Full text of Commercial and Financial Chronicle : November 17, 1955, Vol. 182, No. 5482

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ESTABLISHED 1S39

foe*1'

Reg. U. 8. P*t. Office

Volume 182

Number 5482

New York

7, N. Y., Thursday, November 17, 1955

40

Price

Cents

Copy

a

EDITORIAL

Funds Grow Cautious

As We See It

V:

By

Selling of

hope,

one

ments of the

disposition

interesting and, we venture
of the most encouraging develop¬
voting last week was the increased
the part of the rank

on

turn thumbs down

and local

on

further

quarter,

and file to

or

in

governments. Both of the major parties

to

ment

presaged victory for them next
Such speculation we gladly leave to the
is the

us

fact

that

of the

dollar

of

amounts

bonds proposed, the voters rejected around twothirds. A number of "explanations" have been

forthcoming, and

a

very

that this action

prove

does not

on

considerable effort to

just what it

mean

to mean

appears

ardent

hope that it

means

elect and elect. The somewhat

very

best it

be but

can

market.

Due

purchasing

was

in

of

several

either

the

to

fact

bad

of

side

on

larger

that

have

Mr.

Curtice

open-end

is

still

stbcks

increased, but as has
emphasized repeatedly, these
surveys are primarily concerned wiih

lar

management opinion, unweighted by

the

Then better years."
on
the well

theory
surest

that

can

Henry A

Lonf

record

a

over

the last

companies

the

accentuate

stocks.

still

lic, only slightly
in

more

than

funds

a

stock purchases,

making

quarter of this

balanced fund assets

NOW IN
are

was

and

undertakings in

a

Underwriters,

—

complete picture of issues

our

years

in

con¬

billion dol¬

a

investors, and we in
banking business

General

record-

time

ment

at

about
way

G. M. Loeb

standing
of rolling backwards.

learned that many years
say

that if

an

all.

To

put

it

investment is

another

way,

I be¬

And that is

ago.

good speculation, it is not

a

not

any

surely decrease in value.
I

know

I

was

not

investment

It will not stand still,

asked

here

up

talk

to

the

at

invest¬

good

a

that does not promise to increase in value will, in

Continued

35%

page

dealers
now

I

Motors.

time,

..

about

the

common
was

on

savs

being the surest

same

new money

used for

and the corresponding figure

REGISTRATION

afforded

courage

and

why I always

shares to the investing pub¬

own

standing
rolling

two

great deal from Harlow

a

lieve that.

Almost three-

several| years. Thus, with the
mutual

or

breaking sales of their

invested

I think

security
learn

Curtice

,

quarters of the companies surveyed increased their hold¬
ings of cash and governments, which was also somewhat

open-end

Curtice's

fidence.

operations

common

of

way

What is more,

Take what he

quarterly

any

years.

expansion
program
played
a
major part in restoring business con¬

size, since this is the pri-/
interest of the longer term
of

The story inside

operates

the

Mr.

ago

have

better

fidentially announcing

cautious attitude toward

of

issue

latest

the

full color picture of Harlow

a

don't

we

We

substantiated

Continued

SECURITIES

Motors

years.

and over-all dollar holdings of com¬

facets

read

I

up,

He is the boss of the biggest and

cover.

backwards.

Other

porate securities
and potential

the

on

coming

It features

companies, actual purchase transac¬
tions topped sales by a slight margin

34

page

train

Then good years.

concentrated

more

the

matched

about

on

a

why. He is forever selling. His
optimism is boundless. He says "At

26

and

Club

of

investors

registered

with

"Securities in Registration" Section, starting

on

address

'An

Continued

DEALERS

just

transactions

much

so

but what stocks to buy.

profitable enterprise in the world.

General

remainder

mary

small

a

Curtice

and 21 increased commitments while

of

the

surveyed

tells

investor.

leading figures in Washington, Demo¬
Republican, may have begun to have
a
salutary effect upon the public mind. It is a
consummation devoutly to be wished.
at

funds

65

company

cratic and

But

the

been

of the

some

Of

during the third quarter of this year,
27 sold junior equities on balance

mon

attitude of

saner

purchasers.

it is not

says

now,

Lists several desirable issues.
the

On

most

the

or

all that is
claimed for it in any quarter—and more. There
are
those who are fully convinced that the re¬
turns last week strongly indicate that the public
is turning away from the recklessness of recent
years in borrowing and spending vast sums of
money for many kinds of doubtful projects. The
time has come, so these reasoners believe, when
politicians can no longer rely upon a variant of
the alieged assertion of Harry Hopkins and ex¬
pect to spend and spend, borrow and borrow and
our

question of buying stocks

has

their

may mean.

It is

stock market situation, and

"Newsweek."

the

the part of the voters

n

Loeb, contending "the tide of life favors equities,'
view "the stock market is going up." Reviews

following the outbreak of war in Korea, the number of
investment companies selling common stocks on balance,
exceeded

Survival"

expresses

For the first time in five years, dating from the period

interesting

more

Author, "The Battle for Investment

Mr.

Selling concentrated

and drug issues.

paper

G. M. LOEB*

By

Partner, E. F, Hutton & Company
1

non-fer¬
metals, rails, metals, textiles and foods. Manage¬
policy was divided regarding the oil, chemical,
building, steel and merchandising groups.

other which

politically minded. A great deal

Of the Stock Market

common

electronic and electrical equipment shares,

rous

busily engaged for the past week or
days finding in the election returns something

year.

The Piesent Position

LONG

as

machinery,

borrowing by state

have been
10

ANSBACHER

stocks predominated duriiig previous
Funds' defensive posiLions were generally
strengthened. Electric utility, natural gas and insurance
equities favored on balance along with auto parts,

One of the most
to

HENRY

by Mr. Loeb at the Luncheon Meeting
Buffalo, Buffalo, N. Y., Nov. 9, 1955.

in

cor¬

the

SEC

on page

page
of

the

17

Bond

39.

State, Municipal

in

and

U. S. Government,
State and

Hoffman Electronics

Municipal

"

telephone:

Public
COPIES OF OUR

Securities

Turning the Corner

NEW

Long Road Ahead

HAnover 2-3700

BOOKLET

Housing Agency

Bonds and Notes

"ATOMIC ENERGY
'

REVIEW"
Bulletin

CHEMICAL

BOND

ON

J. R. WlLLISTON & CO.

BANK

ESTABLISHED
MEMBERS
AND

OTHER

NEW

STOCK

YORK
ANO

I8BS

STOCK

THE FIRST NATIONAL CITY BANK

EXCHANGE

COMMODITY

OF NEW YORK

EXCHANGES

department

115

30 BROAD ST., N.Y.

Broadway, New York 6, N.Y.
Miami

Beach

—

Rye, N.

Bond Dept.

To Dealers,

T. l.WATSON &CO.
ESTABLISHED

1832

I

New York Stock

Exchange

American

Exchange

Stock

'

Common Stocks

STREET

NEW YORK 4,

N. Y.

Orders

CANADIAN

Executed

On

Dallas




BRIDGEPORT

•

PERTH AMBOY

coast

to

BANK

coast

General Gas

BONDS & STOCKS
Analysis

All

upon

request

DEPARTMENT

DIRECT

WIRES TO

DoHEfiox Securities

MONTREAL AND TORONTO

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&

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MEMBERS NEW YORK STOCK EXCHANGE

COMPANY

FIRST

from

CANADIAN

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...

BROAD

offices

Canadian Exchanges At Regular Rates

Industrial Bonds,
25

Chase Manhattan

BROADWAY, NEW YORK 5

Banks and Brokers

CANADIAN
Commission

34

THE

Markets Maintained

SECURITIES

Members

^mdhu>€4l

Members New York Stock Exchange

Teletype: NY 1-708

DEPARTMENT

REQUEST

HARRIS, UPHAM & C°
120

Y.

Net Active

Preferred and

.

ARE NOW AVAILABLE

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bond

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Available

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Members New York Stock Exchange

<ORPORATIO?i

and other Principal Exchanges

111

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Place, New York b, N.Y,

Broadway, N. Y. 6

WOrth 4-6000

LA SALLE ST.

CHICAGO

IRA HAUPT & CO.

