocs

,

collective

ca-

nnnctrnotirn

,K»+nlli_

gence> in connection with the
problem of establishing and main-

case

otber

a

_

w

irom

...J;

indi-

^

res^onsiblllty»
tne rentiers
^nrmciTnJvThf rorlSIS

wmcn

^vuted

having

0iAmonf

philos-

economic

rer»tier

'

caoacm^s

would

voiAiinno

relations

,

reduced

y
vision
.

.

a

nd

li

.be

wnnlrl

eniov lucrative

trade

they
be
liquilargely in-

I stead aiargei
e^y. uns"c.c®ed

m

are dhUnct

nrnnfl?nn^ within iL nth^r A
dicated should t>e adopted and
propaganda within the other. As- pursued by any nation. Redeemnothing

suredly,

valuable

could

ability

would

obviouslv

P^ity have apparently demon- be gained through the pursuit of the development
strated less constructive intelli- such senseless activities. Considcfy.0f0/q

which

would

,wo^

nations

beneficial

and

.u

services

,

fl™

iro/ia

m

aavat]cesrPi5lces to
'?e
ement with the constructive

political

v>onofinioi

in

<

*

moneuzauon inaicaxea
in

oohies,
fnoiiir

•

.

mode™8 ere" ^ th™selv.es- Wf S?centive landing. These
superseded by the rommunityT Lgagf in acttve S?s

monetization indicated

People

where

that

matpHall7P

materialize

fs nations. The redundancy
y"Jual.ly. worthless purchasing

even

t

desirable,

nevertheless

radically diverse

vital

issues

The

techmques have occasioned.

h

ciir»Vi

concplficc

or»ti\7itiDC

<^rvncirl-.

COnvlctionS

rpctr-»i«

of such unsound
' '

erations of practical intelligence
would

preclude

rather

them.

unhindered

Nations

Three With Calif. Inv.

systems

(Special to The Financial Chronicle)

their

manner,

LOS

of. economic

ANGELES, Calif.

—

.

Lydia

O. Gill, C. Alec Stabus and
Siipon
Weiss are now with California In-

and political thought.

i

f

rpnaiQQfl.n-«p

nf

an

p<?

be

(Special to The Financial Chronicle) 1

ing an(j maintaining the beneficial

f ?•

IIldiIlld"uus

basls for the renaissance of an -es- rations

uenenLidi

LOS ANGELES, Calif.

amond nations already

se^fiaJ.and.imperativebeen estsb"" suggested. nnnTrorfiKilifx/'
confidence,
It is in this connection R. Evans and Herman
Will
likewise
hsve
hflvp
Hapn
arlrtpH

Hshed^^eW^Se ^aVe ,been €S^ab
llsfd'

'

.

,

among

assuredly be inexcusable
our
responsible officials
However

they

and

law-makers.

may

entertain the obviously grati-

a

numerous

,

should

X7Qtf„,

realm of possibility.
cates

its
could presumably do under similar condi-

brother

fying illusions that the havoc and
«»?. that have usually overtaken
nations which have espoused lrredeemability, as a continuous

fViof

that

-Fmo

free

convertibility
+•

ennnnrte

-fHo

nation. Experience with colonial
-bUsof credit, thejcontinental curJ*ency, the French assignats,_and
the rci<ne recent inflations in Ger^;any' •!Jngary'1 •
cfona»

considerably

A-courageous restoration of re-

in previous

deemability would apparently ac-

—

Jack

Jacobson
ofoff

nf

have been added to the staf£ of
Samuel B. Franklin & Co., 215

supports
_.

and s„tl™ulates(. actlve commerce

among the nations, and contrib- West Seventh Street,

utes to the
beneficial
consequent
prosperity

arousing of mutually-

associations, and the
enjoyment of internal
the
by the participating

With B. C. Morton
(Special to The Financial Chronicle)

LOS ANGELES, Calif.

communities. Accordingly, since
peace,
prosperity, and freedom,
are

profitable

commerce

among

where inflation
surges through a pation, its various elements and factions will
invariably engage in what frequently becomes a wild scramble
to achieve a preferred position in
reiation to the other arrangements
m the economy, and thereby endeav0r to immunize themselves
against the storms of economic
misfortune which usually occur

complish more to stabilize prices community.

rages

within

This reasoning

—

Wiley

with

B. C.

Joins Paine Webher Co.

deemability to the three elements
mentioned should receive proper
recognition,

inflation

now

the

nations, the contributions of re-

when

is

Morton & Co.

with the existence of

related

Daniels Sr.

E.

(Special to The Financial Chronicle)

LOS ANGELES,
G.

v^11„in.~ Furthermore,

"unknown

less

,

practical angle

a

re,deemability,

of
twin

quantities" affecting pei any sucn complacency, regaraprices to be the outlook.
Comments on the ing a presumably protective caninternational situation as an eco- °Py enjoyed by this nation.

next

85% expect consumer

foj

efficient-instrument

more

precise

can

panel expect personal consump- ments placed considerable stress
tion expenditures next year to be on the fact that 1956 is an elecabove prevailing levels; more than tion year, but most were inclined
90% expect manufacturing wage to treat that fact as one of the
rates

SUgges^e(j

the attainment, of such, uniformity is obvifiusfy not within the

Such mone.provides
a

Assuredly our responsible legisviews had they known of it. has latow entertain no ignorance, conalready been raised'several times, cerning the character.of intlation
and is bound to occur to readers as d ^as historically manifested
of this report," Dr. Smith said, itself. Such lack of information
would
"While

.

The question may arise regard- vestors, 3924 Wilshire Boulevard.
g? a long dlsianee In,the "»«« ina the element or factor which
heart of correcting the wreckage, which basically supports this vital conTwo With Franklin :
pertod-previous mTe^y fidence. so imperative for creatpe a

whether
.

+ ■

ing aPPr°achmg the termination

■

of redeemability, will ostensibly

in which replies to the questionnaire were being received.

given,

a

question

condition

lJvel. "

crease over the mid-1955
Dr
Smith noted that President

nificant difference in the median
forecasts from those of the total
of 201."
'
Many of the economists wrote
comments
on
various subjects
covered by the questionnaire. According to the analysis, these com-

said

showed

diffused

The introduction and maintenance

econ-

Smith

that

power,

.

high degree of
unanimity on most points
"For
example,
he said, "four out of
five of the economists expect next
year's Gross National Product to
be
higher
than
the mid -1955
level.
In addition, 84%
of the

Dr.

A"e

ant nations should Espouse similar
ideological conceptions before a

purchasing

extended .' and

be

xrioV requiring a.collective disposition, respective

breaking $255 billion for the y a

check of the last 40 questionnaires received shows no sig-

upturn in 1955, Dr. Smith said.
omists

,•

fnlSnnvtSrin nnnti
taining correct monetary dispo- would, accordingly, be primarily
firm Xp with thJ sitions, than has obviously been free to pursue and enjoy, in a
steady long-term nse, with the

attack occurred auring i

However, according to an analysis of the results by Dr. George
Cline Smith, Dodge economist, the
panel expects a slight downturn
in output in the second half of
next year.
A similar pattern, he

mixuence,

with increasingly less prospects

•

atta^occurredXrinTfte
e

neak in tne middle ^ 1956
peak in the middie ot lyob.

the

" - •"*

~

confiscated,

•

>^v
^ein,g.-inflicted
Tp°'airestere tea?hare'SSmJS
„;L? inat have occurred

not be attained through expecting
that all the commercially-import-

4-

rej

W

,

k

auestion

can be centrally mapipulated
there is virtually no limit to the

money

tidri

t^e

Dodge

i^in&

The

emerges concerning how such an
ejminently desirable and essential
condition can be consummated.

can

However, they expect hous-

riS'

its

estimates

struction
1

ha?£
nail

one

influence

amount of

ing starts to decline substantially,
with a total of 1,150,000 in 1956.
„7hJ.
t-o+k Ik, Ihc

used

izins

throughout the business mechan-

or

•

«

a very

year

econo¬

mists' opinion.

The evils

have largely been
the damage which
debt-monetization is capable of

will be better

business firms;
T

According

Dr

,

u

suffers severely

.

the

thus perceive and appreciate the

superseded by

companies;

ance.

tne <**-»* n,

of

t j

ism, irrespective of any deprecia-

lion,

own

;??9£ ^contend

resX VO

IV/

0 )

„

grfected
of

195S Business Outlook >

panel expect next

sur¬

as

in pro-

high-octane PAeixeu, buiiers severely, ine eyus

much cheaper than
aviation gasoline.

analysis the
total new
construction to be about $41 bil-

i sts

for

*

0uiT.

.

-

its annual

basis

l»*4A
H
ing, through VJ11WVA1
encouraging the

an

u-

Corporation in

ization

VA V, pi

.

u

by F.
Dodge

The poll

^ dtoSW?la

ponnnmv
ppnnnmv

search organizations|.

polled

of

V^i.u tV/
depreciate

may
iOUJ

a

currency being
where debt "monetizaresulted in deluging a

footing an uncontrollable infla- merits of redemption, as applied
worthless cjirWith..disastrous results upon to our economic problems.
'
vastWWti1 759 nound«?* simolicitv and econ
i*®price structure and resulting
In the realm of international
irredeemable credit were
1,750 pounds, simphcity and econ, —
pounds; simplicity
ecomf confidpnpp
Thp ,njrit nf
rplationshin*
tho pxisfonrp Of
&%%£££ 'The ^rU*ofre^i^i^r'ihe^xiSTof'^ extended, provi
^nded provide practSM
omy in maintenance and overhaul;
1
reiauonsnips, tne existence 01 an ampigs 0f wha+
onri
fn^i
fnf»i
' fV»rnnf*v»
fhrnnfyh .thp
initiative,
initiative,, upon which our .free essential confidence functions as 0ui„jLP. -W7a; may -be-reason*■
™-—r—
and fuel economy, through -the
been the great harmonizing and stabil- fh: y^ anticipated, providing abyuse
of kerosene and othef tueia economic,,^structure
fiiela
has
been the great harmonizing and stabil- ?£ly nnnSJSa»f' V?£ov.ldmS anyuse ot kerosene and otner

are

of 201 leading
e c o n o m

J

be-

result of

a

fiat

riat

...

Vastly creating disorder through- toration of redeemability, at some
°"t the economic system.
.
satisfactory quotation, at the earTlat currency and debt moneti- liest practical moment. We should

output, higher wages and higher ^nd universities; and eight from
prices in prospect, according to government.. The remaining > 30

vey

of
OI

credit

_j£h5s Philosophy would apparthat obligations

while the Purchasing capacity of national prosperity and well-bethe monetary

as

reasons-

,

W.

plethora

JJlCMIUld

J#1!*0statesmanship would aassuredly •
aim at achieving such
state of

smaileflngine!diameters,

•the F. W. Dodge Corporation, business in 1956
than in this year.

e

redu^'„f as.

IntJation will become aggravated

a

in commercial avia

over

He

nrnmi^H

nnwpr

According to forecasts of -201 leading economists, polled by

t h

comes

^ with^hl^r to
dAnfS .bine eMine 'SmfoTthan

good producer of lowrcost volume

turbine

environment :Where'

AK„)A..n1„

,„aiiU

Jj.

powerplant

it takes

nhiiitv

P^ng^ mail a?a cargo

lines

year;

Smith, noting the advant-

*

from New York to Los Angeles,"
he pointed out, "about 60% of the

Smith
Smith

this

,y

.

monetary

closely\ , related.
usually; becomes associated with sumed with assurances, while the
war financing, and may easily: be benefits of prosperity and conpvtonHorl
infn

or

be
they

total fuel

the aircraft may be
the pilot's watch."

"We

Santa

airplanes will

order during

on

Monica

either
These

in

a

may

Browne

Calif;

—

Allen

has become affiliated

with

Paine,
with. Paine, Webber, Jackson &
Webber, Jackson &
firlir^' ^26 South Spring Street,
JJr. Browne was previously with
Kerr & Bell<
"

With Professional Service
cmoKiaii'
T

LOS ANGELES,
George
S. Miller and Ben B. Yacnt are
now

^

Plan, HZJ Crensnaw riouievara.

20

The Commercial and Financial Chronicle

(1984)

basis

since

its submittal

16, this year.
the

News About Banks
REVISED

Central

Bankers

and

OFFICERS, ETC.

raised

CAPITALIZATIONS

of Auburn

Trust,

is

indicated, has total
$21,478,000, by the Ma¬
Midland Trust Company of

rine

BRANCHES

NEW

it

of

assets

CONSOLIDATIONS
NEW

acquisition

which,

June

on

It is announced that

New

its

York

National

Bank

Consolidation

the

of

First

Suf-

and

Long: Island, N. Y., with The Bank

Vice-President

of

Northern

Brookhaven

N.

Jefterson,

National

Bay

Bank

in

The

and

*.,

of

Port

Center

at

the

it

was

business

announced

George
the

of

close

A.

First

Heaney,

Suffolk

The merger,

Nov.

Nov.

on

7

President

National

it is stated,

institutions

at

charge

in

will

the

of

Bank.

was.ap-

their respec-

to

in

tive

formerly
Assistant
Installment
Loan Management at the Great
Neck Office will become Manager

D. C.

of the 288 Herricks Road Office
in
Mineola.
Charles
Kelleher,
Vice-President in charge of the

meetings on Oct. 28, followed
by the approval of the Comptroller
of the Currency, at Washington,
At the

meeting, shareapproved the change of

holders

same

the consolidated bank's

First

Suffolk

from

name

National

of

Hunt-

ington to Security National Bank
of Huntington.

Office

Mineola
in

cated

the

Etheridge

be

now

lo-

Seat Office
with William

County

Mineola

in

will

along

Elbert

and

Hegeman,

done," Mr. Heaney Assistant Cashiers,
said, "to avoid any possible con*
*
*
fusion or misunderstanding with
The conversion of the National
five other Suffolk County finan- Bank
of Great Neck, at Great
cial institutions that are presently Neck, L. I., N. Y., into a trust cornusing the name of Suffolk in their pany
under
the
name
of the
titles.
Henceforth, the bank will Central Bank and Trust Company,
be
known
as
Security National with a capital of $500,000, was
"This

was

The consolidated bank has

Bank."

total

of

resources

than $98,-

more

000,000 with capital funds and

exceeding

serves

also

increases

$7,200,000.

the

to

ployes

the

Northern

will, it is stated, be invited to conSecurity National and
to participate in employee benefit
programs now in effect.
tinue with

*

*

A

proposed
increase
in
the
capital stock and total number of
shares

of

the

Company

of

Long

Island

Trust

City,

Long

Garden

Island, N. Y., through the issuance
sale

and

shares

of

shares

new

dend

10,000

the

and

as

additional
of 2,000

issuance

2%

a

divi-

stock

100,000 shares outstanding, was announced on Nov. 3, by
Fred Hainfeld, Jr., President. Subject to the approval of the stockholders at a meeting to be he.d
on

?

the

will be

i2V'
J
new issue
offered for subscription at $40 per
share
on
or
before
Dec
7
to
stockholders of record at the close
of

business

Nov.

on

proportion

m

holdings
of

held.

10, pro rata
their respective

to

the basis of

on

stock

new

The

for

2%

record

of

rate

on

one

Dec.

10

1,

1955 at the
for

each

share will be paid in cash
Jan. -3,
1956 to stockholders
per

stock

Dec.

on

issue

1, 1955.

The

on

of

new

and the stock dividend

will

bring the total capital
Long Island Trust Company

of
to

$1,120,000 and surplus to $1,380,000, or a total of $2,500,000. It is
estimated
that
capital, surplus,
undivided
profits and valuation
reserves

by

Dec

31

™55

total

wj,11

in

a gain

com-;

The

2

of

of

$35,376,687P

Sept.

30,

Bank

of

President
tional

if

of

Bank,

the

Nov.

inrirfont
incident

1,
tn
to

Suffolk

at

Bay

Long isiand, N. Y. to
of

Amendment

Shore,

Certificate

a

Certificate

of

Incorporation
providing
for
a
in shares from $487,500
consisting of 19,500 shares, par
value $25 per share to $585,000
change

consisting of 58,500 shares, par
value of $10 per share, and further
providing for an increase in capital stock from $585,000 consisting
of 58,500 shares, par value of $10
per share to 73,125 shares of the
same

value.

par

jn

jssue

our

1634,

mention

20, page
made of ad-

was

bad

been

Bay

Shore>

merged

L

title

new

under

the

of

the

state

Bank

of

suff0ik.

'
>pbe

*'

New

Qct.
a

19,

T.

Na-

Roth,

of

several
rprput
recent

promotions
PYnansinn

expansion

N.

*

reports

that

as

Certificate of

Incorpo-

providing, in part, for

jncrease

in

capital

of

given' to

was

stock

an

by

the
Pec0nic Bank of Sag Harbor, L. I.,
y.

from

$50,000, consisting of

2,500 shares of the par value of
$20 each, to $62,500, consisting of
3 125 shares of the
*

same

County

Oneida,
0ct

N.

13>

Y.,

is

it

value.

*

*

An increase in the

Madison

par

capital of the

Trust

learned

Co.

of

effective

became

from

the

Weekly "Bulletin," Oct. 21, of the

banking

Depart-

erd

Previouslythe
capital,
$150000)
in 12,mo shares, par
.

per

.

*

*

Midland

Marine

Company

of

Central

withdrawn

of merger

its

New

Trust

York

plan
by which it would have
proposed

absorbed the Auburn Trust CornPany of

Auburn, N. Y., George A.

Mooney, New York State Super"ntendent of Banks, announced on
Noy

2

He

Morristown,

of

Nov. 3

on

payment
Dec.

7

Nov.

of

stock

a

expiained

a

pro¬

stockholders

to

More

7.

dividend

than

of

record

85%

of

the

trust

company's 48,000 shares, it
announced, were voted in per¬
son
or
by proxy in favor of the
proposal.
The action would in¬
the

bank's

capital stock
$960,000 to $1,000,000 by the transfer of $40,000 from
crease

account

from

undivided

profits

to

for the
additional 2,000 shares of the $20
par-value stock.
Subject to the
approval
of
State
authorities,
pay

these shares would be paid to the
bank's 700 stockholders as a stock

dividend in the ratio of
for

each

24

George

shares

Munsick,

declared

the

bank's
letter to

the

advisable

crease

"considerable
town

Trust

item

with

in¬

stock

because

of

the

in

recent

reference

years.

An

the

in¬

to

1768.

page

Agency

The

if

Provident

Trust

that

S.

7

Clinton

on

Stiefel,

formerly Vice-President in charge
operations department, has
promoted

President

in

General

to

which

Vice-

position

he

will coordinate the administration
various

departments and divi¬

the

of

bank.

William

Comptroller,

Vice-President

B.

and

named

was

Herbert

W.

Foedisch

appointed Vice-Presidents.
sis

Howard

%

A.

%

Loeb,

Trust

phia,

Company,

died

of

of

Nov.

on

3

Philadel¬
at

the

Born in Philadelphia
member of the firm

a

Jellett, Inc.,
consulting and constructing engi¬
neers in
1896, and continued with
them until

1907.

turned

attention

his

being

elected

In

that
to

year

he

banking,

Vice-President

of

the Tradesmens National Bank, of
which his father was then Presi¬
of

He

the

institution

of

merger
and

pany,

in

In

that

Guarantee
Co.

elected

was

his father.

ceed

1915

to

suc¬

1928 with

with

Safe

&

Chelten

Mr. Loeb

President

bank

Trust

the

the

the

Deposit

Trust

Com¬

elected Chair¬

was

man

of Tradesmens National Bank

and

Trust

Company, as the en¬
organization was named.

larged
In

June

1953

National

when

Bank

Tradesmens

and

Trust

Com¬

pany and the Land Title Company

Mr.

merged,

Loeb

elected

was

Chairman

of the

merged banks.

of the

Foreign
leader

in

of

the

from
1940

member

Federal

April,
and

other

served

Federal

the

a

many

He

groups.

of

was

Board of Direc¬

of the

Policy Association now
with the UNO
and
a

merged

for

its

as

organized
a

member

Advisory Council
Reserve

1930
a

business

having been taken
by the Fulton National Bank
Lancaster, Pa.

of

*

to

System

December,

number

of

years

$500,000,

*

Oct. 14.

on

£

A charter

on Sept. 15,
by the U. S. Comptroller of the
Currency for the Plains National

Bank

of
Lubbock, at Lubbock,
Texas, with capital of $250,000 and
surplus
also
of
$250,000.
The

President

Bank

Mechanics

&

with

charter of the latter
stock

common

the

is

the

Cobb,

sale

*

*

of

$2,000,000 of new
stock by the First National Bank
in Dallas, Texas, has increased its

capital, effective Oct. 26, from
$20,000,000 to $22,000,000. The in¬
in the

crease
was

part

of

capital of the bank,
plans to enlarge

its

its capital structure to the
of
$10,000,000, details of

appeared in

is

an

if

Francisco

was

to

if

termed

the

biggest

in the history of banking

San

it

W.

which

1182.

page

in

extent

issue of Sept. 22,

our

stated

is

in

Nov.

on

announcement

progress,

2, incident

by William

Crocker, Chairman of Crocker

First

National Bank, and Paul E.

the

of

Hoover, president of Anglo Cali¬
fornia National Bank, that the di¬
rectors of their respective institu¬

consolidated

announced

Paul

$500,000.

of

effective date

solidation
it

National

of York, at York, Pa., under

the title and
At

Thomas

$

The

merger

Drovers

is

while Earl Crow is Cashier.

Windsor, Pa., (com¬
mon
stock $50,000)
was consoli¬
dated
as
of
Sept. 30, with the

at

*

issued

was

if

Bank

an

$3,000,000. The in¬
capital became effective

creased

*

National

in

resulted

$2,500,000 to

What

First

Windsor,

has

increase in the bank's capital from

of

The

would

con¬

bank,

have

a

tions

had

met

informally

and

capital stock of $545,000, in 54,500
shares of comon stock, par value
$10 each; surplus of $925,000 and

approved in principle the merger
of the two institutions. In accord¬

undivided profits of not less than

bank

*

As
of

#

result

a

of

$200,000,

Bank

stock

a

the

dividend

First

increased

*

*

*

capital of the First National
of Mankato, Minn., previ¬

Bank

$150,000, was increased to
$300,000, effective Sept. 28, by a
dividend of $150,000.

The
and

*

directors

Southern

On

of

the

Hoover

Nov.

4

by

merged
by
Mr.

President and

as

it

into

which

announced!

was

Messrs.

Hoover that the

Crocker

and

of the bank

name

their respective insti¬
to be merged will be

are

Crocker-Anglo

National

was

also announced

tion

to Mr.

Bank.

that in

It

addi¬

Crocker, Chairman of

the Board and Mr. Hoover,
dent and Chief Executive

Presi¬

Officer,

it

*

Citizens

National

the

headed

Chairman of the Board

as

jointly

tutions

ously

plan,

be

Chief Executive Officer.

National

Austin, Minn.,

of

the

will

Mr.

and

*

its capital from $200,000 to
$400,000 effective Sept. 28.
The

with

ance

Crocker

$105,000.

Bank,

of

is

proposed that Jerd F. Sulli¬
become Chairman

van

of the Ex¬

ecutive Committee; Paul B. Kelly,
First
Vice-President;
and
Mr.

Atlanta, Ga. recommended on Nov.
8 an increase in the bank's
capi¬

William

tal

President. As has been previously

and

surplus from

to $30 million.
second

increase

meeting

in

be the

in

structure

The

year.

$25 million

This would

major

bank's ."capital
one

bank's

the

Savannah,

recom¬

(1)

Sale

shares
share

of

of

100,000

raise

$3

additional

stock

common

to

at

$30

million in

a

new

(2)

Transferring enough
from undivided profits and

money;

contingency

reserves to give the
capital of $10 million and
surplus of $20 million.

bank

a

It

is

announced

holders will

be

that

asked

to

stock¬
vote

favor of the stock issue at the
nual

stockholder's

meeting

in

an¬

in

Pflueger, Executive Vice-

reported, Mr. Sullivan will reach
retirement age in July, 1956.

within

directors,

mended:

age

of Francis Brothers &

dent.

of

of

funds

Chairman

the Board of the Tradesmens Bank
&

Bank

over

and

Comptroller,
J. Norman Miller, Richard M.

and

to

common capital
$50,000 was placed in
voluntary liquidation on Oct. 26,

Company

announced

sions

1949.

«

National

*

of the

of

*

Akron

%

Philadelphia,

been

The

of

of the Reconstruc¬

*

stock

sis

Nov.

January,

inception in
February, 1932
April, 1951 when he resigned.

growth" of Morris¬

appealed in our Oct. 27 is¬

crease

of

to

from

tion Finance Corporation from its

held.

President, in a recent
stockholders, said the bank's di¬

sue,

President

was

share

one

now

that the
development program within the
p]an kad been before the Bank- was Vice-Chairman of the Counorganization.
Don
Jones
was
ing Department on an informal cil.
Mr. Loeb was a director of




1941

from

Chairman of the Advisory
Committee
of
the
Philadelphia

on

is

tor

*

later

and

January,
He

Thursday, November 10,1955

,.

member of the

a

Committee

stock

posal to increase the bank's capi¬
tal
stock
by
$40,000 through

Mr. Loeb
The

*

Company

he became

Banking

h

J., approved

of 82 years.

State

approval

restated

rati0n

*'

York

Department

has

Franklin

Trust

L>

charter of the latter and under the

was

House

Akron, Pa., with
*

Amityville, L. I. and the South
of

He

new

Stockholders of the Morristown

were

Bank

&

stock.

tern that the Bank of Amityville,

aggregated

*

000, by the sale of $150,000 of

Decker

Side

Bank

Company of New Canaan,
Conn., has enlarged its capital as
24, from $600,000 to $750,-

vjces by the Federal Reserve Sysat

National

Chair¬

was

Group 1 of the Pennsyl¬

of Oct.

Carr,
Oct.

0f

of

vania Bankers Association in 1947.

Loan

*

Trust

of

1®'°°° shares> of the same Par

Arthur

the
tne

on

York

New

Total assets,

1955

Franklin Square, N. Y., announced
on

the

a

$39,400,794, marking an increase
of
$5,619,518
in the
12-month
period.
*

made

was

State
Banking Department of approval
having been given to the State
by

*

First

rectors

share' has been en~
t0 $200>000' consisting of

vear

total

*

*

Announcement
Nov.

DoHedSm<Deposits increased V5- '$12 50
201 263 during the oast
to
larged
as

department,

New York State

of more than
total deposits of the

Sept. 30, 1955
17%

loan

*

divi-

50 shares presently held. A regular quarterly dividend of 25 cents

record

sonal

shares

stock

stockholders

share

new

share

one

each

extra

dend will be paid to

of

by
the
New
York
Banking Department on
Sept. 26. The institution has also
been authorized to operate a perState

em-

Brook-

haven and Center Moriches banks

*

authorized

offices from

The offices and

12.

of

It
of

number

community banking
seven

re-

The

Vice-

Office

Square

*

December, 1947 and

man

of

1942

1941

from

has total assets of $16,817,000. The
plans for the merger were noted
in our issue of Sept. 8, page 982.

Mineola.

transferred

be

Franklin

of

Assistant

Mottola

President
the

F. Ploch,

charge of tne Operating Departments. Ralph Pontifex, Assistant
Vice-President, will assist Robert
T. Correll, Assistant Vice-President and Manager of the Levittown
Office.
George
Crumley

4,
by

poved by the shareholders of the
three

in

Office

Seat

Thomas

Moriches, N. Y., became effective

William

assist

will

County

South

Vice-President

Assistant

elected

to

Bank

January,

city,

assets

other commercial bank in that

folk National Bank of Hu**iP*foh,

Reserve

from

only

have

$135,555,00.
of Auburn,

to

Federal

Clearing
January,
1928 to January, 1934; Vice-Presi¬
dent of the Philadelphia Clearing
House Association, from 1934 to

would

total

own

$114,077,000

the

Philadelphia

.

The
the

decision

result

to

consolidate

is

of

exploratory discus¬
sions which have taken place at
management level, it is stated, ex¬
tending over a period of the past
two months. It is hoped, says the
announcement, that necessary ap¬
provals,
including that
of
the
Comptroller of the Currency, can
be secured, so that the consolida¬
tion can become effective early
in

1956.

tion

of

Terms

the

consolida¬

agreement will not be made

public until they can be completed
and
formally submitted to the
directors

of

each

bank.

The

approval, stock¬
holders will receive rights to pur¬

merger would

chase

with deposits as of Oct. 5, 1955,

January.

Upon

shares

at

the

rate

of

one

share for every nine now owned.
This stockholder group it is

noted,

reveals

the

the

bank

statewide

nature

of

ownership with 3,000
Completion of the

old

bring together two

established

California

banks

of
$1,309,098,720; resources of $1,441,769,209; capital funds totaling
$96,716,500.
The

Anglo

California

National

stockholders.

Bank

sale

Anglo-California Bank Ltd., which

and

will

raise total capital funds
reserves
of the
bank
over

$35
in

million.
1940

capital

contrast
bank's
total

the

stood

at
$9,015,181, de¬
$120,459,000 as of the
published statement, Oct. 5,

posits
last

By

at

1955, deposits stood at

high

an

all time

of

was

is

the

successor

of

the

incorporated in San Francisco

in

1873, when it succeeded to the
business of the banking and im¬
porting firm of J. & W. Seligman
&

Co., founded

in

1850.

The

in

the

First

San

Crocker

tional Bank is the

Francisco
First

successor

National

Bank

Na¬

of

of

<1)
San

$389,970,138. Since 1940,
$12,640,000 has been added to the

Francisco, incorporated in Novem¬

bank's

ber

reserves

earnings

and

and

after

capital from
the

proposed

increase, sales of additional stock
1948, 1951, 1955, and 1956 will
have
added
$8,500,000 more to
capital.

in

•/
Commenting on Georgia bank¬
ing as a whole, Mills B. Lane,

President

of
the bank
observed
that deposits have grown an aver¬

of $150,000,000 a year for five
years for a total
of over three
quarters of a billion dollars.
age

The

sale,

National

Texas, of

by

Bank
new

the
of

Continental
Fort

Worth,

stock to the amount

1870

Bank

of

First

as

San

National

Gold

Francisco,

opening
for business in January 1871, (2)
the Crocker National Bank, which

began in 1883

as

the private bank

of Crocker, Woolworth & Co. One
of

the

founders

William
Charles
the

of

the

bank

was

H.

Crocker, son of
Crocker, who was one of

four

Pacific

builders
RR.

founders

System.

of

and
the

of

the
one

Southern

Central

of

the

Pacific

William W. Crocker, the

present Chairman of the Crocker

Bank,

is

Crocker..

the

son

of

William

H.

Volume

182

Number 5480

.

.

The Commercial and Financial Chronicle

.

after

even

The Current Sterling

dence

the

in

revival

sterling.

influences

are

of

confi-

Psychological

bound to have

and downs.- In

ups

the

sterling will depend on the Government's ability "of checking the

PAUL

run

credit

ascribes

this
and

both

to

the

interest

long

Government's

improvement in the British trade

the rate of sterling will depend

ability to check the

the British

on

It is generally recognized, I be-

spiral with the aid

wages

lieve, that
able

to

in

the

first

months, sterling rose
premium against the dollar

a

the

at

Eng.—For

14

beginning

of

November,

For

compensate them for the higher
rents they have to pay. But what
matters is that, even after having

obtained

months

it

earnings will be higher than it is

summer

had to be sup-

by the

authorities, in
order

to

pre-

vent

its

de-

cline

below

the

official

minimum
limit

of

sterling

has been selfPaul

Einzig

J

-

This should go a long way
towards forcing them to moderate
now.

their requirements for housing
accommodation. The change is not
imminent. It may take some time
before

the

Government

will

able to introduce the bill

be

amend-

can

supporting,

relief

where

a

ing borrowing by local authorities
will go a long way towards inten-

in

official

circles

premium on sterling is
regarded as a "vote of confidence"

by the majority of foreign

in

British

the

can

that "once

look

now

face."

After

sistent devaluation

the

all
•

more

dollar

the

ji

per-

of

rumors

i_

ii

-—

deal-

points out

press

satisfaction

cent

re-

cause

Will

the

its

last?

trend

have

we

It is

causes.

to the reduction

to

iiU¥V,

certainly too early

Hither-

squeeze.

bank loans to

in

largely offset by

an

has

stopped,

,

reasonable

feetive.

,

Lnis

-p^„+

Adams He-elected by
Am. Cancer

American
Cancer Soci~b5
ety, was re- .
elected a director - at•-%
large for 'a
two - year

.

term, at the

ticular market, once you get a
many
doctors today
are
toe-hold and do a good job for a
acutely aware that they must do few clients you can build from
something beyond life insurance there.
and low yielding savings plans if
^ jrew pointers From
they are going to achieve some
Experience In Selling Doctors
partial compensation for a lifetime
Make it simple. Convince your
of hard work and public service,
doctor

.

,.

„

Sheraton Hotel in New York
City,

client

that

you

are

A. M.

going

seems

_„.i

,

-ii

^wnWrfff'
^ensky & Co., Inc. will offi-

j-.i

.

curities tha^injorrner year,_ As MenceJ^ your^htude toward
time.

Hut

tne

UJC

Lct*

jjiuuiem

iney

eacn

iace

~

~

Board

,

^^He J ^sThis

seasonal

a

turn

of

the autumn

ency, as

the

tend-

was

.

curred

during the early part of
October, is certainly encouraging,
The

Sterling's weakness during the
foreshadowed

summer

the

possi-

hope of

n

bui'dTng

jPn °"ection

recovery of sterling must
attributed, however, mainly to
psychological influences. Although

bility of its subsequent strength.
For this reason, Mr. Butler's critics
who accused him that, by hinting

the

at the Paris Conference about the

how thev

with

^'"1^yAnathev

possibility

be:

to

first

reaction

Butler's

Mr.

of

the

markets

Budget

was

un-

fa vnrahlp
cppfinH
iavoraDie, nn second thought Hpni
on
tnougm dealers

inclined

were

to revise

their

of

wider
wiuei

with
wim

"flexible"
of
ui

range
idnge

sterling

fluctuation
nuuudiwn,

he caused the loss of gold worth

that the new
more
likely to

£100 million were no altogether
fair. After all, if foreign holders

inflation than deflation. For

withdraw £ 100 million it reduces

this reason, both the weakness of

not only the gold reserve but also
Sritams foreign short-term lia-

original

impression

measures
cause

were

sterling and the boom in equities
that

main

lies

attitude

the

in

significance

ment's

realization

of

measures

the

of

relating to housIt is

evident that the Government

intends to
lar

proceed

aiming

steps

with

unpopu-

raising

at

the

level of rents. Those familiar with
Britain's
ize

that

economic

situation

the

of

one

main

of trouble has been the

low

on

wj,ich interest is exemnt from the

incoml

FedCTal

:™t!™lv

ta

thrn

vast market

a

can

k
the

want to know is

keeo what thev

earp

,

1 will watch over your investments to the very best of my ability."
it is best to

tizeTsiSon to obtain
vi^w with busy doctor

an

still left avail-

way

aMe to

,hem

tor t[)at to
income of

Just teU

dQc_

into-

Several

whQ hag

Qne
even

$8,000

taxaWe

a

4%

He
but

of

6%

a year a

he

if

and

one

and

^ax exempi; income is the eauivalent

heard of a doctor who
the most successful
busy pediatricians in the city.

years ago I
was

is

in

the

taxable income bracket of $16,000

was

level of rents, as

which
able

there

artificially
result of

a

been

has

demand

modation.

for

an

housing

This

has

house

building,

large

proportion

real-

causes

insatiaccom-

diverted

to

labor

for
ior

in

British

for
of

nf sfprline
of sterling.

cheaper

defer

able

their

is

an

orders,

benefit

to

sterling rate.

often than not, an

are

order

by

And

so

and

long

spiral" continues
are

so

the

more

order deferred

lost.

if

For

bicycles

somewhere

else,

and

the

demand

imports
imports,.

inadequate

is

satisfied.

irretrievable.

are

balances
Balances

which
wnicn

when sterling

is

Such

The

losses

foreign

withdrawn
witndrawn

are

weak

may

return

when sterling becomes firm.

Admittedly,

arp

are

not bought in Britain, they are

bought

as

to

the wages

rise,

large part of the

L Britafn

that the workers will

be able to secure increased pay to




a

scare

to

the

orders

But

which

missed during the sterling

are

come

not

normal

liable

to

volume

be

added

of

orders

/

Understand the Doctor's Problem
Many securities
frained

from

anmnnfo

have

the

in

seeing

favorable

time

a

re-

doctor's

nf

encountered

ties
at

men

cultivating

Wonm
because

of

accounts

difficul-

and

them
place.

sv
Although it is true that they are
are
busy, their minds are involved
with
many
problems
day
and
night, and the more successful

they

are

the less time,they have

discussion

for

of

their

im-

own

p

block

before

a

few

of

better results

as

you

^em.

work with

(Special to The Financial Chronicle)

u
CHARLOTTE, N. C.—Benjamin
placed upon the^ ^AitLUX^, in. ^.-cerijamm
imnnrtanrp nf-thp
Vernon, Jr., is with R. S. Dickimportance"oi?the matter I wished
to discuss opened the door. I went !S(5n.
^ Company, Inc., Wilder
u1Bh«

,

*

T

straight to the point. I said doctor,./Building.
"Here is an opportunity we think
can
help you to make a caoBal
With

^

.

(special to the financial chronicle)

jr

Rentucky
Nm th

substantial block of the
stock and today he has a profit

bought

Kentucky Co.
is

Company,

Tinner

to

talk

with

them

151-153

Street

N. Modinos
WILMINGTON,

^USThesu^estS^fyou X^tooMd'o'so.116 " Jities
like

now

a

For example I have found that tion comes along I tell his s»ere- ]a^MlNGTUN

would

Harkness
with The

LEXINGTON, Ky.

soid him on the fact that he

of over 350%. Now. w^en a situa-

■„

,

Joins R. S. Dickson

The emphasis I

a

and

^

c

curities
business.
Officers
are
Richard Boonisar, President; Ernest F. Henderson, Treasurer; and
Theodore L. Cross, Secretary,

ing patient had been cared for.

a,)/roac^ them more convmcmgly, had a KEpp SOME MONEY. He
chance at least to MAKE
at
time> ]n such a manner AND
interviews

Mich

'

c,

he would see me I would be there
at
at 5:45 nrhon Viic last littlp snnpnl-1"
when his Inct little saueal-

on j

more

ha5

£id

Ill

bheraton Sees. Lorp.

our

aPPreciMe these things you can
to obtain

main

firm

™

(Special to The Financial Chronicle)
BOSTON,
Mass. — Sheraton
Securities Corporation has been
formed with' offices' at 470 Atlantic Avenue to engage in a se-

clients. I told his secretary that I
wished to see him at the close of
his office hours, that it was a mattor that could be very beneficial
and helpful to him, and that if

gain that will be very substantial
jn a year or two." And from there

as

its

to

thp

p.f!'

Grand RapWs

acquainted with my firm

had never done any busiwith him
Taking a shot in

portant personal affairs, if you can

and

rhipaan
,-

the

Make it sim-w able

to the point, show him

how you can help him.

in

devaluation

a

Fnrpidn imnnrtprq
Foreign importers

to

be

to

as

goods

decline

a

their prices through
inclined

pie,

is due to the decline of

orders

anticipation

to the British balance of payment

in-

exports.

chances

scare

foreign

abnormally

of

excessive
excessive

shortage,

ling

ster-

a

capital

an

vestment, which has been largely

responsible
respoubiDie

5e^er f0r ^ij^

The only real loss that is liable
to arise whenever there is

a^d^ion

jn

in

of

we

ness

in

membership on the New York
S'01;.15 Exeha,n,?5' A"ler'carl St°ck
Euxchan8e- Midwest Stock Ex£.ha"ge ,and ,?b;cag0. B.?ard ?£

drama-

a

formed
iormec

was
was

*iUbe twice the size of that in
theAf°rmer space.
Arthur M. Krensky & Co. holds

ahead and practice medicine and

Sometimes

it
it

nno

.

n°w this iscan keep wnattney earn view witn a ousy aocior. several >pra(je
iney one
and

loss involved.

Govern-

ing subsidy and rent control.
now

bonds

,

dark, I called him when a
followed the, Budget state- bility. And if foreigners go short a
year a 4«^ return is worth 8%
very attractive growth type comsoon became reversed.
The in sterling, sooner or later they
to.him^n, a taxable, iAvestment. mon stock was offered and we
reason
for this change of have to cover. There was no real jf ke is jn a
higher bracket it is were in a position to place a siz-

ment

the

S°m6

capital

,

,

since
since

March, 1954. The firm will
cupy 5,500 square feet on the
floor, an increase of 2,550 sq
feet over their former office;
Highlighted in the firm's
board room will be a quotation
board with nearly 700 listings,
tp Vio
r\~f tlno
lomopf
believed to be one of the largest
on La Salle Street.
This board

that IS FOR

.

orrato-

zaiion

.

,

141

....

0

qqv

m

Rnildim*

Trade

mu_

does

pressure

of

Wes* Jackson, Nov. 10.

mind is on

sufficient for strengthening Jhe. minds^of successful doctors, Hons. lie is busy, his
n .
the
sterling, because of the low level their"friends7and"a7socTates' have Hs nailents 9nd'his many responnot end as a rule until December,
iDer.
to which_foreign sterling balances been investing in growth type sibiliies. mnlrl wou tfi we c "Dorvvmv.li xvzxv.i&ii oicnuig
°
<=>
He
me
whn
him
The improvement is due in part needed for normal trading pur- stocks, growth mutual funds, and
■
hove an investment
\
■
bal- Poses had been reduced, and be- even speculative special situations. jot, ^len I hove
n «
ance of payments.
We shall have cause
of the world-wide short As they ^1have achieved a certain
vour yin.
to await the October figures bepositions in sterling. Once it is
e<~ of success, they have dis- ves+ment and onJv keeD yon ad_
fore
we
can
form
an
opinion realized
that a devaluation of
toe matter ^ /
f.
vi^ed if it is necessirv to do so.
about it.
But the decline in t -e sterling is not likely, sterling balis spreading Q+uerwjse cail
_ anytime and I
outflow of gold, together with the ances ara likely to be replenished around that shocks, mutual^ funds
»
•
j ■
.
Phannpiinr'o
ctatomont
tax~free bonds remain the '
*
Chancellor's statement fho+ most and the short oositions are likelv and
that rYiftef and the short positions are likely and
tax-tree bonds remain the
achieve success
of last month's gold loss was into be covered.
only method of investing their best yourinvestments YoS go

for

Krensky Go.
In New Quarters

to helo him make investments that

Kecepuve Market

James S. Adams

through Nov. 4, 1955 at the Park

.

anticipation of these effects year has continued to press upon

mere

Society's a nnual meeting,
held Oct. 31

.

'

Society

.

ever,

in-

,

take

may

it

,,

,

ingenuity

and

patience

lnto *

you

During the past few years I be- aan 6r°w and that will help him
beve that it has become much less t0 save on hls income taxes. Don t
to expect that credit difficult to contact and sell doctors g? nd° l°ng discussions about inwill become more ef- on a program of investment se- dividual situations. Gam his con-

been
,

busi-

the drain to the tax collector, that
you are going to have a better
opportunity of obtaining a serious
interview than if you try to sell
them some securities, sell where
James
S.
Adams, New York
the hurt is, HIGH TAXES!
Also, after you have done a City, general partner, Lazard
good job for one or two doctors F r e r e s &
you will discover that they have, Company,
been talking. Most doctors know Vice - Chamand associate with other doctors, man of the
Your satisfied clients will give you National
personal problem which not only permission to mention that you, Board of Di-,.,
involves their own welfare and know them and do business with rectors of the

borrowing by the local
authorities. Now that this loop-

hole

..

.

professional men who are in the
higher income brackets, especially
doctors. They are in a situation
where
high
taxes
on
current
earned income make it mandatory that they do something drastic if they are going to have funds
for retirement, and for the years
when they cannot attend to the
multitude of duties connected with
an active practice.
Most doctors
are acutely aware of this serious

in

crease

analyze

w

realization

the private sector of the economy
has been

restrictions

favorable
it

answer

the

sifying the credit

,

times, there is indeed

is

measures

that the steps taken about limit-

i

_

for satisfaction.

To

cultivate today, is among

to try

you would like
of this substantial

think

some

JV/f ^torc^ti^

.

great

sterling

sales-

peace of mind, as well as their them. It is a field where there is
families' future,- Some have set a chain reaction of prospect to
step is intended is in itself suf- up heavy life insurance programs prospect and client to client. Prosficient to induce most people to to tide them over the years when pect among your satisfied cusmoderate their housing require- their family obligations are the tomers and you will find that even
ments.
heaviest, and also b) give them though it may be a bit more difAnother reason of the favorable some assurance of at least limited ficult to get started in this parnew

The

security

about a method of building up
their capital, or a plan for helping them to save some of their
earnings that is now going down

but remained second impression created by the savings if they live to retire. How-

......

with

of the most profitany

for

ing the present rent control legisBut the fact that such a

persistently under the parity of
$2.80.' Its rise above parity caused

ers.

If you

$2.78.-lation.

During recent
months, however,

corre-

the

during

ported

increases

wages

sponding to the increase in rents,
the proportion of rents to their

one

markets

fumbler's or people
themselves.

tle respect for

who do not believe in

The Doctor As An Investment Client

man

LONDON,

in what you
and know ycur business. Doc¬
tor's live in a world that has lit¬
say,

By JOHN DUTTON

of the credit squeeze.

time

them, show them you

fidence, be positive

Securities Salesman's Corner

to

run,

in

respect their time, gain their con¬

"psychological influences."
Says these
"psychological influences" will have their ups and downs, but
in the

hard earned income

some

But Qome to the point, show them
well selected situations, take an

squeeze.

EINZIG

Dr. Einzig, noting that for the first lime in 14 months sterling
rose above the official minimum limit in terms
of the dollar,
balance

as
invest.
They will do almost
anything they hope will help them

tneirjwages spiral with the aid of th? to keep

long

Exchange Situation
By

21

(1985)

doctors will speculate

as

Opens

N.

N

C.—Nicho-

fro^offiees

business
well South Third Street.

^

at 422

22

(1986)

-

from first

Continued

J

vaae

J

MaI

1|aUI

IlCl

vv

ill

■

IIlv

■"

m

m

IlVllloH

Iha

in

I/cm

Limits appear, however, to the
utilization of the rapidly expand-

.

-

-

local governments and for the
private sector of the economy.

bank financed debt to keep
burden of the debt low. It

As with most statistical series
there are definite limitations in

ln§

tbe

vllllvll

iJICIiCkJ

'

lion

it

Is

to counteract this inherently depressing influence.

figure of $190.9 bil-

a

of the end of 1929.

as

unreasonable

to
assume,
There is more validity in the
in view of the subse- second argument of the debt raquent events, that perhaps we
tionalizers.
Debt which is conremained
in the slough
of the sidered by the public as a liquid
Great
Depression
precisely
be- i asset does induce the spending of
cause
debt did not expand?
It a larger proportion
of
current
is
worthy to note that in the monetary income on consumption,
three
years
following 1939 net .and balances are spent with more
debt
expanded
by
more
than alacrity.
Furthermore the debt
40% to the then unprecedented held, except savings bonds and
figure-'of $259.0 billion.
Simula
some other types of obligations,

especially

taneously production leaped up
and by the end of 1942, and for
tlie

first

time

employment
To

since

can be used as collateral for loans
f°r the expansion of more debt;
and all of this contributes to

"full"

1929,

''keeping the

achieved.

was

recognize that

debt

in

employment

is

rationalizers is that the "burden
of the debt" shows no trend increase, and is actually less than
in many past years. They note,
for example, that in 1954 net debt

not,

bowever, to condone all types of
debt

expansion at all times.

does

Nor

such
recognition
condone
given rate of debt expansion,

any
or

the

is

financed,

in which

manner

the

or

the

as

whether
and

until

not

of

percentages

1945; 233.6 in 1940; and

222.4 in

of

that the
be kept on

possible

debt

can

is

practicable or possible expedient, either to provide
full employment or to keep debt
charges within tolerable limits.
The writer hardly wishes to
propound these relationships as
being of the nature of an economic law, for the tolerable limits

of the funds. It is significant in
the evaluation of debt, for example, to know that the debt was
acquired to finance the acquisition of a new security the proceeds
of
which
are
used to
finance plant and equipment expansion rather than the purchase

even

should

charges on debt are related to a
cumulative figure; and since the

multiplier effects of debt expansion' on income,, the ingredient
from which the charges must inevitably be paid, is

a

non-cumu-

lative figure, it would seem that
the time will inevitably
arrive
further

when

longer

no

debt

expansion

a

of

any debt structure are more
psychological than mathematical;

and there may be a loss of fai.h
confidence long before, or per-

or

haps after, the date fixed by ouif
mathematical time table. Never*

have

we

not

reached

of

have indulged in since

limit of debt expansion as a eon-

"binge"

debt

the

of

1940 and is even less than in 1929.

which

It

Comparative ratios of net debt to

delete-

the Gross National Product yield

1940 does not prove that debt
limits, even though relative, are
non-existent. Certainly there are
very real limits if the value of

its

we

recognized. Then equally satisfactory results; and
the
problems*311 even more sanguine outlook
only
postponed, on the problem of debt is obtain-- the dollar is to be held within a
and that the problems thus postable by comparing interest reasonable semblance cf its presponed return in an aggravated charges on debt to national in- ent purchasing power.

it

is

that

seen

"solved"

were

form.

come.

,f

in

But

The

It

Servicing of the

will

be

noted

Debt

that

the

tations

-

all

one

these

of

compu-

vital

very

is

fact

blithely overlooked; namely, that
an expanding debt will cause an

sub-

unchanged from the end of 1920
to the end of 1921 in spite of some
pick-up in business activity during the last part of 1921. While
bank financed debt declined during this primary postwar depression, the net change being $4.3
billion from the end of 1920 to
the end of 1922, total net debt
expanded throughout the period,
albeit by only $0.4 billion from
the end of 1920 to the end of 1921.
It is worthy of note that after
1919 Federal debt declined, but
this change was more than offset
by an expansion of privatp and

state and local government debt.
Thus the rapid and complete re¬
covery from the 1920-21 depresof an existing security to finance sion ran counter to Federal fiscal
the construction of a new house, practices. It did not take Federal
raiher than to finance the pur- deficit financing or Federal guarchase of an existing one; to fi- antees to private borrowers to
nance inventory expansion, rather resurrect the economy lrom that
refinance

than

existing

inven-

as contrasted to the latter, which
the—constitute "financial" investment,

sequence

are

correspond to
•
cf
cyclical

not

zones

the fact

and

operation,

their

that

net debt rose by nearly 56% in
the three-year period ending in
1919. This and the period up^ to
about the last quarter of 1920 was

depression.

relationships do . tories. The former types of inThe trend which began in 1919
seem to be inexorable vestment are. designated as "real"-continued
throughout the '20s;

exist, they

in

Thursday, November 10,1955

these

theless

218.4
in
1929.
Obviously the
burden of debt has fallen since

or

,

^

their use in economic analysis, a period of high war prosperity.
Being year-end estimates they do*. Total
debt remained relatively

the
turning
movements,
Neither do the figures reveal the
significant economic purposes for
which the debt was contracted or
the manner in which it was financed.
It would be of inestimable value in evaluating tho
economic significance of debt to
know the purposes for which the
funds were spent, and the sources

keel by expanding debt,
be
recalled that the

an

It

sense

well

later that

rious effects

in-

seems

being.

current

a

exhilaration
is

justified

national

of

with

compares

for

which the debt is contracted.
The insidious thing is that debt

expansion,
not,
gives

percentage

a

come was 2C3.3.
This is exactly
fbe same "burden" as in 1950 and

debt

purpose

industry

The final argument of the debt

may under certain circumstances bring about a rise in production and real incomes, and an

Increase

wheels of

moving."

expan-

gion

hardly
burden

pared with

The Commercial and Financial Chronicle

t

Studies of the United States Department of Commerce have made
an
invaluable contribution to an

with Federal debt decreasing and
increasing. The rate

other types

Financial investment provides a of increase began to taper off
relatively
insignificant
demand-after 1928 and there was virtually
for labor and materials and in no change in total net debt from
1929 to 1930. The banks financed
$15.8 billion or nearly 30% of the

instances the over-all effects may actually be retarding
to the- economy.
Compared to
real investment it is rather inconsequential as a contributor to
employment and production. Only
debt growing out of real investment or consumption makes an
actual direct demand for labor

of 1929.
The increase of debt in the late
'20s had a less expansive influ-•
ence
than the absolute figures
would
suggest.
An
increasing

and materials.

proportion of the debt was rep-

some

understanding of the relationship

expansion

debt

from the end

place

that; took

of 1922 to the end

resented by brokers' 'loans and
other types of financial investment. While rising securitv prices
standpoint of the
which the debt is financed. Debt provided some indirect stimulajust the obverse of credit. Credit ond if debt is expanding rapidly
financed from voluntary savings, tion to employment and producis often referred to as "the life- enough, and a sufficiently large
which is all debt except that held-tion,
perhaps the net effect of
blood of industry," "the mobilizer proportion is financed through the
by the commerciai and the Re- diverting bank credit and the sav-'
and expediter of
commerce," etc. commercial; and the Reserve tember, 1953, and the May, 1955, serve banksr provides an outlet ings of the public into this type
Why then not take the cheer- banks, the relative cunent burden issues of the "Survey of Curient ^qj.
cavings
Insofar as the money of financing was to create a net
ful, positive approach and discuss of debt may even decline. Further- Business."
Tabl<*. II contains a suppiy js concerned it is a ve- depressionary effect on the econject under discussion is debt
credit.

not

Yet

and

expansion in National Income an£
community, is -in the Gross National Product;

debt,

from

credit rather than debt?

the

The

if there

more,

rea-

is

not

much

too

expansion and contraction
of income, prices and
employment.,The two most recent studies of the Oifice of Business Economics of the Department
of Commerce appear in the Sep0f debt

levels

to

the

of

summarization

is not that the writer haopens
to be a "high priest of the dismal

regard for preserving the puichasing power of the dollar, in-

portant data series.
banks' contribution

science"—rather it is because the

terest rates

structure

problem

to artificially low levels and debt

son

that

confront

will

will

us

increasingly

be—not

the

less burdensome.

even

ex-

be pushed down

can

tension

a

cf

monetary burden or debt

of credit, not the finding
adequate sources of loan-funds

—but

the

servicing of the

to

of

fond

are

pointing out that "our debt is

owned

to

of

debt

the

ourselves";

that

provides

much

the

public

with

liquid assets, thus inducing
"high marginal propensity to
consume"; and that the relative
a

burden

of

than

many

in

the

debt

is

less

now

past years.

almost

are

our own

of

servicing

who have studied

them,
the

for-

eign exchange problems of debtor
flations

well

are

difficulties
can

aware

foreign

a

But the

cause.

ourselves"

thesis

the

of

held

"we

debt
it

owe

rests

■

by inflation to tne shoulders of
those with relatively fixed mcomes> ailcJ
are Paya7

of

funds

uoon

from

to
an

debtor

to

creditor, from taxpayer to bondholder,
and
indeed
from
one
-

pocket

another does

to

untoward

and

have

not

undesirable effects.

Typically, debt charges are fixed
charges; they are an operational
which

in

other

increase

costs

ways

expense

decrease

the

pected margin of profits.

receipts
lor

most

uab*.

They

added

to

estimating
Bess

of

and

prospective
the future

any

given

them m a fixed

TahlP

are

a

reveals

T

has

depressing effect

on

bringing
of

n?

$136 3

the

1940

been

to

the

This

inflated incomes
and

the
It

kept
debt

has

of

the

end
b*nk
for

well

as

within

has'

process

current

prices

as

burden

tolerable

in*

of

limits,

actually made the $605.5

Net

debt

much smaller than are
gross debf figures., Thus, for exampiGj the net debt of the Federal
Q0vernment as cf the end of 1954

course

The stimulating ef-

Beginning with the collapse in

entirely out of the fact that
catalyst which change,

arises

1929 bank financed debt declined

tbe
idle

actjVe

into

nanced
the

by

commercial

banks

^30.2 billion compared to a
debt 0f $278.8 billion. The
object is not to minimize the debt
but rather to arrive at figures

fi-

Debt

funds

the

Reserve

more

has

and
much

a

stimulating effect because it

money

created

in

the

process

of

bank

economy

by

.

10c..

.

money

tend to cause an
velocity of money.

catastrophic,

Reserve bank
debt not only enlarges
the money supply but, by causing

While total debt reached a min-

financed

imum in 1933, standing at afigure-

mercial banks to expand, lays the
basis for a multiple expansion of

bank cqeait—and the

which have the most siSniflcant P^-

Other

thi°gs

of $168.5 billion as of the end of
that year, private debt continued

being

They have been offset by prior
tax

debt

a

growing

out

equal, the limited

erations

earlier

period.

acc.idental phenomenon that upswlnTs ■1? business activity are
associated with expanding bank
credlt' and down-swings with
contracting bank credit.

very

a

recovery

1933

from

to 1936 was in spite of the private
sector. The net expansion of bank
credit of $8.5 billion which oc-

curred during this period was
wholly attributable to the in¬
creased monetization of the Federal debt.
.

In

period

1937-38

the

Federal

debt continued to expand exert-'
ing a counter-cyclical influence,:
but the baiancing 0f the cash
budget one year earlier is said

cf

income.
are

net' debt

of

a

consid-

Similar

production

without a large, and perhaps an. of 1937 causing
tion

involved in compiling

figures

for

to have been one cf the principal
factors inducing this depression
within a depression. Private debt
and. employment declined rapidly in the last part

cannot have a sustained high level

accelerated, - expansion of bank
in ex-, credit, with the concomitant dilu-

,

smaller $190.9 billion debt of 1929
the

In

1936.

accurate sense it may be said that

does non-tank financed debt;
and Reserve bank financed debt
much more so than commercial
bank financed debt. It is not an

collections; they do not rep-

reSent

cess

jn

until

decline

to

money sun-

Funds are excluded because they
On the basis of the record the
tePreserd a contingent liability, statement seems justified that we

some in that year than the much

was

declined $22.5 billion and of this
total
the banks accounted
for
$17.6 billion. With real invest-?

the

the excess reserves in the com-

excGpt the Fedeial £°7eArrt~
ment Excluded are the Old Age
and Survivors Trust F^nd and
some other accounts- The T™st

very rapidly.
From the end of
1929 to the end of 1933 total debt

ment outlets evaporating and the
supply being destroyed at
this rate, the years of the downcredit creation-swing of the Great Degression
increase in the'could hardly have been less than

an
enlargement of the
supply, and the dynamics

gross

omy

omy.

expansion

wag

resent a. aeoi gr
g
01111011 dent 01 itm less burden- past expenditure of funds
.

state

and

of

Table

cur

II,

supply.

money

based

debt

in

cline

a net

of

$2.4

over-all de-billion

and

bringing about one of the sharp-'
est declines in business activity irr

Depart-' American business history,

upon

ment cf Commerce and

Federal

The behavior of total debt andcomponents during the entire

Reserve

TABLE

Changes in Gross

National

Product, Net Debt and

the

"

19°4

Gros<sNal11 Prejd.On constant 1947 doUars-) $1/1,6

higher astronomical

j

"Includes (adjusted) demand deposits,
in

the

commercial

banks.