Teletype NY 1-702-3

WHitehall 4-8181

Boston

Teletype NY 1-2708

Telephone:

Enterprise 1820

2

The Commercial and Financial Chronicle

(2078)

The
35

YEARS SERVING

BROKERS

AND

BANKS,

over

This

Forum

A continuous forum in which, each week, a different
group of experts
in the investment and advisory field from all sections of the country

DEALERS

participate and give their

Primary Trading Markets
in

Security I Like Best
reasons

for favoring

(The articles contained in this forum

400 issues

they to be regarded,

are

as an

offer

to

particular security*

a

intended

not

P.

R.

.

Thursday, November 17,1955

.

Week's

Participants and

Their

Selections

Mallory &

Co., Inc.—Ernest

Louisiana Securities

Blum, Vice-President, Brush,
Slocumb & Co., Inc., San Fran¬
cisco, Calil. (Page 2)
/

to

Bought—Sold—Quoted

„

Industrial* Public Utility

ERNEST

BLUM

Municipal

P.

R.

Mallory & Co., Inc.
see

metals

good things ahead
for P. R. Mallory &
Co., Inc. At
present, a blue-chip among Over-

Bank and Insurance Stocks

the

Foreign Securities

Counter

-

day

New York Hanseatic

Corporation
Established,

American

120

Stock

Broadway,

WOrth 4-2300
Private

1920

New

stock

ex¬

and

York

5

to

Two

detriment

Mallory is

American
120

Exchange

REctor

Ernest E. Blum

Radio Corporation
a long list of sim¬

ilar giants of industry.
its

of

based

on

Likewise,

growth

has

consistent

been

quality

of

competi¬

on

with

confidence

in

a

company.

Mallory makes components for
wherever

electricity

is

at

—

More specifically, its lines
capacitors, batteries, rec¬

resistors,

tacts,

in

portation,

PLACEMENT

and

used

are

electronic,

industrial

general

high-pre¬

are

made

are

with

customer

on

corresponding reduc¬

tomobile

risk.

Certain

in

the

price

of

At

the

top-notch functioning

parts is essential to good

operation.

quality
great

airplane.

an

or

time,

of these

STOCKS & BONDS

Thus,

of

the

perfection

1929

Tel, Hanover 2-4850

The

is

component

often

lurgy.
in

MARKETS

Philippine Oil Development
Lepanto Consol. Mines
Mindanao Mother Lode Mines

Marinduque Iron Mines

M. S. WIEN & CO.
Established

1919

1

Security Dealers

Ass'n

Exchange Place, Jersey City 2, N. J,

Tel. HEnderson 5-9400
New York City

Teletype J CY 783
Telephone BArclay 7-0045




devel¬

Mallory (at substantial
during recent years) to
properly a much larger

handle

volume of
rent

titanium

business than

rate.

This/ is

Financial
about

the

cur¬

evidence

41/2%

preferred,

convertible
and

one

consists

into

each

share

approximately

half shares of

a

Commencing

Of

-

powdered

particular

common.

much

tain

appraisal
must

continuous

the

Mercury Battery

aids,

portable

which

other

methods,

washing

sible;

heat

and

the

"sponge" titanium.

of

radios,

photo-flash

the

the

corrosion

first

the

metal

result

being

Mallory-Sha¬

and

in

1936

Com¬

per

<0001

(Adjusted)

4,803

Share

1952

1953
_____

per Share

$

and

.31

.91

.92

.46

2.09

.73

53,443

2.06

.67

70,874

' 2.49

1.13

54,630

.80

1.33

three-pronged—(1)

in

the

for

first

the

of

many

electrical

and

tivity— and

many

Mallory's

failure

of

lurgical

electronic

The

and

long-term

policy

metal¬

products.

search and

time

re¬

trend
up

many

automation

new

uses

The

year

showed

Our

conclusion

Members

is

unfortunate

altered

view

of

in

com¬

the

being

com¬

There

divisions,

sibility;
trate

on

executives

top

matters

concen¬

only.

This

decentralized type of organization
is

used

in

the

corporations,

largest

and

has

American
been

in-

no

Manage¬

confidence

regular

the

on

today.

tivity is at

then

Stock

York

American
New

Exchange

Stock

York

Exchange

Cotton

Exchange

Exchange,
Board

Orleans
and

of

Cotton

other

by

N. Y. Cotton

Inc.

^ Trade
Exchange

exchanges

Exchange Bldg.

NEW YORK 4, N. Y.
Chicago

Detroit

•

Miami Beach

Hollywood, Fla.

dividend

Pittsburgh

•

Coral Gables

•

•

Beverly Hills, Cal.

Geneva, Switzerland

Amsterdam, Holland

out¬

Worker

agement-employee
excellent.

HOW

produc¬

high level, and

a

man¬

relations

ap¬

Earnings snapped

back to $1,626,530 in the first nine

the

1955

of

similar

against

1954

$521,043

period.

estimate for the

$2.25

share,

a

full
on

Cur¬

year

the

is

pres¬

ently outstanding stock, which is
on

a

regular $1.40

Sales

20%

are

increase

dividend

ing

ahead,

ings

are

both

Over-the-Counter

expected to show
and

$62,000,000 level this

competent manager with

top

in

reach

sales

the

Look¬

year.

are

considerable latitude and respon¬

Members
New

happier contrast, look at the

picture

and

each

H. Hentz & Co.

standing stock.

a

a

$2

1856

was

longer-range

situation.

the!

DE 75

Office—Bay City, Mich.

(3)

1954

and

year,

its

26, MICH.

the

through the period of trouble, the

around

skills

comment.

DETROIT
Woodward 2-3855

was

that

The

management set-up is

operating

under

the

showed

Exchange
Exchange

labor

television

that

our

Stock
Stock

1051 Penobscot Building

earnings at all.

any

way

basis.

of

L. A DARLING

Established

low, but

were

opens

for the

QUOTED

New

new

engineering

BOUGHT —SOLD

Chicago

rent

toward

Bankers

Investment

Broadway,N.Y.6 COrtlandt 7-5680

earnings

prod¬

improved methods.

&

let-down

a

UHF

engineering should in¬
new

111

1897

Office Tokyo—70 Branches

Brokers

Commodity

months

steady flow of

Established
Home

Detroit

customers,

the

appro¬

priating about 4% of sales to

write

or

Yamaichi

The surprising thing was not that

pear

of

knowledge

Securities Co., Ltd.

Midwest

market to live up to expectations.

rate

conduc¬

other

Call

Branch

industries

prising

metal with high
thermal

with

of Japanese potential.

pre¬

serious

company's history, (2)

In
new

a

investors

appeal
vision—

MORELAND & GO.

18,708
45,438

earnings shown
The
"something"

viously.

with

.06

It
is
readily
apparent
that
something happened in 1954 to
interrupt the enviable growth of

sales

unusual

have

investors

(Adjusted)

.68

$

12,475

______

_____

1954

to

1952.

Dividends

Seles

$

_____

1941

may

common

Earned

radio,

refrigerators;

offices

outstanding:

now

continuing
Ca¬

branch

having been

25%

justed to the number of
shares

pos¬

Electrolytic

Dry

pacitor used in television,

Mal¬

permitting

1950

for hearing

present-day automobile radio

and

parent.

separation
ore,

pro¬

our

JAPANESE

in

year;

Following is a tabulation cf
sales, earnings, and dividends, ad¬

cations; the vibrator which made

ucts

Sharon

to

20%

uncommon,

ment

metal¬

two-step operation, the

its

not

paid in

and many defense appli¬

cameras

a

importance

is

machines, dishwashers and driers;

ten

from

fast-

the Timer

automatic

for

sure

production of titanium alloys that

being

the

it developed

—

Switch

melting

a

in

obso¬

Mallory's research has been

worthy

is

multiplic¬

changing electronic industry.

lory-Sharon has developed unique

unusual

the

involves

to

SECURITIES

and

part of the operation,

especially

lescence,

ductive

fund

of preferred each

trouble

products

of

products.

have

the present

integral

an

because

necessary

ity

Corporation,
the

in

Mallory stock

R.

is

Research

pany's

is

of P.

give weight to

new

metallurgy is the half-owner¬

Steel

proportions

larger

the next several years. Any sound

wires

1955, a
retire 4,500

outstanding is about
934,000 shares, reflecting a 50%
stock dividend paid in September
of this year.
Stock dividends are

1951

may not rise in a smooth
but nevertheless, may at¬

NY 1-1557

Mobile, Ala.
Direct

stock

mon

1946

Sharon

Exchange

December,

requirements through 1957.

able.

ship of Mallory-Sharon Titanium
of

sinking

tential markets will become avail¬

curve,

E^Ciang*

New Orleans, La.- Birmingham, Ala.

of

serial

unsecured

by an insurance com¬
followed by 138 000 shares

pany,
of

structure

$6,000,000

bring down the cost of

Thus, earnings of Mallory-

Stock

Stock

of

held

notes

objective

alloys, so that large po¬

York

American

long-term planning toward future
growth.
i

in

interesting

resistance. Production of titanium

Members
New York

be

to

metallurgical fields,

of

to

prime

Elkonite,

oped, which naturally brought the

techniques

TRADING

had

the

is

now

The

of

specialty metals needed for

products

including

FIRM

common.

or

air conditioners and

importance, overshadowing

company into

For Financial Institutions

$10 per share of
There is, however, no

$10,000,000,

of

price considerations.

5reeueai«iGoTupam\

could

Maliory-Sna-

New

HAnover 2-0700

at

expense

an

inventory

finished product, such as an au¬

large blocks of

"OVER-THE-COUNTER"

,

subsidiary.

Many items

of

same

ESTABLISHED

at the present time, for about

Mallory

in

potential value of the titan¬

television, trans¬

insignificant

are
a

87 Wall St., N. Y,

ron,

that

interest

ium

parts, for example, contact points,

of

its

and

appliance, metal, pub¬

cision and

tion

or

opinion

sell

con¬

electrical,

order

ACCUMULATION

of

elec¬

aircraft, automotive, communi¬

cation,

fields.

the

are

welding

products

lic utility, radio,

TWX LY 77

company

switches,

resistance

household

Lynchburg, Va.

the

estimates.

communities, and thoroughly

lar items. These

STRADER.TAYLOR&C0.,fnc!

of

observers

close

Some

the

trodes, vibrators, and other simi¬

Life Insurance Co. of Va.

large.

are

their

tifiers,

Commonwealth Natural Gas

Exceptional facilities for

potentials

the

so

thought of selling, as sizable earn¬
ings are being made new, about
two
and a half years ahead cf

include

LD 39

ing for 20% of the market,

The managing heads
of
the
business are
high-grade
men, prominent in civic affairs of

living.

Camp Manufacturing

degree unequalled in the

a

haps

Electric,

much

to

light weight, titanium is per¬
today's fastest growing
metal.
Mallory-Sharon is shoot¬

are

Mo¬

its electrochemical, elec¬
tromechanical, electronic and
metallurgical products are essen¬
tial parts of the electric and elec¬
tronic devices that permit modern

Bassett Furniture Industries

and

stalled

anticipation, sufficient stock has
been bought to cover sinking fund

work

American Furnilure

alloys,

Members

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

and

o m e r s

use

Trading Interest In

of

Steiner,Rouse&Co.
Members

shares

bright future for their

2-7815

Lucian L. Vestal, Analyst, Rotan, Mosle & Co., Houston, Tex.
(Page 31)

uct

BROADWAY, NEW YORK 5
TEL.

its

—

industry. Combining high strength

saturated

Stock

features

(1) Mallory-Sha¬
scrap titanium with¬
to

Company

characterized

products rather than

Exchange

use

Carbon

by high-qual¬
ity.
Its cus-

tive pricing.

Stock

The

(2) it permits uniformity of prod¬

tors, Ameri¬
Telephone & Telegraph, Gen¬

Members

of the unusual

out

now.

eral

York

otherwise,

products.

process

can

is

of America and

New

the

ary in developing its specialized
techniques, which are unique in
the titanium industry.

can

jffipONNELL&ft).

mill

into

ron

t

Since 1917

then

form, and
rolled or

is a critical one,
and Mallory's skill in this field
has helped the titanium subsidi¬

the

it

General

Rights & Scrip

ingot
ingots are

lic

than

double melted

vacuum

are

into

the process are:

Principal Cities

Specialists in

These

alloying

better
to

into

compressed

Columbian

which is
electrodes.

sponge,

investing pub¬

Teletype NY 1-40

Wires

then

the

to

formed

a

change
known

Exchange

I

the

on

much

Member

stocks,

it

be

leader

Market

the

when

will

Associate

many

foresee

not

participate in this
part of the operation, but rather
buys its sponge from Dow Chemi¬
cal, du Pont and even from Japan.
Mallory - Sharon adds alloying

Bonds
We

does

ron

Vice-President,
Brush, Slocuinb & Co. Inc.,
San Francisco, Calif.

and Railroad Securities

Government and

E.

Alabama &

.

E.

he, nor
sell the securities discussed.)
are

.

and

earn¬

Quotation Services
for 42 Years

likely to increase in 1956.

Another factor, sometimes over¬

looked,

is

that

the

corporation's

investment in its associated

panies

in

Australia,

Canada,
as

well

England,
as

Continued

in

National Quotation Bureau

com¬

Incorporated
Established 1913

and

several

46 Front Street
CHICAGO

on

page

31

New York 4, N.
SAN

Y.

FRANCISCO

182

Volume

An

Number 5482

..

.

The Commercial and Financial Chronicle

LlCHTEflSTCIIf

"

Articles and News

Page

——mmmmmmmmmm

Funds

Grow

Cautious—Henry Ansbacher Longi_

The Present Position of the Stock Market—G. M. Loeb

Vice-President and Economist

City

An

Analysis

of

the

Outlook

for

THE TENDER TRAP

Cover

Interest

Long-Term

Don't take the

Rates

Reierson, after discussing factors relating to the rise in
bond yields, says the trend is nearly over, and he expresses

-view that in decade ahead

Holds higher investment

will be met by current savings, and

;•—James K.

- r

99

—Jules I. Bogen

until

term interest rates.

long-

ers,

relying

levels,

upon

the his-

credit

Housing Credit Controls Only Temporary—Albert M. Cole___

6

Shopping for Shopping Shares—Ira U.

6

World

of

The

of

to have marked

interest

rate

1 i

Taking

ear-

decades,

e r

our

therefore,

r

to

f he*

express

II

War

seems

that

we

belief that be-;

long-term rates.

barked upon a

prediction, however, forecasts re¬

20-

garding

30-year
of
rising

or

pitfalls.

of

are

failure

the

opinion
Roy L. Reierson
that large and
increasing
demands for invest-

sor

ment funds will run ahead of sav-

that

and tend
upward.

ings
rates

push interest
Still others hold
to

the view that chronic inflationary

will erode the public's
willingness to place its savings in
fixed-income
securities,
with
pressures

higher
able

He

time

in

executives

officials

1899

rates

that

in

foreign

countries

many

above the

well

are

prevail in the United

States.

considerations

These

indicate

term

their

were

interest

of

is

ahead

rates

over

likely

to be
other forces

affected by numerous

of tnem complex, some
contradictory. The record of

queried

as

rates

well

to

5%

above

environment

trends

least

be

Government

—

need to

fore

in

more

economic
arid—last, but assuredly not
present

policies

all

be taken into account be-

genera)

even, a

can

opinion

regarding the luture

ventured

of interest rates.
The

Long

View

trends,
forecasting the course of longterm interest rates might admit.

upon

to be a fairly simple

tedly seem
task.

long-run

The historical record of al-

century shows that such
rates have followed a trend fairly
most

a

persistently

over

several decades,

Thus, from 1870 to 1900, the direc-

stead-

tion of long-term rates was

ily downward
20 years
was

1

while for the first

of this century, the trend

toward higher rates.

During

by Dr. Reierson before the
Institute of Real Estate Ap¬

*An address

American

praisers,

New

York City, Nov. 8,

..As

the

between

and

movements

•

(Editorial)

Man's

prices

to

of

course

may

forecast

interest

Nashville




•

31

r

The

Investment

Recommendations

British

and

Exports"

times
eraj

been

at

have

trends

variance

for

at

Ultrasonic Corp.

not

be

too

helpful in

appraising the outlook for longdoes

the

economic

that

view

expansion

accompanied by

a

12

Mutual

38

Funds

fFc maintain

and

Wilfred

May

5

Our

Governments

24

Reporter

f Our

on

Reporter's

Report

trading markets in

&

Mackie,

HA 2-0270

40

Securities

inc.

Exchange PL, N. Y.