58.0
.

currency

period of the Great Depression is

of the °nd
each year from
1916 through 1954.
The table is

especially noteworthy. To'al debt
which stood at a figure of $190.9

down into the principal' billion as of the end of 1929 and
components of public and private- $191.0 billion as of the end ofdebt and the subdivision on bank. 1930, sunk to a figure of $168.5

broken

1

194,1

Publlc and Pnvate

indicates the
public and private

its

debt

net

as

(Figures in billions of dollarO
.

statistics,

total

I

Money Supply, 1940-1954

vj




the

1954

accounted

billion.

$135.9

from

end

creation

to

amounts we shall find it
necessary
to emnlnv PVPr crrpnto^
empioy ever greater stimulants

debb

not grass
figures
are
cf
and

manner

feet of this type of debt

involves

the esti-

fin-need

billionincrease

suddIv

monev

"iredit

in

tte econ°my.

are

System.

Lc been
dflutina

very

lh"S "c."bt continues,
grow to ever

net

of

mates

that

through the banking svstemThis

commitment.

a

noted

be

the true economic sense> lhat 17'
cash expenditures in excess , of
the
nrfnckUl 'factor-cash income- Net Federal debt,
our
monev
suddIv
and
for example, includes only debt
about the rise in prices
owed to a11 secton\of
econ"

exnalision

profitable-

on

Goveinors

af the Federal Reserve
jj.

publi-

are

cations of the Board of

the

on

jocity factor.

factor
in

stimulating

a

depends

ohp

this

individ-

income

Bulletin"

Reserve

"Banking and Monetary Sta-

js

debt

als0

expand-

ev

I1*!] {7sult ls thatbalance
the servicing
debt exerts

of

fantastV

the

our

ing

an

"t whirh rieht has hopn'
economic import; to eliminate all bank financed debt has a much
nanrtinVin * this rrmntrv sinre duplicative totals and all figures more exprnslve effect cn producinIn Annrnximatelv
third nf
which do not rePresent d-bt m. lion, employment and prices than
rptA

therefore

not

are

ex-;

of income

source

businesses

or

Interest

the other hand

on

non-operational

to those wnose assets
j

number 01 0011ars-

essentially false premise; that tKe
transfer

1S
that these

™ea?HrfS simply shift the burden
?
e2 y ^ those who profit

our

entirely held by

nationals does reduce the

difficulty
Those

.s a f?vi ,£

to_ recognize

•

be
But

xhe Increase in the National Debt

Undoubtedly the fact that
debts

+an

"Federal

the
and

im-

debt
have been obtained from
to

direct tistics," both of which
can

measures.
the real burden

that

assume

?

People who endeavor to mini-

mize the problem of debt

the

sense

ieduced by these

debts

contracted.
:

superficial

In

more

Daia on the

The extent to which

,

%

$297.0

73.1%

^
154.3
...

^f

f«8
235.0
.

outside banks and time deposits

finanCed debt indicates the extent

to

which

our
"monetized"
by

has

debt
the

been

commercial

and the Reserve banks.

.

,

According

to

these

estimates

billion

of the end of 1933, rose

as

to $182 0 billion as of the end of
1937

and

billion

then

as

of

fell back to

the

$179.6

of

1938.

recovery

after

end

m,

There

was

little

*

Volume 182

Number

5480

.

.

The Commercial and Financial Chronicle

.

that, until the outbreak of war in
Europe. By the end of 1940 net

debt

lion,
:

We

have

Deal

heard

pump

alleged failure
an

of

examination
reveals

ures

much

of

priming/*
the

of

that

fig¬

fast

as

debt

expanded

billion

of

as

of

1940,

billion

to

$128.6

same

$32.6 billion.
to

were

billion

period,

since

of

debt

in

has

not

it

this

incurred

deficits

of

the

Government.

After

mad

debt

of

pace

slackened

shifted to the

source

the

state

and

of

the

the

1940

force

before

-During
real

the

debt

condition

a

*

had

been

1940-45

of

net

in

at the end of 1940 was

to

retire

Private

lion.

war

a

ac¬

to

a

small increase in

a

dilution

$135.9

will

shows

be

an

expansion

of

than

to

the

increased

end of

$187.7

1954 total

-

by $208 billion of
biilion can be ac¬

for

by the expansion of
Thus it may be seen
postwar period almost

the

the
of

made

direct net

no

duced

table

which

Federal

end

was

of

1946

approximately

been

the

than

inflation which

debt

is

for the
our

tion: Is

tre¬

Total Net Debt in

the

States,

ques-

supply — necessary
to
achieve "full employment"? And

Total

of

Year

Debt

1916—

Private

♦Bank

Federal

Financed

Total

Bank Fin.

Debt

Debt

Net Debt

Debt

1.2

Net Debt

,

20.6

Public

intolerable to

come

Net

Net

Change in

,

Before

1918

76.5

94.4

82.4

12.0

7.3

25.0

12.3

4.4

seems

117.4

1917—

the function¬

ing of a free enterprise system?

82.1

91.5

25.9

20.9

29.7

23.0

4.7

tain

]f>

5 0

5.6

is so,

beyond

(billions of dollars)
*

End

advisable

of

128.0

97.2

30 H

p- ^

0/1 0

1920

135.4

105.8

29.6

23.7

39.5

7.4

4.6

135.8

106.2

29.6

23.1

35.7

0.4

—3.8

that have occurred in
which make improb¬
able the old and familiar cycle of
debt expansion

,1921

—

1922—

140.0

109.5

30.5

22.8

35.2

4.2

—0.5

1923—

146.3

116.3

30.0

21.8

38.5

6.3

3.3

1924—

153.0

123.0

30.0

21.0

41.0

6.7

changes

2.5

economy

and contraction.

Before the Federal government

-

132.3

30.3

20.3

44.4

9.6 *'

3.4

1926

168.8

138.9

29.9

19.2

45.2

6.2

0.8

far-reaching
responsibility
for
maintaining
high and stable levels of employ¬

1927

177.3

147.6

29.7

18.2

48.4

8.5

3.2

ment

1928—

185.9

156.1

29.8

17.5

51.1

8.6

2.7

1929—

190.9

161.2

29.7

16.5

51.0

5.0

—0.1

>1925

162.6

.

1930

191.0

160.4

30.6

16.5

48.1

0.1

181.9

147.9

34.0

18.5

41.5

—9.1

1932

174.6

136.7

37.9

21.3

37.2

—7.3

127.5

41.0

24.3

33.5

—6.1

—3.7

171.4

125.1

46.3

,30.4

33.2

2.9

174.7

124.2

50.5

34.4

38.5

3.3

180.3

126.4

53.9

37.7

42.0

5.6

3.5

1937

182.0

12S.7

55.3

39.2

40.9

1.7

tion

2.3

1936

—1.1

1938

179.6

123.1

56.5

40.5

41.2

—2.4

183.2

124.3

53.9

42.6

43.2

3.8

189.9

128.6

6*1.3

44.8

46.1

6.7

211.6

139.0

72.6

56.3

53.0

21.7

117.5

101.7

73.6

47.4

20.6

1942—

259.0

141.5

1943—_

313.6

144.3

169.3

154.4

96.7

54.6

370.8

144.8

226.0

211.9

125.2

57.2

28.5

1945—

406.4

140.0

266.4

252.7

149.1

35.6

1946—

397.5

154.2

243.3

229.7

138.1

—t8.9

1947—'

418.0

180.3

237.7

223.3

1948—

434.3

201.6

232.7

216.5

1949—

447.9

211.2

236.7

218.6

139.7

1950

488.2

248.8

239.4

218.7

148.9

1951

521.2

279.2

242.0

218.7

155.4

This

1952

552.7

302.7

250.0

139.5,

20.5

13.6

9.2

33.0

7.5

166.5

31.5

10.1

584.7

328.0

256.7

228.1

171.6

32.0

5.1

605.5

341.9

263.6

230.2

182.0

20.8

10.4

out

fictitious

excess

overstates

by

balances

the

Reserve Bank

debt

real

contraction
held

net

approximately $23
SOURCES:

merce,

Board

in

the

debt

of

Credit

caused

Federal

Governors,

the

as

all commercial

Federal

banks.

bank

Government

The

figure

Government

as

of

of
the

credit.

canceling

$'-52.7 billion

Economics,

Federal

"Federal




Reserve

Reserve

United

September,
System,

Bulletin."

States

end

of

lf)45

1!K>3,

p.

"Banking

Department of Com¬
14;

and

May,

1.955,

Monetary

p.

f).

Statis¬

the

income

velocity"

this

If

con¬

pres¬

accumulation

produces

a

never

(and this
it will

about)

come

produce only

a "garden variety"
inflation, the kind that is often
as "creeping inflation"
not a hyper-inflation of the
runaway price level type.
(This

which

type

of

referred to

—.

of

last observation also points up one

is maintained.

essential

the

of

is

It

that

these

for

latter

differences

be¬

tween Federal and all other types

Addenda: It will be noted from
the data in my

•

part

commercial

and

other

In

banks.

full

unretarded

the

circumstance

that

and

cor¬

volume

the

of

In

growing at least as rapidly, since

em¬

voluntary

individuals

of

savings

of

use

of minor reces¬
lines of business, net
about $21 billion or
1955 the debt must be

debt grew by

Reserve <31/2%.

the
words

article that in the

a year

sion in many

the

of

1954,

year

rea¬

instalment
business

loans

short-term

and

borrowing which lagged

'

last year are now moving up
rapidly, while mortgage and other
types of debt have continued up¬
some

ward.

If total debt expands mere¬

by the same $32 billion as it
in 1953, that will amount to
another rise of 5%.
This would
ly

goods and services offered on the
markets in a given period at the

did

prices asked typically exceeds his¬
torical costs of production.

mean

Thus if the
above

to

are

deficiencies

leakages referred to
be offset, and the

of

purchasing

power

created by the

administered price
structure
are
to
be adequately
compensated, it is necessary that
the
banking system supplement

purchasing
power
through the
creation and dissemination of new
This has the effect of pro¬
(and pur¬
chasing power) for which there
money.

ducing money income

antecedent costs.

no

are

The banks are able and

this

if

willing

provided
with ample excess reserves, and
the opportunity to make safe and
to

do

they

are

contract.

profitable loans. The first condi¬
painful and excruciating tion, involving the ability to loan,
of going through the "eco¬ is controlled through various mon¬
wringer" apparently will etary devices such as the expan¬

longer be tolerated. And this
to by our laws, no¬

sion

contraction

or

of

Reserve

credit, reduction or increase
in reserve ratios, etc.; the latter
condition involving the opportu¬
nity to loan has been supplied

governmental
administrative
practices and policies dating from

in

that

1955 the percentage

growth in net debt was equal to
the rate of growth of Gross Na¬
tional Product in two yeas—from
1953's

$365

estimated

would

It

billion

this year's

to

billion.

$383

seem

that somewhere,

somehow, if debt keeps rising fast¬
than

er

production,

burden
point,

the

of interest charges at some

indefinite

now

and unknown

but

nevertheless real, will become too

great
forced

carry.
Or we will be
another round of infla¬

to
to

tion in order to make

the burden

tolerable. Perhaps a better answer
to the

problem of debt than infla¬

tion is

possible, but if there is such
it seems to be unknown

an

answer

J. P.

today.—L.

With Investors Planning
(Special to The Financial Cheonicle)

or

•

of

the
If

"New
this

reduction

Deal."
be

in

true

the

any

significant

volume

of out¬

bank

sale of government
government guaranteed obliga¬
tions to the banks, or other obli¬
gations for which the government
provides a liquid secondary marthrough

the

standing debt is out cf the ques¬
tion. But the important and cru¬

kct«

cial question

tions, operating within the frame¬

is whether debt must

conUnue to increase
erated

Business

"Survey of Current Business,"
of

by

commercial
the

well

billion.

Office of

tics," 15)41; and

as

may

the

by the existence of numerous gov¬
ernmental agencies, and by a host

1.3.

40.3

of

be

banks.

loss of confidence in the credit of

expanding
debt must be financed through the
sons

collapse, perhaps a panic

tably the Employment Act of 1946,

-

1953

*Includes Federal

no

—1.1

-

fol¬

is* attested

1.4

16.3

1954—_

fA

nomic

-fll.O

138.4

224.2

process
1

23.9
-

would

ensue,

debt would

23.1

1944—

Then

prices would fall,
unemployment and bankruptcies
would become widespread — and

6.9

—

structure.

would

2.9

1941

firms,

new

low the

2.0

1940—

of

debt

0.3

1939

output,

expanding

2.7

1935

production, this coun¬

the organiza¬
a plethora of
bank credit, speculation, perhaps
rapidly rising prices, and in due
course an unwieldy and tottering

'

1934

and

a

irregular though rhythmic fashion.
On tne upswing there would be

—4.3

168.5

assume

used to go through a "boom
and bust"
cycle in a somewhat

—6.6

"1933—

to

try

—2.9

1931

began

full employment ob¬

the Federal government

ex¬

porations in the financing of real
investment due to the apparent

1919

our

concomitant

a

debt

as

for

words

structural

to

basic

the

other

ployment requires more than the

these

assump¬

ervation of the purchasing power
of the dollar. But until such time

forestall,

outlet

an

In

to provide
questions
it
consider cer¬

attempting
to

answers

the

nitely inconsistent with the

apparently this is not in it¬

tion.

is there not a limit
which debt charges be¬

this

de¬

a

some ""supplementation"; of
the
purchasing poWer that is dissem¬
inated in the processes of produc¬

—and concomitant dilution of our

if

1916-1954

our

evi¬

little

be

contradict

of debt.)
Lastly, while there is
ployment. There are some "leak¬ no real limitation on the
ability
ages"; savings are held idle in the of the
banking system to create
commercial banks, or are utilized
'credit (and debt) there seems to
in financing the turnover of ex¬
be a limit, albeit indefinite and
isting properties or claims there¬
indeterminate, to the ability of
to; and the pricing practices of the the economic system to service
community apparently necessitate the debt created.

.

United

to

clusion is largely correct then the
full employment objective is defi¬

these

self sufficient to provide full em¬

money

TABLE II

be

must

But

produc¬

the

exert

be

must

must

money

rapidly expanding debt

a

to

savings.

"circuit

the

have thus far

raises

situation

This
■

to

Reserve

more

If

financing of real
things—new
houses, new plant
and new equipment. If this occurs

moderate

rather
we

it

and

Debt Increase

of

seems

tion that

the

spent

income.

not

are

involves

experienced.

net

was

not

community,

at least minimizes, con¬
direct controls.

There

dence

pansion of debt. Furthermore this

surely have pro¬
sharp inflationary spiral

a

rather

con¬

growing mountain
Federal debt,
$229.7 billion as of the

Real

it

90%

cash

there

there

of

it would

tivity

tribution to the
debt.

it

record

mendous increase in

and

Government

Federal

the

other

ernment is committed to

the

had

and

in aggregate
terms,
period but with the roles

war

the

From

that

eco¬

business

the

of

or

Prospects

pressing influence, creating the
.unemployment the Federal gov¬

apparent
economy has been op¬
erating under "forced draft" since
1940.
The outpouring of this tre¬
mendous flood of new money has
kept profits and employment high,

net

the

savings

$43.9

approximately 20%

labor

avoids,

strictive

other

traditional

the

freedoms

distribution.

their

these

or

is

and

very

words

of

period

for

the

and

and

Depart¬
of Commerce figures indi¬

then

accounted

rate

with

nomic

jectives will continue to be largely
achieved through a continued and
ment
expansion of public and
cate that the upper 10% of income rapid
receivers account for about 70- private debt; and the pricing prac¬
tices of the community will be the
80% of all savings on the average,
and in a few of the postwar years principal factor necessitating fithis group has accounted for over hancing a large proportion of this
debt through the commercial and
100% of all savings.
In other

In the 1947-54 period

.credit

saving,

income

of

in¬

this

of

billion

of
the

Most

in the 1940-46

came

least

-

bank

amount

because it is, for the
term, the easiest and most
politically expedient. It interferes

our

One

pace.

high

the

on

—

near

large volume of sav¬
ings results from our high levels
of money income, and the pattern

all net increases in debt.

chiefly characterized hy
expansion of
debt.
From the end of

duplicates,

expansion

that

incredulous

mad

This reliance

date

able in part

pricing practices
community.

The

supply—

money

been

that

of

the

of

debt—and the

new

our

billion!

bank

private debt.

debt.

noted

1954

al¬

expand

of

financed debt

grows out of the

of

during which bank financed debt
increased
$92!0 billion and ac¬

War ill period

ernment

It

of

unprecedented

which

existence

the

end

this

exceptionally

counted for about 44% of the total

was

by

of

the

was

the private sector reversed. Dur¬
ing this period the Federal Gov¬

for

the

the creation of

Private Debt

of

this

Federal

un¬

entire

end

other words
in
this 14-year
period the banks' contribution to

crease

tnan

the

an

the

the

debt

un¬

more

of

on

In

from

In

peace¬

Practically all of
expansion, or $185 billion,
accounted

been

scale.

aggregated $182.0
compared to a figure of
$46.1 billion as of the end of 1940.

accomplished

was

post World

counted

total

doubled.

has

at

to

other inducement to

expansion — and.
to promote
high levels of production and em¬
ployment, and to provide ade¬
quate profit incentives, is explain¬

was

us

or

upon.

device

bank

to be two basic fac¬

seem

impelling

debts

billion

out¬

debt

By

financed

use

debt

full

approxi¬
Thus in the

debt

There

volume

period

occurred

debt

relied

was
accompanied
increase of net debt of $13.6

the

terms,

guarantees

private debt expansion have been

un¬

recession

an

tors

supply through their credit creat¬
ing activities was only $25.5 bil¬

been

never

1946

short space of five years the total

cumulative

1949

by

fantastic,

24-year

of

billion.

the

precedented

banks,

private

by

mately $193.5 billion.

the

recession

net

1954; but the participation of the
banks, both in absolute and rela¬

ap¬

level

increasing
by about $21 billion; and that the

rising 218.8%
stupendous figure of
billion as of the end of

to

an

achieved^

period

expanded

1953-54

though

nothing

has

country out of the slough of the
Great Depression. Even so it was
1942

surplus

footing

The

virtually the sole
finally pulled the

employment

in

had

debt.

was

which

of

been

intolerable

an

expansion.

sharp, and unprecedented
expansion in the Federal debt
after

tax

Expansion

The

.

Government

1940

debt

employment, and make the exist¬
ing structure of debt insupport¬
able.
It is noteworthy that the

tive

account.

into

through

ingly since 1929 government defi¬
cit
financing — or
government

suggest

expansion will pro¬

of

duce

of

end

to

seems

slowing down in the

rate

a

only has the expansion of

$605.5

employment must take these facts

sectors, but by all prewar stand¬
ards, the rate of debt expansion
was still
prodigious.
j

which

with such

government

Federal

since

short
or

by

It did not involve the

time

though

to

a

transition from

private and

local

Not

debt

in

the

debt

tually expanded by about $14 bil¬
lion in the 1945-46 period.
Any
valid
explanation
of
why
the

Federal

and

In

$8.9 billion to

Government

a

the

of

as

fell

evidence

that any real

an extensive contribution to
the further accumulation of debt.

changing

decline

debt

The

of

as

interim

depression because 1916 to
the end of 1940 the banks'
fictitious debt reduction.!
net
contribution
to
our
money

a

standing

war-

1945

from

The

produce

was

spent.

accumulation

somewhat

debt

increase of net debt

balances

been

grew out of the

of

the

made

This adjust¬

effect

$216.5

billion

In

private

bil¬

billion.-

billion.

1954.

Indirectly

One

$26

1945.

$230.2

or

its elaborate system of
guarantees
to
and
underwriting of

this

merely involved cancelling out
excess balances held by the Fed¬

Up to
1945 the principal im¬

pelling force

$22.5

billion.

It

nothing less than fantastic.
the end of

Fund

parent net debt from 1945-46 did

of

eral

1940

of

of

end

the

1945-46

$13.6

during

large scale
"pump priming"

The expansion

country

total

a

the

down

actual

an

could really do to the
economy.
.

of

has

from

what

government

to

or

General

the apparent net decrease in

The next five
years

reveal

approximately

about $193.5

an

decrease

a

the

ment

$161.2

the'

in

1948.

other words the real expansion of
debt was not $216.5 billion but

increase of $31.6
billion; net pri¬
debt
declined from

vate

of

drawn

$29.7 bil¬
1929 to $61.3

end

low

later these balances had been

from

the

Federal

the

"primed

of the end of

as

net

year

sector

lion

the

expansion

the

as

private sector "unWhereas net public

it.

of

as

government

primed"

end

lion

pump"

the

same

by

figure,

but

debt

the
the

balances

the

same,

the

real

of

figure

period
This

Account

"New

and

1940-45

billion.

the

by
about
$23
billion.
During this
period the Treasury increased its

figure slightly lower than

a

the

$208

overstates

decade earlier.

a

in

about

debt had only reached
$189.9 bil¬

23

(1987)

at the accel¬

Prior

work

to

of

a

1929

profit

expecta¬

system that was basi¬

of recent years if the
full employment objectives of the
Federal
government are to be

cally capitalistic, were apparently

realized.

tinn

pace

adequate for the

achievement of

high and rising levels of producan/4

pmnlnvmpnt

Tnrrpas-

BOSTON, Mass. — Roland J.
Ross is now with Investors Plan¬
ning, Corporation of New England,

Inc., 68 Devonshire Street.

Three With Kidder Peabody
(Special to The Financial Cheonicle)

BOSTON, Mass.

—

Alfred J.

F. Morse and
Vince F.
Murphy have become
associated with Kidder, Peabody

Ford,

Jr.,

& Co., 75

John

Federal Street. All were
with Federated Man-

previously

Financial Chronicle

The Commercial and

Thursday, November 10,1955

. *.

(1988)

24

Continued from page

But

The Canadian Economic Outlook
strong until recently
their development.

lead to uring. The 15% financed by

to

might be a decline: The automo¬
bile population is relatively new,
t¬

non¬

residents, largely from your coun¬

includes a very large share
petroleum, aluminum, iron
and base metal developments
a
substantial share in the

which

demand

that

means

omy.

In

were

other

of

housing accommodation.
it is also possible that there

roomier

there
to

employment

buy new houses and new cars
the next few years until the

Many other resources would not
been discovered and cer¬

try,

in the

for

it not

ore

adult

have

developed had

tainly not

sustained

the

for

been

for the products

which

mand

as

and

demand

pulp and paper industry
tain other manufactures

concerned—a de¬
it persisted led

by

tion

other words,

certing fact that farm income in
both countries has been declining

quently

tion in

for several years.

increasing outlays on explora¬
and development, and fre¬

to

methods

better

to

of

American participa¬
basic resource devel¬

our

opment has been large.

utilization and conservation of al¬

developed resources. Ad¬
mittedly,
new
techniques
and
better
methods
of
exploration
have contributed substantially to

ready

We
a

United

large

have

developments

many

that
gone

will develop.

and

effi¬

that

development of the Canadian
resource
industries.
And in the

ahead

the element of
discovery itself played a major
role in stimulating new explora¬
tion activities, as is shown by the

sure

possible. We needed to im¬
port know-how as well as money

the

been

two

exploration after the

tures for oil

To some

discovery of the first major field
at Leduc in 1947.
But even in

is room for
Canadians in that

of

criticism

participation in the frontier
the case of oil, markets do not development has not been larger.
find themselves and the future Canadians have been rather con¬
rate of production and develop¬ servative.
Some of us have been
ment will to a large extent be slow to recognize the potentiali¬
governed by marketing possibili¬ ties of our own country. Perhaps
ties. So far as natural gas is con¬ we have
remembered too well
cerned, development is still the great depression.
Canadian
awaiting the working-out of suit¬ investors have been a little too
able transportation arrangements inclined to buy the "safe" invest¬
which are complicated
by your ments—the bonds —rather than
national policies as well as by the "risky"
investments — the
I

their

not wish

do

after

to leave the im¬

pression that Canadian growth is
mainly a matter of big resource

projects. In fact, the increase of
production and employment in
the secondary industries and the
service trades has been several
times as large as the correspond¬

excesses

to

went

it

this

a

dollar.

good

was

I

suppose

ance

strength of our currency.
It
certainly a welcome develop¬
during the
inflation of the Korean War since
the

Secondary

Canadian

of

Industries

let

Now

me

icies imposed

by your sheer bulk
proximity and the effect on
Canadian nervous systems of the

and

Canada's

about

Good

lems.

picture is not uniformly satisfac¬
tory. Indeed, the very strength of
of

some

the

But for the business

with its large demands for

the export industries

Disposal
Here

where it fre¬

you

I

towns

such

as

earlier.

City,
Kitimat,
Seven
Islands, Arvida, Campbell River,
have shown phenomenal growth,
absolute increases in pop¬
ulation have been in the large
the big

urban centers,

and particularly in

Toronto, Montreal and Vancouver,

The importance
of the natural resource develop¬
the three largest.

lies in the generating force

ment
that

has

it

as

well

given

whole

the

to

Underlying Trend
Upward

Decidedly

the

sum

hold

I think that

of Western Europe,
rapid increase in the

recovery

the

and

and this has

world's

It has resulted in
a
large and growing demand for
capital equipment, for transpor¬
tation and public utilities. It has

to

development.

up,

population and the trend
industrialization all sug¬

more

gest

rising demand for the kind
that Canada

a

of basic commodities

is particularly favored to produce
impetus
to the —metals of most kinds new and
industries, espe¬ old, other minerals including oil
those making capital and gas and asbestos, forest prod¬
has attracted immigra¬ ucts of every kind, and even
through the widening grains. Moreover, I think Canada
opportunities
it
has has shown an ability to adapt her

given
marked
manufacturing
cially

to

goods, it
tion, and
economic

opened

it

up

favorable

provided

has

for

environment

a

economy

rapid

bv U.

Part Played

will

years,

well for a future in which
technological
advance
may
be
very
rapid with resulting shifts
in demand from one commodity

augurs

S. Investment

and Know-How
You

recent

in

mands

population growth.

de¬
which

to changes in world

appreciate more than

another.

to

Canadians what an impor¬
American investment and
know-how have played in the re¬

many

icies

disturbing

sometimes

Canadians

sources.

pride themselves on the fact that
a
very
large proportion of the
total
investment
program
has
been

financed

Canadian
years

85%

in

sources.

Canada

from

In the past few

it wculd appear that around
of
an
annual
investment

averaging $5 billion has
and, con¬
sidering the scale of the program,
this is impressive. What is cften

program

been Canadian-financed

is that the
85% financed in Canada includes

overlooked,

however,

practically

all

roads,
tions,

schools,

of

defense

of the

most

the

However, I do not wish to sug'

that there are no questions
problems concerning the fu¬
ture.
Though conditions in both

gest
i

or

your
-

country and Canada are very
activity has de¬

active today, that

pended to
on
a
high
for

mand

support the view that the de¬
mand
will
continue
at
a
high
The automobile

level.

installa¬

with

the

appear

tries affected remain in difficulty
number of them

and

a

ing

strongly

tection.

population

in

income

population

dising and

high

as

it

was,

and,

though

there is

a

substan¬

pro¬

is

States

not

country where there are
vocal and organized groups advo¬
cating protection.
The

position of these industries
They

cannot be readily dismissed.
have

real

a

problem.

They

are

authorities

to

try

lower

to

by purchasing

(not. necessarily

the desired result.

might take
of

because

the

dollars

U. S.

declined
few

produce

different view and,

a

the

nadian

have

as

to

size

of

the

U.

S.

could

be

so

large

outweigh Canadian policies.

The only method that offered any

promise of making the Canadian
dollar go down was for the Ca¬
nadian

authorities

to

pursue

an

expansive monetary policy and in

from United States

producers and

due

they

bank

from

and

overseas

gen¬

are

this is what

time

did.

From

erally receiving less protection
than they did before the war and
in some cases
a
good deal less

short-term

industries

more

our

late

in

central

to

1953

the

protection than the corresponding
in

the

United

States.

They have to meet wage stand¬
ards
set
by the prosperous re¬
and construction industries

source

spring of 1555 it followed a
policy- of such "monetary ease"
Canadian

that

bond

money

yields

rates fell

and
even

than did those in the United

This

States.

diminishing

policy resulted in a
interest on the part

of Americans and other non-resi¬

deliveries

dents in Canadian bonds and in

is

virtual cessation of Canadian bor¬

of

some

these

freer

industries

were

the

to

access

States market,

they might
be able to gain the advantage of

there
are, indeed, a number of Canadian
manufacturing
industries
which
could be efficient, large-scale pro¬
ducers if they were accorded bet¬
ter access to your market.
But
this seems very difficult to ar¬
range and the result is that many

large-scale production, and

of

manufacturers

our

of

terms

tection

trying

trying to get

rather

to

graphic

than

think
more

in

in

pro¬

terms

of

natural geo¬
just across the

develop

markets

border.
So

Should
be

you

of

have

one

Canadian

such secondary

of

the

policy.

industries

additional
protection
necessary in the interests

given

where

rowings in New York.
duced

an

outflow

funds from Canada
London.

and

considerable time severely

very

The

space

can

be

wheat

from

here

And

of

It also in¬
short-term

to New

for

York

these

rea¬

among others,

$1.01 at present.
would

It

be
wrong to
imply
expansive
monetary
policy was pursued purely with a
view to getting the exchange rate
down.
There
was
a
significant

that

the

of

amount
some

unemployment
and
decline in certain types of

investment and

icy

was

sons

as

change
mere

an

expensive pol¬

appropriate for these
well.

But

desirable

rate

2V2

or

to

it

would

get

rea¬

have

the

ex¬

down more than a
3 points if the only

consideration had been that of

re¬

impact of external
competition in the Canadian econ¬
ducing

the

have

we

that
absorb

way

to
is

farm

to

move

channels.

wheat into export

more

And

only
found

the

been

encoun¬

difficult type of competi¬
tion from your country.

tering

a

Naturally,
United

do not blame the
our
surplus

we

for

States

problem. But to be frank,
Canadians believe you are

many

aggravating it and-pursuing pol¬
icies which can scarcely be re¬
garded

You have

neighborly.

as

ahead and built up a price-

gone

which

structure

support

is

fre¬

quently higher than world prices.
Because

price supports are
world prices,
you impose import quotas when
you have surpluses or threatened
surpluses in your own market, to
keep out lower priced goods from
your

frequently

above

Now

Canada and other countries.
you

have gone

embarked
to

on

step further and
vigorous program

a

a

dispose of your wheat surplus
certain

other

farm

surpluses

a

the Canadian
Dollar actually did decline sig¬
nificantly—from a high of about
$1.03 V2 in U. S. funds to less than

sons,

been

here

a

and

and, because the Canadian market

relatively small, they are often
not in a position to obtain
the
economies of large-scale output.

a

storage system is full and
are and will remain for

whole

their demands for Ca¬

dollars

and

years

wheat
economy,

in the last
this year, though
fine wheat crop, the

moderately

U. S. investors

faced with very keen competition

and

is not quite as

press¬

additional

for

The United

dilemmas
human

are

the only

to be out of line

increase

family formation




important

to

not

lot of the manufac¬

these

both

most of the services and merchan¬
a

The de¬

houses.

products
remains reasonably
strong, and there is a good deal

does

works,

substantial degree
rate of demand for

a

automobiles and

housing,

public

would

of the indus¬

some

Farm income has

in farm income.

we

the problem of

—

grain surplus and the decline

the

restricted.
or

was no easy

painless way of reducing the ex¬
change rate.
For the monetary
rate

but

year

United

cent development of Canadian re¬

However, there

this

permitted

Near-Term

ing for other reasons.

and some of the
equipment industries.
There has been an improvement
appliances

heavy

If

Some Questions About

But

tant part

of them

some

1954, including textiles, house¬

in

the un¬
derlying trend in Canada is de¬
cidedly upward.
World demand
for our basic products is, with the
exception of wheat, strong and
there is much to suggest that it
will
continue
to
expand.
The
growth of the American economy,
To

technological frontier
given vitality to our

as

difficulties for

ous

We have had a physical

economy.

rising and this produced seri¬

ture

Uranium

most seri¬

problem in the Ca¬
nadian economy
and to one in
which Canadians find your pol¬

,

While

frontier.

the

to

come

current

ous

tended to sell equipment and labor have set quently meant a reduction in the
Canadian dollar return.
But it
the bonds in London and to keep
wage standards which a number
the equities
for yourselves or, of the less favored industries have soon became even more embar¬
ing increases in the basic indus¬ in any case, to buy back the had difficulty in meeting. At the rassing for the protected domestic
tries. The population figures tell equities as quickly as you could.
industries
where
the
high rate
very time when external competi¬
the same story. During the post¬ I think we shall do that in Canada
tion from the United States and simply
meant a fortuitous and
war period, the great increase in
as time goes on, but we are going
from overseas countries was in¬
quite significant reduction in pro¬
population has been in the big to pay a good deal more than we creasing, our protected domestic tection at the very time when ex¬
urban
centers
and not
on
the should have if we had bought industries found their cost struc¬ ternal competition was increas¬
development

S. Farm Surplus
Policies

Question U.

last very

big capital development pro¬

gram

community
exhilaration did not
long. Businessmen soon
became acutely aware of the dis¬
advantages of a high exchange
rate.
This was clear enough in

the feeling of

and

industries

basic

our

commercial
and some¬

your

policies are debated
times implemented.

Canadian

it is, the

as

which

in

way

living costs.

a

and

wealthy

big,

a

it tended to check the increase in

few words
economic prob¬

say

such

friendly neighbor, there are a few
disadvantages, among which are
the limitations on our own pol¬

ment for the consumer

Problems

gain greatly by living be¬

we

side

at a

was

tude.

in¬

and for this reason they
are
frequently unsatisfying and
even
frustrating.
While on bal¬
terests,

For a while there was
amount of rejoicing at

certain

conflicting

between

considerations and conflicting

national
period when
was

policies must be

our

compromises

the

for

Most of

ada.

the

over

pride after so long a
the United States dollar
a

without
pessimistic we can main¬
questioning and alert atti¬

premium

a

States

United

being
tain

priate economic policies for Can¬

gradually strength¬
ened and it was not long before

premium.

your

States

from

difficulties of determining appro¬

dollar

dian

and it is to be hoped that

book in the United
when at a similar stage of

of

out

continent

this

restrain¬

more

ing character recently.
This is another example of the

rate and adopted a mar¬
rate of exchange, the Cana¬

ket

pressions, there is always the dan¬
ger of taking things for granted
and of adopting a "new era" phi¬
losophy.
Our skepticism in the
past has undoubtedly protected us
on

and has been of a

change

de¬

and

recessions

concerning

of a

ary

postwar period and
number of false alarms

a

ex¬

would

more

of economic expansion,
policy
has
tightened

monetary

second¬

our

down

and, in fact, in the face of the re¬
surgence

industries have also been ag¬
gravated by the high exchange
rate
on
the
Canadian
dollar.
When we abandoned the fixed ex¬

But I do not think
take matters for

the

in

equities.
And in a young and
growing country with a great fu¬
ture, this leaves something to be
desired.
We should take a leaf

own.

our

ence

difficulties of

The

should

we

High

a

the

get

to

words,

rate

decidedly inflationary policy.
As
business
picked up this would
have
been clearly
inappropriate

Exchange Rate

granted in the next few years. We
have had a pretty good experi¬

came

there

that

think

I

and the

to¬
extent, however,

frequently

very

gether.

States

United

the

from

expendi¬

in

increase

enormous

otherwise have

ciently than would

of petroleum,

case

rapidly

more

Disadvantages of

on

have involved the pursuance

be

can

conditions

business

how

of

meant

has

change

in

protection

other

In

more

a

Canada would be lessened.

not, it cannot be taken

or

participa¬ lightly in Canada. Nobody

States

it

because

tion

States

to pursue

toward

pressure

Whether this is
matter in the United

serious

a

to have such

fortunate

are

matur¬
correspond¬
ing U. S. Government obligations.
below yields

ities

lib¬
eral trading policy generally, the
and

turers

discon¬

is the

securities

Government

Canadian

and

pursued

was

time carried yields on

a

except those of the longest

to make your market
to our manufac¬

were

which

which for

accessible

more

there

then

And

if you

'40s.

born in the

such as
chemicals.
In

and

automobiles

and cer¬

easier monetary policy than

that

And, it should be added, a good
deal depends on U. S. policies for,

population is again swelled
the coming of age of those

have necessitated an

would

even

available.

be

may

appreciably

down

rate

change
more

question.
Much depends on the
severity of the problem and on
the extent to which
alternative

can

postponed, and
will be fewer new families

have

To

tions.

simple answer to this

There is no

fairly readily

be

of course, there
important considera¬
pushed the ex¬

fact,

the present pattern

employment but at the expense
of increasing costs for other in¬
dustries and consumers generally?

of maintaining

and

better

for

demand

tial

13

in world markets and in

doing

so

employing
local currency deals, barter deals
and give-away arrangements.
In

you

have been and

are

subsidizing your
to reduce the
surplus which is in part the result

effect,

you

exports

are

in

order

of your own price-support system.

This

does

not

fair trading

ously aggravates
Few

that

our

Canadians

do

you

to

seem

to

us

be

practice and it obvi¬

away

price-support

problem.

would

suggest

with

a

farm

We have

program.

ourselves, though at a much
lower and realistic level of prices.

one

But

many

that

you

icies

Canadians would hope
could

so

as

not

difficulties
others.

It

adjust
to

for
seems

whether frantic

your

to

of wheat will be in any

interests.
lation
where

is

In

a

and

doubtful

very

efforts

pol¬

serious

create

ourselves

dispose

country's

world where popu¬

growing

rapidly

industrialization

is

and
pro-

X

•»!, U.&1

A

t

■v*?

Volume 182

Number

5480

.

.

The Commercial and Financial Chronicle

.

ceeding apace, there should be
little doubt about the ultimate dis¬

Continued

from

Must

7

page

Economic

price would
that

greatly enlarge the
Indeed, it is probable

major competitive struggle
dispose of wheat would, as it

to

a

did in the

tective

'30s, evoke special

measures

the

on

pro¬

part

of

brokers,

gage

builders—to im¬

or

finances

pede fundamental progress in the

and

direction of stable growth.

a

wise,

many

of

are

if

allow

we

Other¬

interests

our

fare of their farmers.
Need
I

for U.

S. Trade

believe

nized

that

the

of

it
the

States

effect

enormous

moment

to

overrule

our

Flexible

recog¬

have

Too

an

throughout

the

of

many

to

prone

have

us

been

Washington for
workings of a flex¬

aid when the

in

ible market have not been to

last

take

to

freer

the

in

promoting
exchange.
It is

and

the

has ceased

years

lead

trade
that

true

few

bark

American

of

protection has been much
than

its

bite.

the United

ing

is

still

amounts

assistance

to

tries which

is

is also true that

States

large

aid

It

provid¬
economic

of

number

a

it

need

doing

worse

of

much

coun¬

that

and

to

this

sustain

world trade.

But your country is
longer giving the lead toward

no

multilateral

a

and

freer

world and there is

trading

good deal of

a

evidence that you have been mov¬

ing

to

extent

some

in the

cies

are

the

same

economic poli¬
you
own
business.
At
time, their effects on
your

the rest of the world

that other countries

deeply

fluenced

not

only

much

but

concerned

great

so

are

are

in¬

If you
put your great weight on the side
of freeing
trade and exchange,
there is strong likelihood that the
by your actions.

But if you

free world will follow.

not, other countries which are
weaker
economically are

do

much

to be influenced by their
restrictive * pressures
and

likely
own

real danger that
the world will again move in the
direction of restriction.
is

there

You

a

very

remarks

my

discordant

I close
somewhat

wonder why

may

on

this

could

I

when

note

quite properly and honestly con¬
clude with some glowing phrases

future of Canada.
because from a Canadian

about the great
I

do so

point of view one of the largest
question marks in the economic
outlook is
the kind of trading
world in which we shall be doing
business.
Canada will grow in
but her growth will be
much healthier and
better bal¬
anced and she will be a better
customer of the United States if
the trend is toward more liberal

any

case,

trading

practices

freer

and

ex¬

change.

satisfaction.

quired several

re¬

the

aid

system

monetary

bility

in

Lynch

long

the

as

System

Federal

when

BOSTON, Mass.

—

Edward N.

Merrill Lynch, Pierce,
Fenner & Beane, 18 Milk Street.
with

now

one's

Therefore, if flexible actions in
the interests of stability have the
effect at times of pinching our
toes

little,

a

out

must not search
evading
them.

we

of

means

BOSTON, Mass.—Joseph

Cabitt

have joined the
staff of B. C. Morton & Co., 131
State Street. Mr. Cabitt was pre¬

and Paul Tavilla

Investors Planning
Corporation of New England, Inc.
Mr.
Tavilla
was
with
Keller
viously

with

Brothers

a

of interest rates to rise and forces

mortgage credit to compete more

in

directly

capital

the

other

with

forms

market

investment

of

the available supply of funds,

for

who

us

on

it

submit,

I

then,

is

effectiveness

the

incumbent

in

operate

flexible

of

for example,

policy. This means,
that

not

should

Cataldo

Donough
with
State

and

Mass.

—

ment

Francis

have

become

ask

conditioned

otherwise
of

Mc-

X.

Palmer, Pollacchi & Co., 84

interest

fixed,

are

(Special to The Financial Chronicle)

SPRINGFIELD, Mass.
M.
&

—

Irwin

Chase is with Hayden, Stone
Co., 1387 Main Street.




level

debt

of

he,

afford

a

full

income.

attention

needs

and

We

bankers have given thought to
by which mortgage credit
can be efficiently channeled into
type of financial judgment that pension funds. Many banks are
the public has every right to exparticularly suited to this work*
pect of specialists in the field of because they can follow construcmortgage credit.
tion projects from initial stages

as

forces

by

holds

that

it

that

number

give

principle

this

equally true for instalment

credit,

evidenced-by the

as

lution

the

of

American

reso¬

Bankers

Association quoted a few minutes

to

Admittedly,
ment

under

govern¬

a

policy highly geared to the

encouragement of housing expan¬
sion the promulgation of quality

the

years.

with sup¬

in accordance

vary

and

accepting

to

addition

In

giving intelligent support to this
fundamental principle of flexi¬

of

those

in

operating

us

credit have

important responsi¬
preserving the sound¬
credit along the lines set

equally

an

for
of

forth

the

in

Convention

recent

resolution of the American Bank¬

Association

ers

moments

ago.

quoted

is

It

few
fervent
a

my

American banks.

be

their

a

direct

quality, there would
outside

area

influence.

Moreover,
growing over

been

has

At the end of 1954,
banks held only 29% of the debt
on
multi-family residential and
commercial
properties.
In
the

furthermore,

decade,

past
thirds

the

of

expansion

Another important
deserves

that

of total

development
attention

our

is

that the financial structure of our

changing. Gone are
when individuals were

is

economy

the

days

dominant

the

the
held

fully

less

recently
have been channeled to a greater
extent
into institutional
invest¬
Savings

15%.

than

ment
the

more

organizations, against which

indirect liability

direct

either

have

savers

or

The cor¬

claims.

management

ollary to this development is that

principles and policies cannot al¬
ways
be legislated.
It requires
courage
and
understanding
to

mortgage credit is similarly being
channeled through these institu¬

constructive

tions

to

for

It

and

sound

lender

and

con¬

and

bor¬

hoped that in the months
to

come,

in

years

discharge,

the

will

banks

best

manner

they know how, the responsibility

counseling their customers in
of

use

Quality

of

consideration

portfolio
a

the

of

borrowers

themselves

is

in

not

determined

policy

measure

credit.

mortgage

loans

of

the

solely

the

by

banks.

protection

a

It

of

providing for
maintaining their

are

credit

assumed

has

greater meaning than it may
have
had when
the contractual
that

more

was

borrower

of

investor.

This

frequently

and

individual

should

serve

as

a

reminder, therefore, to those who
are

assembling mortgages on be¬

half of

increasingly important in¬

vestment

business
over

is

that

being the case, the

even

relationship

alike.

is

larger degree than ever

a

This

course that may be re¬ before.
sourceful
and
forward-looking, 'quality
a

nevertheless

result

to

mortgage borrowers. Perhaps the

most acceptable solution to some
0
^e. Pension funds, many of
by the home-build- f*11^1111 themselves are admimsinformed

of

that

not

the

ob-

primary

of

lack

from

a

institutions
ties

,.

which

the

sound

least

terms

of

will

weak

of

of

have not

^ame^u0ii

^,J® J*lls Problem of fa-

cilitating the flow of a reasonable

pur¬

bankers

funds should be a source of great

all

to

of

along these lines,

They

us.

in

stability

to

I should like to emphasize
again that the future holds great
promise for all of us in the field
of mortgage credit if we act
wisely and prudently. Let those
who have not yet learned to live
with the flexible policy of the
past few years place their confidence in the fact that there will
always be enough credit available
for sound economic growth. The

the

by providing income for
our
people in their years of retirement. and they represent an

economy

of

important rsource

* funds- thac

busiexpansion but
also to a growing degree for the
mortgage credit behind the better
housing our people have so much
ucilizea not only by

oe

can

capital

for

ness

The impact of these pen-

desired.

funds

sion

the

on

desire of our people for better
standards of housing can be satisfied, not by the application of

is

economy

emphasized by the fact that the
present total is $12 billion, and
they are growing at a rate of

misdirected credit under a boom-

and-bust-philosophy, but by the

aboUjt $1,800 million per year. One
authority has estimated that the
annual growth by 1960- will approximate $6 billion.
Pension funds

there is

and

no

big business,

are

reason

why high

grade real estate mortgages should
not be acceptable investments for
them.
The fact is, however, that

of the funds have
from real estate mortgages in favor of' corporate and
government bonds and equities.
Various reasons have been given
the

managers

shied away

for

of interest

this lack

but two of them appear to
be most important.

gages,
to

me

•

mort-

in

First

there

is

fundamental

the

question of yield, which again
emphasizes
the
importance
of
flexibility in credit.
It is in-

veSment manage™
maximum

seek

consistent

return

Ihe
with

safety and objectives of their

the

funds.

The

simple facts

are

r<ra* opportunity for mortgage
for
constructive
work

a

tration. The rapid

contribute

strong
endure

which

credit.

on

practices,
are

un¬

hanking channels^

portion of the savings of pension
funds into mortgages.
There ie

Pension funds are an illusgrowth'of these

poses.

T

,

yet

suit-

mortgages as
for their

upon

investments

able

work

Nevertheless, I believe that other
groups in the mortgage credit
.cail and should give care-

sav-

as

^ hanks as trustees, is the
for
to be done within

Jf1
the

that

contribution they make through
their collective savings to the
creation of those standards.
A
vigorous
and
productive
economy,
under which savings
are encouraged and incentives are
rewarded, can leave no shortages
for opportunity in the field of
housing over the years to come,
The growth of population, the development of new regions, the replacement of blighted areas, and•
the upgrading of horsing standards, all hold promise for a vigorous home construction industry
and an increasing volume of business *n

mortgage credit,

We are fortunate to be livmg in
this

golden

ing; and the future holds unprecedented
are

promise
by

prepared

traction—all
into

account.

who

accent

to

inthe

to accept me
and to

times

factors being taken Jme.et their responsibilities to their
The

market

flexible

those

for

disposition,

highly

a

stimulat"

Present is <*namic

diversified capital
,
abilitv
market, investment money will le%™y* anb arnmy
flow to the f?oint of greatest at-'challenge
of the

in

ha3

past

The

age.

glorious and rewarding; the

keen

workings of

peimit

a

I

:fellowmen.

have

an

abiding

the

noc~,
that we shall measure up to
adjustments to take place;
•
^
and if changes in mortgage rates
our responsibilities, and that we
at
times
become
necessary
in shall make a great contribution
order to enable them to compete
to the welfare of our people and

essary

,

vigorously

more
•

ji

*

ii

with

other

the

in
•

j

credit

-t

market
i

demands,

j

i

t

LU

should
ance

year

this

of

of
such
changes
recognized. The issu¬
3% bonds earlier in the

their

way

into

pension

funds, but only because they were
sold

on

a

basis that

was

natinn

llCtvlvlL

With Hayden,

be

by the Treasury illustrates
principle. These bonds have

found

vUl

the

desirability
that

the years cannot be built

foundation

not

of investors who

mortT

they hold

today

debt;

gage

home

of

40%

the

In the peak of
in 1925, they

boom

housing

in

element

mortgage market.

banking
that

is

feel

problem faced
ing industry may be a shortage
of mortgage funds over the long
run.
This
shortage is expected

two-

mortgage debt has taken place
outside the banking system.

The

legislative
framework
of
provides
many
safe¬
guards, but history has taught us

a

satisfaction

ago.

area

ply and demand for funds as long
as
the price of the mortgage it¬
self is not held rigid.

through to completion, and they
can maintain close contact with

moment' to a
of mortgage
significant1 to note

furthermore,

this

yields

a

aspect

for

credit,
servers

means

us

and

looked

in the case
a

.Turning

must
prudent

All of

sound

ings, but because more of our
savings are flowing into the hands

substantial

mortgages,

the

seeking mortgage credit, and
blinded by the thought of
"sale at any price." I should add,

still

FHA

financing.

become

be

of

are

to provide the per-

longer-range

genuine
cf the

potentialities

^

This problem deserves the attention of the various groups interested in mortgage credit. Some

will
effisavings of

the

mobilize

economy

exercise

cer¬

must

the

to

on such projects,
they, together with incompanies and other fi-

institutions,

manent

popularized that over-all mort¬
gage debt appears to bear a rea¬
sonable relationship to our total
national

Jjlfns\01i ?,u

for in-

necessary

because

just

projects still
you that the

assure

funds

that

the

statistic.

a

that

assumed
can

the

ciently

mu¬

govern¬

flexible market permits the

the

With Hayden Stone

be

individual,

standards

they

as

and

VA

of

for

Street.

cannot

demand. • Even
rates
themselves

and

supply

when

A.

affiliated

Sages.

abilities

own

justiiiable

and

vide

to

rower

George

his

..

,

terim financing

can

nancial

He is not

..

to pension fund investment;
sin<;e the second most im*
P
anf reason for a lack of in.*

oppor-

nation's banks stand ready to pro-

forget that the individ¬

through

...

.

terest appears to be the desire of
managers to avoid
*he
servicing work and
responsibility that accompanies
large-scale investment in mort-

construction
I

our

it is to the

run,

and

exist.

standards
leased
on
individual
guarantee a fixed sec¬ needs is difficult to accomplish in
ondary mortgage market that we a market as intensely competitive
might tap at our convenience with and as broadly dispersed as the
a
view toward avoiding the im¬ housing
market.
Even
if our
pact of changing rates and avail¬ banks were 100% effective in a
ability
of
credit, in a market drive for sound and constructive
we

structive

(Special to The Financial Chronicle)

BOSTON,

not

tain

in

believe that there iS room,,
however, for further constructive
work Jn the adaptation of mort-

geographic
point

where

areas

home

resources.

the economic concept has

the mort¬

field not to seek to destroy

gage

but

With Palmer Pollacchi

It

viewed

is

Investment
T

saturation

sound

for

surance

seeks

credit

our

and progress.

not

pursue

Securities Co.

who

those

the

other

tunities

one

a good case in
policy of credit
restraint allows the general level

When

the fraternity of

Chronicle)

long

point.

that the words of this res¬
olution will find no deaf ears in

Joins Morton Staff

the

Mortgage credit is

hope

(Special to The Financial

using

an

thinking.

ness

McMillan and Bruce M. Stott are

can¬

of

in

gage

investments.

other

picture

,

already been reached and the

many

be

to

between
where

areas

mortgage must service that mort¬

obli¬

prejudices

cut

cast

are

g'uish

the

ual who has purchased a home on

Reserve

flexibility

denied,

bias

and

such

of

be

not

of

—

the

home-buyer

must

gations at prices that encouraged
inflationary credit expansion. The
wisdom

master

tual advantage of both lender and
borrower that this be done. We

flexi¬

supported Treasury

bility

Chronicle)

In

credit, and that such
could not be achieved

flexibilty
as

requires

the field of mortgage

(Special to The Financial

mech¬

anism to the concept that a sound

bility,

Two Join Merrill

It

market

our

our

of hard work

years

recondition

to

other

direction.

Obviously,

immediate

is

to

the

Mortgages and Pension Fund

We must be alert to distin-

ture.

the servant

hoped, furthermore,
that all of us who are engaged in
this highly competitive market for
mortgage credit, and not just the
banks, will not dismiss lightly the
obligation we have for protecting

to

run

the

be

Home-Buyer
Against Mortgage Excess

It

When

on

finances.

Protecting

Mortgage

world and that the United States
the

relative

Pr°jects that are hased
highly speculative and overly
optimistic appraisals of the tu-

sound

a

Again, it is
the principle

has

Market

policies

not

borrower's

on

of

credit should

and

—

judgment for the long pull,
we may—as
frequently expressed
—"win a battle, but lose the war."
Needed—A

be

economic

United

the

credit
basis.

manifestation

Leadership

should

Over-Optimistic

*his U?ht> the fear that ttiere
*?e a ,^0"S-run shortage of-funds
must act"constructively and withlot mortgage credit*can quickly
alertness.
Our primary task
is
' ar^ l\ can k®. e?L'"'
that
of
distinguishing
between Pec^e^ that pension funds will be
the legitimate needs for housing tapped for mortgage investment.

Stability

and

sensible

that

best

European countries which
also concerned about the wel¬

Avoid

Thus, we must exercise moderation; but-at the same time, we-

Mortgage Credit and

problem.
It seems highly ques¬
tionable, however, wheiner a pol¬
icy of disposing of wheat at any

25

(1989)

Appraisals of the Future

posal of the wheat surplus. Cer¬
tainly there is a difficult storage

market.

"TFHWrrvrv* w *

i

attractive

Stone

(Special to The Financial Chronicle)

BOSTON,
stone
„

,

has

Mass. —David

become
e,

„

affiliated
~

1A

B.

with
.

Hayden, Stone & Co., 10 Post
Office Square.

26

The Commercial and Financial Chronicle

(1990)

the Uncertain

France

Purchasing Agents Foresee Gosd Business
Extending Into 1956

mind

Business Survey Committee of the National Association of
Purchasing Agents reports concensus of purchasing agents is
that production in October was as high, or even higher, than
previous month; that good business will prevail well into 1956.
that

National

prices and rubber, cotton and
burlap were also reported lower
in price by some.

Association

Purchas¬

of

ing Agents' Business Survey com¬
mittee, whose Acting Chairman is
Marshall Pease,
Assistant Man¬
ager
of Purchases, The Detroit
Edison

Company, Detroit, Mich.,
that
purchasing
executives

is

found

conditions

indicate

in

October

business

good

vail well into 1956.
the

will

that
pre¬

With 95%

of

Business

members

high
ber

as,

Survey Committee
reporting production as
or higher than, Septem¬

and

93% showing their new
position to be the same or

order

better, the fourth quarter

be
plan¬
ning involving substantial capital
the

best

of

1955.

investments

is

indicative

also

in

confidence

may

Forward

of

the

long-term po¬
tential of the over-all economy.
While
the
number
reporting
higher commodity prices still ex¬
ceeds the number who say prices
are the same or lower, there is a
definite indication of more price
stability. Inventories, while sub¬

stantial, are not of the distress
type that would reflect diminish¬
ing sales. Employment is at its
highest point since mid-1950. Buy¬
ing policy remains essentially un¬
changed, although
many
items
difficult
to
obtain
are
causing
purchasing
people
to
lengthen
time

lead

sioned

by

are

Inventories:

costs

occa¬

negotia¬
being passed on to the
wage

buyer in total, or substantial part,
say 97% of the Committee mem¬
bers who answered that special
question. Only 3% reported that
suppliers are finding it possible,
by use of more efficient methods,

higher costs.-

r>

Commodity Prices: There is evi¬

items

ual

each

reported

are

up

noticeably fewer. Some comment
that
they
believe
prices
have
reached their high point and 4%

from

items

scarce

buying

and

of

acceleration

an

to match increased sales and pro¬

The

duction.

ventories the
indicate
made

59%

balance

with

stocks

month ago

adjustments

to

in¬

reporting

same as a

Do

what is absolutely necessary
because
of her prominent
geo¬

graphical

place

the

on

Europe?

finished

of

stocks

were

69%

members

who

There

Committee

the

reported October employment the
same
as
September. Their com¬
ments indicated needs to be high,
workers

well

with
a
great
engineers as

scarce,

of

shortage

trained

The

of skilled workmen.

as

reporting employ¬
lower in October than Sep¬

negligible
ment

3%

tember, attribute their situation to
conversions

railroad

and

car

materials for production
changed little in October
from September, with 46% indi¬
cating coverage in the 90-day and
over
range.
For capital goods,
77% are in this category, while,
for MRO supplies and materials,
80% keep purchases on a hand-tomouth to 60-day basis. Only 20%
are interested
in purchasing with
a
lead time in excess of 60 days
on
MRO.
*
?
on

purposes

The

shows

consensus

inclination

that

tempered

the

by

items

scarce

of

realism

having to purchase for highly

ex¬

than

is

it

to

is

be

bound

by

its
states¬

and no prudent
politician will venture to
from it." — Writings of

or

depart

American

ton),

Statesmen

(Washing¬

127.

p.

glaringly evident todays-England
is ready to give Red China a po¬
matters

in

of

trade,

while

government has been like

our own

adamant

its

in

objection.

the

take

position

as

does

England.
But

member of the
European list of nations allow its
any

forces

armed

be

to

used

by

the

Security Council in order to settle
quarrel between other states

some

in

that

which

particular

Victorian

prominent

"No

Lord

nation

Statesman,
in

Hartington

Treaty

Union

lics;

of Soviet Socialist

United

Britain

Repub¬
of Great

Kingdom
Northern

and

Ireland;

Yugoslavia; Iceland.
North

America

(3

in

of

Guarantee

will."—Life
this

Sir

of

would

America,
Three

and

Central

Island

(19

in

all)
America

Republics

all)

Uruguay; Venezuela; Cuba;

Dominican
Four

Analysis

of

Republic; Haiti.

Three

Groups,—

South

America,
Which Compose Almost One-

William

be

true

In these groups the Union of
South Africa is the only name in
we

fidence.
you

Americans feel any con¬
at the others.
Do

Look

trust them?

To

us

they

mean

little but weakness, irresponsibil¬

ity, revolution, insolvency. 'They
have a deep-rooted distrust of us.
The

Union

of

South

Africa

rises

Massachusetts

to

give aid to the administration of
Polk

in

War, because that
as

a

slaveholders'

in

gress

the

Mexican

viewed

war was

What Con¬

war.

Washington

would

vote

today to furnish American troops
in

the strife between

her

Franc0

ond

African

provinces?
Would
think that the lives of

of

our

soldier

us

hazarded?

boys

should

Korea

has

thus

The nlans and

United Nations

workable,

giv^n

a

us

are

made

theory of the
false

are

such

"stuff

and

un¬

dreams

as

Gr«uo

of

Countries That We Would

Australia; Indonesia; New Zea¬

composed in large part of English
and

total of the United Na¬

tions is 60.

The

Security

composed

of

represent

Council

itself

is

Dutch

stock.

What

China,

Socialist
dom
ern

of

Great Britain and

North¬

Ireland, United States.

five

countries

hold

These

permanent

vakia, Greece, Poland, Ukrainian

inspiring.