Direct Wires

Utility

more

Teletype NY 1-1825 & 1-4844

47

I

Request.

Singer, Bean

20

Bankers

Observations—A.

Request.

on

than 250 over-the-counter securities

*

News About Banks

on

**Prospectus

to

16

Philadelphia
Securities

*

Chicago * Los Angeles

Securities Now

in

19

Prospective

-

Security

Registration-

Offerings

Security

Salesman's

39

:

44

Anchor Precision

f

Corner

The Market

.

.

.

and You—By Wallace Streete

The

Security I Like Best

The

State

of

Trade

and

Common

16

Basic

2
4

Industry

Washington and You

&

an

must

era

be

*

•

"Funds

See
-

Cover

on

Mexican

Gulf

Sulphur

48

Grow

Page.

rising trend of

Preferred

Atomics, Inc.

Gulf

term Merest rates.
Nor

of the News—Carlisle Bargeron

sev-

Consequently, even if
genera} relationship between
commodity
prices
and ' interest
rates were to prevail in the future,
years#

this would

Club, Inc.**

than

Furthermore,
the
relationship
to be quite broad and loose,
two

in

Atomics, Inc.

Diners*

11

of

be

office

City

Corpus Christi Refining Co.

1

Indications of Current Business Activity

rates.

Cautious"

b,y Henry A. Long starting

Pan

:

Sulphur

American

Sulphur

f Column not available this week.

Continued

on

page

Lithium Corp. of

32
Twice

1

Gardens, London,
land, c/o Edwards & Smith.

Weekly

COMMERCIAL

Drapers'

Copyright 1955 by William
Company
Reentered

Reg. U. S. Patent Office

ary

DANA

COMPANY, Publishers

Park Place, New

HERBERT D.
WILLIAM

2-9570

to

25,

TELETYPE N. Y. 1-5

Chicago

Schenectady

•

•

Glens Falls

as

1942,

B. Dana

second-class matter Febru¬

the

at

post

Subscription

9576

SEIBERT, President

Thursday, November

17,

America

Eng¬

office

at

New

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

Pan-American

Union,

in

Dominion

Canada,

of

Countries,

$55.00
per

year;

per

$58.00

$62.00

W!t V. FRANKEL & CO.
INCORPORATED

S.

Other

1955

Rates

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

of

year.

year.

39

BROADWAY, NEW YORK 6
WHitehall

Teletype NY
Thursday (general news and ad¬
vertising is»ue) and every Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearings,
state ana city news, etc.).

Worcester
Other

Offices:

135

South

La

Salle

Bank

Quotation

$37.00 per year.
Note—On
the

ra^e

be

made

of

in

Record

—

Monthly,

(Foreign postage extra.)

account

of

pvrhanep

env.Qprintions

St.,

Cjbicago 3, 111. (Telephone STate 2-0613);

and

3-3960

1-4040 &

4041

Publications

Other

Every

•

C.

York 7, N. Y.

SEIBERT, Editor & Publisher
DANA

E.

and

CHRONICLE

FINANCIAL

Exchange

ST., NEW YORK 4, N. Y.

•

Basic

23

*

;

*Circular

seerns

^at

Lake

Cover

Stocks

From Washington Ahead

.

branch

to

Salt

:

Bookshelf

"Sterling

Railroad

difficult

less

Teletype: NY 1-4643

wire

PacificUraniumMinesCo.*

trend of commodity

New York Stock

Boston

Broadway, New York 4

8

Public

Spencer Trask & Co.
Albany

Spokane Stock Exchange

Dealer-Broker

relationship by itself does not
simplify our task, since the future

1955.

TELEPHONE HAnover 2-4300

25

42

Members Salt Lake City Stock Exch.

in

__:

Insurance

REctor

BROAD

Increase

Gulf CoastLeasehoIds, Inc.*

25

25

J. F. Reilly & Co., Inc.

9

WILLIAM B.

Members

23

Coming Events in the Investment Field-

Einzig:

PREFERRED STOCKS

specialized in

Record

(

Business

this

the

request

on

18

searching

by and large, by a
firming of the commodity price
in(jeXt
Unfortunately,
however,

of

Plans for

,

The

have

Reveals

Spending

Published

For many years we

Challenge—Harry A. Bullis

Keezer

Se It

We

Bank

companied,

< so

Prospectus

14

:

*

for clues to the
future, some importance is frequ?ntly'assigned-to the fact that
history shows some broad similar-

no

Based

Gold

Our

Regular Features

in

ities

years,

on

Direct

"

.

In

Claims

of

DIgby 4-4970

tury and that was to carry long-

commodity prices and of interest
ratss; in general, sustained periods
0f
receding interest rates have
witnessed declining price trends,
while rising rates have beenf ac-

economic

M.

Capital

31/2%,

—many

recent

Burgess Table

to

even

the broad past, the changes in the

the

Communistic

Dexter

•

nary a one foresaw the steady rise
that began at the turn of the cen-

1920.

years

and

*DINERS' CLUB, INC.

George A. Mooney to Scrutinize Mortgage Warehousing

which was
the level then prevailing;

around

t°rm

course

3

13

Govern-

and

obligations. The ovei-whelm-

tween

ceivably have some bearing upon
the outlook. In addition, however,
the

of

their views regarding the 20-year

of the factors that could con-

the

The

—

ents expected rates to average be-

several

that

Refutation

Stock—Walter E. Spahr

in a 50-year cycle—a
large number of leading bankers,
ment

12

*

A

point

business

:

r.__

interest

when

rates had just about reached
]0W

Costs—Roger W. Babsonl

of invest¬
published in

how

coun-

in

interest

some

related
a

STRATEGIC

MATERIALS, INC.

WH1 'Consumer Debts Limit the 1956 Market?

v

of

ing majority of about 70 respond-

and

levels

management

1928.

at

10

study

ment

is,

request

by Profes¬

outlook for interest rates on long-

l'irmed

tries

his

Chapman Rose_

—PaulTWV McCracken___

examole

recounted

in

on

9

of

ease

have

rates

interest

that

School

(

-

.

interest rates the inevitFinally, the point is

result.

made

*

seeming

classic

A
was

Rose

ATOMICS, INC.
Circular

Campbell__"

The Budget Situation and Tax Reduction—H.

long-term interest rates
actually are fraught with many

rates.

Others

'

Despite' this

Next Decade—Donald H.

\

past,
be tempted
are in the

might

we

conclude

BASIC

7

the

from

cue

ginning about
1946, we em¬

era

4-6551

low point; since

a

midst of another sustained rise in

interest

STREET, NEW YORK

Telephone: WHitehall

Problems of the Independent Telephone System in

then, rates have risen perceptibly.

move¬

in

end

early

the

of

Coblelgh

/'We Are in the Pink of Condition"—Hon. Sinclair Weeks

by the
1930's.

only

interrupted
crisis

torical pattern

ments

5

-____

WALL

has

belief

secular rise in

sustained

Street!

4

Yardsticks in the Evaluation of Common Stocks

•

been gaining ground that we face
a

i

99 Wall

at

Vardaman, Jr

Obsolete Securities Dept.
-

prqs->

the following quarter century —
that is, from 1920 to 1945 — the
general movement of long-term
Some observ- rates again was toward ever lower

the

time,

some

3

Try the trap

easing in business."

some

Reierson

demands

concludes ^present

pects still point to continued firmness in interest rates
there is evidence of

L.

The Economy's Dependence on Consumer and Housing Credit

long-term interest rates will fluc¬

tuate around recent levels.

For

—Roy

'

rap

obsoletes

on

Dr.

mmmmmmmwmmtaHl

AND COMPANY

Cover

By ROY L. REIERSON*

Bankers Trust Company, New York

3

INDEX

Analysis of the Outlook
For Long-Term Interest Rates

*

(2079)

New

and

PHILADELPHIA

Wires to

DENVER

the fluctuations in

remittances

for for-

advertisements must

York

Direct

funds.

SALT

LAKE CITY

Chronicle

The Commercial and Financial

..

.

Thursday, November 17,1955

(2080)

4

Economy's Dependence on
Consnmer and Housing Credit

The

Federal

the growth of consumer
instalment borrower today is

Federal Reserve Governor discusses

typical

finds the

and

credit

improvident

an

in the

people

American

Congresses in session during
lifetime. But those who take

pattern

the

means

their

and
dislike any
change in the status Quo. When
the Congress had before it such
questions as the establishment of

country

changing
basic
its

the whole

of

farsighted

be

people.

source

a

of great

f i-

to

all

After

168

dence

are

pride

c o n

and

a dozen sessions
about 25, I have
faith in these Con¬

about

observed

and

much

of

Bill

to the

of

inside

the

Constitution
and

a

Government.
Having been in and
out of
Washington
for more
than 50
years and having worked on the

of hard

usage,

today, typical rep¬
of
the
American

are

More often than not they
distinct credit to the peo¬

ple and

us.

years

and
individuals. They have

resentatives

should

Congress has been

our

more

Rights are
intact,

gressional bodies than many peo¬
ple have.
Far from becoming
discouraged and embittered by

remarkably alive and steadfast
in sustaining the concepts of in¬
dividual
freedom which they

members, my faith in Congress
as
an
institution has been con¬

J.

K.

Jr.

Vardaman,

still

maintain

to

tinues

Government

Our

cradled.

this

Withi»

prerogatives.

posed

constitutional

I feel

however, there have

framework,
been

constant adaptations in

our

benefits,

they

are

than

we

imagination
of

bers

our

figments

even

And undoubtedly

as we.

better

much
as

what

to

in

Changes

Two

people

Our

Credit

System
talk

Let's

of

which

briefly

about

one

prospective
enactment
be prompted by two

of

area

to the great num¬
people during the

is

It

may

curtailment of[ lumber activi¬
In the like week of
1954, initial claims for jobless pay totaled 266,400.
In the week ended Oct. 29, the total of workers drawing

hoped that bankers

be

to

continue

will

change
looks

to

any

oppose

status quo that
suspicious or unsound to

the

in

jobless

effects

the

of

whether

law

oppose

panies

clude

or

from

Government

fore.

In

they

than

costs

definite

demands

The

threat

of the

Rise

The

in

As

of

''

■

the

where

.

■

Credit

Consumer

politics,

\

peo¬

the

and

man

banker

as

as to
The individual

type and amount.

the domin¬
system,
most ating influence in our entire
These
changes
have been upsetting to our traditional no¬ credit structure. Today, his shortbrought about by a comparatively tions of proper personal financial term, instalment and mortgage
rapid process of public opinion arrangements
and
which seem obligations account for approxi¬
generating public demands which destined -to affect further the mately 45% of all private debt.

early years of the Republic.

satisfied

been

have

by

level

tional
gresses

actment.

successive

zeems

a

in

changes

that

na¬

relations

Con¬

legislative

through
It

the

at

changes

ment

en¬

As

routine

that

1

address

individual

the

other

most

by

have

brought

these

citizen.

adaptations

about

an

ex¬

developed
the people. And

have

changes

gradually among

Thirty

Govern¬

tension of the role of Government,

--m *!M
Mr. Vardaman before
the 8th District Group, Georgia Bankers
Association, Valdosta, Ga.
♦An

our

the idea of
to

dawn

failed

retailers,
fulfilling

buyer and
facilities for

their needs
ent.

credit began

consumer

on

financing

were

almost nonexist¬

refused

either

banks

Commercial
or

when

years ago

more

or

to anticipate the

rising demand. As a consequence
of this failure, small loan com¬

Morris

panies,

Complete

dustrial banks,

steel

down

hold

posing

is

a
prices.

scrap

To obtain their requirements, they will be inclined
prices.

/.

.

,

(

Higher scrap prices in turn increase the pressure on finished
steel prices.
Several mills have already pointed to high cost of
scrap as one

to

of several factors that forced them to increase prices
products. If scrap prices go through the roof during

companies may be forced

coming winter, as some fear, more

the

take another look at their finished

steel price structure, "The

Age" concludes.
production in the United States last week, the
in history, climbed to within 3.7% of the 216,629
all-time high
logged in the period April 25-30 last, "Ward's
Automotive Reports" declared the past week.
Automobile

second highest

The

been

have

between

and

with

credit

our

has become

consumer

to

grades.

Iron

largely superseded the pro¬

mills

scrap

have

initiator of credit, both

the

deep in conversion include electric furnace shops and
producers who will require heavy tonnages of steelmaking

of some steel

the

to the going

tonnages

conversion

of

knee

ple have largely superseded party
bosses, so in the credit field in¬
dividual buyers
and
borrowers
duction

of

efforts

to

to bid up scrap
t'

■

volume

growing

other

Mills

'
y

to

needs, he has paid a price that has no resemblance
mill price, declares this trade authority.

be¬

political party or Administration
ignore
for
long the
well

•

up

mill price. Slabs, second step in the steel production
cycle, are going for $110 F. O. B., compared with the mill price
of around $68.50.
By the time the steel user gets the sheets he

can

people.

range

regular

today's environment, no

formed,

production line.

that wants to make a conversion deal, ingot
$100 a ton or slightly less than double the

For the company

want

ever

companies

about all the
expensive for
but nevertheless the better of two evils when the

tonnage

alternative is to slow down or shut down a

to demand

what

that includes high-cost conversion,

and bars.
Some mills have
they can handle.
They are

plates

sheets,

conversion

the consumer,

accomplish

And

thus restricting the amount of business they can
accept.
For them and others, steel procurement is the worst
nightmare since the Korean War, declares this trade weekly.
Conversion deals involving thousands of tons are kicking
around the country looking for a home.
Products involved in¬

this because the American

stronger position

a

small.

or

produce,

can

people who
hold the ultimate
destiny of this country in their
own
hands are today better edu¬

and

large

buying from so-called steel brokers and barter deals.
Lack of steel is imposing a limit on what many

favor.
I say

steel has developed

a

•

be

we

than it appears on the surface

The scramble for

bad.

pretty

grim life-or-death struggle for many consumers, states
"The Iron Age," national metalworking weekly.
Despite everything the mills are doing to step up production,
the situation is deteriorating. Steel is where you find it for com¬
into

enactments

will

people

that's

This compared with

780,900.

earlier.

year

The steel shortage is even worse
—and

lasting.
Therefore, I say to you, keep up
your guard; continue fighting for
what
you
think is right.
Let
nothing go by unquestioned. Of
one
thing you may be certain—
if
the
legislative proposals are
good for the country and are
really required and demanded,
they will eventually be enacted
the

on

a

by 200 to

dropped

pay

1,446,000

analyses usually prove helpful in
the drafting of far-reaching legis¬
lation and is especially important
where

due to bad weather.

the Northwest

in

critical,

and

Opposition

them.

informed

the

want.

unem¬

and old age security,
physical comforts, mechanical
luxuries, and dietary delicacies
not

Congress instead of

sincere

as

ployment

were

analysis. Try to help

cbndemning the few individuals who pro¬
pose
offending
measures.
Re¬
member, they are probably just
the

rose by 18,900 to
ended Nov. 5, the United States De¬

the week

during

construction and food processing and
ties

in

conduct and

,

unemployment insurance

for

claims

First

and long.

cated, have a clearer understand¬
ing of their Government, and are

of this evening may
to pause and think be¬
speaking or acting. If you
you

employment.

seasonal

partment of Labor reported.
The department's Bureau of Employment Security noted the
increase in first claims was due primarily to seasonal lay-offs in

memory

do, I believe you will be objec¬
tive, impersonal, and wise in your

procedures as well as economic
change, the ordinary individual
today has privileges and oppor¬
tunities
of which
|ie! hardly
dreamed in the early days of our
Government.
He enjoys educa¬
tional and health

the next decade which
will be proposed, that

in

sure

claims for un¬

insurance dropped fractionally, with the apparel,
leather and food processing industries the chief sources of new

the

cause

fore

of citizenship, of the
freedom of the individual, and of
the entitlements of all people to
share the necessities and luxuries
of
life.
Through
constitutional
concepts

that

am

exception

employment front, it was noted that

the

On

a

the

employment

Housing Administration,
Federal
Deposit
Insurance

into

of

With

1954.

the

System,

Reserve

Federal

of

193,300

to express

divisions, legislative, judicial, and
executive,
with
each
properly

jealous of its own

strengthened.

and

going out of my way here
this considered opinion
Congress in the hope that,
when some enactments are pro¬
I

primary

three

its

of

separation

firmed

con¬

effective

an

individual

of a few

weaKness

tne

Business Failures

Federal

of patriotic, wise,

and

been

govern¬

ment

of

the

composed

form

one's

usually,

they

to

without

,

■'*,

considerable margin the corresponding level
of copper and aluminium, it was
reported that materials were in plentiful supply.
in

naturally,

quite

Wednesday

on

exceeded by

and

time Corporation, the Securities and
study our political history are Exchange Commission, opposition
forced to the conclusion that on by bankers was widespread, loud,

social
and economic policies of

peaceful

by

ended

always wrong

not

are

though

even

belittle the

to

custom

American

Production

for the nation as a whole, in the period
last week, showed moderate expansion

Industrial production

lawyer

Bankers

public interest.

which the
have changed

with

ease

and Industry

Index

Price

Auto

A banker since 1920 and

banker's

the

The

customs

Trade

Commodity Price Index
Food

before that, I
know whereof I speak.

social as well as a financial problem,
upholds the "amortized mortgage" and liberal mortgage
as

financial

a

man

terms

Retail

State of Trade

to note
changes
effected by

—

housing credit also a
and

Carloadings

interesting

be

may

bankers.

with small income, since 60% of
American families now use consumer instalment credit. Says
consumer credit has a more influential impact on the over-all
credit structure today than any other form of credit. Finds
not

Electric Output

by the Congress.