Soviet

What

As

to

Europe?

Now look at the states of

How many of them have
ducted their affairs

as

moderate confidence?
ber impressive?

Socialist

Europe.

Russia herself.

so

fluous.

con¬

to win

Is the

We

of

some

show

some




Luxemburg.
France.

We

hesitate

Do you wonder

Russia

to

why?

add

Greece

even

though

them may

is

one

and

or

like to make

of independence.
close

to

invalid," strangely left

a

are

the

satis¬

millions

endangering

the

American

"know-how,"
the

since

our

own

quality

things

which

of

con¬

spiritual and personal

element in

the

nation.

a

We

had

individuals

in

others,

are

alarmingly

close

connection with

Witness

-

the world by

men¬

be

Belgium

soul"

own

world.

and

sin¬

are

,

in

a

vote of 11

Council.

to

We

are

selling

exchange

"our
the

for

We should withdraw from

the

forever.

once tried union for
short time, and found it a fail¬

ure:

the

United

Nations'at

and

once

Norway and Sweden: Servia

and

Austrian

Empire.

These

.jll-matched-pairs.
in

the New World, the five small
states
of
Central America
long

broke

lived

in

from their short¬

away

union.

Simon

In

spite

America,
emancipator,
great influence,

could

not

where

he

the

his

of

persuade

the

states

had

labored, to form a
union of strength and peace. The
republics of Haiti and

negro

Domingo

unwilling

are

to

unite and have their island under
one

^

Humphrey Appointed
By Calvin Bullock
Joseph H. Humphrey has been

South

Bolivar,

government.

They like their

These examples are too forcible
to be ignored.

appointed

Director

for Calvin

Bullock, Ltd., interna¬

tional

motives,

can

that

widelv-varying
commin^.

convention

gress,

so diverse,
spring from

actions

such complex and

re¬

combination

or

be
arranged or pro¬
that it could or should

ever

so

undertake

government

a

world.

In

of

the

management

nouncement

dent.

Mr.

Hum¬

phrey,

who

has been Dep¬
o

tions; human nature is
men's

investment

by Hugh Bul¬
lock, P r e s i-

Director

f

Research'

and

Enough of dreams and suecula-

Research

of

firm, accord¬
ing to an an¬

uty

The Fallacy of "One World"

Portfolio

Administrator
for

several

joined

years,

Calvin
lock

i

Bub

1936

has

and

n

H.

J.

Humphrey, Jr.

con¬

tinued

with the firm since that
time except for a period as senior
financial
analyst for the Reor-i

statement

by ganization Division of the Secu¬
George Kennan called the "Credo* rities and Exchange Commission.
of a Civil Servant," he says:
He is
co-author of "Investment
a

"Every one of us is different. Analysis
Every one has his own peculiar' is used
talents and capabilities.
of

one

would
to

there

us

meant

were

be

to

For every

things

were

we

do, and things
advised

well

try

to

not

ly

(Feb. 12, 1954), Vol. 54,
(The italics are ours.)

p.

13.

&

Management,"

in

universities

many
as

an

which

colleges

and

economics text¬

book.

Calvin

we

do."—Princeton Alumni Week¬

Bullock, Ltd., which ad¬

ministers
over

investment

$500,000,000, is

assets

of

sponsor

and

manager of Dividend Shares,

Inc.,

Nation-Wide Securities Company,

This passion foi; uniformity has

Inc.,

persuaded the onlv great, success¬

dian

ful

and

happy

Western
tion

World

for

suited.

the

it

have

thinking

assume

is

totally

been

the

posi¬

a

un-

deluded

safely ig¬
diversity of char¬
may

we

huge

of

Republic
to

which
We

Bullock Fund, Ltd., Cana¬
Fund, Inc., (U. S.), and Ca¬
nadian
Investment
Fund,
Ltd.,
(Canadian), open-end investment
companies;
and
of
Carriers &
General

Corporation,

a

closed-

end investment company which is
listed
on
the New
York
Stock

prejudices Exchange.
superstitions, as well as the
religious and the skeptical beliefs,
and

and

disbeliefs

found

to

"chronic

on our own

tthat

always
large ag¬
individuals.
Costly

exist

gregation

of

in

and unreasonable

as many

be, others are of
value, ard constitute the
and

reason

for

and

immense

In

are

of

purposes

of

healthy

the

very

to

are

have

been

of

Frank

B.

Bateman, 243

South

County Road.

heart of free¬

abandon

led into

White Co. Adds

the

opposition;

(Special to The Financial Chronicle)

ST.

LOUIS,

Mo.

Donald E.

Green has become associated with
our

old-

time methods of procedure, when
we
"minded our own business,"
we

PALM BEACH, Fla. — Ira C.
Ayres has been added to the staff

those

progress.

trying

:

(Special to The Financial Chronicle)

This dash of aims

diversity of

grounds

of these

very soul

existence

who hold them.

Frank Bateman Adds

are

any

may

they

more

1955, and in

least

Comment is super¬

distrust

with

things—intellect, resourceful¬

Holland, who

dom and

Nether¬

We
best

a

Yugoslavia,

Great

year

Yugo¬

no means

untold

un¬

over

his day.

does Egypt.

so

should

But there

never

England.

vakia, Poland, Ukrainian Republic,

lands, Norway, Sweden, Denmark,

later, according to the term

which

num¬

holding scats

during this

tioned also.

her satellites with her—Czechoslo¬

We think first of

Belgium,

Cyprus

our

lowing countries

Britain,

Republic,

slavia,—last but by

Then the fol¬

cases

European
Czechoslo¬

ican associates is not

seats in the Council.
are

other

Russia,

lands?—Byloe

11

Republics, United King¬

*

Truly, this outlook upon our
Asian, African and South Amer¬

the

individuals, who
following countries:
France, Union of Soviet

about

read

acteristics, talents and

Avoid

sum

by

thoroughly

victory

govern

Perhaps

nore

Another European

superior to the rest because it is

The

satisfaction

it;

So, too, does India;

into

on."

Additional Island Republics

land; Philippines.

been

has

faction

that

be

wholesome taste of such folly.
Let us look facts plainly in the
fop®

intense

try

be¬

gularly out of place in sitting as
"one of the mighty" that would

and

doubly

or

of

parts

to

armor,

Ireland of today derives from her
absolute severance from England!

whole

any

Half of the Whole

which

Argentina; Bolivia; Brazil; Chile;
Colombia; Costa Rica; Ecuador; El
Salvador; Guatemala; Honduras;
Nicaragua;
Panama;
Paraguay;
Peru:

which

elected, namely: Bel¬
gium, Brazil, Iran, New Zealand,
Peru, Turkey.
An

What

which he
His

They work

the

pos¬

not familiar with

was

Giant

in

unions

refused

Saul's

derstood.

stitute

nor

—

justice of the
controversy in question. Witness
refusal

where

He

King

weapon

a

ness,

ing

the

of

Gath.

he

cause

thoughtless,

favor

as

brief period only.

a

preferring to chose "five smooth
stones out of the
brook," and put
them in his shepherd's
sling, a

appointment.

vided,

merits

in

only

its army or navy, was strenuous'y opposed to the wisdom and
judgment of the Council concern¬

the

often

of

wear

united have much in common;
otherwise there is trouble and dis¬

has

nation to go to

a

expediency and necessity

President

Asia, Africa,

Canada; Mexico; United States.
South

for

well

war against its will or against the
judgment of the people as to its

ever

to

independence.

'

compelled

but

them, let

"short measure"

may

liath

de¬

way

must have

we

as

well take a lesson from
the
shepherd boy David when
about to fight with the Giant Go¬

Disappointing

both church and state.

San

writing to
1878, feaid:

We

fashion

present time there is

movement

two

or no

popular opinion in the country
thus called upon to furnish a quota

Republic;

this

strong,

interest whatever?

And

Fail to Win Pnblic Confidence?
Socialist

Most

At

Sir William Vernon Harcourt, the

had little

no

If

sible, and for

progress.

this

in

the

our-*

into

it be in

Unions and Mergers Are Often

ago

would

think

Other."T

to

seem

same

who

reconcile

we

armies

ideals.

them

with

and

place organization in
serves. ^
'

"

states

arises

halo which that very common¬

a

The soundness of this advice is

sition

United Na¬

carry

peace

World

believing that fleets
and
huge national
debts, and drafts and regimenta¬
tion and militarism (things well,
enough known in the Old World),
may be all right in our own land.
They are utterly foreign to our

surround the United Nations with

trusted

V. Harcourt, Vol. 1, p. 330.

panded business needs.

Why Does the United Nations
Soviet

Those

on

interest;
man

any

inflationary

some

the
mankind,

experience of

nation

no

ever

resist

to

price trends in
is

maxim, founded

a

universal

much

Buying Policy: The buying pol¬

selves

are

vember, 1778, said:
"It is

they

her

writing to Henry Laurens in No¬

European

shortages.

first for

out

that

upon us New

We have come to

where

and

very

freedom,

right. Indeed, her general reputa¬
tion in bargaining is that she is
graspingly sagacious. Washington,

farther

Employment:

look

to

awkwardly

westerners.

home

receive here at

and

of

map

,

interests; and in this she is

own

that

goods.
of

always

material

sit

of

large part from a senti¬
mental, almost a "mushy" sup¬
posedly "religious" view of the
matter. Many persons have a feel¬
ing that "unity," "oneness," "en¬
tirety" are deeply religious ob¬
jects, to be attained at all costs,

place much trust in France,

we

of

ian

in

save

being

are

raw

10

page

tions

currency is depreciated.
colonies are going or gone.

if

Continued,

Such support as the

chamber long enough to
important legislation is re¬

'

forward

shortages,

think

to

Nations

United

the

purchased

on

higher inventories attribute this
to protection against raw material

dence

now that the price spiral is
leveling. Although 72% reported
prices up this month, the individ¬

The

ministry that

inventory
Probably most of us have a
materials much better feeling toward the
show a slightly different picture others that we have named. Take
from
September.
Only 18% re¬ Great Britain, for example. She
port inventories lower, a reflec¬ is indeed closer to us in race, un¬
tion of defense requirements' be¬ derstanding and
sympathy than
ing reduced. The 23% that report any others. But she is wise enough
situation

materials, to

in

recent

to absorb their

per

icy

increases

The

tions

those

on

delivery.

assure

of lower cop¬

hard

The ^Religious" Support Given to

Her

us.

Her

several reports

were

A

is

It

"going concern."

a

point

few

a

freshing.
The groups that form
French political parties bewilder

There

down.

time.

a

than

more

as

hold the confidence of the leg¬

enact

feel

are

her

islative

composite opinion of pur¬
chasing agents who comprise the

prices

not

ior

months at
can

A

doorstep.

Her government knows its own

Thursday, November 10,1955

...

the

adop¬

tion of Old World methods which

White

&
Company,
Mississippi
Valley Building, members of the
Midwest
Stock
Exchange.
Mr.
Green was formerly with the First
,

National Bank in St. Louis.

Volume 182-. Number S480

Continued

jrom first

The Commercial and Financial Chronicle

;,v; v

must

page

no outran

increases in pro¬

ductivity and income. Increased
•^^btfrrowing must be matched by

Facts for

However,

so

Too much debt brings on liqui-

caus-

going.

ing

Hot

repay. Other- ease in the coming-year simply'
expanding the because a Presidential election is
economy, we're merely putting it in the offing. There seems to be
a theory that
up.
the politicians will
insist

distortions

which

would

re-

I will give you
no
statistics,
For the past there are more than
I can master; and for the future

putting

on

the boom in

on

and

do

we"raren't

^erSindif«hTfy°v havewhere depreciating the spiraling priceskeen"» resumption of dollar and
difficult to know
you are

definitely

I

agree with those who'say the sig¬
nals are on for an all-out'dose of

"^I^S^ability to
:-'Mser*~

"Look Ahead"

some

an

bubbles

election year.
The boom is

excesses

I

the vital

riding high enough even for the
politicians. Their concern, I be¬
lieve, will be and should be to

haye been wiped out but
cuts deeper and even down into
of the economy.

marrow

don't

believe

it.

tard trade and work cruel hardI don't like to leave the subject
shiP on many groups of people.
keep it sound and strong, capable
For more than two years price 0± credit and aebt without saying of further growth, not to kill it
there
are
none
that
can
be movements have been generally J word about the public debt and off—maybe even before election
counted on.
In place of dry fig- moderate and the integrity of the tiie whole domain of fiscal and
—by forcing an artificial spurt.
u^es, let me simply lay down a 'dollar has been maintained. True, monetary management. When I
Lately we have been hearing "a
few background facts as the basis we have not rolled back to any say> ™h full confession of the
great deal about the importance
for our look ahead.
extent the considerable postwar advantage of hindsight, that some
of
I ndve
have

have

strong
buung

a

x

learned

feeling that
ieeung mat

and

bust

the

over

half-century—a 50
boom

„

of war,

years

50

—a

last

of

years

struggle over ideas and philoso¬
phies in politics, in economics, in
social welfare, and even in the
relationship of one individual or
group to another in our society.
These struggles have not ended,
but many differences have nar-

.

hope that

is

them

narrow

still

A Reconciliation of

we

our

for

economy,

have

•

reconciled

example,

the

idea

And for the

greater part of a deck
uu
have been achieving what
.

,

t

we

not

so

long

possible

was called imcombination of

ago

the

—

maintained peace and maintained

prosperity.

In the field of social

welfare,

we re

progress

not

by

achieving
real
any
so-called

share the wealth
program, but
by enabling all to earn more by
producing moie. And in our relations
with
other
nations, we
seem

to be

—if not

to live

way

a

in that

con-

with our responsibilileadership in the free

—

of

the

case

millions

upon

hardship worked

would

have

been

unbearable.

'

mu.

'

u

,

,

» "i3/!6 wl11 be among the
to agree.

first

*lscal area, the budget
cou^d by nowi have been balEncouragingly, it appears
that, on a cash basis, balance will
pe achieved for the current fiscal
And—I must mention this

year.

m,ay
a
+L J**!? *° although it is not often spoken
emark, by the way, that busi- 0£ any m0re—once we have penl-

ro

and Tabor leaders .both,

nessmen

the

when

they

are

sitting

wage-pfice^tructure

a
® w.a£e Prlce structure a potent
potent
inflationary weapon. I hope they

that

know

it

etrated the

Speculation Excesses

hieh

Also

mistakes

the

among

J?,io+ 1LJrtf+

.

barrier," we
long, hard job

jS} let us not forget, debt;
therefore must be paid back.

an(j

can»t make

we

Threat of

the

0f whittling dcwn the national
it

loaded.

s

"balance

tackle

mus^-

real prog-

some

r6ss in that direction during times

prosperity—

record-breaking

of

mid we bave been breaking recmust guard against when can wc9
whole range of- speculativ^e^^ T fh
_
f prpjit noijrv
cesses. I include in this category nprforrnflnPP nf recent vears is
excessive speculation in the stock pprtainiv not subiect to maior
market, in inventories, in real critiCism. Restraints could have
estate, in buying and merging keen applied earlier and relaxed
businesses.
gooner in the period 0f late 1952
we

The dangers inherent in
ulative

whirl

overestimate.

useful

I do not

role

a

spec-

difficult

are

to

and early 1953.

Again, they could
applied more firmly

been

have

and persistently during the spring

reasonable

which

ignore the

and

plays
in
providing
continuity of market in our compiex economy. It is a legitimate
undertaking. But excessive spec-

these

one

speculation

comments,

this

But

I have

as

year.

said,

made with the full advantage

are

0f

of

summer

ulation—the non-productive

comfortably at least

fldently
ties

finding

have

of

stability with the idea of growth.
ade

might

way,

proved impossible to control; and

.

.In

under

once

especially

further.

Stability and

Growth

we

.

+

wxsenot to attempt any such broad
roll-back. An aggressive deflation,

.

can

.A1

price inflation that had already things m this domain could have
niapp
On the whnle it
been done better, I am sure the
en Place Un
wnoie it was
charge will be among the

-

rowed and there

,

confidence.

kind

task assigned
System is
of infinite delicacy. A flex-

hindsight.

the

Federal

The

Reserve

I

don't

confidence

of

was

lot

a

we
we

27

(1991)

the

mean

little

Johnny

had when his teacher came up to
him in art class and asked what
he

doing.
Johnny replied:
drawing a picture of God."

was

"I'm

"But

no

knows

one

what

God

looks

like," protested the teacher.
"Don't
worry,"
said
Johnny.
"They will when I get through."
The best way to preserve con¬
fidence, I submit, is to prevent
it from turning into overconfidence.

belief

Confidence is based
that

the

on

make

things
go right; overconfidence deludes
itself into believing that nothing
can
possibly go wrong.
Confi¬
we

can

climate
mate

are

we

which

might

be

cli¬

in—a

now

weather

in

terms;
an'd

"moderate

called

blear."

Now, suddenly, that sense'
Of forward continuity is not quitethe

A

same.

been
that

has

element

new

introduced:

not

certainty

a

things

simply
that

are going to change,
lessening of the feeling

a

know

we

Whatever
and

likes

what

those

are.

The

ates

standi

we

political rules
may
be, business

attitudes

most

where

the

to

needs

and

know"

attitudes

and

rules

illness

a

President's

cre¬

feeling of uncertainty irf
this significant area. This prob¬
ably will lead to some hesitation
in business thinking
and plan¬
ning. I do not mean that prog¬
ress will stop or that business and
bankers

will

turn

and

I

run.

only that uncertainty about
the forward political atmosphere
tempers
forward
confidence

mean

where

business planning is con¬

cerned.
In

this

sense

a

overlooks

uncertainty

of President Eisen¬

one

hower's

important achievements;
change
in
publia
temper which has already taken
place under his leadership.
He
—the

great

his

and

Administration

have'

given business a chance to show
what it can do, and have let the
people compare that performance
the dire predictions of a
dence can sustain and moderate with
the occasional dips and halts that generation *
of
business-baiters:
The people like what they havd
inevitably
will
interrupt
our
upward
march;* overconfidence seen. They like the climate that
will collapse at the first unfavor¬ is letting business work, build,
able turn.
provide good jobs and pay good
wages. Words like "capital," "in-4Grounds for Genuine Confidence
centive," and even "profit" have
about
regained their re¬
We
have
ample grounds for just
*
genuine confidence.
Our econ¬ spectability.
With this said, I would like to
omy not only produces dynami¬
conclude in a few simple words.
cally; it consumes dynamically.
When

our

mand

was

so-called

de¬
replaced
by new demand growing out of
our
people's insatiable appetite
for better living and technology's
filled, it

pent-up

was

inexhaustible

capacity to provide
are
powerful factors

The
very

opportunities ahead of us are
great. We must realize them,

and not muff them.
of

The textbook

experience and common sense

tells

us

We're

the

pitfalls we must avoid.
with
the most

dealing

successively higher prices —vdiverts money and credit from the
channels
where
they might be
employed to produce rear wealth,
Thus it undermines the true basis
0f our economy while erecting a 0ne.
flimsy superstructure of inflated
So much for the monetary and
prices.
credit policy of the recent past,
The pattern is a
classic one. what about the present—and the

then,
are
the
limits
bounding that future? How much
dan we enlarge the dimensions of

promising future any nation at
any time has ever contemplated,
must
assess
them * realistically. a future measured^ not in terms of
money
for their
When I hear about the so-called machines and
"built-in stabilizers" in our econ¬ own sake but in achievement of
the finer ultimate of more and
omy I get the chilly feeling that
more
of the good things of life
some
of us may be dangerously
for more and more people.
The
close to overconfidence.
I get that
feeling even more future will be what we make it.
pronouncedly when I hear people
proclaim that all our problems
With E. F. Hutton Co.

Here and there traces of that pattern seem to be appearing.
They

is

prosperity? How far and how
fast dare we grow?
The limits, I think, will be set

His-

s
*

.

These solid achievements

—

in

economics, in social welfare, and
ih

affairs—form

world

base
on.

a

sound

which to build from here

on

True, we've had

failures

some

along with the achievements.

The

lessons, both of our accomplishrpents and of our failures, can be

helpful

as we

set our

form our view and

course

for the future.

*

What,

our

'

principally by our mistakes—the
ones yet to be made rather than
Our past ones, and maybe most
particularly
the
mistakes
we
make in the near future, the next
year or so.

We cannot forbid mistakes. But

'

We

must

try to

avoid them

and

prevent them by rendering them
unattractive and even unlikely.
And I believe the best way to do
this is to look ahead and survey
the

errors

the

in

most likely to be made

circumstances

most

likely

faced.

to be

One that comes

immediately to
mind is the danger that we may
confuse

inflation

pumping

up

—

of

actual

with

creased

—

the

mere

and credit
growth — the in-

money

production of goods and

Services.
The

phenomena

are

mutually exclusive. Right now

not
we

some

omy.

Much more of growth, hapthan of inflation.
But we

of

both

in

our

econ-

must not succumb to the temptation to force growth along—or to

satisfy

some

special

group

—

by

applying a dose of inflation here
and
there.
Such doses, for instance, as increased government
spending, or tax cuts without a
balanced
budget, or wage increases
without greater productivity^ or prolonged and expanded
government
subsidies.
In
the
context
any
of
these
present
would be a mistake. I hope they
do not happen.
I

hope, too, that we do not




see

forth

and

of

passat

assets

probably
haven't
reached
point of immediate danger.

torically, however,
genuine prosperity

the

plateau of
such as we
are now enjoying has shown itself a likely launching ground for
a speculative boom, with the unvarying consequence of collapse,
And the greater the excesses, the
more
disastrous the collapse.
Nor

a

safely overlook the
proportions of our debt
we

can

present

structure,
private
and
public,
Total private debt has increased
vastly in the past ten years. Our
economic expansion has well warranted

growth of credit. The
question is whether credit
a

crucial

beyond

expanded

I

cannot

debt is too
high—I don't think the line can
be drawn that easily.
But I do
that

say

ible

system qf money and credit
is by the same token a sensitive
one.
It's easy to stretch it tco
far
or squeeze it too tight.
The
job done in the last few years has
been on the whole an excellent

future?

1

The Money Situation
Money has been tight. The Fed-

eral

that

Reserve's

it

mak-

for

reasons

been thoroughly
well understood.
But there are some Who
feel
that
the
restraint
policy
ing it so have
explained and

hasn't

are

worked,

who

People

boom.

the

curbed

hasn't

it

that

the shock treatment—a real
hike in the rediscount rate, a real
omy

ence

a

differ-

and no
And for
the moment
is dear enough and tight

between tight money

money.

money

enough.

If

rule

coining

or

I

alarmist

over

debt.

I

think

we

country.
In 1929 we knew
population would be bigger

our

1933,

If

it

knew

it

would

we

terms

of

machines

alone.

It takes all three.

the

growing population—men; we
a
developing technology-

ings to provide the capital so that
the machines may serve the men.

there

sooner

and more safely than giant

us

A discussion of this sort at this
time

include

must

reference

Eisenhower's

President

results.

been

signs

Actually,
recently

there
of

a

to

Marshall

Company, 39

Salle Street.

Joins

North La

,

Nongard & Co.

(Special to The Financial Chronicle)

111.—Donald A. W.

Bangs has joined the staff of Non¬
gard & Company, Inc., 105 West
Adams Street.

With Stone & Webster

.

,

(Special to The Financial Chronicle)

CHICAGO, 111.—James S. Hinis now affiliated with Stone

man

& Webster Securities

33

Corporation,

South Clark Street.

illness.

personal sadness about it
keeps the subject never far from
mind; in addition, it is a devel¬
opment which affects all think¬
ing and looking ahead on eco¬
nomic and financial matters.

The

climate in which our
economy is to work is a point of
high significance for all of us
whatever our party labels, and
political

Joins R. G. Lewis Co.
(Special to The Financial Chronicle)

ROCKFORD, 111.—Erwin Smith
has become associated with Robert
G. Lewis & Co., Rockford Trust
Building, members of the Midwest
Stock Exchange. He has recently
been with Waddell & Reed. Prior

thereto he
pany

was

with King & Com¬

and Conrads & Company.

philosophies may be.

must be

prepared to see privately hard on the supply of funds. This
owed
debt
go
even
somewhat is not the time for an all-out
higher as we have further expan- application of restraint. Certainly
sion of the economy.
But I also not, and maybe we should be
think we must watch very closely thinking in terms of somewhat
the rate at which debt grows, es- less restraint.
We should wait a
pecially from here on. That rate bit and see.

.

(Special to The Financial Chronicle)

One's

ones.

'

CHICAGO, 111.-—Mrs. Mabel Osland has become affiliated with

need

for

get

-

We need

slogan

taken,

*

Marshall Adds to Staff

CHICAGO,
in

can't think

joined the staff of
Company, 111 West

Tenth Street.

a

alone, any more than we can
alcne,
or
money

men

CITY, Mo.—Allen L.

has

E. F. Hutton &

<

So

of

Newton

China
dif¬
picture from the one they
countries like
present

were,

India

and

a

(Special to The Financial Chronicle)

KANSAS

machines; we need thrift and sav¬

often

have

we

in 1955. Numeri¬
cal increase alone is not enough.

the

monetary
policy,
I would
say
"EASY DOES IT." Little steps,

will

in 1933

and

writing

were

drastic

an

this

do

slight easing in the money situation. One hears reports that loan
demand
isn't pressing quite so

like

only if it is accompanied by
increased production, made pos¬
sible
by increased capital and
greater
efficiency.
Growth
in
numbers is not something new for

do.

it,'I say. You may
make credit dear, but never make
Don't

study, cautious study.
sound

but

things out.

tion.

to

Our rapidly increas¬
ing population is certainly a re¬
assuring factor and a great asset,

ferent

credit.

more

want

we

solved because the population

Bring on some
liquidation, they urge; let's shake
squeeze on

policy to exert their full impact,
So
let's not
be
impatient for

don't

But

growing.

in

to pay for today's producThese considerations need

I

favor.

our

would be bigger

nomic effects, or pre-pledging so
much of tomorrow's purchasing
power

in

this is the time to give the econ-

Experience has taught that it
takes a while—usually six months
or
so—for changes in monetary

not

These

work

at

hold this view are inclined to say

has reached a level
only suggests but requires caution.
The question is
not only one of the soundness of
the loans; there is, particularly in
the mortgage and consumer credit
fields, the question of the ecowhich

it.

are

economic it unavailable. There is

growth—for example, in the relatively new areas of mortgage
and installment financing.

say

two

have

pily,

back

has

^

k

ing

I

I

believe

thought
with

five

With Real Property Inv.

Prospects,, of a Favorable
Political Climate
we

most

could

considerable
more

years

people

look

forward

certainty

of the

(Special to The Financial Chronicle)

BEVERLY

.had
to

political

R.

Downham

HILLS, Cal.—Floyd
is

now

Property Investments,
South Beverly Drive.

with

Inc.,|

Real

233

28

The Commercial and Financial Chronicle

(1992)

Whatever is done,

it

appears

likely that the dividend policy

of the Great Western management will remain
side for

Railroad Securities

City Southern policy.
traffic tie

It would

exists between these

remote

this

as

would

the

achieved

by

the

road

has

road

yeoman

being originated.

than

more

service

been

primarily
resulted in

Continued

even

the fourth

show

no

increase

over

the

figure

the

revenues

basis of the

estimate, estimated net operating income for this

year

will
1955

is placed

his
of

influence

may

types of expenditure

some

his income to meet

instalment

payments.

"non-essential"

or

credit

consumer

its

direct

to

user

may

near-investment,
using it for cur¬
out-of-pocket uses. For ex¬
instead

of

of

car,

a

for

the* family

than

does

Furthermore, such use of funds
by the family may provide serv¬

been only the

ices

which

met

by

previously

had

out-of-pocket

increase—from

35.4%

to

The ownership of the car
enable the family to elimin¬

may

ate

large part of its previous
expenditure for bus, tramway and
taxi. Or the purchase of a wash¬
ing machine may enable the fam¬
ily to eliminate a large part of its
a

former

expenditures for laundry.

penditures
reduce

(d)
the

Sources developed in 1954 alone included 49
new permanent industries, 14 temporary ones, and the expansion
of 22 existing plants. The present year's biggest single gain was

placing into operation on Oct. 5 of the $25,000,000 refinery
Great Northern Oil Co. which is expected to produce 200
'carloads per day. This plant is located in the Roseport industrial
the

of the

•district, about 14 miles from St. Paul, which has been developed
-and promoted by the Great Western, and is served exclusively
by it. In the same district, construction over a month ago on the
$15,000,000 plant of the St. Paul Ammonia Products, Inc. Further¬

industry tends to attract another to the same location
rapid development is looked for, including coke ovens
to use the refinery by-product.' Last but not leasta probable
source of increased revenues are the pending rate division
cases
between eastern and western "roads which are in the process of
one

and further

The

practical question is: When will be earning power that

Great

up

be translated into

Western

common?

The

more

representative dividends

currently indicated rate

annually plus stock is undoubtedly the principal

price of Great Western
times

per

the

share
final

the, market

evidencing

no

common

earnings

dividend

behavior
more




reason

of $1

why the

is held at the level of only about

or

less.

action

for

The
this

roads
year

directors

in

will

December

of Great Western common
around 38
than restrained
enthusiasm about the out-

ex¬

the

family to
current expenditures.
On the other hand, since
places

of

more

consumer

consumers

in

"open-to-buy" position, which
would not be possible otherwise,
it may enable the user to over¬
indulge in purchases and to enter
an

into
his
'

instalment

ability

habits

of

may

contracts

to

lower

retail

their

in

sales,

and

have

turn,

influence

adverse

duction
in

on

pro¬

economic activity

on

general.
At

car

pur¬

little

cause

long

so

as

circumstances,

"balloon"
times

be

may

see less reason why he

pay

"packing" prices and
have

payments

been

reported

some¬

in .recent

production and
this country is

demand,
employment in
sumer

based, in part, on the rapid ex¬
pansion of consumer credit.
But
credit

consumer

at

move

high

does

not

speeed

on

one¬

When the use of con¬
sumer
credit
slows
down,
its
stimulating influence is reduced,
when

and

its forward

movement

is reversed, it becomes a retard¬
ing influence on retail sales, pro¬
duction and employment.
In other

consumer credit
general influence on
economy as that exerted by
other types of credit.
Consumer

has the

words,

same

the

credit, expanded at the top of the
business

cycle, adds to the boom
and, therefore, involves risks just
as
does any other type of credit.

Easing of Consumer Credit Terms
this

pay.

and, in fact,
of
living

patterns

be developed.

These

may

be

discovered

only after inability to
meet contracted payments bring
them to light. These risks would,
of course, not
consumer

be present

were

the

using only cash for his

transactions.
In

the

addition

its

to

influence

on

position of the consumer, in¬

stalment

sales,

credit

the

influences

production

activity

in

retailer
to

turnover

When

con¬

expanding, it aids
by making goods
by increasing his

sell,
of

retail

economic

and

general.

credit is

sumer

goods

and

thus

con¬

serving his working capital. With
consumer credit available, he can
"talk

sale" to

The

expansion

widens

his

those

without

of

market

this

ening

of

economic

the

By the

and

market
tends

cash.

credit

beyond

limits of cash payment.

production

the

The wid¬
stimulates
to

broaden

activity in general.
same

terms

leads

another

to

us

token, contraction

Exact
over

relative

data

long period of

a

to

years

not

available, but from busi¬
publications and economic
journals one can get a fairly good
are

ness

of the proportions

impression

of

downpaymept and the period over
which instalment payments were
made

the

during earlier decades.

In
downpayand instalments running 10

1920s,

ment

30

to 12 months

sonable

considered

were

rea¬

fi¬

automobile

in

Since that time, we have
Now, in

much easier terms.

seen

the

40%

or

terms

nancing.

purchase

payments
months

of

over

are

extending

automobile,
period of 30

an
a

payments

common,

36

to

months

not

are

and payments over a
period of 42 months are not un¬
uncommon,

known in different areas.

the

in

sound

One of

automobile

Fortunately, it
practices

Apart

months.

Furthermore,
at

not

tendency to
end.
Mr. Ray

the
an

Gidney, Comptroller of the Cur¬

of

ence

in

the

recent

lenders

been,

small.

it

But

mind

that

must

this

be

kept

favorable

Regulation, Government agencies
took the responsibility of deter¬
mining what the terms

to be.

were

in

experi¬

has been strongly supported

ence

by good business and steadily ris¬
ing incomes. What the experience
would

be

in

is, of
speculation.
One
of

of

the

of

case

cline

business

course,

the

de¬

matter

for

a

unfortunate

rapid

expansion

results

of

con¬

credit has been the

failure,
far,
to
develop
adequate
standards, or norms, for the guid¬
thus

of. all

ance

would

which

concerned.

Much

be

to

gained if we had some
par-for-the-course figures against
compare individual
Many lenders have done
well in developing standards from
their
own
experience to guide
their lending. We need to perfect
such norms by a wide study of
lending experience, and, once they
are
established, to use them and
live up to them. Similarly, norms
to guide the family in its instal¬
ment purchases might well be de¬
veloped, with due consideration
cases.

of such basic items

income, its

the family's

as

"fixed"

expenditures,
its total debts, its reserves, its con¬
tingent obligations, its likely fu¬
ture

expenditures for education,
Also, norms might well be
developed for the item purchased,
etc.

based

on
its price, its expendi¬
ture-saving quality, its durability,
its resale value, etc. Most lenders

and borrowers have

broad

standard,
field

ment of

norms

for

ence

still

some

the

which combine the

gained

the

rule-of-

there .is a
develop¬

but
for

from

of

good

experi¬

borrowers

and lenders.
In

respects,

some

the

present

situation

credit

sug¬

gests that the stage is still set for

expansion.

Public accept¬
credit is

ance

of

ing.

More than half of the

consumer

,

probably had a part. In each of
the
three
applications
of
this

very

Payments, with very few
exceptions, have been kept up,
and delinquencies have been
very

further

development
of pro¬
gressively easier terms, the in¬
termittent use of Regulation "W"

experi-,"

good.

ent

the

inherent

credit

has

years

consumer

tendency to loosen terms."

these

collection

consumer

has recently stated that a
current survey indicates "a pres¬

rency,

widely used at

from

problems,

knowledge

motor

financing.
that these

appears

not

are

29

In

the

the present time.

thumb

is

and

car

of
reducing
near-term
monthly instalments and expand¬
ing later instalments, has no place

companies
has recently stated that the "av¬
erage" period of payment is now
prominent

ease

new

trade-in, can be eliminated by,
adhering to dealers' costs or fac¬
tory invoice prices. The latter, a

sumer

And

way

price of both the

always
a

street.

way

financing.
The for¬
of disguising
low
downpayments by hoisting
the
a

method,

the

present moment, it is
clear that the high level of con¬

beyond
Unfortunate

sp'eridihg

unfortunate

easier

being worked out.

enable

availability

credit

36.2%

originated traffic.

be

to

expend¬

itures.

What piques

the imagination is that the Great Western appears
on
the threshold of compounding its gains from sheer in¬
in efficiency with gains from newly developed sources of

The

er's market is thus narowed.

credit.

purchase

the use of funds for movies, soft
drinks, entertainment, etc.

for 1953-54.

being built

the retailer.

market for

the

rows

ment"

operating efficiency gives it the advan¬

minor

in the use of consumer credit nar¬

by instalment credit,
represents much more nearly an
expenditure
of
"capital
equip¬

the

made easier

a low Transportation (cost) Ratio and one of the lowest
ratios—36.2% in 1954—among Class I roads. The latter is a
particularly noteworthy point now in view of the round of addi¬
tional wage increases currently in progress.
It is also notable
that despite the previous wage increases since 1949, the wage
ratio of the Great Western declined each year of the 1949-53

a

such

inclined to

_B

important consideration. The eas¬
ing of terms in recent years has
been an important means of ex¬
panding
the
use
of
consumer

ample,

wage

was

the

buyer's income remains high.
But during a period of
declining
income, the instalment buyer, un¬

or

Advantageously, such capital

there

of

more

expenditures into the channel
investment,

rent

tage of

and

the

or

the automobile.

of

lines

from

The road's outstanding

^

membership,

cause

States."

on

clothes

further,

slogan "The Crossroads for Railway Shipping in the Great United

six

time-payments

of

Following this development still

four directions—east and west from Chicago to
Council Bluffs (Omaha) and north-south from the Twin Cities
to Kansas City.
This conformation is the basis for the road's

meet

on

suit

instalment sales contract.

road, but also the extensive relaying of main line with

on

buy

expenditures may be made to give
to the requirements of the

dieselization of
115pound rail to accommodate the fast movement of heavier trainloads that dieselization has made possible, while another element
In the train speed factor has been yard modernization. This has
been particularly true at Oelwein, la., where the lines of the road

is

be

may

to

way

about 46%.

more,

the

The

the

"Incidental"

period the corresponding measure for all Class I roads increased

crease

otherwise.

automobile

that

monthly

The Great Western, which had been dieselizing progressively for years, completed this program in 1950.
Largely as a result of this, gross ton miles moved per freight train
hour, the measure of oyer-all operating efficiency, showed the
further increase from 64,288 in 1950 to 73,258 in. 1954, a gain of
14%. Far more striking, of course, is the 114% gain in this meas¬
ure over the 1946 figure of 34,021.
In this same 1946-54 postwar

be

less
more

and to budget

operating efficiency.

to

be
soft goods and
hard goods than

consumer may

case

halt to

ating income and in net income is due mostly to wide gains in

period;

buy

Be¬

in util¬

(c) Again, the user of consumer
may
be forced to call a

benefit to net income from
the tax deferred due to accelerated amortization—placed by the
road at $649,000 or $1.80 per common share for this year (but
dropping to $381,700 for 1956)—the on-balance gain in net oper¬

converge

goods.
ease

credit

the

not

be

may

family expenditures in the direc¬

through August this year and 30.3% of gross for the 12 months
1955. The corresponding rate for 1951 was 32.5%.

has

to

club

It should be mentioned at this point that this showing is
not being made by way of the now rather common practice of
reducing maintenance charges unduly. Tne maintenance rate of
the Great Western has been 30.4% of gross for the 12 months

Contributing to this

durable

of

of this relative

than

period.

the

field

easier

$1,300,000 more than for 1951, and net income at $1,200,000 more,
the difference being due to an increase in interest charges in this

allowance for

This

dollar.

fact

at

Making due

of

may

the

mer,

tion

on

Business

would be the

purposes.

1951

Harvard
of

the

bal¬

automobile

led

The balance is available for divifact that although

is

buyer's

good times

already purchased, and the retail¬

services and

management source places it close to $7—as against $6.07
for 1954. These figures are "before funds" prescribed
the terms of the 1941 reorganization and which amount to

the

J*

m

the

izing credit, the

reported

is

*

in

part, to make payments on goods

cause

year—a

striking

trouble

the soft

the

It is understood that the road

share of Great Western common. It is nevertheless esti¬
mated that Great Western may show $6.75 per common share this

more

This

der
'

due, in part, to the fact that credit
facilities are better established in

SI.40 per

Even

value

chased.

The consumer's income is used, in

consumer's

con¬

the additional tax charge monthly to eliminate the
entire amount by the end of the year, which amounts to about

general corporate

current

of Kansas

the

paid may be above the

City

rewarded, the longer term

well

n—

automobiles

that

to be

ance

"downhill" in competition for the

accruing

aends and

of

School

Graduate

spite of the burden to this year's earnings of
a $510,000 charge-off of the tax credit taken into 1954 income but
rescinded retroactively under the subsequently enacted amend¬

share.

the patience

as

in

6

page
1

McNair

sor

with this handicap, the 1955 net income of the Great

about $2.60 per common

jrom

_

Administration has stated,

secutive year and in

under

been

of

possibility

goods industry appears to be going

Western is expected to show another increase for

is

just

has

difference

the

of

pc-oL

downpayments
and
monthly payments in the

purchase

The terms

This kind of situation places any
of keen competition, and despite

ments to the Internal Revenue Code.

However,

because

uiiai

One of the dangers

Another Look at Consumer Credit ™ continue to make

Western, its revenues have not kept apace.
But

v

_

the part of the Traffic Department of the Great

on

stockholders

be

or

smaller

lower

forwardlooking and cautious stewardship of the Chicago Great Western.

at tne mercy

ever

strong

a

investor may in time look back with approbation of the

along the lines of improving efficiency which has
making it one of the lowest cost operations in the railroad field.
Having thus set the stage for bigger business,.aggressive steps have
been taken in the past two years particularly to build up the road's
traffic and revenues on the side where it is most needed, namely
originated traffic. The Great Western has been living mostly on
traffic received from connections,'only around 40% of its total
traffic volume

parity.

Sotuhern

following the reorganization of the Chicago Great

progress

than

more

two

to

seem

financial

Chicago Great Western
Western

that

appear

aiv,ao

tion in terms.
of

roads, headed by father and
son, and this has also led to merger rumors from time to time,

By GERALD D. McKEEVER

For years

vx

the conservative

on

time to come, patterned along the lines of the Kansas

some

Thursday, November 10,1955

...

grow¬
non¬

business

spending

early

and the prospect for
holiday sales is now the
The varieties of goods

units are now
using consumer credit, and the
number of people using it prob¬
ably continues to increase. Retail
sales have been increasing since
1954,

naturally went as far as
they could within the limits laid
down. The longest possible terms

fall

within the law tended to be

coming
more
numerous.
Con¬
sumer optimism continues to grow

Lenders

sidered
in

each

the

"right" terms.

case,

Regulation
were

that

lenders

left free to make terms, and

terms in

an

had

naturally

moved
easier direction. Thus,

in net effect,

in

Then,

the removal of the

meant

competition

have

con¬

Regulation "W"

considerable

may

influence

weakening resistance
lengthening of terms.

to

Automobile sales have been

the
one

and

best

ever.

sold

on

consumer

because

ple

are

of their

of

credit

are

rising incomes.

be¬

Peo¬

saving smaller proportions

increased earnings.

consumers

may

be

more

Some
accus¬

tomed to

living closer to the mar¬
gin of safety than they were a few

ago.
And, above all, com¬
petition for the sale of articles
commonly sold on credit is becom¬
years

ing

more

intense.

This situation

Volume

182

Number 5480

.

.

The Commercial and Financial Chronicle

.

29

(1993)
makes
that

it

particularly

important

lenders give attention to the

merits of
of

to

relax

each

case—the

purpose

Public

the

loan, the character of the
borrower, his earning capacity,
his willingness to
pay, his family
responsibilities, etc.—rather than
terms

to

meet

By OWEN ELY

competi¬

Easing

Peoples Gas of Chicago and its
pipe line subsidiaries form one of

of

Credit Terms
This is

not

growth of
be

to

checked

the

suggest that the
credit should

consumer

held static.

or

But it

is
clear
that
we
should
guard
against the progressive easing of

terms which will

business in

the

unduly stimulate
immediate future

and

might add to the possibility
an interruption in the advance

of

later

tention

It

to

should give at¬

we

tightening of terms in

where such is needed.

areas

is

his

And

on.

wise

a

customer

the cost of

lender

who

helps

borrowing

as

compared with paying cash. Much
is

to

largest integrated gas sys¬
tems, with annual revenues of
about $144
million.
Serving a
population of 3,780,000 in the City
of Chicago, it is one of the most
rapidly growing systems, current
revenues
being over three times

those

be

of

1947.

The

growth is, of
due to the in¬

largely

course,

in

crease

the

number

of

space

heating customers from about 40,000 in 1947 to 170,000
currently;
by next June the number will in¬
to

crease

accurately to count

consumer

estimated

an

Peoples

Gas

of natural

213,000.

obtains

gas from

its

pany

supply

southern and

stand

nois Natural Gas

the

line

situation

at

the

and

point

to

draw

where

it

is

best

for him and his family to
forego the "early purchase" which

credit affords.

consumer

Four

points stand out clearly

review

we

situation.

though

the

In

the

great volume
until

first

well

the

century, it is clear
taken

al¬

in

any

introduced

not

was

after

place,

credit

consumer

as

credit

consumer

turn

the

of

that it has

now

its

place as an established
part of our credit system. It is the
task of all

of

us

now

to

study it,
it, to perfect it and
keep it in a strong position.

to understand
to

In

the

that,

second

in

credit

recent

has

years,

been

extraordinary
broad field.

consumer

expanded

rapidity

with

over

has

the

undoubtedly in¬
problems in¬

current

volved.
In

the

broad

third

relatively
the

and

of

use

place,

because

a

credit

consumer

is

the best practices
general rules may

new,

best

not yet have all come to
clear lines may not

light, and

yet havebeen
drawn between good practices and
bad.

Standards

need

veloped and "lived

to

be

de¬

to."

up

In the fourth

place, it is evident
that, because of its importance in
our

economy, to overdo the

credit

consumer

strike

lending

use

would

blow, first, at

a

institutions

be

of
to

consumer

themselves

and, second, at the well-being of
the consumer and the
stability of
the entire economy.
of us have a

Therefore, all
prime interest in

keeping
sound

consumer

basis

credit

through

on

the

a

years

ahead.
Under
present
circum¬
stances, it is the lender who bears
the

major

responsibility for ex¬
ercising restraint, and his objec¬
tive

should

only
for

be

terms

on

himself,

to

extend

which

sound

credit
sound

are

for

the

bor¬

and sound for the
economy
whole. Adherence to this ob¬

feet of natural gas.

as

a

is beneficial to
sential

for

a

consumers

and

es¬

strong and growing

economy.

(Special to The Financial Chronicle)

BEVERLY HILLS, Calif. —Coit
Decker and Richard H. Vertlieb
are

now

with Daniel D. Weston &

Co., 140 South Beverly Drive.

northern

pipe

lines

—

Viets, Sr. has been added

,

Otto L.
to

the

King Merritt & Co., Inc.,

Woodruff Building.

Joins Bache Staff
(Special to The Financial Chronicle)

RALEIGH, N. C. —Frederic S.
Farah has become affiliated
Bache &

of

three

to

with

Co., 126 South Salisbury

Street.




these

two

distribution

companies, including Peoples Gas.
Storage Company of
Illinois

and

owns

operates

the

underground storage facility at
Herscher, 111. The System also in¬
cludes

two

production subsidi¬
aries, Peoples Production, engaged
in exploration for gas and oil in
the

Gulf

of

Production

Mexico, and Texoma
which

explores

areas

along the route of the Natural Gas
Pipeline.
There is still

huge unsatisfied

a

demand for gas for space heating
in
Chicago and adjacent areas.

Only

about

40%

the

of

single-family residences
city are now heated with
ings

mercial

who

industrial

and

want

to

40,000

space-heating custom¬
August, 1955, was made
possible through the successful
development and operation of this
project. Injection of cushion gas

gas,

but

company has been unable to
service them because of the back¬

in

the

winter

of

fuel

over

oil.

house

room

gas

at

per

season,

an

An

can

average

six-

heated
cost

430

million

cf.

While

lead

the

sale

of

gas

for cooking; despite com¬
petition from electric stoves, over
95% of the ranges sold in 1955
gas.

pushing

The company has been
advantage with TV

its

spot commercials, newspaper ads,

It is also maintaining its
position
in
the
water
heating

ranges.

16,000
units last year, and promotion of
the new gas incinerator is begin¬
ning., About one-eighth of the
over

dwelling units in Chicago use gas
for refrigeration. Pilot models for
air-conditioning are also being

veloped.
A large

the
a

company

market

can

is
be

con¬

of

gas

which

currently around 8.8c per therm)
is now being sold to industry at
interruptible and off-peak rates

averaging only 2.7c and 3.7c per
therm, respectively. But in order
to fully service these new resi¬
dential customers on
very
cold
winter days, when the peak load
is heavy, it is necessary to build

storage facilities.

Sep. 30/54

Sep. 30/55

$437,921

—28.8

$1,262,154

$1,429,881

110,545

—11.1

185,337

218,302

Chase

1,825,003

1,239,991

—32.0

2,691,335

3,230,918

+ 20.1

852,586

563,301

—33.9

914,508

1,222,790

+ 33.7

61,354

38,220

—37.7

51,348

68,271

2,025,960

1,593,284

—21.3

2,320,911

2,796,700

+

20^5

124,353

York

Manhattan

Empire

Corn

Exchge.

Trust

First National

City

ck Chg*.
+ 13.3
+

17.8

+ 33.0

14.7

Hanover

557,225

438,831

—21.3

638,176

749,310

+

17.4

a

Irving Trust

441,186

318,889

—27.7

610,466

723,410

+ 18.5

gathering system which
replace some 17 million cf

new

will

vented gas

daily

twice the

or over

J.

P.

According to Chairman Oates, ex¬
perts employed by the company

United

that

"whether

venting is found, the
storage field with the use of the
permanent

gathering system

is and will continue to be

.

valuable storage project.
With no further expansion of

and

storage project
45%

of

the

.

.

.

.

.

the

is estimated that
required in Chi¬

gas

for space-heating on a peak
day in the 1956-57 heating season

cago

will be withdrawn from Herscher."
The

Herscher

project cost only
$25 million, while the con¬
struction of another long-distance
pipeline would have cost seven
about

eight times

or

much.

as

being made for

are

new

Studies

and addi¬

tional underground storage facili¬

well

as

the

as

possible

ex¬

Line.

System

gas

reserves

but the

com¬

is working energetically to
new supplies from various

pany

obtain

including off-shore leases

sources,

the Federal waters

off

Louisi¬

of the

Details

ana.

supply situa¬
covered quite fully in

were

company's prospectus of May
talk by Chair¬
before
the
Security

Oates

man

a

Analysts of San Francisco Oct. 20.
capital

structure

992,177

+

292,172

353,377

+ 20.8

250,111

190,525

—23.8

307,057

364,526

74,154

65,190

—12.0

51,538

73,590

—25.6 $11,423,108

$13,660,425

Trust—

of

as

17.4

+ 18.7
+

42.7

+19.5
cases

since that quarter-date: National City-First National;
Chase-Manhattan; Bankers-Public; Chemical-Corn Exchange.
Some

of these banks have

registered losses

on

some

govern¬

ments

sold; but this has its compensation, for such losses may be
utilized as partial offsets to
operating profits for income tax

purposes.

•

■

An

approach to the growth factor of the banks, even for as
short a span as the 12 months ended with
Sept. 30, last, is afforded
in the following tabulation.
There is given first the increase in
equity or book value for the period. To this has been added the
dividends disbursed in the 12 months, and then this total is related
to the price at the start of the period. In one
case, First National

City Bank, the increase in equity is distorted as when City and
First National merged, the First National Bank shareholder was
bought out, and in the process $165,000,000 was paid out. The
customary adjustments have been made for stock dividends and
splits in the period, and the data of the merged banks, four in

number, have been given
nearly comparable.

forma

pro

the method that makes them

as

more

TWELVE

.

MONTHS

ENDED

SEPTEMBER

Tot. Gain

Ratio to

Divi¬

to Stock¬

9/30/54

-—Book Value-

9/30/54
Bankers

Trust

Bank

New

of

Chase

Empire
First

$58.64

$1.57

$2.48

253.29

4.68

10.50

15.18

7.7*
7.1

43.52

2.57

2.13

4.70

41,30

1.64

1.82

3.46

;

126.57

137.63

11.06

3.00

14.06

9.4

;

58.50

58.96

0.46

2.49

2.95

5.5

\

80.29

81.43

1.14

3.70

4.84

6.6

City:
____

Bank

1.96

1.96

3.92

8.2

0.57

1.30

1.87

7.0

73.88

77.66

3.78

3.20

6.98

7.90

10.00

17.90

7.2

65.07

1.57

3.00

4.57

7.1

318.83

Trust

327.74

8.91

16.00

24.91

8.3

Aug. 31, 1955, was as follows:
Millions

and

$237

54

26

6

debt

Subsidiaries

—

Preferred

minority
stock

stock

equity

equity

(1,230,$174

shares)

Totals

$437

-

40

100'/*

recently around

has been selling
154 and pays $7

to

yield

Earnings

12

months

Peoples

Gas

4.5%.

ended

Sept.

The devel¬

*Adjusted

%

for the
30 were

$10.43, making the price-earnings

to

allow

for

transfer

a

of

$9.37

from

reserves.

This gain to the stockholder is apart from whatever price ap¬
preciation took place in the 12 months; and the market gains in
the list varied from approximately 9% in two cases to 31% in
two others, with an average of about 19% in round
figures.
Of
course
the market change is
decidedly a variable, whereas the
so-called gain to the stockholder is largely retained.
in

bank's book value is rarely a minus

a

serious

a

depression.

stitute the main

The change

factor, and then only in

Normally retained operating earnings

source

increases

of

in

con¬

equity, although in

some

14.8.

instances net security profits and recoveries contribute, too.

But

most large banks

ratio

one

kind

M. E.

Morgan Co. Opens

•BROOKLYN, N. Y.—Meredith
E. Morgan is engaging in a secu¬
rities business from offices at 361
Clinton
name

Avenue,

under

the firm

of The M. E. Morgan

Com¬

another,

or

today carry these latter items to
so

that

is derived from the
of dividend

as

reserves

far as equity is concerned, its growth

"plow-back" of operating earnings in

requirements.

of

Naturally, with only about 62%

excess

(aver¬

age) of operating earnings going out in dividends, these leading
New
to

York

banks

show

excellent accretions

to

equity from year

year.

pany.

Thomson McKinnon Branch
McKinnon
office at

Fla.

have

882

—

Thomson

opened

a

Fifth Avenue

&

branch
under

NATIONAL
of

Securities

Corporation

has

South

a

branch office at 220-A

Fourth

Nev. and

Street,

Las Vegas,

in the Howell

Ogden, Utah.

Building,

and

26

& TRUST CO.

Uganda

Bishopsgate,

End

2.
(London)
Branch!

St. James's

Branches

in

land

Protectorate.

Capital

fun<l

£4,562,500
£2,851,562

and

Members New York Stock Exchange
Members American Stock Exchange

120 BROADWAY, NEW

£3,104,687
exchange

undertaken

YORK 5, N. X.

Telephone: BArclay 7-3500
Bell

business.

Trusteeships and Executorships
also

Request

Laird, Bissell & Meeds

The Bank conducts every description of

banking

on

Pakistan,

Authorized Capital
Reserve

Bulletin

S. W. 1.
Ceylon,

Square,

India,

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

Paid-Up

opened

FEDERATION BANK

Government in

Colony

Office:

West

SALT LAKE CITY, Utah—West¬

the

London, E. C.
13,

ern

to

Kenya
Head

the direction of Kenneth A. Wood.

Western Sees. Branches

BANK

INDIA, LIMITED
Bankers

:

9.4

244.66

63.50

Trust

States

51.21

25.35

236.76

Co.—

&

i

8.3

24.78

__

Morgan

11.7

;•

49.25

Trust

United

/

40.95

Manufacturers Trust

York

Price

$4.05

39.66

Guaranty Trust__

P.

holders

Exch.__

Corn

Trust

Hanover

dends

*248.61

York

National

Irving

Increase

9/30/55

$57.07

Manhattan

Chemical

J.

30

12 Mos.

t

New

System

845,093

—37.6

$8,925,393 $6,642,073

is another

reserves

—19.7

For the 1954 date the amounts have been combined in the

interest, but the topic
is highly technical.
Peoples Gas
and its affiliated pipelines have
substantial

States

758,496
151,196

of mergers

of

matter

944,827
242,523

Co

Totals

useful

a

&

Trust

the

not

or

York

of the

cause

Trust

Morgan

maximum amount thus far vented.

agree

Bank

Manufacturers

New

de¬

the company eventually hopes to
sell for space-heating (at a rate

up

of

Loans & Discounts

% Chg.

$615,390

+

NAPLES,
amount

United States Governments

Sep. 30/54 Sep. 30/55

1,437,173

emphasizing the many new
advantages of the latest model gas

that

.—(In Thousands of Dollars)—

1,253,013

etc.,

and

higher return.

a

—19.3

is also maintain¬

in

exchange

735,634

ranges

were

long¬

With the

910,722

203

its

the

to

25:6%;

or

to

was

Guaranty Trust

Common

$195.

ing

cf

the net effect

standing leakage has not yet been
corrected, it has been offset by

Long-term

of

$150
while fuel would cost

The company

almost the same,

gas

being

now

million

of $2,283,320,000,
$2,237,317,000, or 19.5%.

was

The individual bank changes were as follows:

Chemical

150

governments

government holdings for loans, the latter giving

daily deliverability is
from

in

loans

with

be

estimated

in

dollar amounts

expansion certificate was
granted in August this year and

the

log of business results from the
price advantage which gas enjoys

gain

New

27, 1955, and in

great back¬

the

Bank

over

This

but

An

customers

classes have indicated their desire

decline

was-a

Trust

tion

on the waiting
list, and
40,000 other customers of all

there
while

Bankers

there

for the service.

1953-4

leakage delayed its development.

in

68,000 residential

a continuation of the shift out of United
States Government
obligations into loans and discounts. For the 12 months to that date

was

into Herscher began early in 1953
commercial operation began

log of residential demand.
Ex¬
cluding 40,000 heating customers
recently authorized for service,
some

leading New York City bank stocks at Sept. 30 there

and

ties,

the

are

new

in

ers

For the

under¬

pansion of the Texas-Illinois Pipe-

the

customers

with

heat

This Week—Bank Stocks

Herscher

550,000

gas

also

are

the

in

gas, and

multiple-family build¬
for heating.
There
many thousands of com¬

use

of

ground storage project is thus a
major factor. The authorization of

few

very

built

(Special to The Financial Chronicle)

SPRINGFIELD, Mo.
staff of

terminals

Natural Gas

fident

King Merritt Adds

Illi¬

Another sub¬

field, having installed

Two With Daniel Weston

Texas

sidiary, Chicago District Pipeline
Company, transports gas from the

rower

jective will insure the continuing
flow of instalment lending which

and

Pipeline, operate
pipe lines with a combined daily
capacity of over a billion cubic

a

The speed of this de¬

velopment
creased

place, it is clear

aries, Natural Gas Pipeline Com¬
of America

opment

increased

mid-continent fields; two subsidi¬

gained by helping the
prospective buyer fully to under¬
a

By ARTHUR B. WALLACE:

Peoples Gas Light & Coke Company

tion.

Dangers From

Bank and Insurance Stocks

Utility Securities

(L.

G.

Teletype—NY

Gibbs,

1-1248-49

Manager Trading

Dept.)