It

Production

Ste«I

The

Congress in the last 40 years—
especially those from which the
economy
has
derived
greatest
benefit
have been opposed by

System

Reserve

nized

in

Member, Board of Governors
The

/f

development
will
be
reached when their public inter¬
est aspects will have to be recog¬
of

here that nearly all major

VARDAMAN, JR.*

By JAMES K.

in the past, a

other changes

like

point

weekly publication counted 208,633 car and truck com¬

pletions in domestic plants, a 7.8% gain over last
The same week of 1954 netted 138,233 vehicles.
car

week's 193,561.

Daily and Saturday overtime at virtually all companies pushed
output alone to 181,230, a point shaded only by the April

25-30

peak of 184,279.

Of

this

week's

output,

car

"Ward's"

General

said,

Motors

50.3%, Chrysler Corp. 18.1%, Ford Motor Co. 23.2%
and
remaining producers 3.4%, witnessing the first return to
market shares recorded prior to 1956 model changeover.
The return to normal scheduling closed out the most success¬
ful model cleanup in history, with September-October dealer new
car sales averaging 44% more than a year ago.
With General Motors Corp. reporting 231,283 new car sales
Corp. took

Plan Banks, in¬
credit unions, and
into

Continued

on

page

sales finance companies came

INVESTMENT SERVICE

Almost before we knew it,
developed
a
full-fledged

being.
there

underwriters
brokers

outside

banking

field,

service

banks.

The service

tive,

even
formed at

individual

Dean Witter

sultant

Exchonge

lot Angeles Stock

•

Midwest Stock Exchange • American

Exchange

ond other leading

Private leased

SAN FRANCISCO

•

PORTLAND




•

Stork Exchange

Chicogo Board of Trade

HONOLULU

•
•

commodity exchanges

NEW YORK
AND

•

OTHER

CHICAGO
PACIFIC

•

well

was

ESTABLISHED

a

excessive

cost

1890

construc¬
MEMBER

the

to

SAN

FRANCISCO

MINING

EXCHANGE

with a re¬
profit to the

borrowers,

BOSTON • SEATTLE

COAST CITIES

late

Thirties,

the

con¬

credit industry had become
was

domin¬

wise, alert, and

respon¬

organized

ated by a

sible

radiotelegraph circuit to Honolulu

IOS ANGELES
•

sumer

Exchange • San Francisco Stock Exchonge

Honolulu Stock

R. L. COLBURN COMPANY

were

though oftentimes per¬

excessive

the

By
New York Stock

who

lender.

Co.

Membtri-

■

borrowers

to

not welcomed at most commercial

dealers

distributors

&

the commercial
rendering helpful

industry

leadership.

and

And, in 1945

was

much encouraged by

Continued

on

page

SAN

FRANCISCO,

STREET

CALIF.

EXBROOK

2-2580

DOUGLAS

2-3173

215
LOS

WEST

7TH

STREET

ANGELES,

CALIF.

on

returning from four years' over¬
seas
duty with the Amphibious
Navy, I

CALIFORNIA

527

35

TELETYPE

SF

712

TELE.—TUCKER

627-4

37

Volurpe 182

Number 5482

..

.

The Commercial and Financial

Chronicle

•

Of Common Stocks

Estate
vestment

planning,

Professor

to

Mr.

area

Wisdom

child

is

for

called

transfer

of

Woodward)

clinging

to

the

parent

for.

Too

well

as

often

as

is

the

the

points
/

ttyS.yV Y- '

:/%

.<■.

vsmm

A.

Wilfred

is

May

The

instalment

wealth,

affording adequate time to the presumably less
experienced
offspring for getting his financial feet wet. Before the
parent's
death, this affords thel opportunity for investment

training and
guidance under his active supervision, which should be
maintained
under the status of
availability for advice rather than of actual

control.

specific

material

nature,

in

transferring money before death. In usual
circumstances, it is
sound and practical for
property owners, who are in position to do
to follow

their
and

a

consistent

children.

principal.

This

gift-making

affords

sizable

for the benefit of

program

tax

savings, on both income
the property that is donated is

The income from

transferred from the top tax bracket of the
donor-parent, and in¬
is taxed at the presumably lower bracket
of the
receivingchild.
And even more important is its effect on
estate levies.
Unless the gift is made less than three
years before the donor's
stead

death, and thus in contemplation of death, it is removed from his
taxable estate.
While there is a tax on
gifts, there are liberal
amounts exempted, and even on taxed
amounts, the levy is far less.
This is evidenced in the
following table comparing the tax on the
transfer by inheritance with that via the
taxable gift.
(Ai

kCi'

)

$7,000
20.000

15,000

250,000
500,000

65,700

49,275

145,000

109,000

1,000,000

325,000

244,000

taxation

escape

An

whatever

instalments

he

chooses.

Husband

individual may

and

wife

together

similarly give double these amounts; with the
privilege of this
being actually the husband's money and the wife
merely giving
formal assent (by signing the donor
spouse's gift tax return).
Thus,
a married
couple may give up to $6,000 per year to each
child, plus
a lifetime total of
$60,000, either from their separate funds or from
may

the funds of

one

with the approval of the other.

On any gift from
husband to wife, only one-half is
subject to gift tax.
If stock constitutes the
gift, since the date when the donor
acquired the stock is taken as the recipient's
purchase date, the
donor avoids his payment of
capital gain which would accrue in
the case of a money gift
bought with tne proceeds of his sale of
securities.
(In the case of a loss, there are certain
limitations not
permitting the taking of the loss by the donee
arising from the
drop in value while the donor held the property.)
Also in providing for relief from
psychological and invest¬
ment shortcomings
on
the -part of the heir after the
parent's
death, the instalment or "bite" method can be utilized.
That
is, the trust may provide for gradual
payments of

principal
by specified percentages at various ages—gradualism
being bene¬
ficial for both the emotions and the
financial training of the

recipient.

(Because

of

certain

mechanical

tax

'

by the author in the
at

the

New

School

problems,
'

•

*lhis is the fifth instalment in

a

series

•-*'

these

^*»if

summarizing lectures

"Your Investment Problems
Social Research.

course,

for

It

points

Continued

I

It has

ago.

Today,"

STATE AND

1894

$21

page

fc

CORPORATE BONDS

the

Historically
prices

up

pre¬

more

,

,

periods

Dr.

Jules

I.

1929,

.

,

But

the

one

United

half-

,

point

can

States

has

The

National

Gross

Product, the value of all the goods
and
services
pioduced
b,y
the
American economy,

income.

since

creased

by

more

could

one

argue

has

1940

been

prices

justified

by
This

of history
can thus be described
merely as a catching up with
changed economic conditions.
Professional investment advisers
and

analysts

tPXPS

be satisfied with

hi

business

j

h

will

j

f

affect

46

recessions

of

profits

in

on

taxes,

a

taxes

will

decline in earnings before
be

shared

half

1939, a relaprofits were

services when business conditions
turn less favorable.