Specialists in Bank Stocks

;

The Commercial and Financial Chronicle

(1994)

30

the

Continued jrom page 5
.f

jf

it

II

War

have

to

seems

become

the

fashion «to * reduce * pyramids

and

to

build up

Thus

tion.

the equity posi¬

during the

bond

best

market we have ever had or may

again,

see

ever

proportionately

few bonds were sold. At the same

time

inordinate

an

stock

common

recently

until

sold

was

of

amount

what

in

subnormal
stock market. The result¬

common

was

a

ing dilution of per share earnings
is one of the main reasons why

have the reputation in finan¬
circles of being a rapidly

you

cial

growing industry in physical units
unable

but

this

translate

to

in¬

demand into growth in
earnings. I have consistently been
creasing

opposed
to this
trend
toward
higher and higher equity ratios
and refer to it as 1929 encephalitis.
Whenever we consider buying a
I

stock,

common

in¬

not too

am

the equity ratio

what

in

terested

there

further this confidence,
certain

things

example,

that

and

you

should, normalize unusual tax de¬

interest-during-

Your

ductions.

construction

should,

policy

be

given considerable thought. Many
companies
today
are
reporting
earnings
which are affected to
the

than 19%

more

6%
item of property and then

an

it

ice

property goes into serv¬
return only nominal
during its f early
life.

may

earnings

Maybe your interest-to-construc¬
tion
to

policy should not be geared
any specific rate of interest bat

rather

return expected

the

to

on

the

particular item of property
during its first year of service.
I
cannot
emphasize
strongly

enough how much a growth trend
in per share earnings
means to

price-earnings ratio. A few
Florida Power & Light,

your

years ago

to investor concern

due

col¬

over

happen to
it. If it is going to rise, I don't
want to buy the stock, but if it is

lapse of the tourist trade and fear
of hurricane damage, sold at a rel¬

going to decline, l am very much

Since then

interested.

strong per share growth trend and

Obviously
the

there
capital

pyramided.

be

different

give

limits

are

highest

ratios

Another

example is Atlantic City

any

over-all

formula

apply

limit.

that

should have at least a
stock

mon

and

com¬

15%

a

which

ratio

pre¬

leaves

the

On

ratio.

debt

65%

a

ratio

stock

ferred

they

20%

believe

I

other

distribution com¬
panies, probably because manu¬
factured gas operations are still
fresh
in
their
memories, have
built
up
a
stronger-than-necessary high-cost equity position.
A
hand,

many

stock

common

ratio

30%

of

and

preferred stock ratio of 15% ap¬
pears adequately strong for them.
Under today's accounting stand¬
ards such a structure is probably

than a comparable 1929
equity ratio of .50%.
Combina¬

stronger

electric

tion

and

distributes
financed with

gas

adequately

seem

25%

20%. preferred

and

common

ratios.

stock

Companies with
stronger ratios than those above
mentioned have an opportunity .to
increase per share earnings by fi¬
nancing with bonds and letting
their equity ratios slip.

earlier

stated, price-earn¬
ings ratios can be more important
the

-than

earnings level itself in
establishing a value for a stock.

For

example,

we

$4

own

two stocks

share and

a

pay¬

ing a $2 dividend. Yet when
portfolio was priced on Sept.
one

31

of those stocks
the

and

should
ancy
,

there

be

64.

at

such

15,

selling at
Why

was

other

our

a

discrep¬

in price-earnings ratios?.

The

more

we

and what makes stocks sell where

they do, the
-vinced
ratio

that

is

con-

high price-earnings

a

the

confidence

become

more we

product

in

the

of

investor

earnings

level

and

growth
in
earnings.
growth in earnings I don't
MCF send
even

By
mean

out, gross revenues,

net income.

or

What I refer to

is per share earnings.
earn¬

ings level is of major importance
and

the

investor

must

not

feel

that earnings are vulnerable to a
substantial decline in any year. It
was this fear that gave distribu¬
tion

ings

companies

ratio in

a

low price-earn¬

the

days of manu¬
Under
present

factured

gas.

operations

you

are

in position to

gain this confidence.




However, to

was

con¬
com¬

investors.

most

dilutes

either

offering

stockholder

forces

or

him

to

a
in-

enough

earn

on

to

divi-

pay

thrown out.;

Put

in the

youiself

his

share

With 43%

of increasing

way

higher earnings and

appreciated

a

per

"mma^y

>.

111.5%

boom 'in

theu general

market."

_

the

^during

five-year period—a. very credit-:
able showing. Company B's stock,
on the other hand, has appreciated
only 19.5% which must be discouraging to investors in view of
the

third

price-earnings

a

market.
A

the

to

ratios. In 1949, Company A's stock
sold at 10.8 times earnings, and

small issue of pre- substantial expansion in its pricestock, it deserved to be earnings ratio, Company A's stock

dends
ferred

investmei1^^4^«om«.^ii»aa3li0r's position.
Would you
pany.
He may already have all rather have your funds
underhe wants invested in the company Dean
Mitchell s management or
and if not, he can. always add to under this other company's manhis investment through the open agement? .
*1 "
crease

Stock

~

:

To summarize all that L have,.,. With its common stock held in
reviewrWita higher .Tegard, Company A's cost

earnings is through regained

earnings. I am often asked what
proportion of earnings should.:J3i^^S^y^^^^^^v"fy -ftwo
paid out in dividends.
•' ^

Since

specific percentage that
companies.
One consideration

.

the

company

™

do

can

^on}mon stock has wjn be
■■■P£^?a%yea.rs-when function

taining a large portion
earnings. In this case the
vestment

have

can

only

performing the primary
of private ownership. On
-uJ1_ear"5" *be other hand, if your record is

effect

a

e

the trend of earnings.VvS

on

Uiliu11ar-'Shares.

J

•

r

~

„

honest

an

an

question, and most importantly is
management
operating
the
company for the benefit of
the
stockholders?

ers'

interest

is

increased

increasing the
capital pyramid and holding dilu¬
tion

to

there

by

minimum.

a

Obviously

limits

to the pyramid¬
capital structure but
because of its importance to per
share
earnings, the timing and
are

of

the

amount of

a

common

stock offer¬

ing should be given considerable
thought.
It can be coordinated

m„m(

high

too

rv^oin

ob-

main

to be to maintain

appears

salaried

positions and
the prestige that goes with the oflce.
It was at your meeting last
year in Atlantic Cny that I heard
Mr.

Dean

Mitchell make

statement

quent

about

elo-

an

manage-

ment's

primary duty being to the
common
stockholder.
In my
23
years of following your industry,
this

was

the first time that I had

earn¬

heard anyone get up in public and
make such a statement.
I was so

If earnings during a
are expected to show

given

impressed

your

ings.
year

stantial
rate

increase

due

a

sub¬

either

to

a

increase, cold weather, or a
in costs, that is a good

reduction

time to issue

common

only enough

But

that it does
gain in earn¬

so

not dilute the entire

ings.

stock.

In years -of a prospective
gain in earnings, avoid the

small

issuance of

common

possible.
Along the

stock if at all

same

lines, I strongly
the offering of

stock

through rights.
The only
possible reason for such an offer¬
to

them,
some

the

please
In

rights

of

some

order

your

to

please
to have

have

value and in order to estab¬

lish value

when

on

the

rights

you

must

price the stock below the market.
This means you are going to have
to issue more shares to get in the

I

returned

to

ment

we

bought 20,000

manage-

shares of

his stock.
In

cently
an
a

to

this, I was refinancing with
company that had
structure consisting of

discussing

officer of

capital

I

a

recommended

preferred

stock

common

the

to do with the cost of money
theory for rate making purposes.
years,

j£ broadly adopted and given
great weight in establishing an
ous

allowable rate of return, nothing

The

u

_T

.

year

let us examine the five-

pany

98%

stock,

of

use

some

pointed

of

From

these

1949

two

com-

1954

to

Com-

A's plant account increased
compared with

as

53%

a

in-

for

crease

Company B. Thik obrequired proportionately

viously

in

in

financing for Company A.
spite .of this, the number of

shares of

common

the

sale

Company

of

additional

A's

shares,

common

equity

ratio declined slightly from 33.2%
to 29.7%, whereas Company B's
has

been

maintained

40%.

panies have suffered
the

return

on

at

Both

oc v*

"M1100

some

total

ap-

decline

capital,
6.4% in

Company A's return was
1949 and 5.3% in 19o4. Company
B's return declined from 5.8% to
5.5% in the same period. In spite
of the larger decline in Company
A's return, its earnings-per-share-

its

at

a

cost

considerably less than the allowable

return, it would benefit the

ice

Company
period

same

the firm's

earnings.

Over the long

run

ferred stock provisions make it
possible for the preferred stock-

years

y a

,

partners,

of whom

13

have also been associated with the

for 25

company

years

or more,

Chicago Analysts to Hear
CHICAGO,
ment
...

111. —The

Invest-

Analysts Society of Chicago

.

r-

n

«

t\,t

•

rn

0

w.^

Cr^orge O. Main, ireas-

urer

of Westinghouse Electric, as

.

it is interesting to

see

what

has

£0

be

luncheon meetNov.

....

10

,

in

d
.

the

-n/rmior^

.

^

,

\

.

^

r>

Ihree With L. A. Caunter

been able to increase its dividend
by 40%, whereas Company B has
done well to maintain its dividend.
With this earnings comparison

share

to 50

As guests at the dinner were

Hotel.

the

Although . they

than

un

lce range "p 0 a

■^■dams H°oin

contrast,

thrown into bankruptcy by a preferred stockholder, modern pre-

dollars

York

B's

in

realized the company could not be

of

associ-

serv-

has

In

if

number

all

New

143.

priced the stock at the mar¬
ket.
The
resulting unnecessary
dilution will not help your per

same

you

ranee

club,

Their terms of

City office.

been 100, 92, 101, 90, 89, 89. With
earnings up 43%, Company A has

against it.

the

their

consid-

preferred stock and had de-

oinner

the firm's

held

record

cided

with

ated

jng

,

answer

ered

of

members

share earnings have been
as follows: 100, 106, 107, 117, 133,
per

His

stockholder.

Pink

i r»

speaker at

that management had

common
was

a

The Twenty-Five-Year Club of

com-

could

obtained

run

only result in

of money and a dete-

ing has been increased only 23% -E. F. Hutton & Company, nationby
the
sale
of
new
shares, wide brokerage and investment
whereas Company B has increased firm, held its ninth annual dinner
its outstanding shares 41% through Nov. 7.
There are 63 employee

the slight increase in the pyramid
and lower cost financing. Using
an index with 1949 equalling 100,

be

this

*i0ration in service to the customer,

stock outstand-

give him
some fundable property additions
but as long as permanent capital
thus

believe

we

could

theory

i^her cost

record has been excellent due to

that not only would this

where

states

threat is real. Over the longer
this

heavier

out

and

be interested, in

stocks except at bargain
priCes. Today we will not invest
your

.

,

record

panies.

in

contrast

°Ur dy"amiC

Thls leads to the final p31nt 1
would like to make> and that has

point oTview o^ Jnarket^c^ndi- would
e.arn^^
longer

proximately

the

reasonable

a

ratio

by

I

will be able
a

vm

ably

impressed

baS'S

cn

of what 1 have £aid makes much
com7nv has ma[ntainp7a
sense" There 1S no incentlve to re~
strong
commn? emiitv nn«sitTnn duce the cost of your prior capital
fn7lL^d^no Tnnarenreffon £• u° haV^ y°Ur -t0Ck Se,U atTa
higher, price-earnings ratio. > In
Manv
of
itJ 7pp^rifv nffpHn?« fact' n would be imP°ssible for
jr
security offerings y0ur stock to sell at a high price-

my office, I had an
analysis
made of his company. L.king what
we
saw
and having been favor-

60% debt and 40%

recommend against

is

that

Company B,

wonder how long you

no

whose

officers

many

ZZ nl uZardtTenf

tions.
are

there

general level of

with

ing

the

heart.

at

Unfortunately,

which

be

is

this

agement does have the stockhold-

their

can

Since

primary function of management,
it is generally assumed that man-

jective

share earnings

honest

an

the

you to apply for a rate increase.
The next most important way in
per

to

answer

,

„

that of

similar to

to attract capital

financial relations promulgated during recent been
°£ a11 the theories that have

vSnfwehnd6 Mf™

^bom

improvement in
the return on the capital invest¬
ment is the most effective way of
obtaining higher per share earn¬
ings. I am not in favor of rate in¬
creases if they can be avoided, but
if under good economic conditions
and
efficient
operations
your
earnings
are
inadequate,
your
stockholders can rightfully expect

slightly

pay

Company, --more :-for:;^ts-.;bond and preferred
the retained earnings.
If a regir^™^~^,f°a^ger^.n^ ls extremely stock money in 1949, but today the
lated company will issue a propar- stockholder-conscious.
In face, it reverse is true. The over-all result
tionate amount of prior securities <owns substantial amounts of the of lower cost prior capital and a
and can earn a full return on the comPany s stock. It has adopted a slight increase in the pyramid has
total investment,
the return on very
strong: financial relations been that Company A's total cost
the
reinvested
earnings can be Pr°Sram and periodically calls on of capital-has declined from 5.8%
quite large. Under these condi- the large holders of alLits secu- in 1949 to 4.8% in 1954. Company
tions the company is justified in cities and keeps tnem fully in-. B's cost of capital,* due
almost
having a low payout. In this in- formed- It has made a special-ef- entirely to an improvement in the
stance the
proportionately large **9rt,to maintain an upwaid trend price-earnings ratio in line with
reinvestment
of
earnings at
a
in tPer share earnings and in so the higher stock market has dehigh return can contribute impor- doinS .bas increased its capital clined only 0.4% from 5.3% to
tantly to an upward trend
in Pyramid in order to offset a de- 4.9% in this five-year period,
earnings. On the other hand, if a terioration in its rate of return.
j am sure that-if you can corncompany can obtain only about a f.1 has avoided unnecessary dilu-* piie a record approaching that of
6%
return
on
its
reinvested tl0n where possible and has made Company A, you will have :no
earnings, it is not justified in re- ?"Iy one common stock offering trouble attracting capital and you
what

'

return,

bn their" bonds,

commission. • Company* Ail had to

ffoSina*'weak

rate of

of prior capital has declined. Alboth companies have the

*tne,regUf .^ame credit xatrng

no

increase

some

share

per

stockholders.

Investor confidence in the

A

happened

Company B's stock at 10.3. :By
that gave its primary concern to 1954, Company A'-s fatio had exmaintaining its position rather panded to 16 for a gain of 47.6%,
than to the interests of its stock- and Company B's ratio had exholders. Frankly if it could not panded to 13.8 for a gain of 34%.

°f.
a<I~The
financing
earnings in each
Management
polmy ha&Tfe^ppkept flexible so
year,; and today it also sells at; one
-Although
investor
confidence
of
the
™rhignesb- price-earnings
and growth in per share earnings
ratios in the industry.
k t
,
h
.
sueeessful in
>
are major contributors to a high
The year-to-year gain in per
red'ucin„.cost of its Drior canshare earnings does not have to be price-<;afhings ratio, I would rate Feaucln8 tfte cost ot "s Pnor caP"
,
,
management a close second in this
substantial,
but
it
should
be
steady. As previously noted, the
enn
below-average
regulated portion of your indus¬
the
management
Is
the pr°£r?m- Management is not too
try has only a few ways in which
secu.rity holders and
it can increase its per share earn¬ Management,approachable, will
they keep us informed about imings. Assuming that you are not
portant developments, will we get
t? m?intai"ing
already realizing a full allowable
in

offer

study the market

1948

boardwalk

has shown

it

then

*

both earning

industry.

the

in

small

a

by

pany

in

which

Electric
sidered

ing

Ratios

Price-Earnings
As

today its stock sells at one of the

the

cannot

I

generally. The
risk, the lower the
pyramid should be. Many of the
transmission companies have al¬
ready reached
what - I consider
the

a

of

Because

the

greater

ratio.

it has demonstrated

can

involved

could

that

price-earnings

low

atively

structure

risks

you

to

rights

their

depressed market.

a

holders to bring about a change in
management in the event that a
certain number of dividends were
unpaid. Here was a management

Thursday, November 10,1955

-

when that

is but what is going to

which

on

sell

stockholders

most

rights

by

credit.- They may charge

this
on

of

extent

;a

stock

are

by

receive
occasional
rights,
rights offering is exjlenit
usually
depresses
the
during the rights period,

they
Also,
sive,

For

do.

can

you

believg

I

share earnings ob-

per

eliminating this unnecessary
dilution -will
please
your
stockholders more than if

r

Financing Patterns in the
Natural Gas Industry
important effect on your per share
earnings. Since the end of World

higher

tained

'

...

•

(Special to the financial chhonicle)

CLEVELAND, Ohio
„

Tt.

T

Bobert L.

n„vi„nn

Betts> Jr" Earl J* Davison- and
Paul J- Kozelka are now with L.
A. Caunter & Co., Park Building.

Volume

182

Number

5480

.

.

The Commercial and Financial Chronicle

.

31

(1995)
Continued from first page

existence of the
tions of which

■

As

We See

These newer ideas
if that
they can be termed
have given rise to a number of rather

It

—

Republican politicians want to be able
next year feel that
they "never had it
Yet there is

bubble,

causes that are
responsible for the condi¬
complaint is made.

"Money supply," and all that

to have the voters
so

good."

is

,

always the possibility that this boom

in point. We used to talk about the
volume of
credit, the amount of gold in the country, the extent
fiat currency in
circulation, and the like. We used to

a

case

or

of

that it made

suppose

vast

a

forces instead of

the

all this

to know the basis
upon

"promised joy." It may be in a sense that
good fortune is too good to last. The situation in
agriculture is distressing, and could, of course, spread its
be

can

little

doubt

that

part of the

extraordinary activity now seen
hand has been artificially stimulated by

every

credit, and it has piled
of consumers, at such

up

very easy

oi

'

goods, particularly in the hands

required to alter the outlook. Labor has succeeded in adding substantially to costs already very high. The rate of
; gain during the past year has been extraordinary. How
much longer it could be maintained if
permitted or even
encouraged to continue is an open question;
;

;

•

•

Gold

economics.

of the proper type.

was

into the

came

and

ence

We wanted

..

country

or

was

being maintained. Now no one seems to be
anything but how large or how small it is.

interested in

We have indeed
The Brakes Become

difference whether

left it, depending upon how business was being conducted and the
care
with which its financial
operations were being
managed. The total volume of credit and currency was
regarded as a natural outgrowth of such factors as these.
In short, we used to think of
how the "money
supply"
although the term was not often used—came into exist¬

rate that not too much would be

a

of

come

Hazardous

upon

;

;

-

the

of the advance without precipitating
precisely the sort of general decline that is most unwanted
at present. This sort of danger is, of course, inherent in
the type of full employment
philosophy jiow preached and
practiced in Washington. When business has reached a
dangerous stage as a result of artificiaLjstimulation, it is
exceedingly sensitive to any reduction in the rate at which
the stimulants are applied—to
say nothing of their complete withdrawal. It has been said over and over again in,
pace

official circles that

monetary policy is perhaps the most

effective instrument of all in supporting
These commentators have
established

fact

that

full employment.
steadfastly neglected the well

business

a

boom

which

is

born

of-

How much is the U. S. businesstime

worth

per minute?
earning $5,000 a year
doing it at the rate of 4%c

The
is

man

minute,
$2.55
The

or

man

is

year

paid

9c

a

minute,
$5.10

or

an

hour.

And the

$100,-

000

year

minute,

f

All this is, of course,

economy now so

•

1

.

inherent in the type of planned
much in vogue. Its avowed purpose is to

keep business moving'continuously upward.-. Its modus
operandi is based upon government taking the lead and
providing the impetus for expansion, rather than permitting business to generate its own steam as it most cer¬
tainly always has done and always will do provided only
that government keeps out of the way. It likewise has
another fatal shortcoming. Under it, the managing officials keep their eyes on business activity rather than upon
conditions which control business men over the longer
period. It pretends to abolish
business

«

basic

business
Let

abolished the

"cycle" not by encouraging the elimination of
far, that is, as it is the proper role of gov¬
do

to

men

to

but

by encouraging and stimulating
ignore those causes.

so

—

given industry begin to show signs of dis¬
tress, and the question at once becomes paramount: What
can we do to
bring it back to its former rate of activity at
the earliest possible moment? Subsidies—often miscalled
incentive taxation? Easier credit? Government purchases?
And dozens of other panaceas. It apparently never occurs
to any one to ask whether it is a good thing in the long
run to
get it back at a feverish pace. No one asks whether
the industry or branch of business is overbuilt or over¬
any

extended,
.

to have

causes—as

ernment

'

or

or

whether it has developed conditions which

need correction and which must have correction before it
can

really be regarded

things

seem

in sound health again. These

to have become outmoded and forgotten.
In

It is

as

Agriculture, too

essentially the type of philosophy that has been

a

executive

$51.00
All

the

putations

h

o u r

make

tempt
to
accomplish
Such

same

extreme

the

apparent

on

the

expression geographically. Labor unions have been

most active in

insisting

upon

all sorts of devices and

pedients for maintaining the status

quo

ex¬

irrregions which

long-term developments have tended to leave high and
dry.
the
•

and

Those tactics, however, rarely
matter.
means

They rather concentrate

go

to

upon

the roots of
finding

ways

of attaining their ends despite the continued




and

results

of
S.

ecutives

in

of

ex-

an

time-saving

business

the

execu-

effort,

brokers
brokers,

areountents
accountants,

bankers—many
time

a

others

are

most

and
con-

of, and expend greatest
to avoid wasted and lost

scious

on

advertising

fields

in

of

sheet

by

auto°£

fields.

all

some

sharply stepped up their
variety of minutetechniques.
Here
are

vast

of the most unusual:
^

Lawrence A.

Appley, President,
Management Associa-

tion, has gone from clean desk to
no
desk and dispensed with his
desk

entirely.
Believing that a
"only buries decisions," he
keeps no files or papers; relies on

1:00

for

.

p.m.,

announcing unbreakable 2:30 apRosenberg,

former

Assistant

Defense

Secre-

J?ry and War Manpower Board

run'over fs^fnl
utes

without

agenda.

pre-circulating

Wherever

an

she

possible,

?Lants.AnteJrvjews only ,ifand deci¬
th.e Pe~
cific
to be covered
area

sions to be reached

submitted.

are

Lunching Time
Lehman

Bros,

other

and

firms

have elaborate kitchens built into

offices.

By inviting guests in they
save
up
to from 45

themselves
to

an

to

go

hour, avoiding the
midtown

restaurants.

other

or.

They can
keep working until guests arrive
and be

.

back at work

utes after lunch

want

min¬

few

a

with

—

time

no

f

who

men

,

to

use

the

with

the

hotel lobbies, airports, railroad
terminals.)
Robert A. Whitney, President,
National

Sales Executives, finds
that despite the ease of making an
advance call, at least 50% of all
business people still wait in line
at crowded luncheon places—and

often for railroad, airline, store
pickup and other services. Whitney has estimated
he saves be¬

similar

outgoing

?

lightthose

by holding
as

receiver

a

or

he makes

ud

manv

200

as

calls

caller

and avoiding time-wasting
call-backs, he's busy, not doodling.
Real
estate
developer
William

Zeckendorf

and

others

manv

subscribe to Air-call

a

battery-run

pocket

a

six

radio

Receiver.
contact

Without taking time to
his office constantlv
he's

advised

of

important calls.

Sonia

as

an

sonality, groups incoming and outgoing calls to

save

ft sfves he? Z

time

to

lb

faily._ Many other busy
rolladex

discovers

records

minutes

men keep
of

when

persons most frequently called are

""interrupted

'^

£e sequence
® ® °le ™

,.zr

Lyon, Board Chairman, Philip Morris, Inc., speeds up
decisions
from
committees
by
scheduling
late
day
meetings,
Since most people are anxious to
get home, he explains, talk-for-

take

are

settled in one, or less,
Department
store

end.

executive Max Hess speeds up his
conferences by holding them

at

make

Genera?6 Motors
ue"eraf
iviotors

chfef
cniei

WiS
vviison

^Tf }*? s^ence^ncoming^aR6
for certain
,
iodf
£
Zn "fn conflrence." The latter
dav—rpnnrtirw

I

hp'*

''nut"

rather

n COIlieierK;e-

^wl/oTf-se^rToffkeSde thffr ownTuUding or hide
ouU

ouTin unoccupieroffiMs

in the*
headquarters.
Several told
they made time for them-

own

and

"rest

also

soothed

by

cures"

jaded

taking
in

occa¬

their

own

beds.

They stay under covers, eat
only light meals, take time to
think through major issues while
mental and

physical condition im-

proves,

a

n/t

vij

n

With A. M. K.ldder CO.

three hours to solve in the

morning
at day's

S

ratner tnan at

periods»

business-nerves,

E.

during

Juptions^a mfnimum~
ruPtlJns to a mi"imum.

sional

Alfred

rather

x

fran+.

least likely to be b"sy» save josephs
wasted, uncompleted call efforts.
selves,
Speeding Up Meetings

time

the day for even the most imP°r"
tant declsl0ns- Cherne has worked
out a personallzed activity analysis system — red for contacts
superiors blue for contact
* ^ subordinates, gieen for ad-

subsidiary

Telanserphone, providing

ounce

Cherne, Executive Direc-

tor' Research Institute of America,

has discovered that most execuManaee" tlVGS actually don,t have 20 min"

d^

daily

Gaining Uninterrupted Time
Leon

*utes

constantly picking it
receives

an

call.

piles'ofincm?
mail

^mRa^^^
himseif

daily* by

Treas-

to

H?es

!

check.

(Note: Many time-conscious businessmen also said they used 25c
coin-operated dictating machines
installed in soundproof booths in

rarely going anywhere without

Priest,

,

set

rnl,Knt

t

0f

returned

copy

talk's sake is held to a minimum.
Frequently subjects which might

,

The Desk

American

dates

p^ntment! aT M.

advance

Baker

free to go through

careful

In a new book summarizing his
findings ("How to Gain An Extra
Hour Every Day") and outlining
ways in which top executives seek
to gain time and accomplish more,
Mr. Josephs discovered that U. S.
business executives have, in the

a

,

as

charge
and

Slde

of

file draw-

one

atttorneyJ Henie'„an astute business woman
atttorneys,
wen
entertainment per-

whom
basis

service, retailing

entertainment

Ivy

im and

d

sultant for many leading concerns,
Mr. Josephs discovered that ex-

sur¬

face, but at bottom the similarity is real enough. It has
found

-

at-

completed this week by Ray
Josephs,
public
relations
con-

_

so

—

tives

use

and is not

making

encled
by

has

luncheons

tween 20 and 45 minutes

weight head

in

women

in less time.

study

marketing

Result: He collects

*?fat2nc#0:H^fk°£Ve2"

low
of ten

minutes

save

a

or

deliberate

a

more

are

tensive

easier

Telephones

vacatioln ur^r., ?

unsuccessful

methods of U.

minding

sure,

three

and

men

often

responsible for the deplorable situation existing in that

generally to be

of

holidays—or
1,960 hours yearly.

business

low

a

informal-

encourages

minimum of

Mrs.

total

American

on

the

er.

Yet, regardless of high
earning power, eight out

albeit

a

Josephs

Ray

including

of

last year,

today. It has not been carried to the

are

40-

a

weeks

office.

own

with

week,

minus
total

needs

table—finds

on'^

five-day,

he

papers

coffee

time-wasting papers. An increasing number of other business
leaders, Josephs found, are using
simple, flat-top, free-form desks

or

com¬

based

Goldwyn

business

ment

few

a

hour.

an

few

his

is

drawing 85c

applied to agriculture for several decades,- and which is
branch

Sam

Chandler's, New
York
restaurant, has installed dic¬
tating machines for busy manage¬

conversations, faster-moving conferences. Milton Biow, Chairman
of the Board of a
leading advertising agency, has a tiny, primarily
ornamental desk; signs most letters leaning atop one of his secretary's desks in a passage outside

a

inflationary money tactics, or lives by them, almost cer¬
tainly dies by them when applied throughout the so-called
cycle as (envisioned by the money managers of this day
•

ducer

lengthy

waiting time to complete additionPresident, CBS Radio, has a simi- «d work. Memos or letters are
lar deskless set-up. He
keeps the transcribed while they eat, typed

ity of his office

hour.

an

$10,000

Since

after.

to

wasted in travel.

Ray Josephs notes stepped-up use of wide varisty of minutesaving techniques, ranging from desk arrangement to
lunching
routine to telephone
answering policy.
man s

than

wants

eat, he adds,
little time is wasted on polite, but
meaningless, trivialities. Film pro¬

need

Nation's Businessmen Watch Minute-Wasters

and time.

-

rather-

everyone

crowded

perennial question as
j to whether brakes could be applied in such a way as to

long-

and

pompous

enberger discusses business before

minutes to

strange times!

On the other hand there is the

reduce

be

Fiat currency was anathema to serious
students

rowers.

almost

on

outstanding credit

deal

which it had been issued and was
kept outstanding, and the concerns which were the bor-

substantial

a

nowadays,

bank

whatever it is, may collapse prematurely, and'
leave "naught but pain and
grief" for the administration

There

is said about it

to

winded standing up," he explains.
Investment broker Arthur Weislunch

strange notions.

or

influence.

—

hard

(Special to the financial chronicle)

LAKELAND,
Fla.
Chapman has joined the
A.

M.

Kidder

Tennessee

&

Co.,

Shirley
staff of

131

South

Avenue,

desk

standing up. He has no regular
office, instead walks around to de¬

an
assistant to bring him items
needing immediate attention and
forcing him to act as quickly as

partments—finds that when stand-

possible

heart of the problem, decisions are

(Special to the financial chronicle)
MODESTO, Calif. — John Columbo is with Earl A. Holtham,

speedier and most effective.

1024 J Street.

on

Hausman,

new

matters.

Louis

Administrative* Vice-

ing,

with,

preliminaries
everyone

are

dispensed

gets down

to

the
"It's

With Earl A. Holtham

32

The Commercial and Financial Chronicle

(1996)

Continued from page 3

The Short-Range

Business Outlook

pectation has been that it would

I

continue up into next year.

tion of the
that

Investment Still Rising

Capital

with the recent observa¬

agree

"unless

business
be

I still expect the rate of capital

(London) "Economist"
there

is

confidence

prosperity."

any

widespread

there

cannot

I

However,

investment by

think that shifts in confidence

ing

relatively slow in unfolding, even
under the impact of great shocks
such as that created by the Presi¬
dent's illness. In this connection,

business to be mov¬
move into 1956. In
a
few weeks, when we complete
our McGraw-Hill fall check-up on
1956 investment plans, I'll be on
we

as

up

firmer

I

factually. In the
there is one of those

ground

meantime,

forecasting such

an

major trends in American corpo¬
management in recent years

rate

trend toward the long-

a

range

planning of capital invest¬

ment.

Eight

started to make

when

ago

years

think

we

McGraw-Hill

our

the

cooperating

In

could give us estimates of their
expenditures beyond the year im¬
mediately ahead. Now over ninety

operate, and
of

a

companies

co¬

servation

ahead.

the trend toward longplanning of capital invest¬
to hold in the months ahead,
what I

reinforce

to

business

recession

of

could

accounted

of

the

1953-54

business

inventories

since

the

observation

useful relevance

some

relation be¬

doubt, however, if continued ac¬
cumulation
is
going to provide
any very decisive expansive eco¬
nomic force in the months ahead.

Hence, in

calculations of what

my

impressed by the recent ob¬

was

"Manchester

the

of

called

list

ing

the

about

general feel¬

same

general

more

should

segments

in

I

of

to

expect

the months

our

be

economy

expanding

ahead. In

terms

posed by the Federal Reserve au¬
thorities.
It
is my
distinct im¬
pression that these authorities

scared"

"running
to

there

is

than

and

reverse

hectic

flush

of

off

It

economic

significance, my
is more im¬
pressive. In my office we have a
sort of watchword or slogan, "As
goes capital investment, so goes
of

course,

dated

The

and

is

reason

confident that there would.be ^capital;

.'prayerful. reconsideration

investment

and

.

hence

v

argued,

be

may

that it is not

course,

possible to undo the
contraction with

credit

effects of

of

degree of dispatch by relax¬
it. The standard analogy is
you can
pull a string but
cannot push it.
I would contend,
however, that there really hasn't
any

ing

that

investment.. And.I also think such
might
lead
to
some discouraged downward revi¬

reconsideration

me

a

bit

little

the

immediate

the

key

afield.

business

consideration

outlook,

is

my

ex¬

pectation, which I hope I have made
seem
' reasonably
well-founded,

sion of these programs.
On the record since the war, it •that the rate of capital investment
.

■

of

can,

course,

character

of

be argued that the? rb.y business * will continue
controlling na¬ crease for some time.

in¬

to

the

cies has little

Public Investment

bearing on the
investment.
Business investment hit new highs

in

almost

think

of

every

the

the

that

statements

in

1952

and

war

fact

spite

published
business

most

of

the

between

year

leaders indicated that they thought
the Democratic party was

leading
the country right down the primTose path
to disaster.
I

am

however, that before

sure,

concluding

this

that

ment

the

on

leaders

is

investment,
account

facts.

lhat

period

many

war,

business

schools, high¬
ways
and equipment to provide
water and keep it away
(in the
form of floods) will continue to
increase.

j,:'

present,

we

are

spending at a rate of about $12
billion annually for facilities of
this

of

type

the

with

and

more

than

80%

being provided by

money

local

governments

and

balance by

the Federal Gov¬
next spring, it is

ernment.

By
anticipated that

penditure

$13.5

will

billion,

billion

Another
uncertain

this

rate

increase

of

to

increase

an

about

or

ex¬

about

of

$1.5

12 %.

expansive

element

of

inconsequential
provided by the

is

continuing economic boom in most
of Europe. In all bf its ramifica¬
tions, this is a subject of scarcely
than

cosmic

magnitude, and
decade, the effects

over

Factor

of

In
the
period
ahead,
these
extraordinary stimulants to capital

investment will

anything

like

Under such

not

the

be present in
same

degree.

circumstances, I would

expect the element of confidence
in

the

play
ness

a

national

government

to

larger role in shaping busi¬

investment

that

it

has

much of the postwar period.
der relatively normal




the

may

Confidence

be not much less far reach¬
The immediate effect, how¬

ing.
ever,

the

conditions,

next

is likely to be increased de¬

mand

for American

exports from

private sector of

our economy,

and

hence

against
erated

at

least

an

offset

decline in exports gen¬
by foreign aid from gov¬
a

ernment

in

Un¬

models

new

somehow

has

going into

monies.

of

catalogs of the develop¬
likely to shape the course

business

in

a

new

I

cars.

to think it

ago

effects

which

of

rather

be

can

would

be

done with

was

inclined

mirrors,

the traffic jams, where I
spend
most of my time on the
road, were
not

In the field of

credit,
for¬
that

consumer

of course, there has been no
mal restraint at all, unless

of

sale of

the

period

im¬

re¬

crimp in the

payment will put a

durable goods is

consumer

subject of current controversy.
billion by which consumer

The $4
credit

has

year—to

been

certainly

an

It

becomes

only

viewed

this

awe-inspiring figure.
less

against the

billion

this

expanded

total of $34 billion—is

a

of

retail

sales

of

$185

expected

slowed

creating the

up

it

pace

dynamic
boom, has

bit from the terrific

a

maintaining

was

last

spring. At least that is the story
told by the statistics of
housing
starts, by which, perversely
enough, activity in housing con¬
struction

is

commonly

Finishes would
the
is

annual

figure.
rate

just

now

seem

of

measured.
much

a

more

any

rate,

At

housing starts

above

repayments

fixed

they
retail

in

sales

the months

But the fact is that

of

made

by

whom

group

a

However, the authorities in this
field, which I am following at
this

time—one »must

choose

pick

and

have convinced

me
that
funds will be available to sustain
an
annual
rate
of
1.2
million
—

current

does
am

not

rate.

If,

prove

confident

the

by chance, this
be the case, I

to

that

any

inhibiting

which

the

be

I

simply be¬

what

maintain

construed

reversal.

slowing of

boom

isn't

do

as

not

it

takes

the

pace,

business

a

how¬

expect,

ever,

that

more

sedate,
expansion
of
the
between now and mid¬

such

jitters as may
emanate from this source
will up¬
set the validation of
my expecta¬
tion
of
a

continued,

although

economy

1956.

ahead.

It is

increases
will add

a

in

plausible
salaries

much

as

the

total

United

of

total

after

that

guess

and

disposable income in
this

States

(i.e.

year

individual

of

income

taxes).

think

ments

any

important drag

trade.

At

the

believe

consumer

be

expanded,
repay¬

be handled without im¬
on

re¬

.time, I
expansion of

.same

that

credit

consumer

(or expansion of

income for that matter)

to be the same
buoyant force in expanding retail
sales

expected

as

it

has been thus far

this

That

year.

reasons

in

is one of the major
why I expect the increase

retail

and

sales

to

the

over

much

as

Cash

surplus (perhaps as
$2 billion ) Jn the Federal

Budget account. I have

If there

were no

anticipate
proceed

President's

illness

will

rather.

promptly result in higher defense
expenditures because there will be
no

one

with

to

hold

the

his

military prestige

urge, of the generals
admirals to spend money, in

and

check.

I

recognize

the

point

clearly enough, but would not

ex¬

pect any such development in the
immediate future.
With the wherewithal for

stantial tax cut
cash

sub¬

a

(in the form of

a

budget surplus), the Federal
have

may

about

all

it

ness

boom right through 1956 and

takes

to

sustain

the

busi¬

iicularly. since there would—be
leeway in manufacturing

be

that

at

a

other

the

more

..

will

be

latter

port

little

a

pansion

reason

boom

to

would
rate

it has in

the

of next year. In
such an expectation,

sup¬

part

of
cite

2.1

there

million

the

only
unemployed.
were

bottom

of

the

barrel

so
far as people who can
given jobs is concerned. And

price

increases.
had

one

variety of quite specific
possibilities. One which should, no
can

a

as a probabil¬
is that there will be a mag¬

ity,

nificently

churned

up
political
Another, is that the
automobile people will finally get

atmosphere.

somewhere

Over

increase

the

of

year

near

on

the

in

beam

forecasting automobile production
and sales, and that their forecast
of a drop of about a million in
the
in

production

of

will

1956

thus retire
wethers

be

of

passenger

cars

validated, and
major bell¬

of the

one

boom.

the

A Breather Due

As

I

it, however, the most
reason
for expecting
business letdown along next
is that the economy will be
see

compelling
some

year

about

for

due

after

breather

a

having maintained a terrific pace
for a couple of years. I don't know

but

sampling—in

scrapes

ex¬

toward

September
about

let-up in the

business

of

proposition

—

of business

planning, I think it wiser to en¬
visage the possibility that there

relatively
ahead,

subdued

the next year than

That

data.

But for the purpose

the past, it would be provided
by
the physical facts involved.
At
the last counting, or

be

re¬

cently heard it contended that the

months

hence, did not list it as one of
expansionary forces.

over

up

doubt, be classified
so

credit

consumer

can

don't

can

the
not

are

the Federal Treasury
its fiscal year with

up,

wind

wages

$14 billion to

as

With their income

I

is—and

substantial

a

are

come.

.

will

it

sure

relevant

increases,
among
providing a very sub¬
stantially increased volume of in¬

the

stepped

am

expenditures

wage

others,

we've

housing starts.

of

there

they are being broad"
of people for
the

million, it puts a block in the
way of a
where last spring it was about 1.4
continued rate of expansion which
million. Some competent authori¬
has boosted
our
Gross National
ties in this field have
expressed Product from about
$367 billion a
fears that restrictions on credit
year ago to about $395 billion to¬
for housing, which have
recently day: and no
part of that increase
been
imposed, will result in a of
$28 billion is accounted for by
further
decline
in
rate

inevitable

being made by people with
;on.-into 1957. I don't think*;-it..
income, I could see wherb
Would -be very hard
to,-^ai^ay
might at least damp ■down'
plausible case to that effeet7-par-

were

1.2

the

the

pace

cause

will

weaknesses

prove of some consequence,

that

the

the

outlook,

that

credit

the major

the

is

of

one

business

Government

consumer

The provision of
has
been
one
of

housing, which

the

might

when

so

total

year.

If

modest

in

in

say, I
Federal

Consumer Credit

so abundantly
sprinkled with
gaudily colored new models.

forces

far above $400 billion at

time.

Indeed,

to

it.

tail

inventory

that

promptly eliminated by relieving approximately correct—needless—•

posing

looked

be very

If my projection of the
general
course of business to
mid-1956 is

But,

housing starts—a little below

In most
ments

of

long

July. (One might as
hung for a sheep as a
lamb in the forecasting
business.)
But, I do not believe that it will

year

any rugged tugging.
There
simply-been some tensing, the

pro¬

managed to unload

very

meaningful

but not

less

business.

as

At

forced

under

reaction

if

such

proportions

draft

has

investment

it

a
period
when
the/
filling great backlog^
of
consumer
demand, built " up
during the war, kept a heavy

of

with

standard

simply cannot last."

facilities

was

also

was

process

been "It

very cumbersome

the

starve^ for producing facilities; It

the

year,

producing
facilities,
I
can be safely anticipated
that public investment in public

with private

new

state

of

pas¬

early this

not

business

years

Since

like

Along

business

are the facts
question was

in

after

depression and

to

other

Among them
the

of

govern¬

should take into
important

you

some

when,

one

part

stimulus

a

that

shows

lack of confidence in the

production.

senger car production hit the rate
of eight million a year,

what

capital

end of the
of

no

or

mobile

and

now

of

been

the

Production

duction, it is lasting. And in the
interim, the automobile industry

tional economic and political poli¬

course

Auto

Takfc the amazing case of auto¬

For

between

be

has

"

of prosperity in the United States,' it

business programs of capital ;takes

billion
4th

well

physically to

.

many

the

boom.

a

basic

catalog,

that,. except for
gain the ascendancy over
recognized as ;such by
party to which it those who come > to control the agriculture, ; which,- asc a whole
continues to
seems
to aspire, and the Demor Democratic party.
sag, /there 'is
very
cratic party should prevail gen^
But while this line of reflection little of the rest of the economy
erally-at the. polls next year, I is highly relevant to the future of which is not still notably buoyant.
'a

pre¬

are

any

the

$400

are

their course if
indication that their
restrictions are taking any more
pared

of

the Democratic

am

re¬

credit expansion im¬

process

of

which

"planning"—"make no ap¬
will gain immortality as Keezer's peal
(why should they?) to a
Law of business investment, that generation
to which unemploy¬
"the stability of plans for capital ment is a memory, to which class prosperity." The slogan has never
let us down yet, and I don't .ex¬
investment by business tends to bitterness in industrial relations
is hardly known, and to which pect it will in the months ahead
vary in direct proportion to the
when I expect that capital invest¬
idea
of
number of
Vice-Presidents who the
State
control
has
ment by business will be expand¬
must initial a change.". Plans for ceased
to
have
any
magic."
It
increased capital investment next occurs to me that much of the ing.
However, an optimistic view of
year - have
been
put in
place. "give 'em hell" political medicine/ S
Legions of
Vice-Presidents are (the " 'em" being businessmen,^ in the short-range business outlook;
ialso in place. I expect the plans considerable
part)
of
which is not contingent on the discoveryto hold up very well in the period former President Truman remains of a lot of areas of the economy
immediately ahead.
perhaps the most vigorous; prac¬ where great expansion is to be
Of course, if
organized labor titioner, may prove equally out¬ anticipated in the months ahead.
sure

am

promptly

next

the

straints upon

for

be

to

Guardian Weekly" that the old
standbys
of
the
British
Labor
party — nationalization and so-

I expect

«nd

part

have

can at least con¬
lies ahead for business over the
provided by exhortation to be tem¬
possibility of a political next
year or .so, inventories have
re-alignment which would make a
perate in extending it could be so
relatively neutral role.
the Democratic party considerably
classified.
Whether, as a result,
I realize that, in terms of the
less of a bete noir for business
consumer
credit
has
been
ex¬
involved, I haven't tended to a
than it was for a long time prior magnitudes
point where the more
to 1952. In this general connection, arrayed a particularly impressive or less inevitable

for

ment

larger

the

far,

will

ceive the

I

range

By

I

vestment, I also

far larger number
than it was eight

years

That

considering the

years ago, can give us an indica¬
tion of the expenditures they plan
some

in general as there have been.

ness

a

tween confidence and business in¬

companies

(90%) of the companies which

will.

I

business

by the
contraction of business inventories,
and the upsurge of business this
year, has, in turn been speeded
by the addition of about $3 billion

to the current situation.

plans
for
capital
investment, only a small fraction
of

it

might have

of

surveys

of

downs

scarcely less beginning of 1955.
fabulously successful in busi¬
From all I can tell—and the
ness
to
tell the most important
tardiness, as well as the spottiness
single secret of his success. He of
the
relevant
figures,
badly
said
that
it
was
his
discovery limits what
you can tell—the ac¬
early in his career that nothing cumulation of business inventories
in the political and economic field
in
recent months has not
made
happens as fast as most people them
lopsided on the high side. I

activity. The fact re¬
however, that one of the

has been

of the
reply
recently asked

I

and

ups

restrictions

be relaxed.

inventories in this postwar period

than

ex-

hilerating
mains,

when

the

credit

have accounted, in major degree,
for such ups and downs of busi¬

friend who has been

voids in information which makes
business

reminded

am

received

are

mediately ahead, judgments about
what is likely to happen to busi¬
ness
inventories play a leading
if not the leading role. There is
good reason for this, too, because

Thursday, November 10,1955

...

the

economic

hundred
I

formulation

that

dash

yard

of

can't

the

run

a

indefinitely,

will

it

suspect

Our

you

apply next

will operate at
capacity, in terms of
employment, so it cannot keep
soaring.
Under
such
circum¬
stances, I
think
it prudent to
anticipate the possibility of a little
sagging.

year.

just

economy

about

But, if there is
I

am

will

and

a little sagging,
thoroughly confident that it
be transitory in
character,
that the forces making for

expansion

continuation

and

of

a

in

very

high level of prosperity will

the

physical volume of economic
activity,
an
increase
without

soon

re-assert

this

discussion

is

precedent either in magnitude or
percentage in the peacetime his¬

and

becomes

discussion

tory

of

an

our

8%

country.

GNP at $400 Billion

themselves.

a

to

shift

Unless
gears

of

the

business
outlook,
I
must ask you to take my word for
this, but I am sure you won't go

long-range

wrong if you do.

As I have indicated, 1
expect
the boom to continue and that our
Gross National Product will
pass

It

seems

clearly

to

come

assumption

me

that the time has

to

make

that

the

our basic
American

~

Volume

182

Number 5480

.

.

.

The Commercial and Financial
Chronicle

is going to work well
than the reverse. It is
my
that
many,
and
I

economy
rather

wonderful directions

as they go in
our
economy,
there are always
fascinating possibilities of mishap,

observation
sometimes

suspect

most

Ameri¬

and

cans,, proceed on the assumption
that our
economy cannot be ex¬
pected to work well for

explanation

A

for

good

skittish

titude seems to lie in the

shock

produced

by

depression of the 30's. Some more
it, I think, can be accounted
by

who

the preachments

of

omy

Let
not

suggesting that

the

economic

But,

the

At

reverse.

faith

that

which

well

The

mediate

good

cheer.

dent

a

that

cheerful

however,
these

am

the

of

course

ahead,

year

about

business,

list

The

and

a
higher standard of living than
their parents and they will work

in order that they can

Two-thirds of
units

in
20

over

the

all

buy.

the

"dwelling
are

old and half of all

dwelling units

are over 30 years
On the average, the age-dis¬
tribution of our housing confronts

old!

with

us

ket

for

tion,
ket

tremendous future

a

replacement,
both.

or

won't

backlog of

It should

the

of

one

mar-i

overnight.
long term, it gives us

demand.

as

renova¬

This potential

tremendous

er

mar¬

materialize

But for the
a

or

consum¬

be

counted

most

important of
sustaining forces that

the

many

will

keep

and

growing

our economy a

come.

dynamic
in the years to

one

tions

ahead,

wonderful

And

ture

I

business

said

a

was

ities, I

better

never

thinking not only of
technology and labor

skills and capital

I

resources.

thinking, in addition, of

was

look

ture, ..and

to

me

dously important
There

is

it

occupa¬

is

a

growing

to

You

It is

a

team.

some

what is being termed

on

concern

some

;

though

even

and Intermediate

these issues continue

Sectors

being

are

on

by

investors

The near-term maturi¬

(outside

the

of

commercial

It is evident, how¬

very

sensitive to whatever tightness that might develop.

this, because of the

new

On the

lessening of the pressure^ the

any

issues would

government

almost

immediately

demand which would be around for these

mediate-term treasury

a

compensating effect

issues, with reports that

into these securities.

come

ties

to

seem

have

been

the

the inter¬

upon

money

new

although the

ones,

According to advices, the selling which has been going

Sutro
the

New

ment

of
of

sound

a

on

in

First.

During

life insurance
an

the

Nov.

The

exhibit,

Sense

the

op¬

understanding and
between

and

the

lending

the

is being placed on com¬
petition in capital markets as an
impersonal mechanism for allo¬
cating resources and regulating

business

activity. This bodes well
the productivity and
stability

an

ac-<

staff will be Swiss.

Swiss

this

McGinnis

the

on

broad

mendously

is, to me,
stirring.
There




among

the

in

longer-term

in

bonds

governments

to be

are

far

as

not

and

As

against

this,

B.

C. Morton

following

very good

a

the institutions that have been building positions in this

a

1967/72.

1978/83, into the 2*/2S of 1964/69

The after tax yield of the 2%s is condu¬

switch, according to those that have been going out

of the 3%s into the

Co.,

2%s. Also, the fact that the 2%s

fairly- sizable discount is another

The

has

Donald

feeling

seems

.

F.

positions, which

Switzerland

American

than

common

held iff

are

in

any
other
European country, including Brit¬

ain.

The
"Weld

subsidiary,

new

&

Co.

A.

G.

White,

Zurich

be

is

over

its

activities

to

de¬

Europe

confined

entirely to transactions with
brokers, bankers and financial in¬
will

The

focus

it

company,
efforts on

its

says,

placing

issues of securities.

new

With Hudson White & Co.
GRAND
ald

J.

RAPIDS, Mich.—Don¬

Mclntyre
with

has

become

Hudson

af¬

White

With Slayton & Co.
(Special to The Financial Chronicle),

ST. LOUIS, Mo.—Frank Halama,
now connected with Slayton

Jr. is
&

Company, Inc., 408 Olive Street.

Mann, Bayer & Diamand
Effective
Stock

Dec.

1

the New

York

Exchange

firm of Mann,
Bayer & Diamand will be formed
offices at 575

Madison Ave¬

New York City. Partners will
be
William
B.
Mann, Seymour
Bayer, Ralph A. Diamand and
nue,

James M.

Leopold, member of the

Exchange.

to be as strong as ever that the long-term

U.S. TREASURY

<

were

It is reported

should be looked

reduced

by

that in-some

upon as

traders

instances

the

STATE, MUNICIPAL

quotations for the

as

and

been rees¬

cases.

PUBLIC REVENUE

It

is

reported

that

some

institutional

holders

the

of

non-

SECURITIES

'

market 2%% bonds have converted this issue into the marketable

has

F.

become affiliated withJ
notes which have been, or will be sold, in order to get funds
Campeau Company, Penobtc y
which will be used mainly for private placements or mortgages.

Building.-**
Or')

"f<-" ^ Despite the reports about

'

it

Joins Carr Staff
(Special to The Financial Chronicle)

'4

evident that

is

the

slowing down in the building business,

a

demand

for

mortgage

is still

money

very

sizable with many institutional investors.
*
>

DETROIT, Mich. — Richard D.
Smith has joined the staff of Carr
&

Company,

Penobscot

Mr. Alexander's Views

members of the Detroit Stock Ex¬

attention

change.

about

with

Mr.

Smith

formerly
Smith, Hague, Noble & Co.
was

Walter Wade Adds

on

Monetary Policy

It is quite evident that the financial district paid

Building,

the

the

statements

money

market

to

last

and

week

the

by

trend

Mr.
of

GRAND

the

Federal

Council

Inc.,

ference between tight money and
money

text

Alexander
rates.

Aubrey G. Lanston

Mr.

a

member

the

& Co.

Federal

INCORPORATED

Advisory

which

ing in terms of somewhat less restraint.
RAPIDS, Mich.—Boyd

Wade,
Michigan Trust Building.

interest

advises

Reserve Board, said that the monetary authorities

Kuieck has been added to the
staff
of
Walter
J.

considerable

Henry

Alexander, Chairman of J. P. Morgan & Co., Inc., and

(Special to The Financial Chronicle)

W.

&

Midwest Stock Exchanges.

be bought

can

distant Treasury bonds advanced, have riot only

Campeau

DETROIT, Mich.—Marcel Tous-

scot

More

Mortgage Money Demand Remains Heavy

(Special to The Financial Chronicle)

R.

exchange opera¬
those in Holland and

are

given for the making

reason

market-wise and that set-backs in prices

buyiiag opportunities.

joined the staff of

With R. F.

capital

or

Government obligations will continue to give a good performance

Palmer, Pollacchi
—

Zurich,

by the
exchanges

of this swap.

Street.

Mass.

on

stocks, it is reported,

with

cive to such

&

as

Britain.

in

hampered

there

lack of takers for the 3s of 1955 when they are

no

size, because this bond still has

of the "Museum Piece," the 3V4S of

a

not

transfers

tions

sizable

too

most of the buyers of

as

concerned.

tablished but have been added to in certain

tre¬
are

move

It is reported that some fair-sized trades have been made out

at

concentrated

is

Company, Michigan Trust Build¬
ing, members of the Detroit and

security.

of

for expecting vigor¬
economic growth and
prog¬
in the decades and
genera¬

many reasons

longer

appears

open

be

restrictions

However, it is also evident that

Street.

prospect be¬

country

commitments

available in

"Common

company.

to

private institutional investors have been mak¬

more

?

The

cer¬

amounts. According to reports, the discount issues, that is the 2Vr%

th6

par¬

The costs and!

Although White, Weld & Co. al¬
ready has offices in Amsterdam
and London, its European business

filiated

obligations bontinue to

Government

bonds, continue to be the favorites

opera¬

economic system.

ThiM.

distant

Palmer, Pollacchi & Co., 84 State

govern¬

reliance

the

ing

New

panel discussion,

BOSTON,

co¬

housing and mort¬
industry.
Greater

of

in

(Special to The Financial Chronicle)

saint

point is this. It is
encouraging to note that there is

a

with

With

adequate hous¬
healthy growth of the

My second

operation

Exchange and

public,

State

support

'

the

Approach to Investment in

now

decade,

economy.

of

Stock Market."

to expect a continuation of

increased

functions

(Special to The Financial Chronicle)

abnormal volume of funds

a

more

of the smaller

some

BOSTON, Mass.—Robert Brown

comments.

scale

states,

B. C. Morton Adds

opera¬

a

firm

stock isr

strong hands, with the public pension funds reportedly the

and the 2V2S of

financing of postwar con¬
Although there will be
tapering off, there is every

ing and

the

500,000

of
the

of

beneficially owned by White, Weill
& Co., although th'e directors and

This is

on

"Discount" Bonds Get Big Play

principal buyers of these issues.

13.

questions on investing.
Sunday, Nov. 13, at 2:30 p.m.,

the

summarize

on

The
into

7

brokerage house. Mem¬

a

ticipate in

companies contrib¬

investment

Nov.

partners of Sutro Bros, will

the

will

from

short technicolor movie

a

going

answer

On

131

past

The 2Vz%

invest¬

bers of the firm will be available

struction.

mortgage

Armory

been

Exchange,

educational

through

is

closing, may I
briefly these informal

Stock

that tax switches which have

mean

tain of these issues have slowed down somewhat.

exhibit at the Women's In¬

includes

to

great

investment

In

Co., members of

ternational Exposition at the 71st

to

part of this

are

&

York

holding

are

Profes¬

processes.

appraisers

Bros.

taken to

All

(Special to The Financial Chronicle)

the middle-term Government obligations has tapered off.

Woman's Exposition

francs.

1959/62

issues have not been without buyers.

Suiro Bros. Exhibits at

capitalization

stitutions.
some

Those obligations with set maturi¬

favored

by

limited Swiss company,

a

a

Swiss

facilitated

White, Weld &

and

The betterment which has been in evidence in the long gov¬

has

was

by

signed to operate all

ernment market has also had

you

leading European fi¬

center

formation

with

reflect

obligations.

management

the

which

that this sector of the Treasury market will continue to be

hand, if there should be

The permission to deal in secur¬

.

ities in this

is

Strong

tightness in the money market, the price action

bought

the

of

operations will be covered by the

.

of these securities

some

new

a

to what will hap¬

as

,

demonstration

Summary

ress

count

our

of

tion.

ous

can

of

tion

movement and it is your

fore

we

part

a

in

ever,

of great satisfaction

source

to know that
—as

portunity. We, for example, look
increasingly to your expert
knowledge, your skill, your pro¬
fessional training to help us main¬

our

being

are

short-term

tual

portant to modern business.

for

taking

to be

banking system) that must have liquid assets.

companies

your

the

as

competence, in whatever
field, becomes more and more im¬

of

ties

other

We need

has

securities

and

approval

change.

Co., of

government market

of government securities is still favorable.

confident

help to do
the kind of quality job we want
to do.
We can't do that
job on a
truly national scale, or do it as
well as we'd like, all by ourselves.

sional

gage

living in!"

am

ations.

role of the

in the light
interdependence

economic

ment

be

I

sional people such as you for real
assistance in our investment oper¬

describing

specialist

the
our

that

now

seems

Iri spite of the

a

increasingly to profes¬

York Stock

question

no

tremen¬

one.

increasingly significant
skilled

reason

taken,

Short

"What

say,

contributions to the fu¬

our

Regiment

tional and professional skills. This
is the human element in the pic¬

some

the

switched into the intermediate and long-term obligations.

development because I know

can

pre¬

was

American

to

to

and more

more

'

I

that the life insurance

while back that

pared than it is today to take ad¬
vantage of forthcoming opportun¬

uted

time

throughout the

through

members of the Zurich Stock Ex¬

.

When

tain

So

finally,

about

United ; States

years

in

tone

underwriter

dealer

nancial

exchanges is

Short-term money is still available and

today-wants

being made among

made

the government market.

to be well

Trends in Mortgage Financing

This does not,

extending of maturities.

life, there

on

being

are

of these

trend

With the stock market
lease

.

pen to

young' couple

the

not still

are

swaps

has been granted a charter to op¬
erate in the Canton of Zurich as
an

It is reported

coincided with the uncertain action in the equity market.

measure

Continued from page 14

every

that tax switches

improved

a

will
\

mean

toward the

the

validated by events.

to be lessening in the inter¬

appears

longer-term government obligations.

maturities, because

entire

decade

justify their
equally confi¬

assumption

general
be

I

for

and

still

pressure

them from the market for the time being at least.

rate, it

a

Opens Zurich Office
White, Weld & Co. of New Yorif*

that owners of these securities have in Some instances withdrawn

cheerful

up

selling

forces

business

the

Governments

on

By JOHN T. CHIPPENDALE, JR.

econ¬

as

any

those

make

Reporter

that

hence with records to

am

Pollyanna attitude. In an econ¬
omy with as many dynamic forces
going in as many strange and

look¬

I think

assumption will end

with

the

on

constructive

new

my

firms

approach

we

outlook

the

is

econ¬

hasten to add that I

me

keep

While, WeMS Co.
Our

prudent

for the past decade,

than

those

really don't want the
to work well.

to

them.

the

shaping it, warrant the assumption
that, by and large, things will go
well over the longer pull rather

great

of

for

of

only the record of the

as

terrible

the

part

a

sense

omy

at¬

is

for

not

large part of the
this

it

out

any great

length of time.

33

(1997)'

no

He

money,

is dear enough and tight enough.

of Mr. Alexander's address.—Ed.J

should be think¬

said

there is a dif¬

and for the moment

[See cover page for full

15 BROAD

ST., NEW YORK 5

WHitehall 3-1200
231 So. La Salle St.

45 Milk

St.

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-6463

.

the

Steel Profits

high cost of add¬
single ton of new capacity.

a

today of a ton

book value

The

presently-existing steel capac¬
is about $60. Yet, to build

ity

another ton of annual steelmaking

capacity today from the ground
would cost at least $300. And
there are some who estimate the
cost at as much as $400.
It is obvious that depreciation
up

$60-a-ton
not going to

charges
based
on
value are certainly

a

capacity costing $350 a
ton. They won't.
Huge sums of
new money are required. We can
borrow those Huge sums only if
build

new

earnings

present

our

structure

justifies it.
estimated

have

We

;

<

at to¬

that

day's high construction costs, a
completely integrated steel plant
built from the grass roots, oper¬

full capacity on today's
prices for finished steel, with full
allowance for lower
production
costs
resulting
from
the most
modern
equipment
and
using
normal depreciation rates, could
show no more than 1 or 2% on
the
necessary
investment. And
ating at

this

materials

raw

available at today's costs with¬

are

investment
coal mines, etc.
most recently announced

need for

the

out
in

that

assumes

ore or

In

our

expansion

any

we

program

facili¬

make liberal use of existing

:

ties.

and im¬

Top pressure blowing

have increased pro¬

proved ores
in

duction

of

many

had

iron than

As

been able to produce

ever

before.

;

here
production

adding

result of

a

steel

boosting

and

blast

our

furnaces, giving us more
we

still

can

on

be able to add
1,600,000 tons of steel
capacity a year at a cost of about

there,

we

will

another

$80 a ton!

• r.

logically ask
now, if it
is as simple as that,
what's the problem. Why not move
You

a

very

.jnay

.-

furnace wall back another three
four feet every time you need

or

steel?

more

Steelmaking,
unfortunately,
isn't as simple as that. In the first

there

place

limita¬

physical

are

the Uptrend

on

sion today—the

of

Many plants are so con¬
structed that there just isn't room
available to make a small furnace

virtually every other State in the
Union is being pressed for more
and better highways.
there

Then

and
must be

hospitals

are

buildings which
built. There is unsatisfied demand

office

for

The list is

freight cars.

more

In another five years,

the babies

ried couples

of the '60s.

With new

On top

of that, steel users have
satisfied

such

become

each

customers

individual con¬
larger than the

year

sumption

grows

before.

year

Can

along

get

we

with

our

present capacity? The answer is
obviously no.
The steel industry must expand.
There can be no doubt that the

Pfd. of

economics of
grave prob¬
lem.
Sixty-dollar
facilities are
growing old and wearing out in a
$350-a-ton market. In other words,
depreciation charges alone would
Nevertheless, the

only

buy

hearth

open

new

one

when six wear out.
Add

of

problem

the

this

to

boosting steel capacity to 200

mil¬

1980, the estimated
amount required to meet demand
tons

lion

by

this
of

sharply:* increase the
amounts
which may be charged off to de¬

preciation. It must also raise huge
amounts of new capital to finance
a
65-million-ton expansion over

The

boils

thing—profits!
must

down to one

have

industry

steel

The

matter

provide the

sufficient to

profits

his

investor with a fair return on

ample, is so tightly cramped that
it
is
virtually
impossible
to

over

It

investment.

large enough to pay
turn and still have
to

profits
this fair re¬

|must have

left

enough

help finance this expan¬

sion program.

price

of

plans

into

convertible

to

use

of

shares

of

stock at the rate of

of

ferred

until

of

.

to
a

-The

and

ores

Inc.

report business is holding up better than* usual.
Three-fourths of steel users report delivery problems on one

year

treating

get. Aluminum remains tight, but no worse
concludes this trade weekly.

of

source

sup¬

concentrates is available
corporation, the company
intends to construct units capable

of

treating

50

daily

terest in

of

tons

based

an

duction

in¬

Hills, Calif., is offering an issue
of 60,000 shares of common stock

;

(par $1) of Paddock of California
$5 per share on a best-efforts

$100,000
of the net proceeds to liquidate a
to

loan

in

the

that

its

of

one

the

have to go out in the
it. That is
the only way we would have it.
But to buy this new capacity,
we
are
going to have to spend
more
money than we have ever
spent for expansion before.
We
are going to have to borrow large

current program

The

construction

so

A

able

be

ever

capacity
*

already

about the last time that we

is just

shall

has

which
started

on

to

cheaply.

get

new

*

Complex Business

Steelmaking, too, is

in

fields

different

in

plants.
freight

directions

It requires
cars.

rolled

rolled

ore

from

boats and

it must be heated

heated again and
It must be pickled

and

again.

and it must be

annealed.

be

and ' it

tempered

trimmed.

the

When the steel itself

is finally made,

and

miles

many

It

must

be

It must

be

must
lifted

here

and moved there within the plant.
It must be shipped by truck or
carried by train.

Everyone of these operations is
affected by expansion.
They are
all

attract

and

sums

a very com¬

plex business.- It starts with the
mining of iron ore and coal and
limestone

to

,

equity

more

capital.
earnings

attractive

major1

possible only with

as

base

financially

as

of

that

any

has

day

The

industry.

other

passed when steel's position as a
profits-stepchild can be shrugged
off as an economic oddity.
Steel is a basic
industry for
which

we

have

to

the raw
ground. This
get

the

from

materials

makes it necessary

for

us

to plan

far into the future for these

sup¬

plies and spend billions of dollars
before any benefit can be derived.
Without steel, our nation, or the
world, could not exist.
It is

a

synchronized—all in balance.
Change one factor and you upset

risen

another.

steel

Would the profit story be mere¬
ly academic if we could make out

with present production facilities?

matter of record that the

willingly
nation.

The
selves

American

have

given

people
the

to

that.v The
birth
rate
jumped
sharply in the last decade. New
schools

are

almost

as

becoming overcrowded
fast

as

we

build




steel industry of
to

the

this country has

occasion'

emergency

in

the

in

every

past.

accepts continuing
sponsibility for service to

them¬

answer

It

a

to

meet

a

new

never

seen.

with

the world

expanded

issue

Paddock

parent of
ary

in

California

of

a

companies
California)

is

the

to

in¬

..

the Association of

American Railroads.

totaled 835,396 cars,
13.5% above the corresponding 1954

increase of 99,163 cars, or

week, and an increase of 54,553 cars, or
ing week in 1953.

of 1955

7% above the correspond¬

Last Week Exceeded 8,000,000th Unit
a Gain of 44.2% Over 1954

U. S. Car Output

'

with the
organiza¬
tion which has been engaged for
an

Week

Loadings for the week ended Oct. 29,1955,
an

Recording

for the latest week, ended
Automotive Reports," roared
their 8,000,000th unit of 1955 to score a gain of 44.2% over
and are scheduled to reach the 1950 peak of 8,047,240 by the

Output in the automotive industry

which,

represent

10,659,000,000

Loadings of revenue freight for the week ended Oct. 29, 1955,
897 cars or 0.1% above the preceding week, according

incorporated

(all

electric

increased

of six subsidi¬

group

Nov.

past

1955, according to "Ward's

4,

more

than 35 years in the design

1954

and

installation

close of November.

swimming

of

Last

pools for both private and public
use.

From

tivities
at

time

have

to

been

time

its

expanded

present also include the

ac¬

and

manu¬

facture and sale of swimming pool

equipment,

accessories,

chemicals

and

supplies, and the servicing of
the pools and equipment.
The

executive

company are

Monica

of

offices

the

located at 8400 Santa

Boulevard,

Los

Angeles,

The company

porated

under

which was incor¬
the laws of the

week the industry

assembled an estimated 174,097 cars,

compared with 158,430 (revised) in the previous week.
week's production total of cars and trucks amounted
units, cr an increase of 17,901

The past
to 200,482

units above the proceeding week's

output, states "Ward's."
Last week's car output advanced above that

ef the previous
output rose by 2,234 vehicles dur¬
ing the week. In the corresponding week last year 93,162 cars and
19,891 trucks were assembled.
Last week the agency reported there were 26,385 trucks made
in the United States.
This compared with 24,151 in the previous

week

week

California.

by 15,667 cars, while truck

and

19,891

a

year

Canadian output
trucks.

In

the

State of California in 1941 has six

and

600 trucks,

subsidiaries: Paddock

583

ago.

last week was placed at

5,500 cars and 651

Dominion plants built 5,102 cars
and for the comparable 1954 week, 2,939 cars and
previous week

trucks.

Engineering

derella

It will meet that
an

authorized

an

of 500,000 shares.

re¬

challenge of peacetime growth

tnem. challenge

outstanding 262,543

the

emergency,

with prosperity such as
has

of

the

,

Co., Paddock Pool Equipment Co.,
Marlin Pool Equipment Co., Cin¬

Right now it is marshalling its
forces

out

shares

company,

That will be
an

be

by

Loadings Edged Slightly Higher the Past

Car

proceeds

capital in the form

Giving effect to this financing,
will

distributed

made

cash, increased inventories and

there

energy

kwh.; it increased 1,496,000,000 kwh., or 16.0% above the com¬
parable 1954 week and 2,455,000,000 kwh. over the like week
in 1953.
'
/ ,
/
.

other current assets.

market place and buy

electric

previous week, when the actual output stood at

the

use

amount

of

balance

was

1955, was
Electric Institute.
...
■ ■.
This week's output advanced 194,000,000 kwh. above that of

subsidiaries, and to

to its working

the actual weekly production

Saturday, Nov. 5,
estimated at 10,853,000 kwh., according to the Edison

basis.

bank

ago

year

light and power industry for the week ended

at

Paddock intends to

A

1, 1955.

the rate was 93.5% and pro¬

ago

Climbed Mildly Higher the Past Week

of

amount

The

Beverly

Co.,

month

capacity

because

Electric Output

Of Paddock of Galif.
&

a

The operating rate is not
lower than capacity»in 1955.
The percentage figures for 1954 are based on annual capacity of
124,330,410 tons as of Jan. 1, 1954.

Peirsol Offers Slock

think of.

going

2,330,000 tons.

comparable

Piersol

week

placed at 1,874,000 tons or 78.6%.

was

existing plants.

R.

:

that the

announced

annual capacity of 125,828,310 tons as of Jan.

on

For the like

concen¬

to acquire

or

Institute

96.1% of the steelmaking
of 98.3% of
capacity for the week beginning Nov. 7, 1955, equivalent to
2,372,000 tons of ingot and steel for castings as compared with
99.4% of capacity and 2,400,000 tons (revised) a week ago.
The industry's ingot production rate for the weeks in 1955 is

the

of

Steel

and

capacity of the entire industry will be at an average

technically

adequate

an

Iron

operating rate of steel companies having

and com¬
mercially feasible and profitable,
ply

«

.

American

The

If the results of the pilot
plant operations indicate that the

and if

Copper and alloys are harder to
than three months ago,

shapes, sheets and carbon bars.

daily.

is

The greatest demand is for plates, structural

products.

more

or

plant in either New York or Phil¬
adelphia for the processing of 10
tons of cobalt-copper concentrates

process

longer delivery time

inability to place orders in sufficient quantities and in pro¬
portion to present use. Aggravating the supply situation is the fact
that some steel users who generally have declines this time of

complex
intends to build a pilot
for

most, hope to hold their

pressimism spring from

of

causes

and

acquired the rights and title
certain new improvements in

process

1956 ap¬

own.

ferred.

Resources,

98.3% of Capacity This Week

tight steel supply right through the first half of

hope to build up their stocks, and

few

the rate of

Metallurgical

total already ahead of any complete year except

Steel, copper and aluminum users sum up the inventory and
"Steel's" regular quarterly survey. Cne-third of the users think deliveries and
inventories will get worse in the coming three months, while a

for each share of pre¬

common

751,300 cars and 122,000 trucks in
and 90,388 in 1954.
output is leading 1954 by 32.8%,

car

delivery situation as a "sad picture" in replying to

1959; and
Vz share

31,

Aug.

1955

increasingly certain, says "Steel" magazine the current week.
heavy carry-over tonnage, indicated for the year-end
in all the major products, would take up four to six weeks of pro¬
duction, at least. This means considerable tonnage will be shoved
into second quarter scheduling.
.

for each share of pre¬

thereafter at

96,091 truck
compared with

It said

until

common

October

pears

com¬

Aug. 31, 1957; there¬
after at the rate of % of a share

Canada to date

A

share

one

for

the

Steel Output Set at

the

for each share of pre¬

common

ferred

of

is

from model

1953's 366,535.

$2

It has been completed.

company

in

with the 331,398

convertible

a

steel industry new

Nobody

going to General

weekly publication totaled 517,696 car and

November goals are a record
In

ment, and for working capital.
The shares being offered
are

add

going to give the
capacity. It is

at

another ton of steel out of
existing facilities by any building-on or stretching-out you can

squeeze

share of

17.1%

29.1%, with 50.9%

was

the United States compared with 508,466*

proceeds for the offering for con¬
struction, research and develop¬

T.

the

of

nub

stock

share.

per

the next 25 years.

The

bite

Co.'s

United States
461,337 and 87,578 in September.

Inc.,

Resources,

non-cumulative

trates

•

replace old capacity and to
build new then, the industry must

the corporation
industry^c^ ^output.

week ago, "Ward's" stated. However,

completions

offered 500,000 shares

Metallurgical

6%

dustry.
To

a

Motor

Industry

Corp. Remaining producers, just emerging
changeover, garnered 2.9%.

Metallurgical

month

to

a

5

garnered a substantial

Ford

A group headed by M. S. Ger¬
ber, Inc., of New York City, earlier

quarter century hence, and
you
see
the fantastic financing
problem which confronts the in¬
only

still

The

has

the matter present a

l'

•

The State of Trade and

en¬

Resources at $2 a Sh.

this situation

industry recognizes
and is meeting it.

Thursday, November 10,1955

Motors

mon

that

working

American

scheduling

of the '40s will be the young mar¬

family formations, the cycle starts
all over again.

...

t

of

Gerber Sells Gonv.

preferred

legion.

our

'

"

•

Continued from page

terprise system.

ing a modern, new high-speed
turnpike than it began laying out
a route for a second.
Illinois and

add one more furnace at
the end of a string you presently
have. Our Buffalo plant, for ex¬
or

finished build¬

sooner

no

Americans

of

'

"

'

and

hundreds

of

together under

people want new automo¬
biles, and many who have one
want two.
My own home State
of Ohio

investment

thousands

More

tions.

big,

the

dustry built on the labor,
initiative,
the
imagination

9

Continued from page

ing

Financial Chronicle

The Commercial and

(1998X3

B4

Glass

Pool

Co.,

Business Failures Advanced
Commercial

Paddock

and

Mildly In Latest Week

industrial failures rose to. 237

230 in the preceding

Chemical Co. and Paddock Pools,
Inc. These companies were affili¬

ended Nov.

ated

in the week

week, according to Dun

exceeded the 1954 level.

with

common

October
pany

the

share

company
*■

through

ownership

of

until

1955, when the com¬
acquired all of the outstand¬

ing stock of the affiliates.

&

3 from

Bradstreet, Inc." For the fourth consecutive week, failures have
They compared with 204 a year ago and

remained 25% below
1939.
Failures with liabilities of $5,000 or more edged up to 207
from 199 last week and were considerably more numerous than a

207 in

1953.

Desnite this increase, the toll

the 318 recorded in the similar week of prewar

Volume 182

Number 5480v.-. The Commercial and
Financial Chronicle

35

(1999)
year

ago when 176 occurred. There was a
dip among small fail¬
under $5,000, to 30 from 31 in the
previous
week, however, they exceeded
slightly the 28 in 1954. Sixteen of
the businesses
failing had liabilities in excess of $100,000 as

1955, rose 7% above that of the like
period of last year. In the
preceding week, Oct. 22, 1955, an increase of 4% was
recorded.
the four weeks
ending Oct. 29, 1955, an increase of 3% oc¬

ures, with liabilities

against

12'a ?veek ago.

v

».

'

-

Wholesale Food Price

'

\

•

Index

curred.

:

Extended

For the

recorded

Its

ground

that they might have an
adverse effect upon the traffic of
some other form of
transportation.

For

rise

a

period Jan.
of

2%

1955

1,

from

to

that of

Oct.

29,

1955, the

the corresponding

1954.

Downward

index

This

period of

Course the Past Week
The

general

Bradstreet
course

food

wholesale

for

the

price
food

that

as measured
by the Dun &
index, continued its downward

fifth

successive week.
The index dropped from
$6.05 to $6.02 on Nov. 1, cto set a new
low since the pre-Korea
week of June
20, 1950, when it stood at $5.96. The current number
at $6.02 reflects a decline
of;10;7% from $6.74 on the correspond¬
ing date a year ago.

Higher in wholesale
cheese, raisins, currants,

cost

raw

level.

were

hogs.

coffee,

wheat,

Lower

cocoa,

in

price

find

represents

the

for

total of the price per
pound
foodstuffs and meats in general use and its
chief func¬
show the general trend of food
prices at the wholesale
sum

Dun &

daily wholesale commodity price index,
Bradstreet, Inc., moved irregularly within a

last week

and

closed

at

274.77

Nov.

on

1.

This

compiled
narrow

was

range

slightly

up

from

by

274.37 a week
earlier, and compared with 277.00 on the
corresponding date last year.
Leading grain markets strengthened
perceptibly the past

week

following recent declines;

Corn was irregular but
prices trended higher under buying
stimulated by reports from
Washington that the sale of Govern¬

ment

corn

would

be

A large run of
in cash markets for

temporarily halted during the harvest

new

run.

corn

early in the week unsettled prices
Wheat was steady to firmer influ¬
enced largely
by improved mill demand, with some support based
few days.

a

on

export sales to Formosa and the belief
Yugoslavia would be in
the market for large
quantities of the bread grain in the immedi¬
ate future.
Oats prices were quite

steady with country offerings
light and market receipts
exceptionally smalL- Trading in grain
and soybean futures on the
Chicago Board of Trade increased
slightly with daily average sales totalling
48,900,000 bushels for

the week, against

47,200,000 last week, and 52,300,000 a year
ago.
Reflecting the firmer tone in wheat, leading flour millers
advanced, their'prices for Spring and Winter wheat flours
slightly
but most-bakers and jobbers showed
little interest inasmuch as
they are covered for some time ahead.
Shipping directions on most
flours continued at a
satisfactory rate. Cocoa prices fluctuated in
a narrow
range in dull trading, reflecting
heavy stocks afloat for

the United States, and
house stocks of cocoa

unchanged from
year.

a

an

absence of manufacturer demand.

were

reported

at

238,329

Ware¬

bags, practically

week ago, and
comparing with 92,936 bags last

that

Spot coffee prices

will

concessions in

Weakness
creased

roasted

prices

new

were

announcement

Aided

influenced

was

offerings of

Lard

of

slack

crop coffee

roaster

from

demand

producing countries.

Government

showed

some recovery from the
13-year lows established last week.
Cotton prices the past week continued
the moderate advance
of the previous period.

Strengthening

factors

included

mill

price-fixing

and

short

covering influenced by the steady drop in the certified
stock, the
heavy movement of the staple into the Government
loan, and the

firmer tone noted in
The volume

some

print cloth constructions.

of sales reported

in the 14 markets increased

337,300 bales, from 284,100 in the previous week and were the
largest fcr any week this season. CCC loan entries for the week
ended Cct. 21 totalled 337,500
bales, bringing the total for the sea¬
son through that data to
1,106.200 bales. Cotton ginnings to mid-

slightly

were

more

than

half of

this

season's

crop.

j

Trade Volume

Registered Moderate Gains the Past Week

Retailers reported

a

moderate increase in

purchas¬

ing last week, with principal gains in Winter merchandise. The
level of retail trade was
moderately above that of the similar
period last

year.

Although volume in 1955 models
automobile dealers anticipate
duction of the 1S56 models.

Increased

consumer

an

upsurge

a

interest

was

volume

Wednesday of last week

of

retail

high level,

in sales with the intro¬

reported in toys and juvenile

was

3 to

trade

in

the

period ended
7% higher than a year ago,

cording to estimates by Dun & Bradstreet, Inc.

varied from the comparable

on

ac¬

Regional estimates

New

Wholesale orders expanded
slightly curing the week as retail¬
ers sought to increase
their stocks in preparation for Christmas
sales promotions. The total dollar volume was

slightly above the

comparable 1954 week.

Department store sales
the

Federal

Reserve

on

Board's

a

country-wide basis

index

for

the

week

ended Oct.

29,
1955, remained unchanged from that of the
preceding week, Oct.
22, 1955. at 8%. For .the four weeks ended Oct.
29, 1955, an in¬
crease of 7% was
reported. For the period Jan. 1, 1955 to Oct.
29,
1955; a gain of 7% was registered above that of 1954.
Retail trade volume in New York
City the past week declined

sharply following a good showing
pared with the like week a year
Inclement weather and
for the drop in sales.

Acccroing to

a

in

the

ago,

previous

losses

later Election Day

period.

ranged

were

up

given

to

Com¬

10%.

as reasons

t,ne Federal Reserve Board's
index, department
store sales in New York
City for the weekly period ended Oct. 29,




part,

a

out

come

its

to

costs

own

being required

to main¬

tain rates for the protection of
traffic
of
some
other
form

year

of

the
of

transportation.

the net income of the railroads.

The

*

railroad

roads

cation of such

In

a

year, approxi¬

mately,

averaged

$660,090,000,

of
required to
improvement

nearly half

be

was

making the total capital
expenditures to be anticipated for

help meet capital
outlays. In the next

the next five years
average about

the demand for capital funds from
this source v/ill be about
$140,-

$l,200,000f000—as
Where

is

minimum.

a

the

to

money

000,000

come

a year

five

ities,

between

which

years,

rule there would

a

movements of commod¬

many

other

many

forms

of

points,
transport

would be able to handle. But the
railroads believe, also, that there
is much traffic which they could

heavier than in the
To meet such an

from?

past

Again, the first recourse will
be to depreciation and retirement

increase, the railroads will

shippers

an

their cost

charges.

Failing to earn such an increase,
the minimum capital improvement

These

charges

now

are

running at the rate of about $555,000,000 a year and may be expect¬
ed

to average some

$570,000,000

for the next five

year

shall have

we

to

turn

return

ly

equipment
obligations - outstanding-AVill approximate $2,525,payments

of about
That amount is now

in

$350,000,000.

is
late

as

three

ov£r

equipment

as

were

1945.

as

obligations

sales

and

contracts

business

are

chase of

an

in

as

conditional

the

railroad

automobile

or

pur¬

plan—simply

paying for the article
by instalments which will be com¬
pleted

within

the article.

to

the

he

life

ex¬

5%.

as

should

And

larger scale of improvements
Which .would give you—and. the
.

nation—the

benefit

the

of

least 6%.

modest

a

That would

super

to be

seem

enough figure

let's

but

leave that out of consideration for

while

think

and

rate

of

funds

return
to

of

program

about

which

the

5%

would

pro¬

carry forward the
improvements out¬

lined that all agree is necessary.
reach

To

of

such

rate

a

of return

a

costs, both

now

half

mean

top of the two and
the

industry

now

the

in

small

carriers

1955

1954

went

increased

volume

previous

down

25%.

down—$100,000,000
of the next five

year

years.

of

funds

working

capital

stood

$869,000,000. This

what

the

it

was

but still

at

end

of

year

half

1945,

could

for productive

improvement
five

than

it is likely that as much

$50,000,000 "a

as

during

next

years.

Now

add

up

a

little,

as

follows:
of

Funds

Depreciation
tirement

and

Annual

Greater Freedom

Total volume

to

bd

in

Rate Making

traffic

of

moving

in the United States has increased

the

since

"close

of

the

second

World War but railroads have not

debt__

capital

shared fully in the increase.
is

one

In

short,

different

forms

each

way,

better

a

reason

the

why

That

railroads

to

do

cost.

the

do

best

work

and

Under

50,000,000
$720,000,000

conditions,

the carriers would benefit by redof an increased volume of the

kinds

of

traffic

Turning
the

which

is best fitted

again

railroad

each

soecifically

situation—the

roads believe

of

handle.

to

that the

to

rail¬

nearly $11

billion

which they have spent for«
improved-' plant
and
facilities
during the 10 years just past has
been well spent.
But they know
that thev need to spend more—at
least $1,200,000,000 more, on the
average, in each of the next five
years. They know that to do this
they must have increased earn¬
ings. They know that to realize
such added earnings there must
not only be rates related to pres¬
ent-day costs but also a bieh vol¬

of traffic, with the efficiency
arises from handling such

ume

which

a sustained high
traffic, they know they

To have

volume of
must meet

competition in service

and in rates. And that's

why they

principal recommendation of

the

are

strongly for the

principle

interested

keenly

Advisory Committee

on

Transport

President

Eisenhower

Committee

will

last

year.

recommended,

recall, that each of the

so

the

of

Cabinet

ommendation

the

of

market

judgment

of

Committee's

that

the

those

whom

transportation be

should

"determine

freedom to make

ate

of each form

its

rates

such

competitively,

and

that

competitive rates should not

disallowed

Commerce

by

the

Commission

Interstate
on

the

use

is

shippers

various types of

rec¬

judgment

place—that
you

allowed greater

100,000,000

it

lowest

the

so

you

$570,000,000

which

the

at

such

in

are

be

Total

chance
can

real

traffic.

That

re¬

charges

equip.

Grand

well

as

is

it

hauled.

Withdrawals from

working

which

at

exolains

concerned with

are

Amt.

Increase in outstand¬

ing

the rates

as

fact, which

Policy and Organization set up by

let's

Source

25%—a

be

capital

the

the

over

an

on

June 30, 1955, at
is only a little

more

and

would

be the working capital of the rail¬
roads themselves. The amount of

In

estimated 9%
or 10% but it is expected that net
income will gain by between 20%
by

year

the volume of their traffic

source

the

In that
carrier
gets

of

them

1960 approximately four
was 15 years before.

each

other

some

likewise.

do

between
carriage.

example,

debt

But let's put it

because

transportation might not
to

son

why railroads

net

ing

changes in volume upon revenues,
and the still greater effect upon
net income, is truly striking. For

That would

billion

advan¬

the railroads believe that the way
to better transportation is through
freer
competition in rate mak¬

pay¬

equip¬
averaging $100,000,000
for the next five years,

third

of

make

relatively

,even

has outstanding. It is a big amount
and would make the equipment

by

benefits

able

to

of the

of

below 1953 but the net income of

a

whatever

be

such

be

fect

in¬

debt

on

of transpor¬

user

consuming public

of

form

look

one

must

the volume of
traffic declined by less than 10%

$500,000,000

that the railroads—

done, no form of trans¬
should be required to
refrain from giving the public any

with

so

and

railroads,
with the excellent history of re¬
payment
of
equipment
obliga¬
tions, I am assuming that a still

year

shall

funds

expects

could be made.

of

portation

the

years,

case

method
persons

tages of cost and of service they
possess. And to insure
that this

in the future, but they must
also have volume traffic. The ef¬

obligation
of

any

tracks,

on

the

and

benefit

type

In the

ment

the

about five years to
15

cars

means

tation

of

of

and

right to give the

the railroads must, of course, have
cover

seek

preferential

railroad

goods

of

This

the

railroads of the future, the rate of
.return on investment should be at

not

any

their competitors.

and every other form of transpor¬
tation as well—should have the

be

finance

to

in the

trains

rates which

source

which
ment.

useful

investment

do

or
over

in
just as
every other form of transportation
uses
its particular inherent ad¬
vantages, whatever they might be.

avail¬

Equipment maturities

range from

maximum

the

the

the

of

reflectipg

They do seek, however, the right
to
use
the
cost
advantages in¬

of

which

on

much

as

advantage

herent

a

of

the

approximate¬

insure

rates

regulatory restrictions.

treatment

the rate

satisfaction

at

railroads

hauling

To

vide

house

a

cars

outlined, and for other

return

a

analogous to the

the instalment

on

matter

times

obligations
Equipment

The

undoubtedly
will have to be made, the rate of

half billion out¬

a

in¬

averaged

penditures

$35,-

miq<j that the total

two and

over

II

of

cause

years

since

years

and

advantages where such
advantages exist, which they are
now permitted to
handle be¬

investment of the rail¬

on

3.68%.

have

000,000 of the total annual depre¬
ciation
charges
on
equipment.
Prime investment through
equip¬
ment
trust
obligations are, we
bear

10

the

to

not

ability of funds for the capital
improvement
program
which
I

instalment

within

the

has

roads

of

annual

five

next

of World War

an

increase in equipment obligations.
By the end of 1955, the amount

000,000, with

the

for

During
end

to

handle

need
increase of 21% in net income.

—will have to be reduced.

that is less than half enough to
cover
minimum expenditures.
So

years.

program

Even

years.

10

—including the program for
creasing the supply of freight

a

so,

withdrawn
taken from

as

greater

to

related

should

form

feet, and make

own

which

A

1954 levels by the following
percent¬
England, East, and Northwest +2 to -f 6; South and
Southwest +3 to +7; Middle West and Pacific
Coast +4 to +8%.
ages;

rates

without

the

needed will

have

its

on

of

average

The

by far, of the $480,000,000

a

for

motive

on

the

years.

transportation

stand

pos¬

contri¬

greater

any

than

10

by

Some of
miscellaneous 1 each

they do not offer

for

persons,
communities. But

other $110,000,000

more

dollar

found

times what it

furniture.
The

sustained at

was

be

but

or

between

or

subject to these provisos, the rec¬
ommendation of the Committee is
to the effect that in rate making

annual

short

a year.

from

come

bution

past

for
—

^discriminations
as

commodities

meet¬

the 10 years 1946 through
1955, net income of Class I rail¬

per
consumer

$200,000,000

to

$480,000,000

can

sibilities

less

needs

of

further sizable increase in

indicated

subject to the Commis¬
authority to pre¬

undue

Passenger train cars and other
rolling stock will call for still an¬

curring the
to

cut-throat

no

industry believes
in such a principle. The
industry
well knows that under the appli¬

trust

pork

be

short

expenditures

sources

power.

standing
in¬

and

mostly steady to firm, buoyed by the recent

the

have

expenditures

much

by

will

years

new

purchasing program.
by smaller-thsn-expected market receipts, live
hog values

October

capital

of

easier last week arid resulted in
coffees at the wholesale level.

were

five

minimum of

a

must

.

it

is

minimum

some

for

they have been for the past
but just the same it appears

10,

Wholesale

The

about

purposes

requirements

than

year

Commodity Price Index Holding to a Narrow
Trend Closed the Week
Slightly Higher

ing

capital

a year.

Locomotive
next

But that still

years,

such

$365,000,000
the

be

preferences

but at the
present level of higner
average
costs, the railroads will have to

and

be

can

sion's continued
vent

ing the past 10

were

steers

eggs,

there

shall

.'Wil

oats,

corn,

rate

in

freedom

below-cost rates, and that all rates

i?«i;-sssviW

V

index

tion is to

week

and

milk,

r

The
of 31

last

prunes

barley, hams, butter,

rye,

lambs.

Continued from page 11

level,

price

greater

making is to be safeguarded, you
will also recall, by requirements

the

and

represent—

you

the

appropri¬

of transpor¬

tation."

That,

the

lieve, is the

portation.

railroads
way

firmly

be¬

to better trans¬

Commercial and Financial Chronicle V

^

,(2000) ],

36

Investors Mutual

Group Dividends

\'r'

directors of Group

The board of

distributions totaling
$5,000,000 and dividends
of

income

net

from

By ROBERT R. RICH

of the close

Assets of the fund as

$96,-

totaled

2

Nov.

business

of

622,152.

payments bring the total

These

gains distributions since
over

steel

industry

500,000 and total dividends

from

to

than $42,500,000.

to more

the first half of

in

Investing for a
~j
Relatively High Income I

Series

$250,000,000.
Dacey, who has just returned

Mr.

I
I
I

j

j

j

Itinuance with regard to theother
risk
involved. Prospectus and

I

j

I

information

obtained

I

|

from your investment dealer or:
National Securities &

J

I
j

Corporation

120

j

New York 5, New

Broadway,

York^J

of

record

"The

|

I

Established 1930

of

fund

output to

116

about

Mr. Dacey said.

production

million tons, Mr.

industry's

steel

steel

1955

own.

and

modernization pro¬

investors

its

v,.lH »
securmes

utual

fund

olio

of

,.ed

for

l>°ss'ble.

ierm GROWTH of
wd income.

total

91st

I

1

electrical manufacturing and pub¬

utility stocks.
Substantial
changes were made in the petro¬
for the
1955, reported net assets at the leum list, with the Fund placing
close of the period, totaling $306,- .increased emphasis on shares of
808,534, the largest for any pre¬ companies having important pro¬
duction
or
marketing * facilities
vious reporting date in its history.
These

assets

belonged

to

lic

Shareholders

ime

close

was

INCOME
taUahle «Uho»l
large an

princpal*

10 cents per

the close of the

at

ter.

share

increased

when

previous quar¬

However, net asset value

$1.76

by

in

for

the

first

Dec.

the

each

available

from

fund

is

your

investment

dealer.

The Parker Corporation

of 1955, including the
quarterly income payment of 12V2
cents on Sept.
15, totaled 35%
cents per share as compared with
34 V2 cents for the same period of

about 30

months

200

Significant

Berkeley Street

Fund's

Boston, Mass.

third

revisions

investments

quarter

in

included

days thereafter.

The following
status

Inc.,

on

with

a

the
increases

in

holdings of automotive, hotel,
metals, and steel companies, and

table reflects the

Fundamental

of

Investors,

Sept. 30, 1955, compared
report
period of nine

previous:

the

during

Payment

of such distributions will be made

1954.

on

prospectus

Sept. 30, '55
Total
Net

net
asset

$256,249,343

20,117,341

$13.49
18,993,145

65,936

57,198

$15.25
_

Shareholders

next
our

Presi¬

iMI

is

mutual

a

mon

investment
a

be bas¬

to

appears

economy

excellent

prospects."

A

Changes

to

shares

Development Mu¬

Atomic

The

Fund

tual

increased

sharply

manufacturer

and

its

holdings in lithium, thorium, and
zirconium in the quarter ending

At the same
time, it added a mining company
which
is expected to receive a
premium contract from the Cana¬
dian
Government
for
uranium

by 4,-

processor, were increased
600
shares to a total of
shares.

of fusion power.

30,

Sept.

on

1955.

31,200

Jr., President
expects both uranium
and thorium to become valuable
nuclear fuels, with thorium hav¬
ing particular value in reactors
concentrates.
The Fund's new portfolio also operating in the thermal neutron
He also predicted in a
shows the addition of 5,000 shares range.
address
that
companies
of Strategic Materials Corporation recent
which
were
purchased directly having know-how in the fission
from
the
company
at $10 per field would lead in the application
This

corporation
and

uranium
the

developing

is

thorium

Bancroft

properties
of Western

area

Ontario and has a new process

for

producing ferro manganese.
new

uranium

Blind

River

and

were

company

of

Other

Fund's

compa¬
assets, com¬

to 8.8% on June 30. The
Fund's holdings of Lithium Corp.
of America were increased by 11,-

pared

Fund, Inc.

to

additions

new

month period

were:

a

as

Corpora¬

producing

shares),

(7,800

uranium

International

Chemical

and

Minerals

of its
mill. Ferro

by-product

Bartow, Fla., phosphate

Corporation ($85,000 convertible
debentures),'holder of a substan¬
tial interest in Horizons Titanium

active

in

titanium,

and zirconium. PerkinElmer Corporation (1,500 shares),
manufacturer
of optical
equip¬
thorium,

ment

and

ments.

ot'^er scientific instru¬

(9,200

Inc.

struments,
West

Radiation

Precision

instrument

Coast

CALVIN

Diversified Growth Stock

x^noy7

Affiliated
Fund

Fund, Inc.

A Common Stock Investment

BULLOCK

•re
■«

Established 1894
ONE WALL STREET, NEW YORK 5

Prospectuses available
these

Name

Addtw




mutual

local

investment

funds

on

through

firms,

or:

hugh w. long and company

Prospectus
t

incorporated

Elizabeth

3,

New

Jersey

*

upon

request

1

Lord, Abbett & Co.
New York

—

Chicago

—

Fund

objectives of this Fund
long-term
capital and
incom*
growth for its shareholders.

Investment

Atlanta

—

Los Angeles

In¬

shares),
manufac-

stocks selected for their investment

vs mirf-v/

the

portfolio during the three-

Company,

area.

zirconium

10.6%

Newton I. Steers,

of the Fund,

tion

com¬

quality and income possibilities.
Send for a free copy of the booklet-pros¬
pectus by mailing this advertisement to

6f

brought
this stock to 31,—
200 shares.
Holdings of Lindsay
Chemical Co., a major thorium
hafnium,

and

zirconium

Fund holdings in

Sept. 30, the portfolio also
shows that holdings | in lithium,

.t'j

37,400

of

total

a

1,900-share increase in Foote
Co.,
a
major lithium

producer

In Portfolio

On

s

Manhattan Bond

fund offering

diversified list of

well into
longer-term

it

the

For

momentum

of

carry

Minerals

the

Diversified Investment Fund, Inc.
•

to

ically sound and to have

Lists

nies

iesjl

and

improve

indication

vear.

500

thorium,

x^menv/

business
gives

near-term,

to

sufficient

portfolio is
a
10,000-share block of Can-Met
Explorations, Ltd., which is de¬
veloping promising properties in

Fundamental Investors, Inc.

the

viewing

shares.

The

m\

the

"For

continues

Atomic Fund

in

value

share
Shares outstdg.
per

Ameri¬

outlook, it is stated:

Services, Inc., stated:

Dec. 31, '54

assets_$306,808,534

opti¬

be

to

In

industry.

can

Diversified

Investors

continues

mistic about the future of

investment man¬

Fitzsimmons,

M.
of

report indicates that man¬

The

strong
of

in the port¬

stocks held

folio.

holding in the Fund's

investment in

represented 23.26% of the

share.

of record the same date.

three

quarters
A

available, on or about the
Fund's fiscal year,
31, payable to shareholders

last day of the

per

nine months since Dec. 31, 1954.

Dividends

capital gain distributions,

declare

share lower than

investment holdings

Mutual's

power

policy

paying capital gain distributions
as permitted by present tax regu¬
lations.
Hereafter, the Fund will

of

quarter, the Fund's net asset
value per share of $15.25 on Sept. 30

fund whose
objective is to re-

of

the

toward

the

ual

risk

prices

advised that

altering the time of declaring and

Reflecting the decline in secu¬

Fund

against 63%

in additional shares

review

dent

half

1955, was $199,488,834.
Investments in petroleum and
in
communications,
light
and

amounting to 32 cents per

States.

were

the Fund is adopting a new

record number.

rities

the United

outside

the

Fund's 65,936 shareholders, a new

jrpornted

excess

per

Joseph

was

first

lower

for

agement operations and progress,

to
shareholders
operations of the Fund
quarter ended Sept. 30,
report

covering

Islablished 1925.,

the

in

common

higher than 60%
of the year but
in the second half.
The
of market value over cost

stocks

mon

of the fund.

Million

in

The ratio for com¬

ferred stocks.

shareholders

income

shareholders

reductions in holdings of airlines,

a

ratio of

in bonds and pre¬

agement

Inc., in

as

year

the

in

60%

share,
compared
with 20%
cents per
try's cash requirements will be generated from retained earnings
share distributed at the 1954 fiscal
and non-cash charges to income for items such as depreciation,
year-end. Above 65% of all divi¬
depletion and accelerated amortization."
dends
paid were reinvested by

Fundamental Investors,

the

approximately

common

At New Peak of $306

stocks held

stocks and 40%

cents per share

In

for
made

were

share paid last year.
There was a considerably larger
distribution
of
security profits,

Fundamental Investor Assets

corporated

whole

payments from in¬
amounted
to

Dividend

65%

market

the

at Sept. 30,

vestment

cents

in

common

Investments

to

46,639,334.

which will result in substantially larger

of the

by the fund, the report discloses.

of In¬

180,000

from

proportion1 rep¬

increases

resents

the current

at
of

number

The
grew

On.'Sept.
SepU 30,

on

:

increased

The

value

ago

year

a

per

64.66%

1955.

to 207,000
marking an
increase of 27,000
during the year. The number of
shares
outstanding increased in
will hit an all-time
the same period by 5,965,459 to

Dacey concluded:

expansion

share
$18.15 per share
fiscal year-end.
$16.28

the-'fund

of

61.28%

from

year

1954, to

30,

Mutual, Inc. climbed from

vestors

value

market

past

portfolio.

Net asset value of shares

capital expenditures
in 1956 than are being recorded in 1955, will give added internal
impetus to the demand for steel products during the coming months.
While some public financing may develop to provide a portion of
the funds needed for this program, a large percentage of the indus¬
gram,

of

valuations

ket

-

represented by common stock in¬
vestments
increased
during'nthei1

from

held in the fund's

V-

-

points out that the

review

total

shares in the
higher mar¬
the securities

additional

increase of approximately
sales for the previous

year."

The

from

came

we

of record success.
to $106,360,-

year

amounted

over

fiscal

company's

58%

and 42%

be heard in coming

increase in prices will

an

that

estimating

In

|

Research

about

sales

months.

weekly peaks" during the next few

half of the coming year,

I reasonable expectance of its conbe

new

steel

is expected to push steel

industries"

consuming

;

j relatively high current yield and

may

major

an

24%

this increase,

Of

report.

demand from

from a visit to principal

that "an almost insatiable

of the nation, said

centers

annual

the

in

shareholders

approximately

that finished steel quota¬
tions will command higher levels by the middle of 1956 at the latest."
Meanwhile, "an exceptionally good level of profits" for the
large integrated units of the industry and "some further selective
gains in dividend payments may be anticipated" 'during the first

j

objective of which is to provide an
investment in a diversified group
of bonds, preferred and common
stocks selected because of their
mutual fund, the primary

Securities & Research

and sponsors the National
Investment Funds with assets of

weeks,'" he added, "and it seems likely

National Dividend

a

expected for the

manages

Mutual

of

Series

Securities

"More talk

|

through

corporation

The

"some

J"

000,

by Investors Diver¬
Services, Inc., rose from
$662,055,980
to
$846,644,515, an
increase
of
$184,588,535 during
the fiscal year ended
Sept. 30,
1955, Harold K. Bradford, Presi¬
dent
of
the fund,
informed its

sales

sified

1956, according to W. J. Dacey,

policy committee of National

of the

member

$17,-

inception

Group's

income

production peaks and higher prices can be

New

a

Net

Mutual1,

Investor^

have had

sponsored

funds

investment

of

of the

distributor

national

shares

and managed

Steel to Lead Continued Boom

Corporation.

of capital

tual

than

more

"As

Investors

of

assets

net

Mutual, Inc., largest of four mu¬

$1,000,000, both payable Nov. 18
to shareholders of record Nov. 3.

I

Total

gains

about

Up $184 Million
Quarter; Now $846 Million

in

Mutual Funds

capi¬

Securities, Inc., has declared
tal

Thursday, November 10,1955

..

.

Volume 182

*

Number 5480

' *.'r>

,

:

.

The Commercial and Financial Chronicle

.

37

(2001)
turer.

*Robertshaw-Fulton
Con¬
Company
(3,000
shares),

trols

manufacturer of instruments

Another Field

Nation-Wide

For Electronics

300

Review States

(1,-

shares); studying the feasibil¬

ity of;a nuclear

At New

power reactor for

The

Philippines subsidiary. National
Research Corporation (5,000

a

potential use of instru¬
by American industry for

ments

High

Total net assets of Nation-Wide

Securities

Company,

Inc.,

bal¬

a

anced

mutual

Calvin

Bullock, amounted to $25,-

fund

managed

by

shares), manufactures™equipment control and testing purposes has 565,594 on Sept. 30, 1955, a new
for atomic
industry and provides been overlooked to a large degree high. This compares with $22,because of attention devoted to 055,715 a year earlier.
consulting engineering service." 1

publication
Ltd., and Dyno monthly
Up,"
published
by
ura¬

Mines,.''Ltd., both
nium
lack

Shares

concentrates.

the

w

sale

of

their

Other

realize the extent of

we

industrial

productive

facili¬

portfolio "deletions included: Ken- ties of the United States," the re¬
necott - Copper
Company, Katanga view says, "the only conclusion
Copper Company, Dow Chemical to be reached is that instrumen¬

Company,
Blockson
Chemical tation has a very long way to go
Company and Tennessee Corpora¬ and that product volume should
tion.

-

•

*

continue

.

:

High Casualties

r

to

face of

-

moderate decline in the

a

economy."
The

In Nuclear Field

increase

in

even

the

,

also

analysis

that

the

own

finished

however,

says,

steelmaker

"views

product

with

his
such

F.

high rate of technical

a

ob¬

solescence accompanied
by an in¬
dustrial casualty list.
The

mutual

fund

netic

executive

fields

last, forecast

trol

high rate of obso¬

a

because

and

reaching

far

of

the

rapidity

nature

of

the

changes that impend in industry.
In nuclear
fission, Mr. Bishop
continued, every branch of sci¬

and correspondingly
phase of industry, possesses

ence,

dimension

compounded

every
a new

of

un¬

precedented heat and radiation.
He pointed out that this new
dimension has created

completely

fields in chemical processing,

new

metallurgy, propulsion, plastics,
food preservation, and as a fuel
source and priceless precision in¬
strument.

Science

Nuclear

Fund

re¬

ported assets of $713,000 on Sept.
30, 1955, equal to $10.10 a share
on ' 70,633
shares outstanding as
compared

$111,000,
28, last,

with
or

$10

when

initial
a

the

of

assets

share

on

fund

April
began

business.
The

be

report

93%

shows

invested

the

fund

to

53.1%

with

in companies

assets

dustry

of

active in

the

development of nuclear science;
and 39.9% of assets in companies

a

of

of analyzing raw

means

well

as

as

component

con¬

method

of

of the

use

prism to split

the

quality

a

This

measure.

a

ability
light into

up

reached

$10,000,000 in net
asset value, according to the Sept.
30 quarterly report. This compares
with

Num¬
ber
of
shares
outstanding,
net
asset value per share and number
a year

of shareholders

were

ago.

at new

highs.

parts.

In his announcement of the

When

photographic

plate.

"A

relatively new, non-destruc¬
tive technique—magnetic testing
—trains its sights on a piece of
metal to

whether there is any
there which has disrupted

defect

the

see

induced

fine

very

field,
into

magnetic

particles

Investment

Company seeking

long-term CAPITAL GROWTH
and certain

TAX BENEFITS

If

will

defect, revealing

the
move

dark

a

held

appreciated by
the amount of

"Another

strument
which

the

relatively
the

is

proximately

uses

sound

audible

sound

through

the

wave

free

waves

steel

high

by

fre¬

directed

are

transmitter.

quartz

a

When

the

through dense metal,

passes

from

far above

of the .human

extremely

quency

crystal

waves

range

These

ear.

tester

cracks

and

by sales of stocks
high levels earlier in the year.

at

This realization
levels

profits

and

marked

increase

tion

from

to

Please send

me

prospectus

D

New

securities

investments

Fund

••

%

/

State




profits
report

the

in

shares last

for

October,

1954,

Distributors

the

of

tober

sales

reached

ascribed the

and

President, who

the

in

like

For-the

month

to

year*

vestments

fund's investments.

$25.09.

beginning of
1955. It was 19% higher than the
$22.14 reported on Sept. 30, 1954
with
the
adding back
of
last
December's
$1.18
distribution
from realized net gain on invest¬
ments.

fund

investment

stated j that

in

a

position

the

conservative

with

its

Mr.

and

T.

Rowe
total

$5,642,710

net
on

preferred

common

Price

growth

assets

stocks.

stock

increased

Sept. 30, 1955,

as

earlier. Net basset value per share
stood at $29.11 on Sept.
30,

gain

from $23.17

on

day

;

at

market

Oct.

of

last

date

year.

stated

October

Fund

assets

close

Managed Funds
Sept.

on

26

become

Welling¬

be

taken

indication

confidence

in

as

that

mutual

funds has not been affected by the
stock market action during recent
weeks.

On

the

contrary,

the

downs and ups of stock prices ap¬

Oct. 26

on

rise

of

to

mutual

total

in

Mr. Newell is

children, and is
School

of

The

Fund

Capital

in

special

proposal

a

number

million

four

meet¬

to

in¬

authorized

of

to

ten

at

6434

Warren

Uni¬

the

He resides

Ave.,

South,

-.

Edina, Minn.

!

.

Distributors

Group
Appoints Edward Dunn
Edward

R.

Dunn,
previouslymanager of the St.
Petersburg, Fla., office of Grimm
&
Co., investment' dealers, has
been appoint¬
mutual

fund

New

ed

Eng¬
Regional
C o-Manager

land

of Distributors

Group,

set

the

fund

of
of

Group Securi¬
ties, Inc.

first

executive

n c.,

mutual

funds

sales

new

and

I

sponsors

to

Mr.
was

re¬

Dunn

originally

native

of

ported here today that gross sales

a

Philadelphia.

shares

last

month

totaled

$1,-

Hp has had

119,955—largest for any October
17-year history and
173%

up

the

Edward R. Dunn

sales of $410,229 in
month last year.
Re¬
of shares, Mr. Nelson

same

said, amounted to $107,385, or only
10% of sales, as compared with
$165,977 in October, 1954 — a
decrease

sales

new

totaling $10,844,123

investment

ex-

in

field

including
many
years
with The Pennsyl¬
vania
Company for Banking &
Trusts, in Philadelphia. He also
served
as
Sales
Manager
for

total

in

that
He

at

city.

will make

50

his

headquarters

Congress Street in Boston,

where he will work in cooperation
A. R. Stembridge, Resident

with

record.

Delaware's

the

Kaiser Aluminum & Chemical Co.

of 35%::

Gross

a

extensive

perience

over

purchases

net

assets

on

October

31,
last,
amounted
to
$34,419,416, equal to $10.87 a share

Vice-President of Distributors

Group.

the 3,166,135 shares then out¬
standing
against $21,614,965
or
$9.57 a share
on
the
2,258,658

on

shares

•

*

.

,

outstanding

12
months
earlier, after adjustment for a re¬
cent

100%

stock distribution.

Axe-IIoughton Fund B total net

$48,999,276

were

or

$23.76

and

$28,094,082

or

$17.75

fight cancer

a

Monday,
Oct.
31,
according
to
preliminary figures made public
by the fund management.
This compares with $36,514,052
or $21.10 a share on Oct. 31,
1954,
on

million.

of

versity of Minnesota.

of

fund shares."

Shareholders of the $34 million
Fund

married, has four
graduate of the

the

of

mutual

distribu¬

a

Commerce

of

$38,549,088
$1,000,000
Oct. 10, the day

October

months

assets

approved

their

over

share at the end of the fiscal year

Delaware

in

were

well

to have done much to attract

investors

active

tion.

and

1955, according
W. Linton Nelson, President.

the

of

can

strong

"Investor

that

sales

shares

another

pear

work he became interested in the

respectively totaled $37,946,782 and $37,514,622. Total .net.

in¬

new

salesman^ in

as

Accounting Machines Division
of National Cash Register Com¬
pany, later becoming a territorymanager. Through his accounting,

10

to set

Wilkins

record
ton

spent eight years

.with

a

CHECK

share

a

Oct. 31, 1953.

The total net asset

The

by

action

record

was

sales

new

with

the

recent

tribution

of

which

of

ance

brought about
shares to old

shareholders,
100%

dis¬

in

Shareholders

also

voted

clause

cancel

to

to

quired

redemption, since

Internal
this

makes

no

ac¬

the

Code

Revenue

operation

de¬

requiring

shares

Delaware

by

of Paul A. Just

as

director of Hudson Fund, Inc.,
has been announced by James W.
a

charter

a

The election

au¬

thorized shares.

lete

Personal Progress

issu¬

fund's

the

figure repre¬
gain of 34.2% over 1954

a

coupled

stock

resulted

of

most

sents

and 74.4% over 1953.

longer

Maitland,
Executive
director

President.

Mr.

Vice-President
of

Television

Just

is

and

and

a

CHECKUP/

a

Shares

Management Corporation which
sponsors Hudson Fund and Tele¬
vision-Electronics Fund.

necessary.

siz¬

able
bond
and
preferred
stpck
holdings providing relative stabil¬
ity of asset values and income. He

bonds

the

Wellington shares in the first 10 months of 1955 ran
$56,723,198, an increase of 171% ahead of the
$4,000,275 for
nearly $6,000,000 over the first 10 the
corresponding period of 1954

|1954

Randolph
continues

10

Man¬

shares.

business

Net assets of all

in

and

was

in

totaled

larger part of the in¬

to appreciation in the value

the

1954.

peak

a

$6,566,415 compared with $4,902,-

from

a

$470,000,000

Wellington Fund, stated that Oc¬

197

of

26.

were

record

a

then

the

in the Fund's

shares

to

by

Oct.

on

rise

setback, the total came to 9,932,397 —111,944 more than on
Sept.

10

Wilkins, Vice-President of
the Wellington Company, National

cer¬

a

accountant,

the

after President Eisenhower's brief

Delaware

Walling-

month

the

outstanding

the close

At

Slayton,

drop

stem

Funds'

records

34%.

by Francis F. Randolph, Chairman
board

the

with

associated

public

of the second decline.

largest for October in the
history of the fund, topping sales

the

compared with $3,460,932 one year
Addreu

the

distribu¬

Wellington Sales
At
Monthly Peak

crease

Fund
140

aged

Mr.

market
to

from the

ing

stocks, and 50% in

Name

second

—a

Delaware

describing

Keystone Fund of Canada, Ltd.

high

for

the

in

year-end,"

$6,579,517 at September 30,
from $5,751,543 at the begin¬
ning of the year, it was reported

income

50 Congress Street, Boston 9, Mass.

and

states.

were

the

rise,

to

became

tified

fund

According to

substantial

accounted
net

at

cash

of

rise

gave

up

of

tribute

Wisconsin.

serving as an air force
pilot in World War II, Mr. Newell

investment business and particu¬
industry for
larly in mutual funds. This in¬
the "unshakable faith"
displayed
terest led him to the desire to
by fund shareholders during the
mutual

failed

built up

serves

Whitehall Fund, Inc. net assets

unchanged,
holdings
remained
roughly distributed 50% in fixed
Keystone Company

the

sharp market decline that
began on Sept. 26, "provided an
opportunity to reinvest cash re¬

in¬

new

ultrasonic

Slayton paid

entire

ap¬

months of 1954*

line.

added that, with investment policy

under Canadian Lavs

modified

net sales."

magnetic
into

them

of

many

the

field.

of

introduced

are

Mr.

fully managed Canadian

,

the

A. J.

This compares with $25.20 at June
30 and $22.80 at the

ofC anada? /Ltd.

City

with

Mr.

the

Per share asset value

eystoneXunu

the

stocks

ton

of

r

was

and

After

-

plan under which ther crisis.
•'
fund operates, substantial amounts:
At
the ' close
of
business
on
of
common
stock were sold on. "Black
Monday," shares outstand¬
balance during the latter half of
ing of all of Managed Funds' 11
the fiscal year. "Because of the mutual
fund
offerings
totalled
rise in market prices over
period," 9,820,453. One month later — on
the annual report
26 — the
notes, "the value Oct.
total
stood
at
of
the
balance
of
the common 10,007,965.

a

crease

The

line

over

$7,026,699

A

Sept. 30, 1954.

on

In

vaporized, it emits light
which the spectroscope breaks up
and
arranges in order of wave
length on a viewing screen or

is

metal

flaws, it
shows up on a cathode-ray tube
Wisconsin Fund, Inc., a mutual as a straight line; imperfections
fund managed in Milwaukee, has show up as jagged lines."
in the, related scientific fields.

$17.24

made

analysis makes

iiron
&

the

"Spectroscopic a n a 1 y s i s," it
adds, "has given the steel in¬
materials

lescence

inside

peer

heary steel.

his company's first annual
report
for its fiscal year ended
Sept.

30,

to

'

in

share

The

Bishop, President of a critical eye that, of recent years,
he had been furnished with
Science & Nuclear
sup¬
Fund, warned^
investors today that the
implica¬ plementary eyes"—electronic me¬
tions of nuclear science include chanical
ones
that
use
light,
not only tremendous
growth but sound, X-Rays, or invisible mag¬
Donald

value per

formula

Management Corp.

"When

asset

reported at $18.90 compared with

Television

Canadian

companies
which
price contracts for

mining
special

"Keeping

Net

kota

Managed
Funds,
Inc.
shares
outstanding increased by 187,512
during the month following the
market drop of Sept. 26, Hilton H.
Slayton,
Managed's
President,
made known yesterday.

T

the entertainment division of the
electronics field, according to the

Deleted from the
portfolio dur¬
ing the quarter were shares of
Chimo Gold Mines,

braska, North Dakota, South Da¬

Managed Funds
Unhurt
by Break

and

other control
equipment. General
Public Utilities Corporation

1955,
Sept. 30,

Hudson Fund, Inc.
sets

on

share,

equal

compared

$14.84

1954,

as¬

Sept. 30 last amounted to

$6,284,359,

or

total net

per

with $5,708,874,

share,

per

$16.17

to

on

Dec.

31,

James W. Maitland, Presi¬

dent, reported today in the fund's
nine-month

6.5%
8.7%

in
in

Wholesale Representa¬

apolis,

Minn.,

Harry

L.

Selected

is

Sebel,

announced

by

President

of

Investments

Company,

national underwriter and distrib¬

$47 million mutual fund.

in coihmon

Mr. Newell will be active in the

wholesale distribution of Selected

72.4%

preferred
U.

as

tive, with headquarters in Minne¬

in corporate bonds,

comprised

stocks, 12.4%

APPOINTMENT of John D.

utor of Selected American Shares,

statement.

The fund's portfolio on Sept. 30
last

THE

Newell

S.

stocks,

Treasury

cash and receivables.

and

Bonds,

American
tered

states

Shares

investment
of

through
dealers

Minnesota,

regis¬
in

Iowa,

the

Ne¬

give to

AMERICAN

CANCER

SOCIETY

I

38

(2002)

The Commercial and Financial Chronicle

The

Indications of Current
Business Activity

week
Latest

AMERICAN

IRON

Indicated

steel

AND

STEEL

operations

Equivalent to—
Steel ingots and castings
AMERICAN

PETROLEUM

oil

Crude

ana

INSTITUTE:

Week

(percent of capacity).

.Nov. 13

§98.3

.Nov. 13

§2,372,000

or

month available.

month ended

or

Previous

Month

Ago

output—dally

(bbls.

average

*2,400,000

2,330,000

1,874,0C

LUMINUM

(bbls.)

6,749.500

„Oct. 28

6.750 fiSO

.»

6 wo nnq

(in

117,476,000

7,477,000

7,462,000

(bbls.)

Oct. 28

27,075,000

2b,0d-*,vAiJ

2u,ltu,uJ J

(bbls.)

.Oct. 28

2,050,000

2,253,000

2,012,000

fuel

..Oct. 28

11,250,000

10,813,000

10,843,000

7,811,000

7,717,000

7,430,000

7,305,00(

151,607,000

151,536,000

151,266,000

149,789,00(

(bbls.)..

fuel oil

output (bbls.)
Oct. 28
Stocks at refineries, bulk terminals, In transit, In
pipe lines—
Kerosene

(bbls.)

Distillate

fuel

Residual

ASSOCIATION
Revenue

CIVIL

at

.Oct. 28

6,897,000

Totai

/

'

Oct. 28

36,436,000

36.844,000

36,413,000

151,566,000

46,754,000

835,396

834,499

820,312

736,23/

freight received from connections

of

:

ENGINEERING

CONSTRUCTION

of

cars)

)ct. 29

699,384

699,051

686,029

U.

lons

Benzol

$394,011,000

$295,207,000

$464,569,000

(U.

coal

278,458,000

177,470,000

330,197,000

Crude

165,775,006

115,553,000

117,737,000

134,372,000

96,869,000

S. BUREAU

OF

87,792,000

122,092,000

.101,345,000

2j,94o,0U0

UUO

2U,UZJ,UUC

1,950,000

*9,760,000

9,620,000

478,000

489,000

577,000

DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE
SYSTEM—1947-4!) AVERAGE = 100
Oct. 29

126

133

ELECTRIC

Electric

output

SERVE

FAILURES

IDISON

*

126

117

(COMMERCIAL

Nov.