This year,

An

objective appraisal thus in-

Profits after taxes repre-

a

6%

over

income!

considerably

a

of

national

the boom

year

'eyen sSrf M
^onal

are

poroorate

1939

\\%

per-

high, and in the event of a
business decline pre-tax profits

income

than

could

929

0f

Thev

are

oT

na-

share

a

relative

a

income

than

in

were

national
national

income

in

1929,

income

in

1939,

The

mon

net

profits

is

In 1929,

buyers

high

very

of

goods

tax

in

the

of

the

prospective

is

the

profits

it

When

to an appraisal of present stock
prices. An objective yardstick is
provided neither by mere his-

Product, are up more than fourfold since 1940. Net profits after
taxes are up more than fourfold,

torical
comparisons
nor
rough
analogies with economic growth.
There are two objective yard¬

from $5 billion to $21 billion. So

earnings

profits

earnings

has

stocks

common

1fi

-

trend

times

16

stocks

times

of

higher selling prices, as
been doing.
Another
objective test

same

an^

riron

uv

th

t

to

than

more

seven

PnrninfJo

Current earnings
the rise of

are

pleased to

main

the

prices

same

will

We mugt

go

Parnin^

as

up

by

Continued

over

on

the installation of a

to

BRANCH, CABELL & COMPANY

The price-earnings ratio

ESTABLISHED 1904

is only slightly higher, according
to the last computation in the Fed¬

Members New York Stock

year ago.

eral

Bulletin.

Reserve

stock

prices

today
earnings. A

times

ratio

was

about

12

year

ago,

times.

In

Exchange

814 East Main Street

Industrial

average

12.5

RICHMOND, VIRGINIA

the

has

merely

little

more

mirrored

were

a

the

increased

valued very
highly today than they
are

W. E. Hutton

year ago.

&

Co.

But the

yardstick for appraising
prices must be future, not

stock

past

or

current, profits.
for

outlook

ESTABLISHED 1886

Members New York Stock

What is

corporate

profits

and other

-

Exchange

leading exchanges
•

UNDERWRITERS

them with past profits.
net profits in
1939
were $5 billion.
In the boom year
1929, all corporations had profits

NEW YORK

Lexington, Ky.

talk

Forum

sity,

by

Dr.

conducted

New

York

Bogen at the
by New York

City, Oct. 26,

Finance
Univer¬

1955.

DEALERS

CINCINNATI

'

Baltimore

Easton, Pa.

Hartford
*A

BROKERS

.■

Philadelphia

Bottom

Portland, Me.

Columbus, O.

re-

50%.

we}gh the forces affect-

reported

by the Department of Commerce,
are
running 25% higher than a

12.5

ran

but common stock

some

Corporate profits,

ago.

When

50%

times'to

Direct Private Wire

largely justify

the

stocks wia

times earnings, ea n ngs ca

announce

100 points in the
Dow-Jones industrials over a year

times

remain

can

common

from

from

go

seven

sticks that

We

much

earnings.
At the present
sell at about 12.5
earnings,

time,

to

form

as

stocks sold at
earnings. In

common

than

times

dependent

burden

change

may

1950, common stocks sold at seven

jn considerable part on the ability
of industry to shift a part of to-

(jay's

Price-Earnings Ratio

stocks

more

over
12%
this year.
pjence, maintenance of the current

of

a

the level of profits,

as

SOmewhat

ievei

provide

The price-earnings ratio of com-

1929

Profits before taxes

substantially,

could

partial offset,

much higher

very

decline quite

reduction

Tax

like 1939.

year

But taxes

or

^

smaller

income, than in

depression

one can apply in judg¬
ing the level of stock prices. They
are prospective earnings per share
and
the
prospective price-earn¬
ings ratio.

by the

government and half by business,
But it also becomes much more

difficult to shift part of the tax
burden to the buyer of goods and

neither of these vague approaches

Corporate

1, GEORGIA

impact

^he future. When half of profits go
to
the
government
in
income

today?

LONG DISTANCE 421

corporate

the

like the
9% of

relation of profits to sales. Sales,
as measured by the Gross National

can

We

income.

rent level of profits is stable, but
profits before taxes are relatively

centase

that the four-

national

Net profits are not high in relato national income.
Just the

senj.

And

other

than

dicates that, so long as the economv remains
prosoerous, the cur-

reverse.

1940.

than 120%.

little

of

to

sensitive

of

are

wholesale price level has in-

The

In
year,

Hence, profits

more

business

were

year

profits

be

in

and

expect profits will be quite

The

profits to

that share

years,

boom

a

national

has increased

fourfold

than

more

of

Profits

prosperity and de-

net

to

is left
other

what

wage

deducted.

and national income.

tion

Bogen

u.dergone a fabulous expansion,
plus a great inflation of commodity prices, in the last decade
a

of

present,

national

_

before.

and

Over the

ness.

ever

that

out

relation

income,

business, even of mild character,
although they should share in
long-term growth of the economy

are one
share of national income, the share
that goes to the owners of busi-

profits

high,
far higher
than
they
been

+uthe

7% of national income.

very

have

4is

to compare




sales,

gone

sensitive to cyclical fluctuations in

yardstick

a

tend

good yard-

one

national income.

tively depressed

speaking,
stock

must have

we

judge by, and

are

shares

Today, they are
Is that high or low?

billion.

In

last

Net profits this year are approxi¬
mately $21 billion for all corpora¬
tions. One way to judge whether
profits at this level are stable is

ATLANTA

to

the residual element

are

material,

costs

must

dining in depressions.

five years.

the

LOCAL STOCKS

WALNUT 0316

1940

the

large. In the

as

past year, the rise of stock prices
on

MUNICIPAL BONDS

RHODES-HAVERTY BLDG.

have

national

changes

billion.

Again
to

doubled in the

in

$8.3

of

in

earnings. Earnings
[ESTABLISHED

more

up

six-fold

profits

profits

after

| should be relatively stable, rising

expansion and by inflation.
rise
in
stock prices, which looks
so spectacular
in the perspective

annually give tax-free to any number of individuals $3,000
each,
and additionally $30,000
during his lifetime, given whenever and
in

a

two years

since

$5,200

altogether.

before
than

profits

gone
are

of

Profits
in

Compares trend of stock

stick

|

fold rise in industrial stock

GIFT TAX

$50,000„„_„
100,000

Smaller gifts

was

ago.

was

so

ESTATE TAX

AMOUM

it

200

are

of

100

higher than it

and of

so,

than

aver-

higher

year

method embodies the double
advantage of minimizing the psycho¬
logical upset from sudden acquisition of unaccustomed

advantages

is

age

Advance

capital

other

ques-

The Dow-Jones industrial

involved,

are

common

tions asked today is: Are common
stock prices too high?

some "bite," or instalment, method
transferring substantial wealth, is advisable.

barely

taxes

yields.

One of the most

For the benefit of the
property's recipient,
as well as for the conservation
of the

have

proportionately; profits after
have
gone
up
less than
proportionately.

be applied

can

Concludes, stock prices are today "not too
high statistically in terms of current profits," but warns cor¬
porate profits are vulnerable to a cyclical decline in business.
Stresses the impact of higher quality of
profits.

cause inexcusable
neglect on the part of
otherwise completely efficient.

There

They

tax

common

past and current conditions.

and bond

logical
by his

death

of

evaluation of

tests to

parent's wealth stalled
his money as his subconscious

Conditioning in

have

sales.

relation

University

stocks; such as earnings per
share; price-earnings ratios; and other measurements. Reviews
the objective tests and their
applicability, and relates these

investing

authority and power.
purse-string represents the last
tie
preserving
his
emotional
security
in
relation to his
offspring. Too often does un¬
willingness to face the prospect of eventual

Heir

the

to

symbol of continuing
Too often the

one

taxes

Product four times

Finance, Graduate School of Business

Dr. Bogen discusses the various yardsticks that

and

a

taxes

with sales.

than

formulation of both the procedural and
phases involved in the
passing-on of securities
realistic
scrutiny should be applied.
v

of

New York

non-planning, constitute another in¬
where psychological factors exert marked
influence,

the

-n

bow

after

pace

volume, with the Gross National

By JULES I. BOGEN*

SOME NOTES ON FAMILY PLANNING*
a

kept

Again, however,
•

By A. WILFRED MAY

(with

profits

Yardsticks in the Evaluation

Observations.

5

(2081)

'

~

Dayton

Lewition, Me.