5

,853,000

10,659,000

10,639,000

INDUSTRIAL)

—

DUN

9,357,000

&

BRADSTREET, INC
steel

Nov.

(per lb.)

3

PRICES

Electrolytic

(E.

*

237

230

207

(New York)

Lead

(St.

Zinc

5.174c

5.174c

$59.09
$44.50

$44.83

Louis)

(East St.

42.700c

*Jov.

42.700c

43.500c

43.300c

43.300c

44.025c

30.850c

96.625c

96.250c

96.500c

15.500c

15.500c

15.300c

15.300c

15.300c

13.000c

13.000c

13,000c

*

11.500c

96.11

95.96

107.80

107.62

107.62

111.25

111.07

41,956,772

109.60

112.37

107.44

107.62

110.52

Group

102.63

102.63

106.39

106.21

106.21

107.98

108.16

111.07

109.06

108.88

108.70

112.00

2.80

2.79

2.80

2.55

STEEL

8

3.29

(E.

&

M.

J.

Utilities

Industrials
MOODY'S

Group

Group

/

3-30

.

"

3.21

43.030c

44.052c

43.411c

44.339c

31.529c

15.500c

15.100c

14.965c

St.

Louis

(per

(per

pound)—

15.300c

14.940c

14.760c

ton)——____.1

£106.881

£107.568

£108.690

long tonk

long

£106.589

£107.293

£103.363

36.470c

(per

(per

pound)

refined, (per

—

St.

Orders received

(per

pound)

(per

3.04

97

3.30

3.14

3.59

3.45

Sterling

3.38

3.23

of

Unfilled orders

=

㤤New

3.06
411.4

Oct. 29

100

-

3.11

3.24

405.7

284,924

240,944

294,523

Oct. 29

activity
(tons) at end of period

AVERAGE

3.2.7

3.23

400.3

292,172

292,654

Oct. 29

102

102

102

Oct. 29

598,836

585,740

390,545

i_

Nov.

4

106.79

107.04

Bismuth
MOTOR

by dealers

106.22

Dollar

1,261,044

1,167,614

1,307,513

$65,732,153

$61,502,506

$74,950,287

$46,244,406

945,199

1,124,494

Round-lot sales by dealers—
Number of shares—Total sales

5,967

4,990

8,132

1,064,837

939,232

1,119,504

$50,456,939

$58,635,672

269,790

217,180

308,890

318,150

269~790

217,180

308,890

318"! 150

Oct. 15

sales

Oct. 15

dealers—

Number of shares

Oct. 15

TOTAL ROUND-LOT STOCK SALES ON THE
N.
EXCHANGE AND ROUND-LOT STOCK
FOR
Total

ACCOUNT

round-lot

OF

MEMBERS

Y.

_I_Oct!
OF

transactions initiated
Total purchases

the

purchases

1,413,680

1,369,890

15

1,638,500

1,636,530

454,440

299,370

390,220

338,620

19,700

24,200

sales

(1947-49

418,440

321,160

15

354,080

362,880

438,140

345,360

386,930

32,850

=

—

U.

S.

DEPT.

•

439,610

65,920

157,612

756,980

511,812

633,524

571,327

914,592

Processed

commodities other than

•

farm

and

foods—




326

-

.

-

i

■

f

27,861,000

27,332.000

25,698,000

28.887,000

16,727,000

14,408,000

109

107

103

$905,142,066

$781,663,490

669,747,436

74.36

73 99

77.70

$105,557,844

$74,154,255

103,764,555

109,723,193

80,248,865

80,000,000

93,000,000

59,000,000

$92,612,113
18,151,066

$106,033,549

$71,155,169

20,125,003

18,272,162

110,763,179

•

29,124,000

12,705,000

651,835,510

I

ROADS

1,26,168.552

89,427,331

(AS¬

RRs.)— Month

expenses

income

before

charges
(estimated)—...

charges
ITEMS

U.

OF

operating

S.

CLASS

Commission)—

1

._—

deduction

from

fi*ed

income..

(000's

1,968,880

457,102

—3,211,647

2,643,324

2.240,247

2,480,950

2,555,187

2,938,052

2,161,402

50,681,550
44.123,612

45,894,326

15,780,480

25,476,791

25,314.258

785,135

1,960.092

2,008,695

3.39

3.93

2.70

$1,227,400

$1,114,100

£59,200

776,600

$279,865,604

$277,523,832

$278,785,687

5,313,658

5,375,505

6,682,775

$274,551,946

OF

33,998,037

$272,148,327

$272,102,912

.

h—1

•_

3ii

charges

EXPORTS
CENSUS

omitted):

AND

.1

IMPORTS

Month

—

'

-

of

Sept.

1,858.632
UNITED

OF

3,255,939

88,103,499
44,312,745

21,150,309

•

Imports

2,956,364

,3.411.613

72,391,333
44,605,748

Exports

302,770

53,937,489

& equipment)

•

•

fixed

to

STATES

2,640,681

85,749,704

91,515,112

,

$1,274,000

income

BUREAU

314.940

122,792,212

:

appropriations:
stock '

of

2,376.724

3,677,627

107,220,581

charges...
;

preferred stock

Ratio

1

3,376,340

charges

common

UNITED

3,542,598

75,602,980

available for fixed

Dividend
On

607,387.793

I

income

(way & structure
income taxes—

313,040

<

•

v

STATES

GROSS

DEBT

DIRECT

AND

GUARANTEED—(000's omitted):
October

of

General

fund

31

balances
,

111.0

111.1

111.4

85.6

86.5

87.5

Nov.

98.8

98.9
77.4

80.9

Nov.

118.7

85.5

118.7

118.6

114.5

'Revised figure. ([Includes 811,000 barrels of
foreign crude r"ns.
1, 1955, as against Jan. 1, 1954 basis of
124,330,410 tons.
fNumber of orders not
reported since introduction of

Jan.

68,618

434

31,580,000

deductions

2,951,275

n'ov.

foods

300,998

95,119

July:

after

.Oct. 15

Nov.

products

369,942

620,610

$876,597,480

CLASS

income

Federal

585,412

77.1

Farm

.

income

Net

73,600

505,407

<

,

MINES)—
:

Depreciation

As
.

commodities

OF

income

Other

O11

295,231

67,230

100):

Commodity Group—

716463

91,894
223

AMERICAN

after

of

Income

29,700

566,294

Oct. 15

SERIES

'

revenues.

INCOME

railway

Income

392,580

.Oct. 15

NEW

$2.25

467,845

(Interstate Commerce

.Oct. 15
:

PRICES.

15

Oct. 15

:

Sept.:

,——

OF

Miscellaneous

199,470

15

-Oct. 15

60.000c

$2.25

FROM

„

income

Month

1,183,410

504,134

27.000c

$2.25

(barrels)

railway operating

RYS.

983,940

1,884,700

566,425

22.200C

32.500c

64.500c

—

(BUREAU

EARNINGS

SELECTED

1.190.650

Oct. 15

Short sales

of

266,640

floor—

Total round-lot transactions for
account of members—
Total purchases
j.
"

All

224,820

15

226,110
1,658.590

15

__24.400c

32.500c

;

mills

operating

Total

1,655.230

Oct. 15

sales

24.400C

—

MANU¬

(barrels)

operating
Operating ratio

11,022,170

Oct!
off the

,

sales

—

14,032,460

Oct

II

Short sales

LABOR

11,164,190

Oct!

Total sales

All

395,310

10,626,860

1,573,220

floor—

sales

WHOLESALE

569,710
13,462.750

Oct. 15

transactions initiated

Total

429,900

10,734,290

1,930,410

Oct
on

Total sales

Other

437,120
12,269,010

12,706,130

$35,000

$325,000

September:

Other

Short sales

Other

15

Oct. 15

—Oct!

Total sales

oi

92.055c

$35,000
$263,400

559,962

August:
from

Total

321,350

Net

oct

sales

Other

Total

of

of

Short sales

Other

499,110

MEM¬

SPECIALISTS:
specialists in stocks in which
registered—
Total purchases
;

Other

15

,85.245c

74.107

$35,000

vehicles

Net

Oct. 15

TRANSACTIONS
FOR
ACCOUNT
BERS, EXCEPT ODD-LOT DEALERS AND

Other

ASSN.—Month

Net

__Oct

ROUND-LOT

,

95.090c

Taxes

•

93.055C

64.500c

SALES

used

RAILROAD

sales—

sales

Transactions

Capacity

TRANSACTIONS
(SHARES):

Total sales

96.245c

—a

buses

SOCIATION

472,810

85.250c

$2.79747

-

$275,560

,

pounds)—

(at end of month—barrels)——„—

Total

479,500

.

79.483

$2.78583

$101,540,855

Stocks

STOCK

Short sales
Other

of

Production

$41,816,541

Short sales

by

76

FACTORY

CEMENT

Shipments

915,646

$57,896,498

Oct. 15

of

PORTLAND

923,778

10,181

15

Oct, 15

Dollar value

Other

price)

of

S.—AUTOMOTIVE

of

90.804c

79.958

i

S.

pound)

U.

number

"Month

1,075,018

Oct. 15

Oct!

$1.70000

964,681

Oct. 15

short sales
other sales

Round-lot purchases

IN

Number

Oct. 15

value

Odd-lot purchases by dealers (customers'
sales)—
Number of orders—Customers' total sales
Customers'

(per

FACTURERS'

(customers' purchases)—t

Customers'

U.

(per flask

Number of passenger cars
Number of
motor
trucks

Oct. 15

$2.60000

96.090c

min,_

ounce,

VEHICLE

Total

Number of shares.1

$1.70000

$2.66000

91.794c

;

PLANTS

107.15

$1.70000

$2.79205

;

.Aluminum, 99% plus ingot (per pound)
M'agnesium ingot (per pound)

96

591,291

$1.70000

$1.70000

$1.70000

;

(Check)

"Nickel

COMMISSION:

sales

99%

(per

Quicksilver

260,468

STOCK TRANSACTIONS FOR ODD-LOT
ACCOUNT OF ODDLOT DEALERS AND- SPECIALISTS
ON N.
Y. STOCK
EXCHANGE — SECURITIES EXCHANGE

Odd-lot

Exchange

York,

Gold

256,771

288,522

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1941)

3.28

3.22

£82.321

$1.70000

"

(tons)

Percentage

3.27

11.500c

£91.480

$1.70000

Tin, New York straits—

398.6

$79:800

£32.524

Silver

3.31

8

$92,780
12.928c
£31.886

$1.70000

f

3.38

8

$94,460

$2.60000

^

i____f.

—

29.000c

£90.696

pound)

Cobalt,

28.500c

£90.896

—

§Cadmium

31.970c

33.000c
33.500c

13.000c

—

(per long ton)
t+Zinc, London, three months(per long ton)
tCadmlum, refined (per pound)——

2.89

3.19

ASSOCIATION:

(tons)

Production

'

,

Louis.;

36.470c

33.000c

33.500c

Laredo.

ounce).

pound)—East

(per

•V

Laredo

3.59

3.19

Nov.

INDEX

PAPERBOARD

8

29.700c

,t

export

Zinc

<>3.13

Nov.

K

COMMODITY

NATIONAL

Nov.

;

—

.

265,388

refinery
refinery

3.30

Public

206,606*

*268,362.

domestic

3.37

8

*312,338

289,128

*

" *.

'

October:

339,461

;

QUOTATIONS)—

3.58
Nov.

•.

.

-

a

and
Sterling Exchange—
Silver, New York (per ounce)
Silver, London (pence per ounce).

3.18

Group

"

"

,

.

3.08

Railroad

50,744,173

CONSTRUC¬

September:

^Cadmium
Nov.

,

51,981,145

52,114,708

(AMERI-

ttZinc, London, prompt

YIELD DAILY AVERAGES:

U..S, Government Bonds
AverAge corporate

35,060,547

$616,891,000

;

31

(tonnage)—estimated
(tonnage)—estimated).:

Platinum

108.88

108.16

iov:

39,557,320
$661,284,000

of

closed

Antimony

105.00

lov.
j

OF

of

STEEL

((Antimony, New York Boxed
Antimony (per pound) bulk,

115.24

109.60

102.80

BOND

INSTITUTE

ttThree months, London

110.70

4ov.

Group

MOODY'S

consumers—

omitted)

customers—month

STRUCTURAL

ttPrompt, London

99.31,
'

107.62

,

ultimate

to

1000's

ultimate

Common, New York (per pound)—

r

95.99

-Jov.

112
118

Lead—

\

Nov.

*121
*123

Electrolytic

14.800c

111.62

Industrials

122

128

$690,352,000

Common,
:.

Group

:.

Electrolytic

15.000c

-

109.79

Utilities

Average=J00—

variations.

Average for month of
Copper (per pound)—

92.250c

15.500c

4ov.

Average corporate

Public

CAN

29.700c

.^ov.

at

MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government Bonds

RaJlroad

.

INSTITUTE:

Aug,

from

"Contracts

$33.33

Jov.

at

5,773,000

8,649,000

export

——

adjustment

TION)—Month

$56.59
'

tov.

Louis)

of

VIETAL PRICES

Nov.

I

234,615,000

16,189,000

19,914,000

SALES—FEDERAL RE¬

seasonal

ELECTRIC

Shipments

at

245,332,000

627,000

-

October:

seasonal

Month

4.798c

$59.09

$44.50

QUOTATIONS):

at

20,589,000

204

copper—

Export refinery at..
Btraits tin (New York)
Lead

5.174c

$59.09

Nov.

Domestic refinery at

46,000

25,788,000
9,050,000

12,414,000

*

Number of ultimate customers at
Aug.

Nov.

M. J.

St

Nov.

j

-

30,000

23,406,000

(barrels)—
domestic and

SYSTEM—1947-4.)

■ABRICATED

Pig iron (per gross ton)
Scrap steel (per gross ton)
METAL

STORE

for

Revenue

IRON AGE COMPOSITE PRICES:

Finished

40,000

August

AND

191,190,000

21,053,00Q

———_

(barrels)

"Kilowatt-hour sales
'

kwh.)

000

211,150,000

205,600,000

(barrels)

stock

of

Without

INSTITUTE:

(in

226,683,000

206,604,000

•

(barrels).——

(barrels)

imports

consumption
all

Adjusted

473,00c

KDISON

imports

DEPARTMENT

9,203,00t

Oct. 29

;

228,307,000

—_

output

output

(barrels)

products

Month

Oct. 29

»

152,300

INSTITUTE—Month

—

oil

gasoline

oil

Increase

MINES):

lignite (tons)
Pennsylvania anthracite (tons)

152,140

121,374.00C

Nov.

and

30,100

160,062

£■

$287,149,000

NOV.

municipal

OUTPUT

Bituminous

3,780,200

20,133

•

s
'
production (barrels of 42 gal¬

output

Refined

18,634,000
COAL

3,962,600

4,046,943

21,663,000

therms)——.—

each)

Natural

627,680

Nov.

construction

and

August:

Indicated

construction

State

(M

'

ENGINEERING

8/ construction

Private

Public

4219,316

21,225

_—

PETROLEUM

Total domestic

NEWS-RECORD:

Total

sales

gas

Domestic crude

(no.

6/,385

f

-

therms)

(M

56,392,00c

Oct. 29

cars)

125,296

16,338

fir

gas

•MERICAN

137,055,00(

46,299,000

149,886,000
46,641,000

143,722,000

Oct. 28

of

132,669

13,417

4,092,409

'

-

133,551

4,273,696

-

■

gas

Mixed

38,228,00(

Oct. 28

at

(number

Ago

of

sales (M therms)—;
Manufactured gas sales (M therms)

AMERICAN RAILROADS:

OF

tons)—Month

Natural

10,689,00<

at—

(bbls.)
(bbls.)

oil

freight loaded

Re/enue

(bbls.)

at

oil

fuel

gasoline

Year

Month

263,500,000

2.335,00

unfinished

short

September:

*/ y

output

and

Previous

iMERICAN GAS ASSOCIATION—For month of

output

Finished

of that date:

^

MINES)r

Aug.______
Stocks of aluminum (short tons) end of
Aug.

6

Kerosene

Residual

OF

(BUREAU

«

Gasoline

output

are as

Latest

78.

Distillate

oil

of quotations,

cases

either for the

are

Month

96.5

of
Oct. 28

Crude runs to stills—daily average

in

or,

Age

*99.4

v

INSTITUTE:"

conaensate

production and other figures for the

cover

Year

Week

Thursday, November 10,1955

Dates shown in first column

that date,

on

..

Production of primary aluminum in the U. S.

(net tons)

each)

42 gallons

following statistical tabulations

latest week

.

§Based

on

new

Mommy Investment'Plan.

annual

109.7
•

101.1*

93.4

103.7

capacity of 125,828,310 tons

Net

debt

Computed

annual

rate

:

2.416%

2.402%

for. tin

as

2.298%

♦Revised figure. .tBased on the
producers' quotation. iBased on the average of the
producers' and platers' quotations.
§Ayerage of quotation on special shares to plater.
([Domestic five tons or more but less than carload
lot, boxed. 5'Price

"F.o.b.

Port

quotation
from

East

at

Colburne,
morning

St.

Louis

U.

S.

session
exceeds

duty
of

included.

London

0.5c.

contained.

ttAverage of daily mean of bid and ask
Exchange. ttDelivered where freight

Metal

r

.»

Volume

182

Number 5480

.

.

The Commercial and Financial Chronicle

.

★ INDICATES
•'

in
Aeco

Corp.,

Beverly

Hills,

Calif.

Sept. 19 filed 1.245,000 shares of common stock (par 10
cents) to be offered for subscription by common stock¬
holders

on

share-for-share

a

plied by amendment.
for

basis.

fering to be made
by brokers.
"
\
*

on

sup¬

and

gas

basis

—

For

investment. Underwriter

—

Dom-

Dominick, New York.

pires

related

share of each class of stock. Price

one

unit. Proceeds—For construction of hotel and

per

activities

for

and

contingencies, stock in trade,

and working capital. Underwriter—None.

...

Alouette Uranium & Copper Mines,
'

be

for

subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For working capital. Under¬

Price—To be supplied by amendment.' Proceeds—to re¬
duce bank loans. Underwriters—The First Bostod Corp.

&

offered in units of

Aloha, Inc., Las Vegas, Nev.

—$11

offered

Ariz."

Phoenix,

Co.,

shares of common stpck to

salesman of the insurance firm.

Aug. 8 filled 900,000 shares of common stock (par $1)
and 900,000 shares of preferred stock (par $10) to be

Okla. Under¬

writer—United Securities Co., same address.
.

Finance

91,875 shares of common stock (no par)
being offered for subscription by stockholders on {he,.
Oct. 31, 1955; rights to expire on Nov. 22. Price—$28 per

filed

11

Hide & Leather Co., Lowell, Mass.
Sept. 28 filed $2,426,500 of its 5% convertible subordinate
debentures due Oct. 1, 1975 and 609,193 shares of com¬
mon stock (par $1), of which all the debentures and 109,-193 shares of stock are being offered in exchange for
outstanding 48,530 shares of 6% cumulative preferred
stock on the basis of $50 of debentures and 2V\ shares of
common stock for each preferred share
(this offer ex¬

Address—P. O. Box 1387, Tulsa,

Public

16 filed 78,006,081

writer—None, sales to be directly by the company or by

American European Securities Co.

Oct.

inick

Oct. 3 (letter of notification) 598,800 shares of common
stock (par one cent)rPrice—50 cents per share. Proceeds
—For acquisition, exploration, drilling and development
of leases.

Arizona

REVISED

share. Proceeds

communication"

Oii, Inc., Tulsa, Okla. ;"^V^

Ained-Missicm

•

PREVIOUS• ISSUE *

ITEMS

'

Sept.

ADDITIONS

SINCE

*

Amarilla Uranium, Inc.
July 27 (letter of notification) 6,500,000 shares of com¬
mon stock.
Price—One cent per share.
Proceeds—For
expenses incident to mining activities.
Underwriter—
Weber Investment Co., Ogden, Utah.

prop¬

Underwriter—None, of¬

"direct

a

be

borrowings;

repay

exploration and development of oil

erties and further acquisitions.

-

Price—To

Proceeds—To

39

(2003)

American

on Dec. 1, 1955, unless extended). The reihaining
500,000 shares are under option to certain persons at $4
per share.
Underwriter—None.
•

American

Sept.

Inc.,

Montreal, Canada
July 22 (Regulation D) 1,000,000 shares of

common stock.
Price—30 cents per share. Proceeds—For exploration and

development expenses, etc. Underwriter—Hudson-Bergen
Securities, Inc., Cliff side Park, N. J.

Motorists

Co.

Insurance

,

Arizona Public Service Co.
Oct.

and

25

filed

260,000 shares of

(11/16)

common

stock

(par $5).

Blyth & Co., Inc., both of New York.

Assateague Island Bridge Corp.

(Md.)
cumulative preferred
primarily to members of the Ocean
Beach Club, Inc.
Price—At par ($10 per share). Pro¬
ceeds—For construction of bridge across Sinepuxent Bay
from the Worcester County (Md.) mainland to Assa¬
teague Island. Office—Washington, D. C. Underwriter—

Oct.

7 filed

stock to

100,000 shares of 5%

be offered

None.

^

•

,

★ Associated Fund, Inc., St. Louis, Mo.
Nov. 1 filed (by amendment) an additional 45,000 full
paid Associated Fund trust certificates and 45,Qp0 accu¬

shares of capital stock (par $3)
being offered for subscription by stockholders of record
Oct. 26, 1955, on the basis of one new share for each five
shares held; rights to expire on Dec. 1. Price—$8 per
share. Proceeds—For general corporate purposes. Office
—Chicago, 111. Underwriter—None.
30 filed 200,000

mulative Associated Fund trust certificates.

Atlas

Industries, Inc., Houston, Texas - •
(letter of notification) 200,000 shares of. com¬
(par one cent). Price—$1.50 per share. Pro¬
ceeds—To purchase dies and materials and for working
capital, etc. Office — 6006 Harvey Wilson Drive, Hous¬
ton, Texas. Underwriter — Benjamin & Co., Houston,

Oct.

10

mon

stock

Texas.

NEW
November

14

ISSUE

$299,475

Puller & Co.)

Common

International Metals Corp
Otis,

(Gearhart &

November 28

Nortex Oil & Gas Corp
(J.

Williston

R.

Common
Co.)

&

United

shares

200,000

(Cruttenden

&

Woodrow Douglas Oil
(Eisele

Credit

Finance

Stout

Diners'

Higginson

(Lee

Corp._j

Co.)

&

$300,000

and

San Diego Gas

C.

Unterberg,

E.

Common
&

Co.,

Inc.)

November

Common

Bonds
$18,000,000

*

Northrop

Aircraft,

Automobile

National

Becker &

G.

.....Debentures

Inc

New England
...

,

Noyes

Co.)

&

11

(Blyth

a.m.

—Debentures

(F.

about $20,000,000

Inc.)

H.

.t-

(Bids

128,597 shares

to

Arizona Public Service Co

260,000 shares

Co.)

Murphy &

Radio

(Offering

North Shore

to

Gas
(Bids

and Lazard Freres

Wheeling

& Co.)

by

Lehman

Brothers

Bonds

11

EST)

a.m.

12

,

21

Bassons

Loeb

(Monday)

13

December

Delaware Power

$25,000,000

Caco

St., Aztec, N. Ml Underwriter—
Corp., New York, N. Y.

Industries Corp.

Sept. 20 (letter of notification) 1,500,000 shares of non¬
common stock (par 10 cents).
Price—20 cents

assessable

Proceeds—For expenses incident to mining
Office — 441 Thatcher Bldg., Pueblo, Colo.

Big Owl Uranium Mines
July 29 (letter of notification) 2,000,000 shares of com¬
stock. Price—15 cents per share. Proceeds—For ex¬

incident

penses

to

mining

Cranmer & Co., Denver,

Anthony Securities Corp.)

(Bids

Atlanta

$757,500

Gas

&

to

be

Bonds
$10,000,000

invited)

Preferred
$5,000,000

North

December
V*.

November 22

(Tuesday)

•

mining

expenses.

•"

1

...Common

Daitch

Black Panther Uranium Co.,

(Blyth & Co.,

Inc.)

400,000 shares

"

Stacy

&

Co.,

Houston, Tex.,

1

(No

&

Siegler Corp.
(William
&

R.

Co.;

Beane)

$5,000,000

Common

...

Staats & Co.; Dominick & Dominick; Bache
Schwabacher & Co.) 175,000 shares

and

November

23

(Wednesday)

Whitaker Cable Corp
(Barret,




Fitch, North & Co.)

Debentures
$500,000

Revlon

Products

Continued

40

Debentures
$300,000

Common
$4,000,000 to

December 20

$5,000,000

(Tuesday)

Pennsylvania Electric Co
be

New Orleans Public

page

.Debentures

underwriting)

January

on

$2,000,000

Corp

to

"best efforts

Common

Co.)

(Reynolds & Co.)

(Bids

on

$1,250,000

General Capital Corp

■

Montana-Dakota Utilities Co
Preferred
(Blyth & Co., Inc. ar.d Merrill Lynch, Pierce, Fenner

Oklahoma City, Okla.

July 12 filed 500,000 shares of common stock (par 10
cents).
Price—$1 per share. Proceeds—To explore and
drill leases and claims in State of Utah. Underwriter—

$25,000,000

Crystal Dairies, Inc
&

E. Reed

(Thursday)

(General Investing Corp.)

(Hirsch

Underwriter—James

Debentures

Colohoma Uranium, Inc

h

t

Kimberly-Clark Corp.

15

Salt Lake City, Utah.

Uranium Corp., Overton, Nev.
Oct. 28 (letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
Ute

$3,000,000

Telephone Co

(Bids to be invited)

Entz-White Lumber & Supply, Inc.__Debs. & Com.
(Offering by. company—no underwriting) $500,000

share.
Office

Virginia St., Reno, Nev. Underwriter—Mid

basis."

Preferred

Co
be invited)

—206

Porter,

(Wednesday)

Light

—

Co., Inc., Reno, Nev.

Light Co
be invited)

(Bid# to

New Jersey Bell

Automobile Banking Corp.___
:___Debentures
(Reynolds & Co.) $1,500,000
-

Underwriter

of notification) 9,000,000 shares of common

'

(James

activities.

Colo.

Big Ridge Uranium Corp., Reno, Nev.
Oct. 19 (letter

—For

(Tuesday)

Delaware Power & Light Co

Pfd. & Com.

Eagle Newspaper Enterprises, Inc

N. Mex.

(letter of notification) 124,000 shares of com¬
mon stock (par 50 cents).
Price—$2 per share. Proceeds
—For working capital, etc.
Office — 1424 East Farms
Road, New York City. Underwriter—Jay W. Kaufmann
& Co., New York.

Big

...Bonds

(Dillon, Read & Co.)

December 14

November

W.

Columbia Securities

America Securities, Inc.,

$2,500,000

(Monday)

& Co.) $19,097,800

.

Corp., Aztec,

(par one cent). Price — Three cents per
Proceeds—For exploration and development costs.

(Wednesday)

Co

(Bids to

'...Debentures

stockholders—underwritten by Kuhn,

to

Preferred

$12,500,000

invited)

be

Union of South Africa

$100,000,000

Steel Corp

(Oflering

Bonds

$70,000,000

shares

Debentures

stockholders—underwritten

to

-

256,503

Gas

(letter of notification) 750,000 shares of .com¬
mon stock
(par five cents).. Price—40 cents per share.
Proceeds—For expenses incident to oil/and gas activities.

mon

(Tuesday)

invited)

be

December 7

Common

Corp.)

of America

Corp.

$2,400,000

$300,000

(Thursday)

17

Securities

(Union

Co.)

&

6

December

November

Natural

Basin

Underwriter—Investment Service Co., Denver, Colo.

$300,000

Colorado Interstate Gas Co

(11/22)

stock

Common

.Common

(Vickers Brothers)

Banking Corp.

$1,500,00^ 5%% capital convertible deben¬

Sept. 19

share.
operations.

(Monday)

Preferred

Deetjen

(Bids to

(Bids

Old Empire, Inc.

and
Under¬

driver

1, 1970. Price—At 100% and accrued in¬
and for working
Underwriter—Reynolds & Co., New York.

per

$2,625,000

invited)

Virginia Electric & Power Co

EST) $30,000,000

..Debentures &

(Pearson,

(Thursday)
—Equip. Trust Ctfs.

be

December

Northeast Metals Industries, Inc.
•j.

1

Consolidated Edison Co. of New York

Bonds

Gas Co..

a.m.

$1,875,000

Reading Tube Corp

Common

—

(The First Boston Corp. and Blyth & Co., Inc.)

10:30

Inc.)

Co.,

(Wednesday)

November 16

(Bids

&

December 5

(Emanuel,

Michigan Consolidated

Common

Alai, Inc

Crerie

Missouri Pacific RR
*■

Common

Maryland Ry.

(Morgan Stanley & Co. and Alex. Brown & Sons)

"grip-lock"

Big Chief Uranium Co., Pueblo, Colo.

.Common
Piper,

Common

Co

December

.

Toro Manufacturing Corp
(Offering to stockholders—underwritten by
Jaffray & Hopwood) 42,099 shares
Western

Puerto Rican Jai

.Preferred

Co.,

the

Aug. 24

(Offering to stockholders—underwritten by Merrill
Lynch, Pierce, Fenner & Beane) 100,000 shares

$30,000,000

EST)

Co

&

Rico Telephone

Porto

$15,000,000

Tel. & Tel. Co

Lighting

$10,000,000

Co.)

_______Debentures

(Bids

.

(William R. Staats & Co. and Blyth &

Common

262,500 shares

Inc.)

Co

Tea

.(Hemphill,

Pacific

Co.

of

Proceeds—To repay bank loans

capital.

•

(A.

filed

6

Office—109

(Wednesday)

3,0

•

Oct.

terest.

& Electric Co

Towbin Co.)

Marquette Cement Manufacturing Co

sale

and

Office—137 Grand St., New York, N. Y.

screw.

tures due Nov.

(Tuesday)

(Bids 8:30 a.m. PST)

-Common

about $1,200,000

•

Allyn

C.

A.

shares

Laboratories, Inc

$296,000

Co.)

and

(Offering to stockholders—underwritten by The First
Boston Corp.) 106,962 shares

t

Corp.

Miles

......Common

i

Inc

Club,

Co.

November 29

(Tuesday)

"(Franklin Securities

-

,

&

200,000

.Common

November 15

manufacture

N. Y.

V

$700,000

Co.)

Co

Libaire,

King,

&

Dickson

S.

Common

Homes, Inc.

(Monday)

Co. of America...

Insurance

(R.

Richmond

Corp.

Sept. 7 (letter of notification) 20,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—To set
up a factory and purchase equipment and machinery for

writer—Ellis-Greenberg Co., 1051 Carroll St., Brooklyn,

$400,000

Inc.)

(Friday)

Rochester Gas & Electric Corp
Common
(Offering to stockholders—underwritten by The First
Boston Corp.) 200,000 shares

Common

D.

Automatic Tool

November 25

(Monday)

Chromalloy Corp.
(S.

CALENDAR

Bonds

invited)

11

$20,700,000

Service Inc

(Bids to be invited) $6,000,008

New York.

Boston

Philadelphia

(Wednesday)
.Preferred

Pittsburgh

San Francisco

Private IVires to all

offices

Chicago

Cleveland

The Commercial and Financial Chronicle

(2004)

40

Proceeds—For

Continued jrom page 39

2nd

Blackhawk Fire & Casualty

200,000 shares of common stock (par $2.50),
170,527 shares are to be publicly offered to

Oct. 28 filed

which

of

public at $5 per share, and 29,473 shares are to be pur¬
chased by Town and Country Insurance Agency, Inc.
at $4.50 per share. Proceeds—To acquire through merger
the Blackhawk Mutual Insurance Co. Office—Rockford,
111.
Underwriter — Arthur M. Krensky & Co., Inc.,
Chicago, 111.
Blenwood Mining & Uranium Corp., Denver, Colo.
July 29 (letter of notification) 1,000,000 shares of com¬
stock (par 10 cents). Price — 30 cents per share.

mon

Proceeds

For expenses incident to mining operations.

—

Underwriter
Peters, Writer & Christensen, Inc., Denver 2, Colo.

Office—612 Kittredge Bldg., Denver, Colo.

Uranium,

Bonus

Oct. 28

Inc., Denver, Colo.

(letter of notification) 3,000,000 shares of

capital

cent). Price—10 cents per share. Pro¬
ceeds—For mining expenses. Office—1154 Bannock St.,

stock

(par one

Underwriter
Utah.

Denver, Colo.

Mid-America Securities,,

—

Inc., Salt Lake City,

+ Brooklyn Country Club, Inc., Bridgeport, Conn.
Nov. 4 (letter of notification) $25,000 of 4%% first mort¬

bonds due July 15, 1966, to be offered to members
of Club. Price—At par.
Proceeds—To pay off existing
bank loans and for working capital. Office—500 Algon¬
gage

Underwriter—None.

quin Road, Bridgeport 4, Conn.

(letter of notification) 90,000 shares

Manganese Mines, Ltd., Toronto, Can.
500,000 shares of capital stock (par $1-

Canuba

27

Oct.

filed

Price—$1.50 oer share.

Canadian).

Proceeds—For ex¬

Underwriter—

ploration of mining properties in Cuba.
Baruch Brothers & Co., Inc., New York.
Caribou Ranch Corp.,

erty and
etc. Underwriter—Mountain States Securities, Inc., Den¬

Colo.

^ Carolina Casualty Insurance Co., Burlington, N. C.
2 (letter of notification) 30,000 shares of class B
common
stock (par $1) to be offered for subscription

Nov.

stockholders. Price—$10 per share. Proceeds—For
working capital, etc. Office—262 Morehead St., Burling¬
ton, N. C. Underwriter—None.
by

* Century Acceptance Corp., Kansas City, Mo.
Nov. 7 filed $750,000 of participating junior subordi¬
nated sinking fund 6% debentures due Nov. 1,1970 (with
detachable common stock purchase warrants for a total

of common stock, par $1 per share).
(in units of $500 each). Proceeds—For
Underwriter—Paul C. Kimball &

shares

22,500

100%

Price—At

working capital, etc.

4

Inc., Burbank, Calif.

74,000 shares of common stock (par $1).
by amendment. Proceeds — For
of subsidiary and working capital. Under¬

be supplied

expansion

writer—Morgan & Co., Los Angeles, Calif.

City, Utah
Sept. 6 (letter of notification) 12,500,000 shares of non¬
assessable capital stock.
Price—At par (one cent per
share). Proceeds — For expenses incident to mining
Office—810 Deseret Building, Salt Lake City,
Underwriter—Utah Securities Co., same City.

activities.

Channel Oil

Co., Las Vegas, Nev.
Oct. 18 filed (by amendment) 435,000 shares of $1.20
cumulative preferred stock (callable at $20 per share)
and

870,000 shares of

stock

(par 10 cents) to
be offered in units of one share of
preferred stock and
two shares of common
stock. Price—$20.20 per unit.
Proceeds
For production
of production payments.
common

—

Underwriters—First California

Co., Inc., San Francisco,
Calif.; and Blair & Co., Incorporated, New York. Change
of Name—Formerly Continental Production
Corp. (see
below). Offering—Indefinitely postponed.

Charge Buying Service, Inc.
Oct. 17 (letter of notification) 300,000 shares of class A
common

stock

(par 25 cents)

and

share

Clad

to be offered in units of five shares of class A stock and
warrant (warrant holders will be entitled to

pur¬

chase

one

$2.50

per

class A share at 62V2 cents per
share). Price—

unit.

Proceeds—For

working capital and to
meet current expansion and liquidate notes and liabili¬
ties. Office—522 Felt Bldg., Salt Lake
City, Utah. Under¬
writer—Cayias, Larson, Glaser & Emery, Inc., same city.
Charleston

Parking Service, Inc..
Aug. 1 (letter of notification) 120,000 shares of non¬
voting common stock, class A—(par 50 cents) and 60,000
shares of voting common stock, class B
(par 10 cents)
to

be offered

share.

in

Price—$5

ing' capital.

Building,

(Victor V.)

June 17 (letter of
stock

(par

25

Co., Philadelphia, Pa.
notification) 120,000 shares of

cents).

units of two class A
per

unit.

Office—505

and

one

class B

Proceeds—For general work¬
National Bank of Commerce

Charleston, W. Va.
Co., same address.

Underwriter—Crichton

Investment
•

Chromalloy Corp. (11/14-17)
Sept. 29 (letter of notification) 133,100 shares of com¬
mon stock
(par 10 cents). Price—$2.25 per share. Pro¬
ceeds—For equipment, working capital, etc. Office—109
West 64th St., New York 23, N. Y. Underwriter—S. D.
Fuller & Co., New York.
i
Cisco Uranium Corp., Salt Lake City, Utah
Aug. 10 (letter of notification) 7,000,000 shares of capital
(par one cent).
Price—Three cents per share.

stock




Price—$2

Proceeds—

share.

per

common

For equipment and workmg capital.

Underwriter—Bar¬

rett Herrick &

Offering—Now be¬

Co., Inc., New York.

ing made.
Clad-Rex Steel Co., Denver, Colo.
Aug. 24 filed 400,000 shares of common stock (par 10
cents).
Price—$1.25 per share.
Proceeds—To repay
short-term

obligations,

etc.

for

and

working capital.
Co., Denver,
Colo^; and Joseph McManus & Co., New York, N. Y.
Underwriter

Mountain

—

States Securities

★ Cuno Engineering Corp., Meriden, Conn.

of

Office—Montrose, Colo. Underwriters—
Corp., New York; and Shaiman & Co.,

Denver, Colo.
Colorado

Oct.

28

Price

filed

Interstate

Gas

Co.

256,503 shares of

(11/17)
stock

common

filed

(no

with

—

$14

each

stated

cumulative

value)

and

preferred

100,000

shares
(par $1) to be offered in units of one

stock

common

of

100,000 shares of $1

par

class

Proceeds—To

of

repay,

stock.

in

Price

bank

part,

$16.50

—

loan

in

per

unit.

connection

purchase from the Donner interests of entire out¬

standing 10,100 shares of class A preference stock for
$1,010,000 and their entire holdings of common stock,
consisting of 12,850 shares (85%) for the sum of $809,550;
and toward

replacement in part of company's cash used
(1) to purchase entire outstanding capital stock of Con¬
necticut Filter Corp. from the Donner interests for the
sum

"of

$250,205 and (2)
5-year bank loan.

41/2%

to

off

pay

in full

$400,000

a

Underwriter—Putnam

&

Co.,

Hartford, Conn.
•

purposes.

3

stock

•

Coiohoma Uranium, Inc. (12/15)
April 21 filed 2,500,000 shares of common stock (par one
cent). Price—50 cents per share. Proceeds—For explora¬
tion and development expenses and for general corpo¬

Daitch

Oct.

28

Crystal Dairies, Inc.

filed

$2,000,000

of 4%

(12/15-20)

convertible subordinated

debentures due 1975. Price—100% of
principal amount.
Proceeds—From sale of debentures, together with funds
to be received from institutional
investor, to be used in
connection

with
proposed
merger
with
company
of
Shopwell Foods, Inc., and for expansion program. Office
—Bronx, New York City, N. Y. Underwriter—Hirsch &
Co., New York.

(par $5).
★ Deep-Root Fertilizers, Inc.

To be supplied by amendment.
Proceeds — To
Public Service Co. of Colorado, the selling stockholder.

Nov.

Underwriter—Union Securities Corp., New York.

stock

^ Comco, Inc., Dayton, Ohio
4 (letter of notification) 5,000 shares of

\

par).

—

Nov.

stock

(no par).

general

Price—$10

corporate

per

share.

Office

purposes.

common

Proceeds

—

6632

—

For

Shadeland

Underwriter—None.

Corp., Washington, D. C.

(letter of notification) 700,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining operations. Office—501 Perpetual

Bldg., Washington 4, D. C. Underwriters—Mid America
Securities, Inc., Salt Lake City, Utah; and Seaboard
Securities Corp., Washington, D. C.
Commercial

Uranium

Mines, Inc.,

July 12 (letter of notification) 15,000,000 shares of

com¬

stock (par one cent).
Price—Two cents per share.
Proceeds—For expenses incident to mining operations.
Office—170 Vista Grand Road, Grand Junction, Colo.
Underwriter
Columbia
Securities
Co., Denver and

mon

1

(letter of notification) 1,750 shares of preferred
(par $100), 1,750 shares of class A common stock

(no par) and 350 shares of class AA common stock (noPrice—Of preferred, $100 per share; and of com¬
mon
stocks, $1 per share. Office
129 West Park St.„
—

Olathe, Kansas. Proceeds—For additions
working capital. Underwriter—None.
•

Comet Uranium

Aug. 20

Deerfield Gas

to property and

Production Co.

Sept. 30 this company, together with Kearney Gas Pro¬
duction Co., filed 935,999 units of beneficial interest in
Hugoton Gas Trust, to be issued to common stockholders
Kansas-Nebraska Natural Gas Co., Inc. on a 1-for-l
basis; and to its eligible employees. Price—$4 per unit.

of

Proceeds

—

For

retirement

of

indebtedness

secured

by

first

mortgages; balance for payment of obligations and
expenses of the two companies in liquidation and for
liquidation distribution to stockholders. Office—Wichita,.
Kan.

Underwriters—The

Neb.

and

Cruttenden

&

First

Co.,
Expected today (Nov. 10).

Trust

Chicago,

Co., of Lincoln,
111.
Offering-

—

Grand Junction, Colo.

Commonwealth

Credit

,

Underwriter—None.
Edison

Co.

being offered for subscription by

(par $25),
stockholders

common

of record Nov.

each 15

1, 1955 on the basis of one new share for
shares held; rights to expire on Nov. 16. Price—

per

share.

Proceeds—For construction

Underwriters—The
gan &
•

First

Boston

program.

Corp. and Glore, For-

Co., both of New York.

Commonwealth

Life

Insurance

Delta

Co.

Aug. 22 (letter of notification) 60,000 shares of common
stock (par $1).
Price—$5 per share. Proceeds—To be
credited to capital stock, unassigned
surplus and reserve
for business development ana for expansion and life
reserves.
Office—616 South Main St., Tulsa, Okla. Un¬
derwriter
Eastman, Dillon & Co., New York, N. Y.
Offering—Expected today (Nov. 10).
Continental

29

filed

Production

$8,700,000

of

5%%

income

and

de¬

Proceeds—For acquisition of production payments.

North

purposes.

Ave., Provo, Utah.
Co., Provo, Utah.

Underwriter

—

Dixie Aluminum Corp., Rome, Ga.
31 filed 125,000 shares of 36-cent cumulative
pre¬
ferred stock
(par $4) and 125,000 shares of common

Underwriter—Central

Securities

stock

Coosa River

Co., Dallas,

common

one

share of each

shares, 74,180

are

being

tal and other general corporate purposes. Underwriter-

Newsprint Co.

Scott, Horner & Mason, Inc., Lynchburg, Va.

19 filed 122,200 shares of common
^tp^k, (par $50)
being offered for subscription by common, stockholders

>' ;

Dome Uranium Mines, Inc., Denver, Colo.

.

\;.(-

■*

one

of record

new

share for each

^iree^^ares held
exp^.pp Nov. 29.

Nov. 8, 1955; rights to
Price—$70 per share.
Proceeds—Togetjipr^jwith other
funds, for expansion. Office—Coosa Pines, Ala. Under¬

writer—Blyth & Co., Inc., New York.

Julyy 12 j(letter of notification) 1,300,000 shares of
mon

stock (par one cent).

stock

(par 10
cents). Price—At the market. Proceeds—To a selling
stockholder. Office—Corpus
Christi, Texas. Underwritei
—None.
Credit Finance

Corp., La Grange, Ga. (11/15)
(letter of notification) 148,000 shares of common
(par $1). Price — $2 per share. Proceeds — For
working capital. Office—Mallory-Hutchinson Bldg., La
Grange, Ga. Underwriter—Franklin Securities Co., At¬
Oct. 28
stock

:

Price 20 cents

per

com¬
share. Pro¬

ceeds

—
For expenses incident to mining operations,
Office—352 Colorado National Bldg., Denver, Colo. Un¬
derwriters—R. L. Hughes & Co., Denver, Colo/and G.

W. Allen & Co.,

Corpus Christi Refining Co.
Sept. 2 filed 500,000 shares of common

lanta, Ga.

Of the

sold by the company and 50,820 by Brett D.
Holmes, its
President. Price—$7 per unit. Proceeds—To repay in¬
debtedness and for expansion, equipment, working capi¬

Oct.

the basis of

(par $1) to be offered in units of

class of stock.

Texas.

•

Investment

Oct.

Industries, Inc., Dallas, Texas

Aug. 1 (letter of notification) 199,999 shares of common
stock (par $1), of which 107,915 shares
are to be sold
by company and 92,084 shares by a selling stockholder.
Price—$1.50 per share. Proceeds—For general corporate

as

University

Weber

Name Changed—See Channel Oil Co. above.

on

Underwriters — Lee Higginson Corp.
C. E. Unterberg Towbin Co., both of New York.

Dix Uranium Corp., Provo, Utah
Aug. 10 (letter of notification) 6,000,000 shares of non¬
assessable capital stock.
Price—At par (five cents per
share).
Proceeds—For mining expenses.
Office—290

Vegas, Nev. Underwriter—First California
Co., Inc., San Francisco, Calif. Statement Amended and

•

filed

Dinosaur Uranium Corp., Salt Lake City, Utah
Aug. 15 (letter of notification) 15,000,000 shares of com¬
mon stock.
Price—At par (one cent per share).
Pro¬
ceeds—For expenses incident to mining activities. Office
—15 Exchange Place, Salt Lake City, Utah.
Underwriter
—Western States Investment Co., same city.

Office—Las

Cook

25

which

working capital.

bentures due Sept. 1, 1970 and 870,000 shares of common
stock (par 10 cents) to be offered in units of $50 of
debentures and five shares of stock. Price—$50.50 per
unit.

(letter of notification)

Club, Inc., New York (11715-16)
150,000 shares of common stock (par $1),
50,000 shares are to be offered by the com¬
pany
and 100,000 shares by Ralph E. Schneider and
Alfred S. Bloomingdale, the two
selling stockholders.
Price—To be supplied by amendment (estimated offer¬
ing price is stated at about $8 per share). Proceeds—For
of

Corp.
15-year

20

Diners'

Oct.

—

Aug.

Minerals

Co., Casper, Wyo.
600,000 shares of non¬
assessable common stock (par five cents). Price—50 cents
per share.
Proceeds—Expenses incident to mining oper¬
ations. Office—223 City and County
Bldg., Casper, Wyo.
Underwriter—The Western Trader & Investor, Salt Lake
City, Utah.
Sept.

Corp., Phoenix, Ariz.

Sept. 9 filed 700,000 shares of capital stock (par $1).
Price—$2 per share. Proceeds—For working capital, etc.

60,000 class warrants

one

Co., and Mid-America Securities, both of Salt
City, Utah.
i

Lake

•

$37.50

Chaffin Uranium Corp., Salt Lake

Utah.

and 490 shares of class

Oct. 13 filed 1,110,375 shares of common stock

filed

Price—To

(with 'warrants to purchase

common

—

Nov.

Commonwealth

Century Engineers,

1975

stock.

mon

B common
stock).
Price—99%.
Proceeds—To supply
capital to subsidiaries. Office—1028 Connecticut Ave.,
N. W., Washington, D. C. Underwriter—Emory S. War¬
ren & Co., same address.

Co., Chicago, 111.
Nov.

due

Colo.

Denver, Colo.

(par $1.)
of prop¬
equipment, construction of additional facilities,

of

vestment

debentures

2,450 shares of class A

Ave., Dayton, Ohio.

July 15 filed 505,000 shares of common stock
yrice—$4 per sfiare. Proceeds—For acquisition

ver,

Cross-Bow Uranium Corp.

Aug. 29

nated

Inc., Denver,

General Investing

of common
stock (par $1) to be offered for subscription by common
stockholders on the basis of one new share for each
five shares held of record Oct. 26, 1955. Proceeds—For
working capital. Office — 3545 Scotten Ave., Detroit,
Mich. Underwriter—Wm. C. Roney & Co., same city.
31

Oct

Utah.

Citizens Credit Corp., Washington, D. C.
Sept. 27 (letter of notification) $245,000 of 6% subordi¬

rate

Mich.

Machine Co., Detroit,

Die &

Buell

etc. Office—2630 South
Underwriter—Denver

expenses,

(letter of notification) 5,000,000 shares of com¬
Price—At par (six cents per share).
Pro¬
ceeds
For mining operations.
Office — 1026 Kearns
Bldg., Salt Lake City, Utah. Underwriters—Potter In¬

Securities,

Insurance Co.

mining

West, Salt Lake City,

Thursday, November 10,1955

...

Cheyenne, Wyo.

•

Eagle Newspaper Enterprises, Inc. (11/21-25)'
Oct. 19 filed 75,000 shares of 7% cumulative convertible
preferred stock (par $10) and 75,000 shares of common
stock (par 10 cents) to be offered in units of one share
of each class of stock. Price—$10.10 per unit. Proceeds—>
To exercise an option, which expires on Dec.
4, 1955,
to
acquire certain properties of the Brooklyn Eagle,
Inc.; and for working capital. Office—Brooklyn, N. Y.
Underwriter

York.

—

James

Anthony Securities

Corp., New

Volume 182

Number 5480

.

.

The Commercial and Financial Chronicle

.

Eagle Rock Uranium Co., Salt Lake City, Utah
Sept. 19 (letter of notification) 30,000,000 shares of non¬
assessable

share).

Proceeds

activities.
Utah.

stock.

common

3

Capital Corp. (12/15)
of notification) $300,000 of

(letter

debentures.

expenses

$500, $1,000

and

commercial

paper.

East

(one cent per
incident to mining

5th

South, Salt Lake City,
State Brokerage, Inc., Las

Underwriter—Valley

Vegas, Nev.

Price—At

Springs, Fla.

(in

par

$5,000).

10
denominations

Proceeds

For

—

Office—4309 N.

W.

year

of

$100,

purchase

36st

8%
of

St., Miami

Underwriter—None.

&

Uranium Co.

Oct. 25

(letter of notification) 1,500,000 shares of com¬
(par one cent). Price—20 cents per share.
Proceeds—For expenses incident to
drilling for oil and
gas. Office—Colorado Bldg.,
Denver, Colo. Underwriter
stock

—Philip Gordon & Co., Inc., New York.
Eastern Life Insurance Co. of New York

,

Sept. 20 (letter of notification) 5,239 shares of

common

stock (par $5.50) being offered for
subscription by stock¬
holders of record Oct.
1, 1955 at rate of one new share
for each 10 shares
held; rights to expire on Nov.

15, 1955.

Plastics, Inc.
Sept. 30 (letter of notification) 297,500 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—«
For acquisition of
machinery, molding equipment and
working capital. Office—Tower Petroleum Bldg., Dal¬
las, Tex.

Underwriter—First Securities Co., Dallas, Tex.
if George Chem. Development Co., Butte, Mont.
Oct. 28 (letter of
notification) 383,600 shares of capital
stock (par 25 cents). Price—12y2 cents
per share. Pro¬
ceeds
For mining expenses. Office—8 First National
Bank Bldg., Butte, Mont. Underwriter—Graeme Robert¬
—

8400 Wicklow Ave., Cincinnati, Ohio.

son,

Gibraltar

Price—$35.50 per share. Proceeds—For expansion and
working capital. Office—386 Fourth Avenue, New York
16, N. Y. Underwriter—None.

Uranium Corp., Aurora, Colo.
July 18 (letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.

Edgemont Shopping Center, Inc., Chicago, III.

Proceeds—For expenses incident to mining. Office—701
Moline St., Aurora, Colo. Underwriter—Robert J. Con-

Oct. 14 filed 6,000 shares of class A common
stock. Price
—At par ($100 per share). Proceeds—To

acquire title

to

shopping center in Lansing, Mich., from builder of
center. Underwriter—None, offering to be made
through
officers of company.
not

Funds

to be held in

are

escrow

enough is received, funds will be returned to
of stock).

(if

nell, Inc., Denver, Colo.
if Government
Nov.

stock

mon

(par 10 cents), to be offered for subscription
by stockholders.
Price—$1 per share.
Proceeds—For
general corporate purposes. Office—53 State St.,
Boston,
Mass. Underwriter—None.

Empire Studios, Inc., Orlando, Fla.
Oct. 7 (letter of notification)
120,000 shares of common
stock (par 50 cents). Price—$2.50 per share. Proceeds—
To

finish

three

lic Pictures

films

Corp.

under

release

Underwriter

—

contract to

Gerard

R.

Repub¬

Jobin In¬

vestments, Ltd., St. Petersburg, Fla.

Phoenix, Ariz.

(11/21)
$500,000 of 20-year, 7% sinking fund
debentures and 10,000 shares of capital stock
(par $1) to
be offered in units of
$50 principal amount of deben¬
Oct.

26

tures

filed

and

Proceeds—To

of

stock.

Price

—

$50

unit.

per

retire

$80,000 of outstanding debentures;
inventories; and to establish additional out¬

to increase

lets.

share

one

general funds.
Calif.

common

stock (par

stockholders

on

class A

of

$10), to be offered for subscription by

theN basis of

one

new

share

for

each

10

shares held. Price—$30 per share. Proceeds—To form and
invest in the capital stock of an insurance
company sub¬

sidiary. Office—Munsey Bldg., Baltimore 2, Md.

Under¬

writer—None.

Packaging International,

Inc.

June 30 filed 300,000 shares of common stock
(par 100),
of which 250,000 shares of for account of
company and

50,000 shares of five selling stockholders. Price—$3 per
share. Proceeds—For working capital; for
exploitation
of

"Totosave"

system;

and

for

marketing

of

"TropicRay" infra-red space heater. Office — Pittsburgh, Pa.
Underwriter—Barrett Herrick & Co., Inc., New York.

★ Founders Mutual Depositor Corp., Denver, Colo.
Nov. 7 filed 24,000 Systematic Payment Plan Certificates

aggregating $36,000,000, and 500 Accumulative Plan Cer¬
tificates aggregating $750,000.
.

Franklin

Railway Supply Co.
(letter of notification) 20,000 shares of common
(no par) to be offered for subscription by stock¬
holders.
Price—$10 per share.
Proceeds—To reduce
Oct.

19

stock

unsecured bank loans and for

working capital. Office—
St., Wilmington, Del. Underwriter—None,
Floyd Coffin and Herman F. Ball have agreed
to purchase all shares not subscribed for
by stockholders.
927

Market

But C. W.

'

Freedom Insurance Co.
June 6 filed 1,000,000 shares of common stock
(par $10).
Price—$22 per share. Proceeds—For capital and surplus.
Business—All insurance coverages,
except,

life, title and
mortgage.
Office—2054 University Avenue, Berkeley,
Calif.j c/o Ray B. Wiser, President. Office—Berkeley,
Caiif. Underwriter
Blair & Co.
Incorporated, New
York. Offering—Indefinitely postponed.
—

Fremont Uranium Co., Salt Lake
City, Utah

Aug. 1 (letter of notification) 15,000,000 shares of com¬
mon
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining expenses. Office—515 Deseret
Bldg.,
Salt Lake City, Utah. Underwriter — Moab
Brokerage
Co., Western States Investment Co., Potter Investment
Co., Mid-America Securities, Inc. of Utah, and'CashinEmery, Inc., all of Salt Lake City, Utah.
Gallina

Mountain

Gulf Coast

Leaseholds, Inc., Houston, Texas
Sept. 14 filed $2,000,000 of 5% sinking fund convertible
debentures due Sept.

1, 1965 to be sold to Brandel Trust.
Price—$1,825,000, plus accrued interest of $29,632. Pro¬
ceeds—To purchase certain working or leasehold inter¬

(par

one

Proceeds—For
New

York.

Corp.

same

cent). Price—An

mining

expenses.

Underwriter—United

Corp., Ogden, Utah.

Aug. 1

—

aggregate

Office—82

Prudential

of

$50,000.

Beaver

tal stock

Securities

St.,

Corp.,

(par five cents).

1,000,000 shares of capi¬

Price

—

25 cents per share.

Proceeds—For oil and mining expenses.

Empire Securities Corp., Las Vegas, Nev.




*

Intermountain
n-v*

-

if Hemenway Furniture Co.,
Oct. 31
(letter of notification)

Brokerage
5

•

Inc., Shreveport, La.
30,000 shares of 5 V2 %

preferred stock.
Price—At par
Proceeds—For working capital. Under¬

writer—Howard, Weil, Labouisse, Friedrichs & Co., New
Orleans, La.
Home Acceptance

Corp., Salt Lake City, Utah I
(letter of notification) $300,000 of 25fyear 6%
junior subordinated debentures due Oct. 1, 1980. Price—
Sept.

1

At par

(in denominations of $1,000, $500 and $100). Pro¬
working capital. Office—837 South Maine
St., Salt Lake City, Utah. Underwriter—Edward L. Bur¬
ton & Co., same city.

ceeds—For

Home Oil Co.,

Ltd., Calgary, Canada
Sept. 26 filed 1,500,000 shares of class A stock and 3,793,shares of class B stock, which are to be offered in
exchange for Federated Petroleums, Ltd. common stock
231

the

on

basis

of

share

one

of

either class

A

or

class

B

stock in exchange for each two Federated shares. Stock¬
will vote Dec. 6 on approving acquisition of
assets of Federated. Statement effective Oct. 19.

holders

Hugoton Gas Trust
See Deerfield Gas Production Co. above.

Hunt Uranium Corp., Green River, Utah
Aug. 22 (letter of notification) 1,200,000 shares of

derwriter

Salt Lake

par (25 cents per share).
Pro¬
incident to mining activities. Un¬

expenses

Elmer

—

K.

Aagaard, 323 Newhouse Bldg.,

City, Utah.

25

(letter

of

Wash.

Indian

lyionument Uranium Mining Corp.
Sept. 6 ^letter of notification) 3,000,000 shares of com¬
mon
stock
|(par one cent). Price—10 cents per share.
Proceeds
r-j'For expenses incident to mining activities.
Dineley,

Building, Reno, Nev. Underwriter
same address.

Underwriter—

if Industria Electrica de Mexico, S. A.
Industry of Mexico, Inc.)
like

7

filed

157,632

American

shares

(Electrical

representing

a

of common shares (par 100 pesos-Mexican
currency—U. S. $8 per share) to be offered for subscrip¬
tion by common stockholders at the rate of one new
amount

share

for

each

common

rights to expire
For

Dec.

on

share

13.

held

a

of

record

Nov. 28;
Proceeds—
Underwriter—National

Price—At par.

general corporate purpose's.

Financiera, S. A.,
the Mexican

Plastic Industries Corp.
(letter of notification) 150,000 shares of common
(par 10 cents). Price—$2 per share. Proceed#—For advances to Arliss Co., Inc. for purchase of equip¬
ment, etc. Office — 369-375 DeKalb Ave., Brooklyn 5,
stock

Mexican corporation

controlled

by

Government, has agreed to purchase all of

the additional

new

Underwriter—Kamen

Israel

Oct.

Industrial

&

&

Co., New York.

Mineral

Development Corpt

filed

5

200,000 shares of common stock (par $25>.
Price—$27.50 per share. Proceeds—For general corpor¬
ate purposes. Underwriter—Israel Securities Corp., New

York, N. Y.

*

"Isras"

-

Israel-Rassco

•

Investment

Co., Ltd.

Sept."

28 filed 9,000 ordinary shares. Price—At par (108
each, or about $55 in U. S. funds), payable*
in State of Israel Independence Issue Bonds only. Offta*
Israel pounds

Aviv, Israel.

Underwriter

—

Rassco

Israel

Corp^

Jurassic Minerals, Inc., Cortez, Colo.
Aug. 26 (letter of notification) 2,855,000 shares of noi*assessable common stock (par one cent). Price—10 cent*
per share.
Proceeds—For expenses incident to mining^
activities.
Office
326 West Montezuma St., Cortez^
Colo. Underwriter
Bay Securities Corp., New Yart
—

—

New York.
Kansas

stock
1

City Title Insurance Co.

19 (letter of notification) 7,500 shares of capital:
(par $25), being offered to stockholders as of Oct.
the basis of one new share for each eight held;-

Sept.
on

rights to expire on Nov. 15. Price—$40 per -share. Pro¬
ceeds—For general corporate purposes. Office — Title,

Bldg., Kansas City, Mo. Underwriter—None.
24

& Co., New York

(Julius)

filed

130,000 shares of common stock (par $5);
to be offered for subscription by common stockholders
the basis of

on

one

new

share for each five shares held.

Proceeds—For general corporate
purposes.
Business — Manufactures wearing appareL
Underwriter
None. Any unsubscribed shares will be
taken up by certain officers, directors and insurance
companies.
Price—$20

per

share.

—

Gas

Kearney

Production Co.

See Deerfield Gas Production Co. above.
Kendon
Oct.

Electronics

Co.,

Inc.

27

(letter of notification)' 60,000 shares of common/
stock (par 10 cents). Price—40 cents per share. Proceeds:
—To Nicholas J. Papadakos, the selling stockholder. Of¬

St., Brooklyn, N. Y, Underwriter—
Securities Co., New York.

fice—129 Pierrepont

20th Century Pioneer
•

Keyes Fibre Co., Waterville, Me.

Oct.

21

filed

100,000

shares

of 4.80%

cumulative first

preferred stock (par $25) being offered for subscription.:
by common stockholders of record Nov. 7 on the basis*
of one share of preferred stock for each seven shares*
held; rights to expire on Nov. 17. Price—$25.25 per share.
Proceeds
For additional building construction and
—

manufacturing equipment.

Underwriter—Coffin & Burr,

Inc., Boston, Mass.
•

Kimberly-Clark Corp., Neenah, Wis. (11/22)
31 filed 400,000 shares of common stock (par $5).
price—To be supplied by amendment. Proceeds—For ex¬
pansion program. Underwriter—Blyth & Co., Inc., San
Oct.

and

New

York.

Kirby Oil & Gas Co.
July 8 filed 200,000, shares of common stock (par $1J,
of which 100,000 shares are for the account of the com¬
pany

and 100,000 shares for the account of the MurchiPrice—To

be

notification) 1,674 shares of capital
stock. Price—At par ($100 per share). Proceeds—For
working capital, etc. Office—603 Central Bldg., Seattle
4, Wash. Underwriter—Pacific Brokerage Co. of Seattle,

Nov.

International

Oct. 12

son-Richardson financial interests of Texas.

Hydro-Loc, Inc., Seattle, Wash.
Oct.

(par 10

cents). Price—$1 per share. Proceeds—To finance exc*
ploration and development of mining properties of Re—
cursos
Mineros Mexicanos, S. A., Mexican subsidiary*
and to discharge note.
Office — Houston, Tex. Under¬
writer—Gearhart & Otis, Inc., New York.

Francisco
com¬

Price—At

stock.

mon

ceeds—For

,

International Metals Corp.
(11/14-18)
Oct. 4 filed 400,000 shares of common stock

convertible

($10 per share).

Corp., 76 Beaver St., New York, N. Y.

•

Oct.

common

Mining & Oil, Inc., Kemmerer, Wyo.

(letter of notification)

*

ties

Kayser

Ogden, Utah

Aug. 10 (letter of notification) 8,000,000 shares of capital
stock.
Price—At par (two cents per share).
Proceeds
—For mining expenses. Office—E-17
Army Way, Ogden,
Utah.

Businei*

invest in foreign securities of the free world out¬
side of the United States. Underwriter—I. I. I. Securi¬

Underwriter—None.

Half Moon Uranium Corp.,

—Richard L.

address.

Gas Hills

Underwriter

interests.

(par $1)L

New York.

Co.,

None.
Some of the stock will also be
offered to public through Kenneth K.
Pound, President;
and Law L. Lovelace, Secretary-Treasurer.

and gas

*

—To

—Tel

~

Insurance

—

Office—205 Byington

Uranium

July 29 (letter of notification) 500,000 shares of
stock

Office—417 South Hill St., Los Angeles,

Phoenix, Ariz.
Oct. 26 filed 700,000 shares of capital stock
(par $1), to
be offered to present and future holders of
policies
issued by National Reserve Insurance Co. as an
optional
dividend refund of their annual policy
premium. Price
—$1.60 per share. Proceeds—For working capital, etc.

cumulative

Fort Pitt

Office—Washington,

•

International Investors Inc., New York
Aug. 23 filed 200,000 shares of capital stock
Price—At market. Proceeds—For investment.

Price—At

Underwriter—None.

Great Southwest Fire

mon stock
(par 10 cents). Price — 25 cents per .share.
Proceeds—For expenses incident to oil and gas activitte*^
Office—3975 East 58th Ave., Denver, Colo. Underwriter

N. Y.

Inc.

stock.

Great Lakes Oil & Chemical Co.

-

Finance Co. of America at Baltimore
Oct. 19 (letter of notification) 10,000 shares

Fund,

common

Sept. 29 (letter of notification) an undetermined number
of shares of common stock
(par $1) to be offered to
common
stockholders
through transferable warrants.
Price..—To be supplied by amendment.
Proceeds—For

ests in oil

Underwriter—None.

Mutual

Proceeds—For investment.

Underwriter

Entz-White Lumber & Supply,
Inc.,

Personnel

300,000 shares of

C.

D.

pur¬

com¬

filed

market.

chasers

Electronic Micro-Ledger
Accounting Corp.
Sept. 28 (letter of notification) 297,000 shares of

3

Inland Oil & Uranium
Corp., Denver, Colo* : :0 ^
July 18 (letter of notification) 1,200,000 shares of coat—

—Shaiman & Co., Denver, Colo.

General Molded

★ East Basin Oil
mon

General

Price-—At par

For

—

Office—214

'

Oct.

(2005)

common

stock not subscribed for.

supplied by amendment.; Proceeds—To retire out¬
standing bank loans and for exploration of oil and gat»
leases. Underwriters—Allen & Co., New York: and Rau—
scher, Pierce & Co., Dallas, Texas.
Offering—Post¬
poned indefinitely.
Lander Valley Uranium & Oil Corp.
Aug. 15 (letter of notification) 3,000,000 shares of com¬
mon stock
(par two cents).
Price—10 cents per share.
Proceeds—For expenses incident to mining
activities.
Office—c/o Warren E. Morgan, President, 1705 East First

South, Salt Lake City, Utah.
Underwriter—Empire Se¬
curities Corp., Las Vegas, Nev.
|
LeCuno Oil Corp.,

Jefferson, Texas

Aug. 29 filed 450,000 shares of capital stock (par 10
cents). Price—To be supplied by amendment. Proceeds.
—For payment of liabilities and expenses incident to oili
and gas and mineral activities. Underwriter—First Cali¬
fornia Co., Inc., San Francisco, Calif.
if Libbey-Owens-Ford Glass Co., Toledo," Ohio
19,605 shares of common stock (par $10) to
be offered for sale to employees holding company's s:r-

Nov. 2 filed

ries

K

options granted pursuant to its Employee Stock

Option Plan.

Option Plan—$77.50 per share.
Continued

on

page

42

42

The Commercial and Financial

(20G6)

Continued from page

Frazee, Olifiers & Co., New York.

of the offering, after which
public. Price—$8.75 per
share to stockholders; $10 per share to public. Proceeds
—For expansion and working capital.
Underwriter—

Nov.

*

■

La.

commencement

the

unsold shares will be offered to

None.

—

it Miles Laboratories, Inc., Elkhart, Ind. (11/29)
9 filed 106,962 shares of common stock (par $2)
be offered

to

Proceeds—To reduce bank loans and other

and for working capital.
Underwriters—
Johnston, Lemon & Co., Washington, D. C.; and Union
Securities Corp., New York. Offering — Probably not

for

subscription by common stockholders

of record about Nov.
for

it Lincoln Service Corp., Washington, D. C. .
Nov. 3 filed $4,000,000 12-year sinking fund capital de¬
bentures, due Dec. 1, 1967. Price — To be supplied by
amendment.

each

ten

29

the basis of one new share

on

shares

held; rights to expire on Dec. 12.
Price—To be supplied by amendment. Proceeds — For
expansion; purchase of machinery and equipment; and
for working capital.
Underwriter — The First Boston
Corp., New York.

indebtedness

until December.
Lithium

Developments, Inc., Cleveland, Ohio

Oct. 17 filed 600,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For exploration
development costs, etc. Underwriter—George Searight, New York City.
and

Little Mac

Uranium

Co.

Sept. 12 (letter of notification) 3,000,000 shares of capi¬
tal stock. Price—At par (10 cents per share). Proceeds
—For mining expenses. Office—440 West 3rd North, Salt
Lake City, Utah. Underwriter—Skyline Securities, Inc.,
Denver, Colo.
Lost

Canyon Uranium & Oil Co.
{letter of notification) 3,000,000 shares of non¬
assessable capital stock (par one cent). Price—10 cents
per share.
Proceeds—For expenses incident to mining
operations. Office — Simms Bldg., Albuquerque, N. M.
Underwriter—Mid-America Securities Inc. of Utah, Salt
Lake City, Utah.
Oct.

6

Magna Theatre Corp., New York
Sept. 29 filed 110,000 shares of common stock (par five;
cents) being offered for subscription by common stock¬
holders of record Oct. 26 at the rate of
each

20

one

new

share

shares

held; rights to expire on Nov. 18.
Price—$5 per share. Proceeds—To pay interest on out¬
standing 6% debentures, and for general corporate pur¬
poses. Underwriter—The United Artist Theatre Circuit,
Inc. of New York.

Moab Treasure Uranium Corp.
July 25 (letter of notification) 6,000,000 shares of com¬
mon stock.
Price—Five cents per share. Proceeds — For
expenses incident to mining activities.
Underwriter —
Utah Uranium

Brokers, Salt Lake City, Utah.

Mobile Uranium & Oil Co., Salt Lake City, Utah
Aug. 22 (letter of notification) 5,500,000 shares of non¬
assessable capital stock (par one cent).
Price — Five
cents per share.
Proceeds — For expenses incident to
mining activities. Office—605 Judge Bldg., Salt Lake
City, Utah. Underwriter—Skyline Securities, Inc., Den¬
ver, Colo.
.

Mohawk

Silica Co., Cincinnati, Ohio
(letter of notification) 3,000 shares of 8% cumu¬
lative preferred stock. Price — At par ($50 per share).
Proceeds—For processing plant, heavy equipment, and
working capital. Office—2508 Auburn Ave., Cincinnati,
Ohio. Underwriter
W. E. Hutton & Co., Cincinnati,
Oct. 3

—

Ohio.

(The)

Manchester Co.

Jan.

1956 into

1,

stock

common

on

a

Club Bldg., Denver, Colo.
Underwriters—General In¬
vesting Corp., New York; and Investment Service Co.,
Denver, Colo.
'
<

Denver, Colo. Underwriter—Shaiman & Co., same city.

.

for new equipment and working
capital. Business—Cutting tools. Office—275 Jefferson
St., Newark, N. J. Underwriter—Paul C. Ferguson & Co.,
same city.

National

Oct.

fund
Price—To be
supplied by amendment. Proceeds—For payment of
bank loans incurred for expansion.
Underwriter —
Hemphill, Noyes & Co., New York.

Marl-Gro, Inc., San Francisco, Calif.

Natural Power Corp. of

For mining expenses and expenses incident to
selling
a
soil conditioner,
Office—681 Market St., San Fran¬

(letter of notification) 300,000 shares of non¬
assessable common stock (par one cent). Price—$1 per
share. Proceeds—For expenses incident to mining ac¬

Underwriter—Globe Securities Corp., New

„

be

supplied by amendment. Proceeds—For ex¬
pansion program. Underwriter — A. G. Becker & Co.
Inc., Chicago, 111.
Mascot Mines, Inc.
Aug. 1 (letter of notification) 300,000 shares of common
stock
(par 35..cents).
Price —62V2 cents per share.
Proceeds
For expenses-incident to mining activities.
Underwriter—Standard Securities Corp., Spokane, Wash.
—

Mesa-Loma Mining Corp., Fort
Collins, Colo.
July 13 (letter of notification) 2,955,000 shares of com¬
mon stock (par one cent).
Price — 10 cents per share.
Proceeds—For expenses incident to mining operations.
Office—415 Peterson St., Fort Collins, Colo. Underwriter
—Bay Securities Corp., 115 Broadway, New York, N. Y.

Mexico Refractories Co., Mexico, Mo.
Oct. 19 filed 57,776 shares of common stock
(par $5) to
be offered to stockholders of National Refractories
Co.,

subsidiary, in exchange for 57,776 shares of capital
stock (par $5) of National on a share-for-share
basis;
a

offer to remain open for 60 days from date of
prospectus.
Offer is conditioned upon Mexico

owning at least 80%

of

exchange.

Michigan Consolidated Gas Co.
1980.

(11/16)
$30,000,000 of first mortgage bonds due
Proceeds—To repay bank loans and for construc¬
filed

tion program.

Underwriter—To be determined by com¬

petitive

bidding. Probable bidders: Halsey, Stuart &
Inc.; White, Weld & Co. and Lehman Brothers
(jointly); Smith, Barney & Co. and Blyth & Co.r Inc.
(jointly). Bids—To be received up to 10:30 a.m. (EST)
Co.

<m

Nov. 16.




America, Moab; Utah

Sept. 7

York.

20

19

Tea Co., Chicago, III, (11/15)
filed $15,000,000 of convertible sinking

subordinated debentures due Nov. 1, 1980.

Oct. 6 (letter of notification) 172,500 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—

Oct.

be

—

To repay loans, and

consummation

To

Mercury Corp., Denver, Colo.
Oct. 24 (letter of notification) 750,000 shares of common
stock (par one cent). Price—40 cents per share. Proceeds
For mining expenses. Office — 414 Colorado Bldg.,

Manufacturers Cutter Corp.

upon

—

National

Oct. 18 (letter of notification) 300,000 shares of class A
common stock. Price—At par
($1 per share) Proceeds—

outstanding' National stock

Price

it National Airlines, Inc.
Nov. 4 filed 70,748 shares of common stock (par $1) to
be offered pursuant to the company's Restricted Stock
Options to supervisory employees of the company and
its subsidiaries (including dfficefs and directors but ex¬
cluding the new President of the Company).

Manhattan Mercury Corp., Denver, Colo.
Oct. ^26 (letter of notification) 1,500,000 shares of com¬
mon stock (par one cent).
Price — 20 cents per Ward1.
Proceeds—For .mining expenses. Office — 374 Denver

of

$100).

both of New York.

Associates, Hartford, Conn.

—To

(11/22)

supplied by amendment.
Underwriters—Blyth &
Co., Inc., and Merrill Lynch, Pierce, Fenner & Beane,
(par

share-for-

Marquette Cement Manufacturing Co. (11715)
Oct. 25 filed 262,500 shares of common stock (par $4),
of which
250,000 shares are to be sold for account of
company and 12,500 for the account of an estate. Price

Utilities Co.

Proceeds—To repay bank loans.

•

cisco, Calif.

1 filed

due 1975. Proceeds—To repay

Northeast Metals

Oct. 24

Industries, Inc.

(11/16-17)

(letter of notification) $300,000 of 6% convert¬

ible debentures due Nov.

1, 1963, and 45,000 shares of

stock

(par 10 cents) to be offered in units of
$100 of debentures and 15 shares of stock. Price—$100
common

per

Proceeds—For working capital. Office—1206
St., Philadelphia, Pa. Underwriter—Pear¬
Murphy & Co., Inc., New York.

unit.

North
son,

Front

it Northrop Aircraft, Inc.
Nov.

filed

3

$10,000,000

(11/36)

of

/

convertible

subordinated

debentures due Dec. 1, 1975. Price—To be supplied by
amendment. Proceeds—For working capital and general

corporate purposes, including reduction of bank
Underwriters—William R. Staats &

loans.

Co., and Blyth & Co.,

Inc., both of Los Angeles, Calif.
Norwood

Uranium, Irtc;, Norwood, Colo.
(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds—For mining expenses. Underwriter—Columbia"
Oct. 21

stock

mon

Securities Co., Denver,

Colo.

Oct.

Nov. 1 filed 50,000 shares of cumulative preferred stock

share basis). Price—At par ($10 per share). Proceeds—
For working capital. Underwriter—Charles E. Thenebe
&

Co.; Salem, Mass. (12/7) '
$2,500,000 of first mortgage bonds, series B;
bank loans and advances
from New England Electric System. Underwriter—To be
determined by competitive bidding. Probable bidders:Halsey, Stuart &. Co. Inc.; The First Boston Corp.; Kid¬
der, Peabody & Co. and White, Weld & Co. (jointly);
Blair & Co. Incorporated. Bids—Scheduled to be received
up to 11 a.m. (EST) on Dec. 7 at 441 Stuart St., Boston
16, Mass.
V
North Shore Gas

Nov.

Empire; Inc. (11/16-17)
Oct. 31 (letter of notification) 300,000 shares of
common]
stock (par 10 cents). Price—$1 per share. Proceeds—To '
retire $17,800 of outstanding preferred stock; for equip-ment, inventory and working capital. Business—Chem¬
ical specialties. Office—865 Mt. Prospect Ave., Newark,
N.J. Underwriter—Vickers Brothers, New York.
' *

.

Oct. 12 (letter of notification) 10,000 shares of cumula¬
tive convertible preferred stock (convertible any time
after

purchase certain oil and gas properties and leasehold
interests; for drilling and development costs; to pay off
$450,000 promissory notes; and for general corporate
purposes. Underwriter—J. R. Williston & Co.; New York.

Monogram Uranium & Oil Co.
j
Aug. 31 filed 1,000,000 shares of common stock (par $1).
Price—$2 per share. Proceeds — To make payment of
$675,000 to Four Corners Uranium Corp. under a pur¬
chase contract; to use $100,000 each to purchase mining
equipment, to pay for development and driving drift and
for exploratory drilling; and the remainder for working
capital, acquisition of additional properties, and unfore¬
seen contingencies.
Underwriter—Carr & Co., Detroit,
Montana-Dakota

•

Corp., Dallas

Mich.

•

for

(11/14-18)

•

Sept. 16 filed 200,000 shares of common stock (par$l).
Price—To be supplied by amendment.
Proceeds—1Tcr

share for each four shares held; rights to expire 45 days

*

■

Life Underwriters Insurance Co., Shreveport,

from

Nortex Oil & Gas

Thursday, November 10,1955

Oct. 31

Sept. 26 filed 100,000 shares of common stock (par 25
cents), to be offered for subscription by present stock¬
holders of record July 21, 1955 on the basis of one new

-

.::

it Mid-State Commercial Corp.

41

(letter of notification) 5,000 shares of 7% cumu¬
lative preferred stock. Price—At par ($10 per share).
Proceeds — To acquire conditional sale contracts/to re¬
duce notes payable and for other corporate purposes.
Office
2 King St., Middletown, N. Y. Underwriter—

..

Chronicle

tivities. Underwriter—Western Bond & Share Co., Tulsa,
Okla.

Navajo Cliffs Uranium Corp., Provo, Utah >
July 6 (letter of notification) 6,000,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For mining expenses. Office—156 No. University
Ave., Provo, Utah. Underwriter — Lindquist Securities,
Salt Lake City, Utah.
Nevada Mercury Corpi., Winnemucca, Nev.
Sept, 16 (letter of notification) 1,500,000 shares of com¬
mon stock
(par one cent). Price—20 cents per share.
Proceeds—For expenses incident to mining activities.
Office—Professional Building, Winnemucca, Nev.
Underwriter—Shelley, Roberts & Co.. Denver, Colo.
New England Telephone & Telegraph Co. (11/15)
Oct. 21 filed $30,000,000 of 36 year debentures due Nov.

15, 1991. Proceeds—To repay advances from;the Ameri¬
can Telephone & Telegraph Co.
Underwriter—To be de¬
termined by competitive bidding. Probable bidders: Halley, Stuart & Co. Inc.; The First Boston Corp.; Morgan
Stanley & Co.; Glore, Forgan & Co. Bids-^-To be re¬
ceived up to 11 a.m. (EST) oh Nov. 15 at Room 2315,
195 Broadway, New York, N. Y.
New Mexico Copper Corp.

Sept. 8 (letter of notification) $100,000 of 6% convertible
1965 (to be convertible at
any time at rate of $100 of bonds for 220 shares of com¬
mon stock).
Price—At par. Proceeds — For mining ex¬
penses.
Office—Carrizozo, N. M. Underwriter—M. J
Sabbath Co., Washington, D. C.

debenture bonds due Oct. 1,

New Mexico Oil & Gas Co.

July 27 (letter of notification) 2,500,000 shares of com¬
mon stock (par one cent). Price—Three cents per share
Proceeds
For general corporate purposes. Office —
Bethesda, Md. Underwriter—Lewellen-Bybee Co., Wash¬
ington, D. C.
•
—

Old

0Hve-Myers~5palti Mfg. Co., Dallas, Tex.
"s
24 filed 100,000 shares, of cumulative convertible
preferred stock (par $6.25) to be offered for subscription;
by common stockholders on basis of one share of pre¬
-

ferred stock for each 2.597 shares of

Price —$9.50 per share. Proceeds

Business

gram.

—

stock held.*

common

For expansion pro¬
household furniture.

—

Manufactures

Underwriter—Dallas Rupe & Son, Inc.,

Dallas, Texas.

Ottilia Villa,

Inc., Las Vegas, Nev.
^
Aug. 16 (letter of notification) 3,000 shares of capital',
stock. Price—At par ($100 per share).
Proceeds—For
South 5th St., Las Vegas, Nev. Underwriter—Hennon StRoberts, Las Vegas, Nev.

^ Pacific International Metals & Uranium, Inc.

:

Aug. 12 (letter of notification) 12,000,000 shares of com¬
stock.
Price—At par (one cent per share). Pro¬
ceeds—For expenses incident to mining activities/ Office
mon

^-419

Judge4 Bldg., Salt Lake City, Utah.

Guss Securities Co., Salt Lake

Underwriter— •
City, Utah.

Pacific

Lighting Co, (11/15)
shares of cumulative preferred stock
(no par). Price—To be supplied by amendment. Proceeds—Approximately $20,000,000, to repay bank loans and '
for advances to subsidiaries to finance, in part, the cost
of their construction and expansion programs, and for general corporate, purposes. Underwriter—Blyth & Co., "
Inc., San Francisco and New York.
:
Oct. 26 filed 200,000

Pandora Uranium Mines* Inc.
July 14 (letter of notification) 3,000,000 shares of com¬
mon stock (par one cent).
Price — 10 cents per shares
Proceeds—For expenses, incident to mining operations. .
Office—530 Main St., Groad Junction, Colo. Underwriterr
—Columbia Securities Co., Denver 2, Colo, and Salt
Lake City, Utah.
Paria Uranium &

Oct.

:

Oil Corp.

(letter of notification) 3,000,000 shares of com-:
mon stock
(par five cents). Price—10 cents per share.
Proceeds
For mining expenses. Office — Newhouse
17

—

Bldg., Salt Lake City, Utah. Underwriter
States Investment Co., Tulsa, Okla. •

—

Western

Partridge Canadian Explorations, Ltd*
Sept. 21 (Regulation "D" filing) 500,000 shares of com-^
mon stock (par $1).
Price—60 cents per share. Pro-,
ceeds—For exploration and development costs.
Office—West

Toronto, Ont.,

Canada;

Underwriter

—

Hunter

Securities Corp; and M, J. Reiter Co., both of New York.
.

Penn-Utah Uranium, Inc., Reno, Nev.

t

,

■

,

Aug. 4 (letter of notification) 2,000,000 shares of com¬
stock (par three cents). Price—15 cents per. share.
Proceeds—For expenses incident to .mining activities.;

mon

Office—206 N. Virginia Street, Reno,

Nev.

Underwriter

—Philip Gordon & Co., Inc., New York, N. Y.
Pittman

Drilling & 'Gil Co., Independence, .Kan**

'

Sept. 6 (letter of notification) 60,000 shares oL6%non-;
cumulative preferred- stock (par $5) and 60,000 sharesj
of common stock (par 10 cents) to be off ered* in xinits of:
one share of each.
Price—$5 per unit. Proceeds—For
payment of note and working capital. Office—420 Citi¬
zens National Bank Bldg., Independence, Kan.
Under¬
writer—Dewitt Investment Co., Wilmington, Del.

-A-Portland Gas & Coke Co.
Nov. 4 (letter of notification) 5,000 shares of common
stock (par $19) to be offered to employees under com¬
pany's stock purchase plan. Price—$25 per share. Pro¬
ceeds

—

For construction program.

Sixth St.. Portland. Ore.

Office

—

Underwriter—None.

920 S. W.

•-Volume

182

Number 5480

.

.

The Commercial and Financial Chronicle

.

★ Porto Rico Telephone Co. (11/30)
Nov. 7 filed 100,000 shares of common stock
to be offered for

Dec. 9.

Price—To be supplied by amendment.
Proceeds
bank loans and for construction program.
Underwriters—The First Boston Corp., New York.

.—To

(par $20),

subscription by stockholders of record

Nov. 29 at the rate of

one

share for each four shares

new

Mining Corp., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of

July 15

,(99.87%) of the outstanding stock has waived its pre¬
-emptive rights to purchase any of the new shares. Price

Pr«K!eedsr--Fbr: 7miwng

be

supplied

by

amendment.

Proceeds—For

struction program. Underwriter—Merrill
Fenner & Beane, New York.
:
'
'

Postal

•:

Life

Insurance

-

'Co.77^-'

1

and

.

common

stock

(par

(par $1)

$100)

and

Price—$1,000

cumu¬

9,000 shares of
in units of nine

to be offered

common

st

of

one

share).

Dallas, Texas. Underwriter —: Rauscher, Pierce & Co.,
Dallas, Texas; and Russ & Co., San Antonio, Texas.., 7
Spirit Mountain Uranium, Inc., Cody, Wyo.
July 29 (letter of notification) 25,200,000 shares of com¬
mon stock. Price—At par (one cent per share). Proceeds
—For expenses incident to mining activities.
Office—
1507-8th Street, Cody, Wyo. Underwriter—Utah Uranium
Brokers, Las Vegas, Nev.

working

capital due
Underwriter—None

to
.

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;; Salomon Bros. & Hutzler; Blyth & Co., Inc.; Union
Securities Corp. and Merrill
Lynch, Pierce, Fenner &
Beane
(jointly); Lehman Brothers; The First Boston
Corp.; White, Weld & Co. and Shields & Co. (jointly).

Products

shares of preferred stock and 100 shares of

Sterling Discount Corp., Atlanta, Ga.
27 (letter of notification) 20,000 shares of common
(par $1). Price—$10.50 per share. Proceeds—For
working capital. Office—801' Peachtree St., N. E., Atlan¬
ta, Ga. Underwriters—Courts & Co., J. W. Tindall & Co.
and Hancock, Blackstock & Co., all of Atlanta;" Ga., Ca¬
bell Hopkins & Co., Columbus, Ga.; and Varnedoe, Chisholm & Co., Inc., Savannah, Ga. Offering—Made on Nov.
Oct.

stock

Bids—Expected

to be .received up to 8:30 a.m. (PDT)
Nov. 29 at Room 1200, 111 Sutter
St., San Francisco,
-Calif.

dck.

on

unit.

Proceeds—For

working capital.

•Business—To publish a trade magazine.

Office—39 Pearl

per

St., New York.

Underwriter—None.

'

1

'

San

•

Jacinto

Petroleum Corp., Houston, Texas
Sept. 20"filed -500;000 shares of common stock (par $1).
Price—$15 per share. Proceeds—For payment of short
term loans and other
indebtedness; and for general cor¬

^

Prospect Hill Golf & Country Club, Inc.
July 8 uetter of notificatioii) 11,900 shares of preferred
stock.
Price—At par ($25 per share).
Proceeds—For
swimming pool, club furnishings and equipment, golf

•

porate purposes.

•privately

and organization and develoment
expense. Office
—Bowie, Md. Underwriter—L. L. Hubble & Co., Inc.,
course

3.

Underwriter—None, sales to be made

through1-officers

of

the

company.

Statement

v-

Sunburst

Sept. 6
cents

of

28

filed

.$300,000,000 of

;

common

25-year

convertible

-Underwriter—Shelley-Roberts & Co., Denver, Colo.

sub¬

1, 1980 to be offered for
stockholders of record Nov. 17

mailed

about

Nov.

17.

Price

To

stock

facilities in electronics and related fields.
New York..

and

Lazard

Freres

Co., both of

ceeds

(par

cent).

one

k

Price—32

cents

per

share.

.

two

shares

-stock.

of

preferred

Price—$2.05

and

unit.

per

one

share

of

Proceeds—For

common

working

capital, etc.

Office—161 West 54th Street, New York,
Underwriter—Choice Securities Corp., 35 East
12th Street, New York, N. Y.
;

N.

Bldg., Lynchburg, Va. UnderwriterScott, Horner & Mason, Inc., Lynchburg, Va.

.

Republic Benefit Insurance Co., Tucson, Ariz.
Sept. 30 filed 150,000 units in a dividend trust and stock
procurement agreement to be offered
bers of the general public who are
and who

to become active

are

Price—$2

pany.
Leo

unit.

per

porate purposes.

to

certain

mem¬

acceptable applicants
policyholders in the com¬

Proceeds—For

Underwriter—None; to

general cor¬
be offered by

Rich, Robert Kissel and Sidney M. Gilberg,

tees.

as

Trus¬

-

Richmond

Homes, Inc., Richmond, Ind. (11/14)
140,000 shares of common stock (par $1),
"of which 80,000 shares are to be sold for the account of
Oct.

25

filed

the company and 60,000 shares for the account
of two
selling stockholders. Price—To be supplied by amend¬
ment.
(Proposed maximum offering price is stated to
be $5 per share.) Proceeds—To
prepay a mortgage note,

for the organization of

poration

to

wholly owned acceptance cor¬
be used for financing purposes, for plant
a

additions and the purchase of additional
equipment, for
the purchase of land to be
developed as a new sub¬
division in Richmond, Ind., and for

working
Underwriter—Cruttenden & Co., Chicago, 111.

capital.

+ Rochester Gas & Electric Corp. (11/25)
Nov. 4 filed 200,000 shares of common stock
(no par)
to be offered for subscription by common
stockholders
on

-

ic Shenandoah Gas Co., Lynchburg, Va.
v.
3 (letter of notification) 1,000 shares of common
(par $1). Price—$7 per share. Proceeds—To Mrs.
...

Nov.

stock

Jewel K.

the basis of
Nov.

shares

to

one

new

25; rights to
be

offered

share for each

expire

to

on

Dec.

employees




up

seven

12,
to

shares held

unsubscribed
and

including

Carter.

Underwriter—Scott, Horner & Mason,

Sheraton

Price—At par ($1 per share).

Bldg., • Carson City, Nev.
Vegas, Nev.

.

>

Office—Virginia Truck

Underwriter—Coombs & Co.
'
"
\
;

Swank Uranium Drilling & Exploration Co.
Aug. 17 (letter of notification) 3,000,000 shares of com¬
mon stock. Price—At par (10 cents per share).
Proceeds
—For expenses incident to mining activities. Office—
Moab, Utah.
Underwriter—Honnold & Co., - Inc.; Salt
Lake City, Utah.

Sweetwater

Uranium

Co.

Sept. 9 (letter of notification) 3,000,000 shares of capital
(par one cent). Price—10 cents per share. Pro¬
ceeds—For mining operations. Office—605 Judge Bldg.,
Salt Lake City, Utah.
Underwriter—Skyline Securities,
Inc., Denver, Colo.
stock

'

Target Uranium Co., Spokane, Wash.
Aug. 12 (letter of notification) 1,000,000 shares of non¬
stock (par five cents).
Price—20 cents per
share.
Proceeds—;For mining expenses.
Office — 726
Paulsen Bldg., Spokane, Wash.
Underwriter — Percy
Dale Lanphere, Empire State Bldg., Spokane, 'Wash,
assessable

.illr-Texas' American Oil Corp.* Midland, Texas
iNov. 3 (letter of notification) 600,000 shares of
stock (par 10 cents). Price
Proceeds—For drilling expenses,
mon

—

50 cents

per

com¬

share.

etc. Office—216 Cen¬
Bldg., Midland, Tex. Underwriter—Kramer, Woods
Co., Inc., Houston, Tex.

tral

Inc., Lynchburg, Va.

Y.

.

on

Sayre & Fisher Brick Co., Sayreville, N. J.
Sept. 30 filed 325,000 shares of capital stock (par $1).
Price—To be supplied by amendment. Proceeds
For
prepayment of outstanding 5Vz% sinking fund bonds due
1970; balance for general corporate purposes, including
•additions and improvements and working
capital., Underwriter—Barrett Herrick & Co., Inc., New York City.

stock.

of Las

share.*" Pro¬

Office—315 Krise

Real

of

cents per

common

Proceeds—For mining expenses.

.

Price—10

Shenandoah Gas Co., Lynchburg, Va.
Sept. 19 (letter of notification) 1,000 shares of common
stock (par $1). Price—$7 per share. Proceeds—To James
L. Carter, President, who is the selling stockholder.

—

Estate Clearing
House, Inc.
Sept. 14 (letter of notification) 270,000 shares of 7%
cumulative preferred stock (par
$1) and 135,000 shares
of common stock (par five
cents) to be offered in units

cent).

one

,

Pro¬

For expenses incident to
mining operations.
.Office—Bryant Bldg., Montrose, Colo.
UnderwritersGeneral Investing Corp., New
York, N. Y., and Shaiman
.& Co., Denver, Colo.
-

assessable

/,,/

—

777

Radium Hill Uranium,
Inc., Montrose, Colo. ■-.*
July 19 (letter of notification) 625,000 shares of common

.stock

Aug.

For

—

Susan B. Uranium Corp., Carson City, Nev.
11 (letter of notification) 300,000 shares of non¬

77

mining expenses. Office — Simms Bldg.,
Albuquerque, N. M. Underwriter—Mid-America Secu; rities, Inc. of Utah, Salt Lake City, Utah.

Underwriters

&

•

(par

ceeds

be

supplied by
Proceeds—For property additions and im¬
provements; for further expansion and development of
the corporation's research,
manufacturing and1 service
—

St., Miami, Fla. Underwriter

—None.

Mining & Development Corp.
,
Sept 9 (letter of notification) 3,000,000 snares of capital

| amendment.

1—Lehmani Brothers

City.

ital. Office—2153 S. W. 10th

Sandia

on the basis of
$100 .of debentures for each 14 shares of
istoek- Jield; rights; to expire on Dec.;5, Warrants
will'

be

same

Orange Groves, Inc., Miami, Fla.Nov. 2
(letter of notification) 600 shares of class 'A
stock (par $3) and 400 shares of class B preferred stock
(par $100), Price—At par. Proceeds—For working cap¬

•

ordinated debentures due Dec.

-subscription by

Utah,

.

>

Oct.

common

per

Sunshine

•

t.

Corp., Salt Lake City, Utah
2,750,000 shares of non¬
stock
(par two cents). Price—10

share. Proceeds — For expenses incident to
mining activities. Officfe—116 Atlas Building, Salt Lake
City, Utah. Underwriter—Mid America Securities, Inc.

,

—

,

Uranium

(letter of notification)

assessable

'

,

All sold.

Summi't. Springs Uranium Corp., Rapid City, S. D.
Oct. 3 (letter of notification) 1,200,000 shares of common
stock (par 1§ cents). Price—25 cents per share. Proceeds
—For expenses incident to mining -operations.
Office—
Harney Hotel, Rapid City, S. D. Underwriter—Morris
Brickley, same address.

effective Oct. 10.

Baltimore, Md.
San Juan Racing
Association, Inc., Puerto Rico.
Sept. 27 filed 4,000,000 shares of common stock (par 50
ic Puerto :Rfcan Jai Alai, Inc. (11 /30)'.-fcl,
cents), of which-3,800,Q00 will be represented by 3,000,000
•Nov; 3 filed l,250?00ft-shares of common stock
(par one
cent); Price—$1.50. ,:per 5hare.;vProceeds—To purchase ..voting trust certificates and 800,000 warrants. These of¬
property and •fe^^eonstruction oi sports stadium, -etc. > ferings are to be made in two parts: (1) an offering, at
^6. Cents per share, of
200,000 shares for subscription by
•Business—Playing of.-jai alai, with pari-mutuel betting..
stockholders of record April
•Office—San Juan, Puerto Rico. Underwriter—F. H. Cre30, 1955, on a two-for-one
.basis; and (2) a public offering of 3,000,000 shares, to be
rie & Co., Inc., New York.
t; represented
;iay voting trust certificates, at 58.8235 cents
! r; Quaker State Foods Corp.,
Pittsburgh, Pa.v:,-;v. per share. Proceeds—For racing plant construction. Un¬
Oct. 6 (letter of
notification) 15,000 shares of 7% cumuderwriter—^-None.. Flyman N.
Glickstein, of New York
-lative convertible preferred stock. Price—At
par ($10
City*/is Vice-President.
i
per share).
Proceeds
To purchase machinery and
San Juan Uranium
Exploration, Inc.
equipment and.i for working capital.
Underwriters—
.Aug. 19 (letter of notification) 925,000 shares of non¬
-Childs, Jeffries
Thorndike, Inc., Boston and New
assessable common stock (par one cent). Price—12 cents
Yorkt:ar>d.Syid;& Co., New York.
i
per shares P«r«eeeds-*-For expenses incident to mining
Radio Corp. of America <11/17
)>•' Vw*'/. -9; -7: Or*« • ,^activities. Office*«^.718 Kittredge Bldg., Denver, Colo.
.

'

.

(with an oversubscription privilege); rights to ex¬
pire on Nov. .21. Price—$2.25 per share. Proceeds—For
purchase of machinery and equipment; and for the work¬
ing capital and general corporate purposes.
Office—

*

-

,

stock

•

Corp.

San Diego Gas & Electric Co.
(11/29)
Nov. 1 filed $18,000,000 of first
mortgage bonds, series F,
due 1985. Proceeds—To
repay bank loans and for new
construction. Underwriters—To be determined
by com¬

rights offering, none; for stockholder offering,
Inc., Chicago, 111.

preferred

Financial

Franklin Securities Co.,

losses

replenish

sustained in recent flood.

A. C. Allyn & Co.

3

Southwestern

—

Sept. 6 filed 770,000 shares of common stock (par 10
cents), being offered for subscription by stockholders of
record Nov. 2 at rate of two new shares for each share

.

(letter of notification) a minimum of 5,883 shares
maximum of 7,453 shares of class B common

a

Proceeds—To

.Price—To stockholders, at par
($2 per share); to pub¬
lic, $20 per share. Proceeds—For ^working capital-and1
other general corporate
purposes.
Underwriter — For

.Nov.

'7

■ >

stock to be offered to stockholders on a basis
share for each four shares held.
Price—($2!f per

,-at the rate of two
; an

Publishing Corp.
(letter of notification) 810 shares of 7%

•

'
,

Underwriter
*

Atlanta, Ga.

held

Oct. 3

Sept. 29 filed 100,800 shares of capital stockbeing of¬
subscription by stockholders of record Oct. 20

lative

operations.

7

?

fered for

.company

cents per share.
Office—530
Judge

■

new shares for each share held
(with
oversubscription privilege); rights to expire on Nov.
,21. Of this total 45,500 shares were on Oct. 21
offered
■fpublicly for the account of two selling stockholders.

Phoenix, Ariz.

(par^.one cent)^. Price—Five

••1

;

cap¬

14

stock (par 10 cents).

mon

Bldg., Salt Lake City,"'"Utah. Underwriter—Mid Ameri¬
ca Securities,*
Inc., of Utah, 26 W. Broadway, Salt Lake

con¬

Lynch, Pierce,**

,

Mining & Milling Co.r Atlanta, Ga.
(letter of notification) 300,000 shares of com¬
Price—$1 per share. Proceeds
—For expenses incident to mining activities.
Offices—
Healey Building, Atlanta Ga., and 4116 No. 15th Avenue,
Sept.

Rocket

:held; rights to expire on Dec. 13. The International
(Telephone & Telegraph Co., the holder of 399,495 shares

—To

Southern

repay

ital stock

43

(2007)

&

Corp. of America

.

Oct. 31 filed $15,000,000 of 6%% cumulative income sub¬
ordinated debentures due Nov. 1, 1980 to be offered

Texas Western Oil & Uranium Co., Denver, Colo.
June 15 (letter of notification) 5,960,000 shares of com¬

initially by the company (a) to its stockholders on the
basis of $100 principal amount of debentures for each

mon

25

shares

of

stock

then held and (b) to employees of
corporation and its subsidiaries. Price—$95 per $100 of
debentures to stockholders; and at par to public. Proceeds
—For general corporate purposes"}* Offieb—Boston, Mass.

Underwriter—None, but Sheraton
subsidiary, will handle stock sales.

Securities

Corp.,

a

Siegier Corp., Chicago, III. (11/22)
31 filed 175,000 shares of common stock (par
$1).
Price—To be supplied by amendment. Proceeds—To
pay
remainder of purchase price for the stock of
Holly
Manufacturing Co. Underwriters—William R. Staats &
Co., Los Angeles, Calif.; Dominick & Dominick and

stock (par one cent).
Price—Five cents per share.
Proceeds—For mining expenses. Office — 407 Denver
National Bldg., Denver, Colo. Underwriter—Floyd Koster &

Co.,

same

address.

it Titanium Ventures, Inc., Montpelier, Vt.
Oct. 24 (letter of notification) 300,000 shares of common
stock (par 50 cents).
Price—$1 per share, - Proceeds—
For mining expenses.
Office—73 Main St., Montpelier,
Vt.

Underwriter—None.

♦.

.

Oct.

Bache &

Co., both of New York, N. Y.; and Schwabacher
& Co., San Francisco, Calif.
Southern

Co.

Sept. 30 filed 1,507,303 shares of common stock (par
$5) being offered for subscription by common stockhold¬
ers

of

each

record Nov.

12

—$17.50
for

burg,
and

issue

per

the basis

of

one

new

share

for

held; rights to expire on Nov. 22. Price
share. Proceeds—Tq repay bank loans and
in

additional

Underwriter—The

Thalmann

Wertheim
on

on

shares

investment

panies.

1

a

bid

&

&

of

Co.,

Co.

stock

First

Carl

M.

of

Boston

Loeb,

(jointly), who

13.125

cents

subsidiary

per

Corp.,
Rhoades

com¬

Laden&

Co.

awarded the
share compensation.

•

Toro

Manufacturing Corp. (11/15)
Oct. 25 filed 42,099 shares of common stock (par $1) to
be offered for subscription by common stockholders on
the
as

basis
of

of

one

about

Price—To

share

new

Nov

for

rights

14;

to

each

four

expire

shares held

on

Nov.

28.

be

supplied by amendment.
Proceeds—For
working capital, etc. Underwriter — Piper, Jaffray &
Hopwood, Minneapolis, Minn.
Traveler

Publishing Co., Inc., Philadelphia,

Pa.

(letter of notification) $247,000 of 5Vz% con¬
vertible debentures, series A, due Sept. 1, 1965 and 24,-

Sept. 29

700 shares of common stock

(par 10 cents), to be offered
$1,000 of debentures and 100
shares of common stock.
Price—$1,010 per unit. Pro¬
ceeds—For payment of indebtedness, expansion, estab¬
in

units

consisting

of

lishment of additional

offices; professional and editorial

were

Continued

on

page

44

44

The Commercial and Financial Chronicle

(2008)

Continued

k Virginia Electric & Power Co.

from page 43

assistance, advertising and promotion; and working capi¬
tal.
Office—Widener Bldg., Philadelphia, Pa.
Under¬
writer—Albert C.

Schenkosky, Wichita, Kansas.

Travelfares, Inc., Seattle, Wash.
Sept. 14 (letter of notification) 100,000 shares of
assessable

common

stock.

Price—At par

($1

per

non¬

share).

Proceeds—For

repayment of loans, working capital, etc.
Tower, Seattle, Wash. Underwriter
—National Securities Corp., Seattle, Wash.
Office—1810

Smith

Tri-Continenta!

Corp., New York

(11/15)

Oct. 27 filed 2,573,508 shares of common stock
(par $1),
which will be issuable upon exercise of the common

stock

purchase warrants presently outstanding. PriceEach warrant currently entitled the holder to purchase
1.27
shares
at $17.76 per share for each one share
specified in the warrant certificate.
Tri-State Natural Gas Co.,

Tucson, Ariz.

July 6 (letter of notification) 200,000 shares of common
Price—$1.50 per share. Proceeds—
For expenses incident to oil and gas activities. Office—
15 Washington St., Tucson, Ariz.
Underwriter—Frank
itock (par 10 cents).

I* Edenfield &

Co., Miami, Fla.

Tunacraft, Inc., Kansas City, Mo.
Aug. 22 (letter of notification) $295,000 principal amount
of 6% 12-year registered subordinated sinking fund de¬
bentures, dated Sept. 1, 1955 (with stock purchase war¬
rants). Price—At par (in denominations of $100 each
or multiples thereof).
Proceeds—To refinance and dis¬
charge secured obligation. Underwriter — McDonald,
Evans & Co., Kansas City, Mo.
r
Union

Oct.

13 filed

797,800 shares of common stock (no par).
Price—Proposed maximum offering price per unit is $5
per share.
Proceeds—To acquire one life and one fire
insurance company, and one mortgage loan firm. Under¬
writer—None; shares to be sold through directors and
officers.
Union Gulf Oil & Mining Corp.

Sept. 9 (letter of notification) 600,000 shares of common
stock (par 10 cents).
Price—50 cents per share. Pro¬
ceeds—For

mining expenses. Office—510 Colorado Bldg.,
Denver, Colo. Underwriter—Honnold & Co., same city.
•

United

Insurance Co.

of America

(11/28)

Oct. 28 filed 200,000 shares of common stock (par $2.50),
of which 50,000 shares are to be sold for account of com¬

and 150,000 shares for selling stockholders. Price—
To be supplied by amendment.
Proceeds—For expansion
pany

and working capital.
R. S. Dickson & Co.,
Co.

Office—Chicago, 111. Underwriters—
Charlotte, N. C., and A. C. Allyn &

Inc., Chicago, 111.

★ United Merchants & Manufacturers, Inc.
151,734 shares of common stock (par $1)
reserved for issuance under the company's Executive
Employeees Restricted Stock Option Plan, arid $500,000
of Interests in the Employees Stock Purchase Plan for
1956 (together with 75,000 common shares for issuance

Nov. 4 filed

under such latter plan).

TfrU. S. Automatic Machinery & Chemical Corp.
(letter of notification) 300,000 shares of class A
common stock (par 10 cents).
Price—$1 per share. Pro¬

Nov. 4

ceeds

—

For

general

corporate purposes.

Montgomery Ave., Philadelphia, Pa.
lumbia Securities Corp., New York.

Underwriter—Co¬

stock

(no par). Price—$50 per share. Proceeds
For
working capital. Office—322 N. W. 14th Ave.,' Portland
9, Ore. Underwriter — None. Offering to be made to
people engaged ih the retail drug business.
—

Corp., Inc.* Houston, Texas

July 8 filed 500,000 shares of common stock (par two
mills). Price—$2.50 per share. Proceeds—For
equip¬
ment, mining costs, oil and gas development, and other
purposes.

Underwriter — None.

Postponed.

Offering
°

—

Utah-Arizona Uranium, Inc., Salt Lake
City, Utah
Aug. 1 (letter of notification) 600,000 shares of common
stock (par 16% cents). Price—50 cehts
per share. Pro¬
ceeds—For expenses incident to
mining activities. Office
—Greyhound Terminal Building, West Temple & South

Temple Streets, Salt Lake City, Utah.
Trans-Western Brokerage

Underwriter-

Co., New Orleans, La.

incident to mining activities. Office—312 ByingBldg., Reno, Nev.
Underwriter—Lester L. LaFortune, Las Vegas, Nev.

penses

ton

Utore Uranium & Diata, Inc.,
Vale, Ore.
July 8 (letter of notification) 10,000,000 shares of

.Uranium Brokerage, Salt Lake City, Utah.

Nov. 3 (letter of notification)
rtock.

Price—At par ($10 per share).

Proceeds—To

tire outstanding debts and short term notes.

^Dougherty, Butchart & Cole,




common
re¬

Underwriter

Inc., Portland, Ore.

program. Underwriter—To be
tive bidding. Probable bidders:

determined by competi¬
White, Weld & Co. and

Kidder, Peabody & Co. (jointly); The First; Boston
Corp.; Stone^ Webster Securities Corp.; Shields &'Co.;
Equitable Securities Corp and Union Securities Corp.

(jointly). Bids—Expected about Dec. 14.
1

Atlantic City Electric Co.

L. England, President, announced that the
directors are now considering the sale to the public of a
small amount of common stock (not more than 75,000
1, B.

Aug.

cipal amount of debentures for each 10 shares of stock
held; rights to expire Nov. 30.
Price—At par (flat).
Proceeds—For
additions and improvements.
Under¬

proposal to increase the authorized common
shares to 2,400,000 shares to provide
for exchange of stock for minority shares to Plywood,
Inc., for conversion of proposed new debentures and for
possible future acquisitions of property. Underwriter—
For convertible debentures, may be Van Alstyne, Noel
& Co., New York.
Offering—Expected before end of

writer—Kuhn, Loeb &

Co., New York.

k Whitaker Cable Corp., North Kansas City, Mo.
(11/23)

$500,000 of convertible sinking fund deben¬
1, 1970. Price—To be supplied by amend¬
ment. Proceeds—To retire bank loans, to acquire addi¬
tional equipment and for working capital and general
corporate purposes. Underwriter—Barret, Fitch, North &
Co., Kansas City, Mo.
tures due Nov.

^ William Tell Productions, Inc.,
Nov. 4 (letter of notification) 147,500 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—To
repay loan; for acquisition of new show properties; for
production of pilot films or kinescope records; and for
capital reserves, etc. Office—135 Central Park West,
New York. Underwriters—None; sales to be handled by
William T. demons, President.
Wisconsin

Southern Gas

to

basis of

one

share for each four shares held

new

as

of

Nov.

3; rights to expire on Nov. 29. Price — $16.50 to
stockholders; and $17.50 to public. Proceeds—To repay
bank loans and for extensions and improvements to
property. Office — 235 Broad St., Lake Geneva, Wis.
Underwriters
The Milwaukee Co., Milwaukee, Wis.;
and Harley, Haydon & Co., Inc. and Bell & Farrell, Inc.,
both of Madison, Wis.
—

Wonder Mountain Uranium, Inc., Denver, Colo.
Aug. 12 (letter of notification) 2,380,000 shares of com¬
mon stock
(par one cent).
Price—10 cents per share.
Proceeds
For expenses incident to mining activities.
—

Office—414 Denver Nat'l

York.
•

Atlas

Plywood Corp.

Oct. 12 it was announced company

plans to issue and sell

of 5%% convertible subordinated debentures.

approve

a

stock from 1,400,000

1955.

Barium Steel Corp.

Sept. 12 it was reported that early registration is ex¬
pected of $8,000,000 of subordinated debentures due 1970.
Proceeds—Together with funds from private sale of $3,000,000 of notes or debentures, to be used for general
corporate purposes. Underwriter—Lee Higginson Corp.,
New York.

(

& Maine

Boston

RR.

Oct. 20 stockholders approved a plan to

offer $105 prin¬
cipal amount of series B 5% income debenture bonds
(plus 5% interest for the year 1955) in exchange for
each of the outstanding 274,597 shares of 5% preferred
stock (par $100). Not in excess of $28,874,564 of bonds
would be issued.

Co., Inc.

20 filed 20,818 shares of common stock (par $10),
be offered for subscription by stockholders on the

Oct.

Bldg., Denver, Colo.

Under¬

writer—Floyd Koster & Co., Denver, Colo.
Woodrow Douglas Oil Co., Pecos, Texas

(11/14)
(letter of notification) 75,000 shares of common
stock (par $1). Price—$4 per share. Proceeds—For ex¬
pansion and working capital. Office—1320 West Third
St., Pecos, Tex. Underwriter — Eisele & King, Libaire,
Stout & Co., New York.

Brothers Chase Candy Co.
was announced
that stockholders

Bunte

Oct

27 it

Aug. 29 filed 250,000 shares of common stock (par $5).
Price—$8 per share. Proceeds—For retirement of debt;
revision
of
corporate structure, etc. Underwriter —
Straus, Blosser & McDowell, Chicago, 111. Offering—To
be withdrawn.

Nov.

4

1,575,000 shares to 2,000,000 shares. Underwriter—May
Chicago, 111.

be F. S. Yantis & Co. Inc.,

Campbell Chibougamau Mines, Ltd.
Aug. 15 it was reported a secondary offering of about
150,000 shares of common stock will be registered with
the SEC.
Business—Company, recently formed, is a
copper mining undertaking on Merrill Island, Quebec,
Canada. Underwriter—Allen & Co., New York. Offer¬
ing—Not expected for three or four weeks.
Citizens & Southern National
8

the

common

basis

the

on

Bank, Atlanta, Ga.
the sale of 100,000
stock (par $10) to stock¬
new share for each nine

recommended

directors

additional shares of
holders

of

one

(subject to approval of stockholders in Jan¬
uary). Price — $30 per share. Proceeds — To increase
capital and surplus.
shares held

Columbus

Oct, 25 it

Woods Oil & Gas Co., New Orleans, La.

on

to vote on

creating an authorized issue of 240,000
shares of cumulative prior preferred stock (par $5) and
on
increasing the
authorized common
stock
from

were

Nov.

&

Southern

Ohio

Electric

Co.

announced that contingent on favorable

was

market conditions the company plans to sell to under¬
writers early in December a maximum of 250,000 new
common shares. Proceeds—To finance electric plant ex¬

pansion. Underwriters—Dillon, Read & Co. Inc., New
York; and The Ohio Company, Columbus, Ohio.
Consolidated Edison Co. of New York, Inc.

Wyoming-Gulf Sulphur Corp.
Oct. 10 filed 971,000 shares of capital stock (par 10
cents), of which 700,000 shares arb for company's ac¬
count and 271,000 shares for account of two selling
stockholders.

Price—On the over-the-counter market at

then

prevailing price, but not less than $2 per share.
auxiliary equipment for Cody plant,, for
acquisition of additional site, and related activities.
,

Proceeds—For

Wyton Oil & Gas Co., Newcastle, Wyo.
Sept. 29 filed 254,000 shares of

stock (par $1).

common

Price—At the market. Proceeds—To August Buschmann,
of Seattle, Wrash., and members of his family. Under¬

writer—None.

.

(12/6)
Nov. 1 it

Corp.

;.

payments

Price—$1.50

under

purchase

per

and

general

Canada.

corporate

share.*
option
reserve

purposes.

P^cfe^ds—For

agreements

for

funds; and for

Office

—

Toronto,

Underwriters—Gearhart & Otis, Inc. and F. H.

Crerie &

Co.,* Inc., both of New York City.

Offering—

Dec.

1, 1985. Proceeds—To repay bank loans and for
program. Underwriter—To be determined

construction

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co.; The First Boston
Corp.

Craig Systems, Inc.
Sept. 26 it was reported company plans early registra¬
tion of 175,000 shares of common stock, of which 50,000
shares are to be sold for the account of the company and

shares

125,000

—For

mining

expenses.

account of certain selling stockr
Hemphill, Noyes & Co., New
—

<

;

Delaware Power & Light Co.

(12/13)
Sept. 28.it was announced company plans to sell by midDecember $10,000,000 of bonds and $5,000,000 of preferred
stock and also expects to undertake some common stock

financing early in 1956. Proceeds—To repay bank loans
and for construction program, which includes two plants
which will cost approximately $40,000,000. Underwriters
be determined by competitive bidding. Probable
bidders: (1) For bonds—Halsey, Stuart & Co. Inc.; Kuhn,
Loeb & Co. and Salomon Bros. & Hutzler (jointly);
—To

Brothers;

Union

Securities

Corp.;

The

First

and Blyth & Co., Inc. (jointly); White,
Weld & Co. and Shields & Co. (jointly); Merrill Lynch,
Boston

Price—At par

for

Underwriter

Lehman

Indefinitely postponed.

A common stock.

announced company expects to sell $70,-

York.

Aug. 19 filed 1,000,000 shares of common stpck, (par one
cent), of which 700,000 shares are to be sold for account
of compapy and 300,000 shares for account of Stancan
Uranium Corp.

was

000,000 first and refunding mortgage bonds, series K, due

holders.

Uranium

Sept. 14 (letter of notification) 6,000,000 shares off class

10,500 shares of

plans early registration

of 30,000 shares of cumulative preferred stock (par $100).
Proceeds—To repay bank loans and for construction

$3,000,000 of 5% sinking fund debentures and $3,000,000
Proceeds
—To increase inventory and to retire subsidiary indebt¬
edness. Meeting—The stockholders on Nov. 2 voted to

Zenith-Utah Uranium Corp.

~k Valley Telephone Co., Silverton, Ore.

(12/14)

Oct. 11 it was reported company

Wheeling Steel Corp. (11/17)
Oct. 28 filed $19,097,800 of convertible debentures due
Nov. 15, 1975, to be offered for subscription by common
stockholders of record Nov. 16 on the basis of $100 prin¬

other
com¬

(par one cent). Price—Two cents per share.
Proceeds—Expenses incident to mining operations. Of¬
fice—Lytle Building, Vale, Ore. Underwriter—Hansen

Prospective Offerings
Atlanta Gas Light Co.

shares) early next year. Underwriters—Probably Union
Securities Corp. and Smith, Barney & Co., both of New

claims; for working capital and

stock

10,1955

Telephone Co.
Oct. 10 (letter of notification) 18,500 shares of com¬
mon
stock
(par $10), to be offered to stockholders
through subscription rights on the basis of one share
for each five held. Price—$12 per share; unsubscribed
shares to be purchased by investment bankers at not less
than $12 per share. Proceeds—For expansion. Office—
Weaverville, N. C. Underwriter—None.

Yellowknife

Utah Grank, Inc., Reno, Nev.
Aug. 15 (letter of notification) 270,000 shares of capital
stock.
Price—At par ($1 per share). Proceeds—For ex¬

mon

Carolina

Oct. 24

-jlr United Wholesale Druggists of Portland, Inc.
Oct. 24 (letter of notification)
2,450 shares of common

corporate

Warrior Mining Co., Birmingham, Ala.
Sept. 29 (letter of notification) 6,000,000 shares of non¬
assessable common stock (par one cent). Price— Five
cents per share. Proceeds — For expenses incident to
mining activities. Office — 718 Title Guarantee Bldg.,
Birmingham, Ala. Underwriter—Graham & Co., Pitts¬
burgh, Pa. and Birmingham, Ala.

Office—8620

United States Thorium Corp.
July 21 (letter of notification) 250,000 shares of capital
slock. Price—At par ($1 per share). Proceeds—For
gen¬
eral corporate purposes.
Underwriter—Doxey-Merkley &
Co., Salt Lake City, Utah.

Universal Service

Underwriter — To be determined by competitive
bidding. Probable bidders: Stone & Webster Securities
Corp.; Merrill Lynch, Pierce, Fenner & Beane. Bids—
Expected to be received on Dec. 6.

gram.

Nov. 3 filed

Corp. of America

Thursday, November

(12/6)

Nov. 4 filed 125,000 shares of cumulative preferred stock,
1955 series (par $100). Proceeds—For construction pro¬

Western

...

Proceeds

(five cents).

Office—45 East Broadway, Salt

Lake

City, Utah. Underwriter—Bel-Air Securities Corp.*

same

city.

,

,

Corp.

& Beane and .Kidder, Peabody & Co.
(jointly); W. C. Langley & Co. (2) For common stock
(which may be first offered to stockholders)—W. C.
Langley & Co. and Union Securities Corp. (jointly);
Kidder5, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Beane (jointly); Carl M. Loeb, Rhoades &

Pierce, Fenner

!, ■»«■«,«

IWWWWR1
'l

Volume

182

Number

5480

.

.

^i^.lW^'-t&IMVWW'Wt-

At

The Commercial and Financial Chronicle

.

(2009)
Co.;

Blyth1 &

Co.,

Inc.

and

The

First

Boston

Corp.
(joint¬
stock—Blyth
& Co., Inc. and The First Boston
Corp. (jointly); White,
Weld<& Co. and
Shields
&
Co.
(jointly); Lehman
Brothers;. W. C. Langley & Co. and Union Securities
Corp. (jointly); Morgan Stanley & Co. Bids—Expected

(jointly); White, Weld & Co.

ly); Lehman Brothers.

to be received

Du Mont

on

(3)

and Shields & Co.

On preferred

Dec. 13.

suance

Nov.

that corporation, following is¬
14 to stockholders of Allen B. Du Mont

Laboratories, Inc. of 944,422 shares of common stock as
a dividend,
contemplates that additional shades will be
offered to its stockholders.
This offering will be un¬
derwritten. Kuhn, Loeb & Co. and Van
Alstyne, Noel
Co.

&

handled Du Mont Laboratories class A stock fi¬

nancing

some years ago.
Stockholders of Laboratories
Oct. 10 approved formation of Broadcasting firm.

on

Essex County Electric Co.

July 18 it

was reported company plans to issue and sell
additional first mortgage bonds. Underwriter—To

some

be determined

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Blair & Co. Incorporated.
Florida Power Corp.

April 14 it
between

announced company may issue and sell

was

first mortgage
competitive
bidding. 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
Boston Corp. Offering—Expected early in 1956.
bonds.

•

$10,000,000

Ford

Nov.

Motor

it

6

is

said

$12,000,000

be

of

determined by

Co., Detroit, Mich.
a
public offering of class A
is expected shortly after Jan. 1, 1956.

that

to be sold will be 6,952,293
46,348,620 shares to be owned
by the Ford Foundation following reclassification of the
stock). Price—It was reported that the offering price

shares

was

(or

the

15%

of

stock

the

expected to be around $60 to $70 per share.

writers—Expected to include four
investment

or

Under¬

five of the leading

banking firms in the country.

was

announced stockholders will vote Nov. 22

increasing authorized common stock from 1,050,000
shares to 2,100,000 shares to provide for new possible
financing in connection with proposed acquisition of
mining properties in Mexico.
on

Gulf States Utilities Co.

..

May 16 it was reported company may issue and sell
$10,000,000 first mortgage bonds if market condition!
permit.

Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Lehman Brothers;
Merrill Lynch, Pierce, Fenner &
Beane and White, Weld & Co. (jointly); Salomon Bros,
& Hutzler and Union Securities Corp. (jointly); Kuhn,
Loeb & Co.

and A. C. Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint¬
ly); Stone & Webster Securities Corp.

Houston

Aug. 26,

(Texas)

company

construct

Gas & Oil Corp.
applied to the FPC for authority to

Rouge, La., to Cutler, Fla., to cost approximately $110,382,000. It plans to issue and sell $81,200,000 of bonds,
about $20,000,000 of 5Vz% interim notes (convertible into
preferred stock), and over $8,700,000 of common stock.
Stock would be sold, together with the notes, in units.
Underwriters—Discussions were reported to be going on
with Blyth &
& Jones, Inc.,

Houston
Oct.

it

31

Co., Inc., San Francisco, Calif., and Scharff
New Orleans, La.

reported company may sell early next
$30,000,000 of bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Smith, Barney & Co., Lazard
Freres & Co. and Blyth & Co., Inc. (jointly); Lehman
Brothers, Union Securities Corp. and Salomon Bros. &
Hutzler

Jersey Bell Telephone Co.

Sept. 30 it

(12/14)

announced

was

company has petitioned the
New Jersey P. U. Commission for
authority to issue and
sell $25,000,000 of new debentures due
1995. Proceeds—
For expansion program.
Underwriter — To be deter¬
mined by competitive bidding. Probable
bidders: Hal¬
sey, Stuart & Co. Inc.; Morgan Stanley &

Co.; The First

Boston

Corp.; Shields & Co.; Kuhn, Loeb & Co.; White,
Weld & Co. Bids—Expected to be received on
Dec. 14.

Registration—Planned for Nov. 18.
New Orleans Public Service Inc.
(1/11)
24 it was reported company
plans sale of
shares
of
cumulative
preferred
stock

60,000

(par
$100).
Underwriter—To be determined by competitive
bidding.

Probable

bidders:
W.
C.
Langley & Co.;
Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane; White,
Weld &
Co.; Kidder, Peabody & Co. and Stone &
Webster Securities Corp.
(jointly); The First Boston
Corp.; Equitable Securities Corp. and Union Securities
Corp. (jointly); Blair & Co. Incorporated.
Bids—Ex¬

pected

Jan. 11.

on

it New York Central RR.
Nov.

it

8

announced

was

issue

and

$6,600,000 of equipment trust certificates to mature
annually Dec. 15, 1956-1970. Probable bidders: Halsey,
Stuart

&

Co.

Inc.;

Salomon Bros.

&

Hutzler;

Northern

Sept. 30

it

that the

reported

was

company

plans the

ments

for

1955

will

proceeds of the sale of additional bonds late iin.'1955 or
early 1956.; Underwriter—To be determined by competi¬
tive

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¬
(joint¬
ly); Smith, Barney & Co.; Lehman Brothers and Riter
& Co. (jointly); Glore, Forgan & Co.

Pennsylvania Electric Co.
Oct. 28 it

(12/20)

reported company plans to issue and sell

was

$20,700,000

of first mortgage bonds.
Proceeds
repay
bank loans and
for new construction.
Underwriter—To be determined by competitive bidding.
To

—

Probable

bidders:

Halsey, Stuart & Co. Inc.; The First
Boston! Corp.; Kuhn, Loeb & Co.; Kidder,
Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,
Inc. Bids—Expected
Dec., 20, ^
>.
; f
Pennsylvania

Nov.

7

sale

of

it

Co.

construction

determined

by

Co., New York.

Minute Maid Corp.

bidding. Probable bid¬
C. Langley & Co. and

Kuhn, Loeb & Co.; W.
Glore, Forgan & Co. (jointly); Kidder, Peabody & Co.;
The First Boston
Corp.; Smith, Barney & Co.; Harriman
Ripley & Co. Inc.
Pigeon Hole Parking of Texas, Inc.
Oct.

22 it was announced that about
800,000 shares of
additional capital stock would be offered for
public sale
after the first of next year.
Proceeds — Estimated at
about

$2,000,000, will be used to

pay

for expansion

pro¬

Underwriters—Porter, Stacy & Co., Houston, Tex.;
Muir Investment Corp., San
Antonio, Tex.

Nov.

2

it

was

announced

company

plans to issue and

sell publicly 400,000 additional shares of common stock.
Proceeds—To take care of expanding volume of busi¬
ness.

Underwriters

—

Paine, Webber, Jackson & Curtis

and

White, Weld & Co., both
stock financing early in 1950.

^Missouri Pacific RR.
Bids

are

Dec.

1

or

expected

to

of New York, handled

County Natural Gas Co.

reported company plans to sell about
$600,000 of common stock. Underwriter—Bache & Co.,
was

be received by the company

equipment trust certificates due to 1970.
ders:

on

Probable bid¬

Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutz¬

ler; Kidder, Peabody & Co.




Oct.

31

it

reported company, formerly known as
Credit, Inc., plans to issue and sell 111,000
cumulative prior preferred stock and 55,500
was

Glen Roger
of

shares of

ferred

stock

common

stock

and

$13.50 per-unit.

in units

share

one

of

Underwriter

of

two

shares
stock.

common

—

of

pre¬

Price—

Straus, Blosser & Mc¬

Dowell, Chicago, 111.

Scott Paper Co.
Sept. 20, Thomas B. McCabe, President, announced a
major financing program will probably be undertaken
by next spring. No decision has yet been reached as
to the precise
type, amount or date of financing. Stock¬

approved

proposals to increase the authorized
stock to 40,000,000 shares from
10,000,000 shares

common

and

the

authorized

$50,000,000.
South

t

j

30

of

from

several

outside

million

sources—at

dollars."

authorized the issuance of
and

an

this

no

present plans to issue

mortgage.

The

to

Stockholders
additional

refunding mortgage bonds, but

it has

least

company

or

the

extent

Oct.

on

20

$25,000,000 first

company announced

sell any bonds under

has

scheduled

a

large-

involving $80,000,000 in order

five years.

Securities

Underwriters

Corp.,

The

—

First

Probably Stone & Webster
Boston

Corp.

and

Smith,

Barney & Co.

Halsey, Stuart & Co. Inc., is reported to

head

to

a

bonds.

group

bid for approximately
I

$25,000,000 of
-

to

$150,000,000

from

& Gas Co.

stockholders

of

authorized

cumulative

issuance

convertible

of

preferred

110,000
(par

stock

$10). Proceeds—For exploration and
drilling program,
etc. Underwriter—Previous common
stock financing was
handled by Hunter Securities
Corp., New York, who
it is stated, will not underwrite the
new preferred issue.
Southern Nevada Telephone Co.
was

announced company

mately $10,000,000 of
—For

&

plans to sell approxi¬

securities

new

construction program.

in

1956.

Proceeds

Underwriter—Dean Witter

Co., San Francisco, Calif.

Sterling Precision Instrument Corp* v
:
June 6 the stockholders voted to
approve an authorized
issue of 500,000 shares of first
preferred stock (par $10),
of which 300,000 shares
(to be convertible into
.

are

to be

tal.

common)
Proceeds—For working capi¬

publicly offered.

Office—Buffalo, N. Y,

Texas
Oct.

11

Industries, Inc.

stockholders

authorized

a
new
issue of 30,000
stock, (no par value), of which
it is planned to
initially issue 10,000 shares bearing a $5
dividend and having a redemption value of
$105 per

shares of

new

common

share. Proceeds—For expansion
program.
—Rauscher, Pierre &- Co.. Inr
Twin-. t>oX

Underwriter

* Union of South Africa
r(12/22-16|]
7 it was reported an issue of

Nov.

$25JOO04OOCrbondi

(comprising

ana

seriais

a

lo-year

pected to be publicly offered.

term ls&ue;
is ex¬
Proceeds—Togetner with

$25,000,000 to be borrowed from the World
Bank, will be
used to improve transportation facilities
and to reim¬
this

the

for

government

purpose.

funds

already

Underwriter—Dillon,

advanced

Read

&

Co.,

for

New

York.
Van

Norman Co.

Oct. 25, it was announced stockholders
vote on

Norman

issue

on

Nov.

30 will

approving a change in name of company to Van
Industries, Inc. and on creating an authorized

of

400,000 shares of $2.28 convertible preferred
(cumulative to the extent earned). Proceeds—
For acquisitions.
Underwriter—Paine, Webber, Jackson
stock

&

Curtis, Boston, Mass.

•

Western Maryland Ry. (11/15)
Oct. 10 stockholders approved a plan

issuance of

an

share to

per

offering to each
right to purchase
shares

of

&

Ohio

stock

expire

value of the

par

common

stock

shares from

common

value. The plan calls for the
stockholder of record Nov. 15 of the
no

par

one

new

owned,

RR. would

Dec.

on

authorizing the

additional 128,597 shares of

changing the

1.

common

share

regardless of

for

class

each

six

(Baltimore

subscribe

for 55,000 shares); rights
Underwriters—Morgan Stanley &

Co., New York, and Alex. Brown & Sons, Baltimore, Md.
Western Natural
Oct. 31 it

ing in

was

near

Gas Co.

reported company plans

future.

some new

financ¬

Underwriter—White, Weld & Co.,

New York.

Westpan Hydrocarbon Co.
was

1 •

Puget Sound Power & Light Co.
April 5, $%ink McLaughlin, President, said that "it will
be necessary in 1955 to obtain funds for construction

indebtedness

Proceeds—For expansion program.

Texas Oil

March 2 it

■

to keep abreast of estimated load growth over the next

Dec. 8 for the purchase from it of $2,625,000

(with an oversubscription
privilege). Underwriter—Eisele & King, Libaire, Stout
& Co., New York.

to

it Prudential Loan Corp.

scale expansion program,

012/1-8)

was announced
company plans soon to.offer to
its stockholders the right to subscribe for
1,200,000 addi¬
tional shares of common stock

$100

it

was

Nov. 2 it

and

17

Products Corp., New York (12/15)
reported early registration is planned of

it

$4,000,000 to $5,000,000 of capital stock. Proceeds
To
selling stockholders. Underwriter—Reynolds & Co., New
York. Offering—Expected about the middle of
December.

and

Pike

Underwriter—Eman¬

Registration—Expected

;

Revlon

Oct. 31

gram.

purposes

V

this week.

Underwriter—To

program.

competitive

ders:

shares

Loeb &

uel, Deetjen & Co., New York.

burse

reported company proposes issuance and
$8,000,000 of preferred stock early next year.

Proceeds—For
be

Electric

was

will be derived from retained earnings and depreciation
secure

To retire outstanding funded debt.

able Securities Corp. and Union Securities
Corp.

about

& Co., New York.

(12/5-9)

was reported
company plans to issue and sell
120,000 shares of $1.25 cumulative convertible preferred
(par $20). Price—To be named later. Proceeds—*

Nov. 7 it

require¬
$31,000,000. Present

approximate

exceed

would not

stock

•

Northern States Power Co. (Minn.)
March 29 it was announced that new capital

New York.

quite likely that a major part will be in the form of debt
financing. No such financing is contemplated during the
current year, nor have the times or methods of financ¬
ing been definitely determined. UnderwriterKuhn,

This

writer—Probably Smith, Barney
it Reading Tube Corp.

shares

issue and sale late in November of
$1,755,000 equipment
trust certificates. Probable bidders:
Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Kidder, Peabody & Co.

^ Inland Steel Co.
3, Joseph L. Block, President, announced that a
the required funds for the com¬
pany's expansion program (estimated to cost approxi¬
mately $260,000,000 for three-year period 1956-1958)

to

issue.

Nov. 7 it

Aug.

Pacific Ry.

Nov.

However, he stated, it will also be necessary
a large portion through public financing.
It is

debenture

be issued at the discretion of ths
directors any time within the next 12 months. Under¬

Kidder,

Peabody & Co.

Oct.

reserves.

convertible

holders

plans to

company

sell

(jointly); Kidder, Peabody & Co.; Equitable
Corp. Offering — Expected in February or

substantial portion of

a

$50,000,000 and would

-^Riddle Airlines, Inc.

Oct.

Securities

March.

April 9 stockholders approved the possible Issuance of

—

Lighting & Power Co.

was

about

year

acquire bottled gas business of Sheel Oil Co. in the
Middle West. Office
New Hyde Park, N. Y. Under¬
writer—Carl M. Loeb, Rhoades & Co., New York.

961-mile pipe line from a point near Baton

a

$5,000,000 of 4%% 15-year notes, to be used to

plans contemplate these funds will be obtained tem¬
porarily from short-term bank loans to be repaid from

Fresnillo Co..
Oct. 27 it

the

private

announced

was

stock

common

It

and

Underwriters—To

that

company plans an initial public offering of equity secu¬
rities.
Proceeds — Together with funds from
sale of

New

was announced

Pure Oil Co.

Nov.

Broadcasting Corp.

Aug. 10 it
on

^ National Propane Corp.
8, H. N. Forman, President, announced

45

announced Sinclair Oil

Corp. has agreed

with the SEC to divest itself of its investment of
384,380
shares of Westpan stock (52.8%).
The time in which

Sinclair may sell their holdings has been extended
by
to Dec. 21, 1955.
Underwriters—Union Securities

SEC

Corp., New York, underwrote recent sale of Sinclair's
holdings of Colorado Interstate Gas Co. White, Weld &
Co., New York, may be included among the bidders.
York

County Gas Co., York, Pa.

Jfcne

29 it was announced company contemplates th«
issuance and sale later this year of a new series of its
first mortgage bonds, in an aggregate amount not
yet
determined.
and

Proceeds—To

probably to refund

an

pay for new construction
issue of $560,000 4%% first

mortgage bonds due 1978.

Underwriter—May be deter¬
by competitive bidding.
Probable bidders; Hal¬
sey, Stuart & Co. Inc.; A. C. Allyn & Co. Inc.; White,
mined

Weld

&

Co.

and

possible that issue

Shields
may be

& Co. (jointly).
placed privately.

It

is

also

46

The Commercial and Financial Chronicle

(2010)

of

particularly one cooperat¬

law

any

ing An* ine national policy Of re¬

Dealer-Broker Investment'

ducing the expenses of the Gov¬
But

ernment.

that

I

do

to

say

funds

and

mean

limited

the

with

personnel available to the Com¬
mission

Recommendations & Literature

"

Now

Gulf Coast Leaseholds,

tin

Witt Conklin Organization,
5, N. Y. Also available is a bulle¬

— Memorandum — White
& Company,
Mississippi Valley Building, St. Louis 2, Mo.
t

Analysis
York 5, N. Y.
—

—

Laird, Bissell & Meeds,

are

Coal

'

*

'

•

of

the

of

some

large corporations which
waged in recent years

very

much in the spotlight.

& Co., 209

has been
has

in

well

soliciation of
no

to

relation

But criticism

contest.

at

rules

our

as

they have been applied in proxy
contests. One of these, which the

■■*. .
P.' McDermott ■& Co., ,44
,

_

Poor

Company—Bulletin—Peter

&

Commission
time

Wall Street, New York 5, N. Y.

Cement

Riverside

Co.—New

Office Square, Boston 9,

views—Lerner

when

Julius Maier Co.,
N.J.
*

Inc.,

15

*;

—

cient

—

Exchange Place, Jersey City 2,

that

to

the

Commission

To.

meet

".ft -

8

at the

material

this,'

we

to

comes

us

regularly from the exchanges,
covering short selling, the activi¬
ties of floor traders, and similar
matters.
These are published in
the
Commission's Monthly Sta¬
tistical Bulletin. Beyond this we
maintain
unit" in

"market

a

surveillance

New York Regional

our

«
*

•

v

exchanges as they come over the
ticker, and the quotations in the
over-the-counter market as they

yiewed.
unit

and

re-

The market surveillance

also

investigates complaints

coming to us from all sources
concerning possible manipulative
activity. Ordinarily none is found.
But we feel that the very exist¬
ence and activity of this surveil¬
lance group has a powerful de¬
terrent effect on possible market
manipulation. And on those rare
occasions
be

can

criminal

change
bear.

when

proved,

manipulation
the civil and

a

sanctions

Act

The

can

of

be

the

Ex¬

brought

statute

provides

to
a

maximum penalty of $10,000 fine
and

imprisonment for two years

in

Federal

a

tory purposes in the extractive
industries, such as oil and mining,
we ..also
recognize that the
exemption provided by the- Con-

But

its

of

conditioned and
free

issuers

not

was

and

regulation whatsoever.
There

con¬

brought to bear on many mar¬
ket activities where formerly in¬

equitable practices flourished un¬
Issuers

der the cover of darkness.

securities

of

securities
and

make

listed

on

national

exchanges file with us
available

to

the

ex¬

changes and thus to the investing

as

financial

reports

condition

as

of

well

of events of

to investors.

major significance
"Insiders" — that is

in

collaboration

ties exchanges

with

the

securi¬

and the securities

industry, has come a long way
toward providing for investors an
orderly market, free of manipula¬
tion, deception and other uqfair
practices.

Public

confidence

in

the

integrity of the securities
markets is high and sustained and
these markets are in a better posi¬
tion than

ever

before to perform

their important function of
(Chan¬

neling the savings of the public
into productive corporate enter¬
prises.
I do not mean to suggest that
there

ing

are

on, or

no

violations of law go¬

that those that do

occur

as

such

sion's

into
for

compel the correction
The

only remedy

the

Federal

Commis¬

now

courts

is to

go

ask

and

injunction against the use
of misleading proxy material or
the voting
of proxies obtained
an

from

stockholders by the
misleading material.

use

of

proposed

revision

of

its

proxy

months

this

of

difficult

problem
by the work of the Subcommittee
Commerce and Finance of the

on

contests.

They specify the

information regarding their inter¬
est in and connection with the is¬
suer, and as to their background.
The proposed rules would also

spell out in
of

some

representation

detail the types
which in the

past have created difficult prob¬
lems of administration.
The

Commission,

as

a

govern¬

body charged with. the
responsibility of preventing mis¬

leading statements, is obligate^ to
object to misrepresentations in
the solicitation of proxies of com¬

panies under its jurisdiction, We
are

considering the

ments
from

and

many

suggestions

interested

persons

com¬

received

and the

public and made in the press.

sub-

to its stockholders and requesting
and (2) whether management has sent proxy soliciting
material to stockholders and requesting

The Commission

a copy."

resentatives.

Subcommittee

other information available it may

considering a bill Intro-.
duced
by
Representative
John
Bennett of Michigan
to repeal
Section 3 (b) .6 The Subcommittee

be in a position to report to the
Congress at the'next session. It is
hoped that officials of the cornpanies concerned will caoperate
with the Commission, to the end
of permitting as comprehensive,
factual and objective a study as

The

has been

has held

hearings on the problem
Washington, Denver and Salt

in

Lake

City and is holding hearings

next

week

is

in

certainly

New

York.

There

deal

great

a

to

hopes

promotional issues to comply wifn
the registration provisions of the
Securities

Act.

which

Commission

One

particular
advantage of requiring registration, rather than continuing the
conditional exemption techniques
the

has

that

per-

basis of the
obtained arid

the

on

.thus

is possible,

be

...

„

.

.

..

New Securities Registration
Amendments

said in favor of requiring issuers
and underwriters of speculative^^

v

#

Finally, before closing I will
touch on another subject with
which the Commission is-'pres^
ently dealing, That is the implementation by new rules and
forms of the 1954 amendments of
the securities acts. These amendmerits .-of the law had as a main
broader freedom in dis-

purpose

seminating to the investing pubof He pertinent information about

would be subject to the civil lia-

bility provisions of Section 11
Act

for

omissions

misstatements

of

material

and

facts

re-

issues of securities prior to
their actual sale.
;
new

quired to be set forth in the registration statement.
We are determined that our

vision

of

judgment

Commission

re-

several

this purpose.

has

already
rules for

new

One of these

per-

regulations

shall

mits communication by issuers to

Commission's

best

their,security holders ofanforma*.

to how investors in

tion regarding forthcoming rights

these

the

reflect

The

adopted

as

issues

securities

of

of

the

offerings.9

Another enlarges the

speculative promotional type cap

types of information which,

be

be

given

fair disclosure of the

a

pertinent

business
in

financial

and

accordance

with

statutory standards without
strangling the capital market for
issues.. But
been

never

I

aware

for

have

one

that the regis-

tration

requirements of the Act
strangled legitimate capital formation, even for speculative purP0868,

•

■

included

is

may
so-called

the

"tombstone"

ad.10

£ive

sanction' for the

express,

Another will
use

underwriters and dealers of
the so-called "new issue" cards,

by

which

are

prepared by statistical

service organizations.11
also working on
posed, summary
for

We are
draft of a proprospectus rule

a

underwriters

by

use

vestors

the- Commission

in

and

dealers to advise prospective in-

•

The Fulbright Bill
en-

d

more

fully regarding

offerings..

pro-

It is hoped that

gaged
in
an
objective
factual
study of the provisions and pos-

sucb a summary prospectus may

sible effects of the so-called Ful-

be relatively short in size which

bright BiUJ. This bill, which

may

was

,

.

conveniently

be

iqtroduced in the Senate by Sena- pensively
tor
J,

.William

and inex-

sent through the mails,

.Fulbnght
of
Arkansas, Chairman of the Com-

*

mittee

adoptioj^of these rules, the devel°Pment °f appropriate practices
underwriters and dealers
under these rules' wil1 Sive
greater freedom to issuers, under*

on

Banking and Currency,

and its counterpart8

mental

be

information

persons who would be deemed to
be participants in the solicitation

and would require the filing with
the Commission of comprehensive

would

Interstate and Foreign Commerce
Committee of the House of Rep-

such

proxy

believes

it

a copy;

,

Commission deems to be subject
to the proxy rules. The
proposals
are intended to state more
specifi¬
of

about

mission has been greatly aided in
its consideration over the past few

information

the administrative policies
the Commission in regard to

will
shortly
2,000 corporations

Commission

to

judgment to be decided in acting
our
pending revisions of
Regulations A and D. The Com-

upon

rules, designed to spell out pre¬
cisely the persons, activities and
the soliciting literature which the

cally

The
mail

ject to the bill, if enacted, a letter
asking two questions: (1) whether
the company has within the pa$t
three years sent an annual report

new

To solve the first two problems,
the Commission has announced a

short

which

difficult questions of

are

the

'

action

problem raised.by the bill

sider

un-

derwriters of such securities of all

material.

nowadays.

In addition to these direct

penitentiary on con¬ are all detected by the Commis¬
viction of manipulating the mar- sion. That would be too much to




necessity and desirability of
interfering with the raising
of capital for speculative exploranot

or

cases

officers, directors and 10% stock¬
holders—report currently to the
Commission
and the
exchanges
changes in their ownership of
their company's securities, which
to be based on economic factors are published in the Commission's
and may indicate the presence of monthly
bulletin on Ownership
manipulation. When such a ques¬ Reports, and "insiders" are re¬
tion arises, this "market surveil¬ quired by Section 16(b)
of the
lance unit"
conducts
a
"flying Exchange Act tp pay oyer to, the
quiz" with respect to the trans¬ company profits realized by them
actions in the particular security. on short-swing trading.
In the "flying quiz" the identities
We
feel
that
by
all these
and activities of purchasers and methods the Commission, working
ascertained

violations

the

of

ket,. which is perhaps one reason
why there are so few manipula¬
tion

published in the National
Quotation Sheets, for the pur¬
pose of detecting activity in any
security which does not appear

are

has to stop by admin¬

order

exemption

C ongr ess specified
should be available. We recognize

material

A

are

sellers

power

the

which the

trols, the light of full disclosure

-•.

their

York

now

consideration

is

.

transactions

New

than it

istrative

specific

that our regula-

tion pi the offering of these promotional issues should taxe into

gress was

One

whether the

.

aware

mitted under present regulations,
is that the issuer and underwriter

»

public comprehensive

the

it

rules and to

Office which watches the recorded
on

SEC

7

^

carefully watch activities on the
exchanges themselves. A consid¬
erable volume of reports and sta¬
tistical

many

problem,

„■

are

compel such remedial
may bei appropriate in
the circumstances. At present the
Commission cannot by its own
administrative authority prevent
the use of misleading soliciting

I

■; ^

addftion \o

In

dealers.

•i

.

able

not

has been suggested that the Com¬
mission should be given by the

Calient
*

is

with the

this

Congress "more

"

concerning the
motivation
of

deal promptly

tests.

(

suffi¬

situations which arise" in compli¬
cated and hard fought proxy con¬

California Oil Producers.

Continued from page

elicit

not

It has also been suggested

ment.

Nordeman & Co., 52
In the same bulletin are

Street, New York 5, N. Y.
on

do

background
and
who seek to wrest control
corporation from its manage¬

Worthington Corporation—Data—Bruns,
data

rules

information

of a

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

Wall

involved.

are

persons

.

Valley National Bank'of Phoenix—Analysis—William R. Staats
&

contests

proxy

Card Memorandum

remedied, is that

It is said that the Commission's

Fidelity Union Life Building, Dallas 1, Tex.
United States Lithium Corporation

some

cisely who and what they covered

Mass.

Royalty Trust B—Circular—Garrett and Company,

Tidelands

be

for

felt

the rules have not spelled out pre¬

10 Post

Co.,

&

should

has

We,

the

proxies where there

been leveled

by the Securicies Act.8

The

intended to

speaking the Com¬
proxy
rules have

mission's

book
form—Smith, Barney & Co., 14 Wall Street, New York 5,

N. Y.

areas

Generally

Philips Gloeilampenfabrieken—Extended stndy in

V.

re¬

by

control

worked

Company — Analysis — Cruttenden
South La Salle Street, Chicago 4, 111.

N.

a

have been

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

pany,

Peabody

for

nation's

,

Corporation—Analysis—M. J. Reiter Com¬

National Uranium

several

tests

Uranium—Report—General Investing Corp., 80
N. Y.
*
*

Wall Street, New York 5,

120 Broadway, New

In

for further
the Committee
by the Commission were
suggested. Among these were the
regulation of proxy soliciting ac¬
tivities of companies whose secu¬
rities are listed on the exchanges.
Problems arising out of the con¬

Liberty Products Corp.

Manufacturers Trust Co.

winter;

last

examination

Morrison Knudsen Company, Inc.

Lisbon Valley

application of . the interm trading provisions of the Act to the securities
of many of the smaller companies,
which would*be brought within
th e
Commission's * jurisdiction,
would be detrimental to the maintenancemf orderly and adequate
markets for these securities. The
Commission feels that an answer
to this" question is important to
any conclusion as to the public
interest and investor protection
which would be served by enactment of the bill,

May,

Plus, Inc.—Bulletin—De

on

panies.

of

and

100 Broadway, New York

mission was asked to restore on
it to the Senate Committee. Tne
Commission stated tnat it agreed
with the broad principle or the
securities
whieh,
because
the bill but could not take a definiamount ^offered in any one year tive position on such short notice
does not exceed $300,000, fall un- and without careful-study of the
der
the
conditional
exemption possible effect of the bilk*
specula-

tive enthusiasm for penny stocks,
We are, therefore, in the process
of revising ourr rutes per taming to

which is of particular concern to
the Commission is the question

me

port issued by the Committee in

1 Wall

Street, New York 5, N. Y.
Lanolin

mission is the growth of

Shortly after the bill was introduced in the Senate, the Corh-

proposed revision pertains
primarily to "promotional" com-

let

some

Committee

Also available

Company—Bulletin—Cohu & Co.,

Com-

vestigation conducted by the
Banking and Currency

is

IlammermiU Paper

change Act.

the

of

concern

Committee and the

Senate

Senate'

Inc.—Circular—Singer, Beatr& Mackie,

Inc., 40 Exchange Place, New York 6, N. *i.
a circular on Pacific Uranium Mines Co.

another

trading requirements of the Ex-

provided

about

Also, in

Kabuto-cho, Nihonbashi, Chuo-ku, Tokyo, Japan.
the same issue is a brief study of Nihon Kokan.

accom¬

Third,

<

teit'you a little
our work wnieh
results from the stock market in¬

& Steel — Analysis in current issue erf "Weekly
Bulletin" — Nikko Securities Co., Ltd., 6, 1-chome,

Iron

Stock

been

Investigation

.

.

has

Stock Market

Senate

Equitable Credit Corp. — Bulletin — General Investing Corp.,
80 Wall Street, New York 5, N. Y.
Fuji

much

plished.

and

Regulation A and D,
"JPenny Stocks"

enforcement

expect
agency,,

Continued from page 8

Thursday, November 10,1955

...

the

House

Arthur

would

subject

securities
stock

are

5 Securities

sion

Representative
New

of

not

traded

R.

proxy
-

and

Act' Release

No.

Congress,
(April 20, 1955).

7 S.
8 H.

York,

whose

companies

on

the

5701,

2054.
R. 7845.

-

insider
3555.

lsf Ses-

_

.

.

-

.

,

,,

The Commission feels that the

^lt.ers and dealers in approachuiembers of the public with

exchanges to the financial

reporting,

6 H.

by

Klein

G.

introduced in

-

nexY issues.
9 Rule

135, Securities Act Release No.

3568.
10 Rule

134, Securities Act Release No.

3568.

ll Rule 434,

3576.

'

Securities Act Release No.

Volume

Number

182

5480

.

.

.

The Commercial and Financial Chronicle

tures

will

be

offered

(2011)

initially to

to

Northrop Debentures
Growth of the aircraft industry

of

the

Inter¬

The entire issue of certificates is
to be secured by 938 50-ton box

Equipments Offered

any unsold
balances.
Commonwealth Edison Co. shares,
up

unsubscribed by stockholders, will
be offered by bankers.

amortization

Halsey, Stuart and Co. Inc. and
McMaster

Hutchinson

&

Co.,

cars, estimated to cost

$10,537,876.

on

Nov. 4 offered
$4,800,000 of Ches¬
apeake & Ohio Ry. Co. 3% serial
equipment trust certificates, ma¬

CHICAGO, 111.—M. J.

to

1970,
inclusive.
The
offering,
representing the second and final

speaker at the luncheon meeting
of the Investment
Analysts So¬

self
was

of

one

those

weeks

writing business, and the financial
community in general, in a man¬
that

ner

slows

things down

nated

adopted

little

a

operations

over

schedule

a

year

ago,

curtailed

will, be

market.

of

20-year

ma¬

from

the

projected

ma¬

the

v

will

option
have

the

of
the

of

ing fund. The debentures

terially by the halt in trading in

vertible into

U. S. government issues over-the-

Many of the larger firms which
underwritings as well as

procedure

the

in

cir¬

cumstances.

A good part of the week was
given over to discussion of the up
,

and coming sale of Ford Motor Co.
stock

by

which

the

will

Ford

mark

Foundation,

another

stone in the transition

cor¬

huge

deal,

involving re¬
classification
of
existing shares
and the offering of seven million
shares of new class A voting stock
to the public, will make grist for
the mill in the weeks ahead.
At the moment the

ulation is

UNITED

major spec¬
the identity of the

over

property

The

corporation

principal

is

The

constituting

the
largest
equity offering on record, it goes
without saying that the rank and
file, with few exceptions, will

Potential borrowers
word

of

assurance

the

American

in

are

rising

the

midst

the

trend

of

of

we

long-term

a

rates,

he

ventured the opinion that, instead,
the

decade

term
cent

rate

ahead

will

find

longfluctuating around re¬

noted,

prevent

term

a

return

interest

rates

of

the

long-

levels

to

pre¬

vailing in the deep depression or
under
"regimented and control"
credit markets.

throughout

the

in Oslo Park,
Fla.

issue

market

dis¬

between

week, ncne-the-less, looks like a
pretty good one. from the stand¬

feet

and

it

has

issues

large

are

entered

route.

Bankers

are

slated to offer $15 million of Na¬

tional Tea Co. 25-year debentures

a

Tuesday and
second

200,000

December 9,

group

shares

on

the

will
of

same

be

day

offering

preferred

new

stock of Pacific Lighting Corp.

England Telephone & Tel¬
egraph Co., also has $30 million of
36-year debentures up for bids
with three large groups scheduled

Preferred

the

1955,

Checks will be mailed by the Old Colony
Trust Company of Boston, Dividend Disburs¬
ing Agents.
Paul E. Crocker, Secretary

to

the close

1, 1955.

of

stockholders

business
A

Stock

has

record

per

on

declared,

the

Common

de¬

Stock

on

of

record

at

of

clared

1955 to
close

previously announced, the

Board

a

Stock,

15,

dividend

of

the

on

payable

has
25

de¬

cents

December

1,

close of business November 18,
1955.

1955
close

S. W. Skowbo

>

SANITARY CORPORATION

"

'

WHERETHIS FLAG FLIES

p

\\\
30th Consecutive Dividend

I;

The Board

p|

ijl
li;
||

able

p

Secretary

of

holders of
15, 1955.

B
M

Frank J. BerbericH

of

Stock

mon

Vice President and Treasurer

■

Chapman & Scott Corporation at a
meeting held November 2, 1955, de¬
clared a regular quarterly dividend
of 50 cents per share, on the Com-

||

November 23, 1955.

AMERICAN RADIATOR & STANDARD

11

Common

1955 to holders of record at the

per
has been

the

Directors

share

per

of

1955.

payable December

stockholders

of business

NOTICE
YOUR CONFIDENCE IS JUSTIFIED

share

quarterly dividend of 35 cents

share

HAMPSHIRE

DIVIDEND
As

been

the

at

November 23,

on

NEW

DIVIDEND

payable December 1,

clared,

Directors

the

December

of

Merritt-

Corporation, pay-

1,

to

1955,

record

of

as

Louis

share-

November

E.

Wolfson,

%&

Atlas Corporation

President

Dividend
on

No.

THE DAYTON POWER

56

AND LIGHT COMPANY

Common Stock

A regular quarterly dividend of 60(f
per

share has been declared, payable

December 20, 1955 to holders of rec¬
at the close of business on No¬

ord

vember

28,

1955

Stock of Atlas

on

the

Common

declaration
represents an in¬
of 10I per share over the 50^
share paid in previous quarters.
Walter A.

$100

million of debentures and Wheel¬

ing Steel's $19 million of deben¬

133rd

(INCORPORATED

regular quarterly dividend-of 55c per

Peterson, Treasurer

on

Company,

Common

the

payable

1955 to stockholders

on

Stock

of

December

ber

1,

is

3,

a

capital stock of

1955. This dividend

payable

1955,

on

the

at

ness on

December 10,

stockholders

to

record

Secretary

November 4,1955

the

on

$1.50 per share on Novem¬

the

doseof businesson November 15,1955.

November 9, 1955

MANUFACTURING

has declared

Cash Dividend

of record af the

GEORGE SELLERS,

JERSEY)

NEW

IN

The Board of Directors

Dividend

Common

The Board of Directors has declared a

share

Corporation.

This

per

DIVIDEND NOTICES

EATON

STANDARD OIL COMPANY

DAYTON, OHIO

ized issue of 1,000,000 shares.

close

November 14,

30 Rockefeller Plaza,

1955.

New York 20, N. Y.

COMPANY

CLEVELAND

On October

10, OHIO

28,1955, the Board
a

dividend

/mnALLIS CHALMERS

DODGE

PHELPS

M
mfg. co.

CORPORATION

payable November 23, 1955, to
shareholders of record

at

R. G.

COMMON DIVIDEND NO.

the

close of business Nov. 7, 1955.

126

regular quarterly dividend of one dollar
($1.00) per share on the issued and outstand¬
ing common stock, $20.00 par value, of this
Company has been declared, payable Decem¬
ber 23, 1955 to shareholders of record at the
close of business December 2, 1955.

HENGST, Secretary

Manufacturing plants in
Cleveland, Massillon, Marion,
Detroit, Battle Creek, Marshall,

Saginaw, Vassar, Colduiater,

EATON

MANUFACTURING
COMPANY

CLEVELAND

EXTRA

10, OHIO

(DIVIDEND 140)

On October

a

the

shareholders of record

at

to

the

close of business Nov. 7,1955.
BENGST, Secretary

Manufacturing plants

in

Saginaw, Vassar, Coldwater,
Kenosha, Lackawanna, North

Tonawanda, and London (Canada)

as

declared

Delfa-C&S

CASH DIVIDEND No. 33

A

value, of this Company has been

year-end extra dividend of One
Dollar and Thirty

a

quarterly divi¬
share

on

capital stock of the

cember 5
of record

November 18, 1955.

business

payable
to
at

De¬

stockholders
the close of

Checks will be mailed.

on

November 16.

1956

share
to

General Offices:

stockholders

%

This makes total dividend de¬

clared in 1955 of Four
per

$1250

Dollars

par

value

share.

URQUHART,
Treasurer.

Atlanta, Go.

J

6,

of record

December 16, 1955,

November 3, 1955

November 2, 1955

Cents ($1.30)

payable January

M. W.

Delta Air Lines, Inc.
IIAWKINSON,

Vice President and Secretary

per

($4.00)

Transfer books will not be closed.

E.

December

declared

declared, payable December 5, 1955 to share¬
holders of record
_at the close of business

W.

payable

ord November 18, 1955; also a

company,

par

share,

Delta Air Lines, Inc. has

regular quarterly dividend of one dollar and
cents ($1.02) per share on the 4.08%

$100

fourth-quarter divi-

Seventy-five Cents (75<f)

The Board of Directors of

the

two

per

a

of Directors has

9, 1955 to stockholders of rec¬

dend of 30c per

Cumulative Convertible Preferred Stock,

Board

dend of

4.08% PREFERRED DIVIDEND NO. 6

dividend

Company,

R. G.

regular quarterly dividend of eighty-one
ahd'~one:quarter cents (81 Mc) per share on
the 3)4% Cumulative Convertible Preferred
Stock. $100 par value, of this Company has
been declared, payable December 5, 1955 to
shareholders of record at the close of business
November 18, 1955.

of fifty cents (50c)
per share on
shares of the

common

3Vi% PREFERRED DIVIDEND NO. 37

Formorly operating
i

■

A

28,1955, the Board

of Directors declared

<3>

A

The

of

of busi¬

DIVIDEND No. 139

Detroit, Battle Creek, Marshall,

On Thursday Radio Corp.'s

£sso

33 Pine Street, New York 5, N.Y.

Giving effect to the new financ¬
ing, there will be outstanding
359,000 shares' out of an author¬

Cleveland, Massillon, Marion,

'




at

Secretary

quarterly dividend of $1.75

on

option agreement to purchase
1,000 additional lots in Oslo Park.

payable November 23, 1955,
New

to seek the business.

of record at the close of business NoVember 8,
1955.

1955.

into

slated

market, including two by the

negotiated

on

A

an

KenosKa, Lackawanna, North
Tonawanda, and London (Canada)

point of the underwriters.
Several

15,

of business December

COMMON DIVIDEND

lots, each measuring 50 feet'by

100

now

and the close of the year. But next

for

December

declared

payable November 15, 1955, to stockholder®

com¬

the close of busi¬

at

PREFERRED

The corporation presently owns
20

the
Company,

posed to look for anything ap¬
proaching boom conditions in the
new

the

country
suitable

of fifty cents (50c)
per share on
common shares of the

not

are

on

on

Berlin,

Indian River County,

"

observers

share

regular quarterly dividend of Seventy-

J. Raymond Pritchard, President

stock¬

to

moderately priced homes in such

of Directors declared

Good Week Ahead

Market

share on
Corporation,

per

1956,

dividend of thirty

stockholders of record

crease

however, that the
the heavy capital requirements in
prospect for years ahead are likely
to

2,

a

per

NOTICE

DIVIDEND
A

five Cents (75(f) per share has been

stock of said Company,, pay¬

American -Standard

levels.

He

(30^)

Boston, October 98,1985

®(omJ>any
BROWp

ity of homes will be constructed

that

interest

in

on

of

out¬

Institute

idea

(37j4t)

and

communities

given

the

Appraisers this week.

Discounting

cents

January

1 PABRJCS

Railway Company

able

dividend of thirty-seven and

November 9, 1955

corporation intends to de¬

of

MANUFACTURING

B. H. WinhAm

organized

construction,

Bankers Trust Co. in his remarks
before

ness

to

development

MEbSDpepperell

management feels are
desirable for this purpose.
The corporation's first commun¬

look for money rates by Dr. Roy
L.
Reierson,
Vice-President
of

Real Estate

was

Ex¬

Stock

Francisco

and

were
on

a

vote its business activities now to
the
planning,

as

Money Rate Outlook

a

event

San

DIVIDEND NOTICES

mon

Directors has this date

holders of record

Building, 2 Main Street,

locations

part in the business.

a

have declared

LOUISIANA

the Common Stock of the

Bradford, Pa.

aim, several firms stand out.

have

one-half

payable

on
June 9, 1955. Its
office is located at 309

I.O.O.F.

overwhelming

Beard of

declared

Delaware

the

Since
scale

The

option is not exercised acquisition
property suitable for de¬
velopment purposes; and for con¬
tingent fundiX

the underwriting
distribution on a

up

Southern

cents

of other

in

head

PORT,

homes; for promo¬
advertising and administra¬

has had under option or in

and

The Board of Directors of Nor¬

folk

expense;

investment banking houses which

But

GAS

construc¬

for acquisition of
which the corporation

&
Co., 100 Montgomery
Street, members of the New York

COMPANY

^

tion

bacher

changes.

Dividend

Common

Share

and

FRANCISCO, Calif.—Rod¬
G. Mason is now with Schwa¬

RAILWAY COMPANY

tion of first 20

will

group.

design

for

Adams

NORFOLK SOUTHERN

are con¬

tion,

porations.

wide

subject

are

'

^nd

The .net proceeds are to be used
pay

the

SAN
ney

DIVIDEND NOTICES

DIVIDEND NOTICES

William T. Bowler & Co., Brad¬
ford, Pa., is publicly offering an
issue of 300,000 shares of com¬
mon
stock -(par
25
cents)
of
Moder-Rate Homes, Inc. at $1 per
share as a speculation.
to

in

p.m.

.

stock at the

a

12:15

Room at the Midland Hotel.

ac¬

Dividend Notice

Slock at $1

mile¬

from fam¬

ily-owned to publicly-owned
This

3.125%,

■

SHREVE

to skeleton forces for the day, the

at

sink¬

a

Moder-Rate Komes

commission business will be down

customary

Schwabacher Adds
(Special to The Financial Chronicle)

to

CORPORATION

handle

17

affili¬

Co., Inc.,

Issuance and

'

counter.
1

to

sale of the certificates

holder's option.

common

2.85%

ciety of Chicago to be held Nov.

,,

company

benefit

scaled

are

cording to maturity.

or so, will be added to
general funds.
,
The issue is to be redeemable at

1956

issue not exceed¬

an

certificates

yield from

a

1,

ing $8,400,000, was awarded to the
bankers on Nov. 3 on a bid of
99.048%.
The

,

.

instalment of

'

fortnight

And on Friday (Veterans Day),
although ihe markets will be open
the

capital

debentures

Proceeds

■■■«

under

the

public offering, expected within

York recessed for Election Day.

business

in

turity.

per¬

ceptibly. Tuesday found the ma¬
jor J securities markets in New

for

felt

Northrop Aircraft Inc., has gone
into registration with an issue of
$10 million convertible subordi¬

that occasionally grips the under¬

ated with H. L. Jamieson

Chairman of Spiegel, Inc., will be

Aug.

Calif..—Al¬

SAN FRANCISCO,

bert J. Lucchesi has become

Spiegel,

turing

annually

_

Chronicle)

to Hear

expansion is starting to make it¬
This

(Special to The Financial

Russ Building.

Chicago Analysts

and consequent need for funds for

r

With H. L. Jamieson

state Commerce Commission.

banking groups standing by

take

the

to

shareholders of those corporations
with

The Commercial and Financial Chronicle

.(Thursday, November 10,1955

..

(2012)

48

Federal money. However, FNMA

BUSINESS BUZZ

wants this

sell

on.

i

•

•

the

loan

another

or

A

$200 million used
back

from the Nation's

Capital

A

gJ

later.

won't

98

y /\ii

1#

W

JL

JLji I l/U

(

source

cents

FNMA

bring
the

on

same

investment

kets,

dollar,

FNMA

so

for

than

98

in

less

mar¬

won't

it

says

than

more

the

says

more

of the Southwestern

some

buy

the

to

private

things

Behind-the-Scene Interpretations

as

revolving fund, and hopes to

a

cents

on

the dollar.

WASHINGTON, D. C.

those

have

(3)

show

This

said

was

to

(2)

week

work

i*'

36

to

to

Federal

public works, the more

Joe

Senator

like

(4)

1930's

who

hungry

replacing

men

with

This

ear¬

machines.

heartless

National Economic Com¬

(Note:

provided

of

result

a

as

or

paint

pipe wrench

a

Military
under

housing
is
set-up.

this

after EACH
group
of
military housing is built, to ap¬

years

propriate annually the amortiza¬
tion and interest. It must do this

communities suffering

unemployment

expanding economy and at the
time talking against the
installation of machines to ex¬

blue

the

to

Congress merely is obliged an¬
nually for the next 30 to 40

substan¬

be

should

for whole

inflatingly-

the

for

on a

Federal aid

scale

in

boys

handle

or

NOT."free"

workman became dis¬

a

(6)
tial

sounding off all

be

to

time

take

to

brush,

„

However, it appeared to some
the
leaders to
be a little

the

if

age

That, says
because they

when the faucet leaks.

,

abled.

'difficult

the

khaki

Provide social security
old age retirement at
age
60
instead age 65, or at a lower

mittee."

of

of UC benefits.

of its term.

is silly,

just order

(5)

special group styled the "Tem¬
porary

Federal

e.,

duration

produced by the

show was

lier

i.

or so

Defense,

compulsion
upon
the states
to raise the
amounts paid and lengthen the

were

the

of

talists

tion

unemployment compensa¬

tion;

is

of contention

bone

fund to keep the building
good shape during the genera¬

in

for

"standards"

Federal

state

triple-length feature in¬
vestigation of the big bad capi¬

four

third

nance

expensive the better.

put on
O'Mahoney's

extravaganza

so

projects, enough rent has to be
charged to set aside a mainte¬

assistance for all kinds

of local

another

we

or

maintenance. Under FHA rental

expansion of

A hefty

please

largely to

written

a

do

the contractor, in effect
the Defense boys.

A

by law.

couple of the more influential
labor union leaders who wanted

been

heck

pay

say

hours,

32

or

the

where

get that extra two bucks

the

of

shortening

The

Then

for

grade.

college

of

but

levels,

secondary

and

Rep.

—

Wright Patman's automation
hearings are now out of the way
and it is possible to
describe
the fruits thereof.

or

"automation."

default, even if 35 years from
is

there

now

nice

no

enemy

same

pand production. So they settled
for
a
little
side-show
to
be
MC'd

of

a

gressional Joint

Committee

on

Federal

committee,

member

that

certain

for

this latest

as

might
not have struck liis nose in the
door when the observers them¬
selves were
playing hooky, or
were
out of
the room doing

witnesses who
pontificating t heir

like
enjoyed

25

about
a

witnesses

labor

trodden

their

J

the down¬

boys who issued

fancy

the

palaces for
economists,
of industry,

were

marble

new

some

purpose,

spokesmen

some

full

was

of

bill.

flood insurance

said

instance,

W.

Roger

and some engineers.

Helps Uneasiness

Budget, as spokesman for the
Administration, there should be
a
couple of ceilings
on
the
involvement of Uncle Sammy.
He .should
not stick his neck

dollar
maximum
claim
payable per individual
should be something like $250,000
or
$300,000, limiting the
thing to home owners and small
too

for

out

high

a

the

and

amount,

would

the subcommittee
hearings may
have accom¬
plished is to give industry a
vague foreboding that machin¬
ery was not to be included in
the concept of the progressive,
One

thing

dynamic, forward-looking economy, at a time when industrial- ;
ists
were
getting a little

*

political

from

spell
haranguing.
breathing

<

However,
the hearings did
accomplish another purpose. It

provided a seed-planting ex¬
pedition for a few radical ideas.
Many
radical
ideas
do
not
germinate
in
such presently
favorable economic climes, but
spread them on the ground and
they stay
economic

seed

It's
on

the

ous
or

they

and.

take
hay

,

one

top

is

plants

quickly
like

of the ground

the South in Janu¬

ki much of
ary,

and

trouble

germinate
root.

until there

there

the seed not taking vigor¬
life until the following July

August.
Among

was

the

of ideas

winter

akin

to

forward
by
the
progressive,
forward-looking, dynamic Wal¬
ter Reuther, head of the United
Auto Workers, who incidentally
*

this

used

forum,

as

JEC

it

subcommittee

were,

for planting

purposes.

(1)

There

should

mare

fix

rates,

be

a

sharp

increase in Federal aid for edu¬

cation, not only for the primary




it

"full

recommended.

was

would

ance

"insure"

housing,

when

it

the

admission

universities,

dolts

of

or

to state

would bear a
relation to the risk.
This hints
since

that

how easy
up

but

P.

Norman

is

such

was

body

insurance

a

success,

since took

scheme

Crop Insurance

a

that

some¬

look at Fed¬

for

Norman

Mason

P.

in

who was going to do
all the dreaming, he confined
himself to telling about all the
good things FHA did in the late
Northeastern flood,
adding at
the end, as though it were an
afterthought, that flood insur¬
ance
was
a
good idea.

person,

There

is

a

Paradise

In

when

around

has

found

and

their hands

that

flood

which

political lustre.
he

had

Conn.,

Mr.

gone

and

a

on

chunk of $200

the

to

is

housing

ices

tell

is trouble in para¬

the

to

new

the Serv¬
personnel

in,

the

on

"in¬

FHA

sured" loan.

Military Housing Title of FHA,

The

the last session of
which .has been de¬
scribed
herein
before, but to
recapitulate briefly:

passed

built

the military

move

instalments

relates

after

because

withhold the per¬
sonnel's quarters allowance, and
utilize this quarters money to
pay the principal and interest

dise.

all

is

by

effect

is

this
Defense
of

that
mortgagor, so
guaranteeing
the

de facto

becomes

is

Defense

FHA in turn guarantees.
somewhat
droll
mix-up

money

and,

latest), Congress paid for same

appropriated cash.

Under

is
to

a

keep

side

the

new

somewhat

the

set-up, there
system

tortured

the whole thing out¬
budget. The Defense

Department has military

of

hous¬

ing designed, and lets the con¬
as though
it were appro¬

This
comes

from

trying to make fi¬

nancial sleight-of-hand look

all
regular. Defense says since they
guarantee the thing, why should
they also pay the full insurance
premium to FHA. FHA says no
premium, no sleight-of-hand.
Initially,
from

the

but

A

hint of that

Jones

to

found

who

weren't much interested because

annual

at the Detroit

party

Boat

Club.

1955 (New York City)
Association of New
York annual dinner at the Wal¬

Nov. 15,

dorf-Astoria Hotel.

N. Y.)
Exchange
meeting of Board of Gov¬

Nov. 16-18 (New York,

Association
Firms

of Stock

ernors.

Nov.

1955

19,

(New

York

City)

Security Traders Association of
New York
cocktail party and
dinner dance at the Hotel Com¬
modore.

the

another

be required by law

agency, may

take

Federal

"loan"

the

out

of

the

to

sees

hands of the initial lender, with

New Views

on

RIVERSIDE CEMENT CO.
CALIFORNIA

CLASS

B

(Common)

Copies

on

STOCK

request

LERNER & CO.
Inieshnetit

10

Carl Marks
FOREIGN
.

TEL:

SECURITIES

50 BROAD STREET

HANOVER 2-0050

said

Farmington,
that people

Michigan

&

Detroit

As¬

sociation,

sources,

priated money.

When the FHA
the plans, it MUST approve

Traders

comes

money

National Mortgage

private

Federal

German-

the

(Detroit, Mich.)
Association

1955

15,

Fall

annual

third

at

dance

Cricket Club.

Securities
of

Traders Association

Philadelphia

town
Nov.

(Philadelphia, Pa.)

1955

12,

Investment

Investment

practical

arrangement

Congress,

with

Nov.

dinner

kicks

Defense

paradise.

there

But

FHA

kicks.

budget to spend on

vitally necessary purposes, that
this would be just about bu¬
reaucratic

law

to charge a specified
insurance premium. Defense

would consider their

what they

pre¬

the

Under

obliged

of "free" dough

more

or

outside the

and

insurance

the

over

mium.

supposed

EVENTS

para¬

Defense

between

scouted

sounded
so
wheh
Mr.
Eisenhower
good
promised it in Hartford just
after the disaster, has lost its
from

be

some

million

FHA

-

that
bureaucrats can get

would

It

in

trouble

first

the

is

dise

COMING
Cost

"Insurance"

On

So

Arises

pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.]

suspicion that the

Administration

insurance,

same.

[This column is intended to re¬

the contractor.

pay

Fight

military

for

some

than when any

it

does

to

to

tract

eral Crop Insurance.
As

about

else

one

difficult

more

Mason,

it would be to dream

flood

a

because Federal

source

always

"loan"

a

insurance com¬
pension fund, or other
of investment is tapped

pany,,

before he thinks,

speaks

forget

suggested

Commissioner,

FHA

President of the United

a

States

promise,

until the
first
Military
Housing FHA title of 1946 (dif¬
fering only in degree from the

FHA

Eisenhower

flect the "behind the scene" inter¬

itself to

commits

FHA

and

uneauivocal

loan for putting

a

Federal

buildings under the new
"Lease
Purchase
Act"
fullyoffice

the military housing.

After

Military housing costs money

under

insurance

like

insurance of
up

universal

be

not

weather

think it

for insur¬

In other words, rates

came

should

night¬

have

also

administrative responsibility" to

seeding

those put

whatever

this

undertakes

agency

happen

This

Furthermore,

a

didn't
again.

less

or

they

However, the President make
an

businesses.

*

and

Trouble

Jones, Assistant Director of the

forum.

views before this solemn

.from

ideas
what should NOT be in
it

Further,

there were some¬

things

The

yet failed to conjure up the
of a flood insurance bill.

For

all,

had

terms

other things.

in

it

that

confessed

istration

member of the committee

All

hearings into
project. The Admin¬

Committee

ing

other

some

(D., N. Y.) as acting

more

was

fluke

chairman, opened Senate Bank¬

an

was

Herbert

Senator

of

buying

instalment

Mr.

approved
by
the
Administration.)
it

H. Lehman

ad¬
ministrative assistant to a GOP
Senator. This does not preclude
the

of

the

taking

2,850,000
men
and
who
require
housing.

respect it is just like the

In this

advice,

my investment
Bulldozer?"

with

disappointed

bit

a

look,

stop,

before

week

Last

was

only Republican, not a

to

interpret this to mean you may possibly be

to

military establish¬

a

of

women

I

"Am

ap¬

insurance.

Democrat who was pres¬
Rep. Patman, and the

only
ent

surprises of the
tentatively the

Administration

into a new sphere of
responsibility — flood

crossing

the

that

said

hearings

the

that

listen

and

requiring
ment

inclined

pears

who attended most

Observers

is

Eisenhower

the Economic Report.

of

of

month

smaller tent
subcommittee of the Con¬

On

the

One

the

under

Slowly

Insurance

Flood

from

gentleman

the

by

Texas

cold war and

around running a
Go

To

ii linn11

* "ii

iwpwpy. ■ ..n

•

&

Co. Inc.

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

Securities

Post Office Square

Boston, Mass.
Phone HUbbard 2-1990

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