Burlington, Vt.

page

24

6

The Commercial and Financial Chronicle

(2082)

J

the United States alone

I

Finance Agency

Administrator, Housing and Home

j

whether in private industry or
—
is to build this
country so that it will be a better
place for all, If we are to succeed,
we must begin by curing the dis¬
ease of our cities — the blighted

reasons

on

scheduled to ad¬
housing. I want to

of

all,

Though I
dress

you

talk,

first

tion.

It is

am

about

coopera¬

suitable subject for a
number
of

a

V

reasons.

In

the

place,
thousand

blighted

scopes

Slums

the

for

tween

League and its younger colleague.
I find it difficult to think of the
two

rivals

as

or

competitors—for

Slums

fire

are

substance.

They

We

afford

cannot

our

that

source

is

in

ings and loan associations are all
bound
together
to
provide the

four-fifths

its

and
protection
of
members.
Every association,

by

cooperates with
outside its member¬

nature,

single

greatest
that

the

American

capital

of

source

fundamental

for

waste

to

human

one.

gin the conservation and full util¬
valuable

most

cities,

our

of

re¬

where

people live. I
will return to the subject of urban

renewal

our

little

a

home.

You,

of

Conservation

The

of

all

together, by your several ac¬
tivities, are joined in the massive
two-fold operation of funding a

Our

Now

I

want

servation

of

this

relate

to

all

our

ing

principles that identify the United

some

form

or

other.

Next, the savings and loan asso¬
ciations cooperate in a regional
Periodically

to¬
the
country, to discuss problems and

way.

gether,

in

they

various

to search for better and

cient

ways

of

more

effi¬

of serving their indi¬

vidual communities.

stant

come

parts

There is

con¬

interchange of ideas among

them.

two very

level, there are
large associations — the

*An
and

address

by

Convention

Loan

of

League,

Mr.

Cole

the

U.

Miami,

the

at
S.

An¬

Nov.

Your

tant.

the

yond
the

a

banks

suppliers

function

building

more

who

and

extends

be¬

of homes for
and includes

prosperous

live in it.

That objective

is not only de¬
sirable in itself, as a meeting of
community social responsibility.
is

absolute

an

necessity.

for the most selfish of
I would

8,

these

1955.

and

the

helping to make your country a
better place for all of the people

Savings

Fla.,

million homes

realtors, are at the same time do¬
ing something even more impor¬

It
nuel

a

along with

you,

builders

and

I

On the national

than

more

first,

in

some

their

of

outlined

to

audience

his

American

his appraisal

of

American assets in the search for
a

and

decent

enduring

These

included,

armed

power

to

peace.

formidable

(1)
deter

resist

and

form of mutual

security alliances,

with 44 nations in all parts of the

world;
States

(3)

fundamental

with

moral

renunciation of mili¬

tary force except for defense, and
with such policies as helping other
achieve

countries

material

im¬

while

enjoying
the
blessings of liberty; and (4), which
Secretary Dulles termed the chief
provement

the

economic productivity
of the American people.
Today we are producing goods
asset,

and services at the rate

$400

billion

highest rate in
is three

times

This

year.

a

our
as

of nearly

is

the

history, and it

great as the

an¬

production of Soviet Russia.
is why the Soviet leaders

This

ap¬

Continued

on

page

22

most

they are, by

So

take

to

review

ing

Equipment Trust Certificates

present the best stock

ones

To

back
the

bit

a

biggest

as to

whole
tato

Issuance and sale

of these Certificates

are

Tne first ar.d
obviously, subur¬
houses, split

towns

fields

into

drive

to

erstwhile po¬

on

really posed problems.

The suburbanite

in

was

the

no

m:od

congested

big

city, "rassel" for a parking space,
and be jostled by the multitudes
in

monolithic

a

downtown

em¬

sought to
shop where they live—and since
their number (and buying power)
was •
legion,
smart
merchants
swiftly caught on. There are now
about
550
new
major shopping
centers mostly built postwar; and
most of them feature, or include,
a major department store branch.
porium.

Suburbanites

dedicated to sup¬

are

and adequate parking

easy

Most

of

big

our

climbed

have

mer¬

aboard

B.

Altman's;

this

Federated,

Those who didn't play
fields.

j

,

December 1, 1967, inclusive

the out¬

like Mar¬
shall Field, spent millions imoroving city stores—escalators, decor,
air
conditioning, and
acquiring
alongside parking facilities; and
especially

ones

the traditional stress on

course

diverse, on-the-spot, im¬

vast and

delivery,
merchandise.
purchase and one-siop

Panoramic

payment of principal and dividends by

shopping

3.10%, according to maturity

to

of'

postwar.

one was,

new

A

yield 2.83%

some

level homes and the blossoming of

subject to authorization by the Interstate Commerce Commission

accented.

were

second

store

to

at

go

etc.

Chicago, Rock Island and Pacific Railroad Company

Priced

look

and

.

POLLOCK

November 9, 1955




&

,

CO., INC.

^

INCORPORATED

McMASTER HUTCHINSON

& CO.

branches

urban

ing

in
the

shy,

windows,

weil sprawl¬
or
spacious

midtown,

would

counters
see

space

are

what would

and

go

never

light of day in the out¬
Further, should old-time

skirts.

control, in
outlets, or
younger and newer people, who
might better sense the buyers'
wishes, but lack seasoned judg¬
ment in inventory accumulation?
These
managerial
problems
have been knotty but the top units
in retailing have solved them in
two ways: (1) by extensive and
comprehensive training for store
leadership and (2) by incentive
systems calculated to exhort and
challenge personnel to best effort.
For example,
at Sears Roebuck
the Profit Sharing Pension Fund
the

given

be

buyers

semi-rural

unfamiliar

million

over

shares

of

(before recent
split); and 120,000 employees par¬
ticipate in it.
As a result, the
esprit de corps at Sears is excel¬
common

lent.
While there

rules

fast

suburban,

or

be

no

a

hard and

depart¬

whether

downtown

should be

stores

ment

can

to

as

few big units, or

and diverse smaller outlets,
certain investment criteria can be
many

culled by

observing actual operat¬
For instance, good
stores should earn at least 10% of
book value; they should pay out
results.

ing

their

and

of

60%

around

dividends;

in

net

stocks are us¬

common

ually cheap at nine times earnings
dear above 15 times; cheap

and

6.25% yield, and dear

a

on

4%.

ratios

These

below

of course,

are,

absolute; but they
background for value
judgment in this field.
Now let's get a little more spe¬
by

do

means

no

give

cific.

you

haven't space for com¬

We

plete analysis of many companies
but we do know that 1955 is going

merchandising year,
1954; and that
many
corporate
store
equities
have
been
neglected, or at all
events haven't caught on like the
motor,
coppers,
aluminums and
rails in our present market symbe

to

6%

big

a

to

above

8%

phorv.
For

and

beginning of this piece

string along with the experts
It hit the sub¬

Sears Roebuck.

on

stock

has

mostest."

the

with

"fustest

urbs
The

we'll go

top choice here

a

back to the

just been

split 3-

split 4-for-l in 1926
and 4-for-l again in 1945. Physi¬
It

was

the direction in which it has been

has

threat

been

prices
to

cash

(1)

reduction of

discounts, to make re¬
more

handle

realistic, (2)
or

at

all

re¬

plug, merchandise where man¬
ufacturers
gave
discounters
a
special break,
(3)
stressing of
store

dise

responsibTity for merchan¬
returns) and long re¬

(and

pute for fair dealing, and (4) im¬
proved

advertising

and

dency

going.

displays

of

a

Well,

body

to

continue

in

Sears has been go¬

ing well and has a lot of momen¬
At 112 (old shares), Sears

tum.
can

events,

to

WM, E.

Many

shop for suburban stores?

of them misfired because the sub¬

cially in appliance outlets, were
disturbing.
The answer to this

fusal

THE ILLINOIS COMPANY

ing the Wanamaker name are get¬
ting scarce, too.
A derivative
management problem was buyers.
Should the big downtown buyers

cists define momentum as the ten¬

tail

FREEMAN & COMPANY

Mer¬

the discount
sales, espe¬

was

Cut-rate

wholesale

R. W. PRESSPRICH & CO.

good example of this.

a

chandise-minded gentlemen bear¬

for-1.

department

major

problem

house.

r

HALSEY, STUART &, CO. INC.

is

had

years

company

to

ban migration. Ranch

mediate

guaranteed unconditionally

have

we

problems big retailers f ad to

overcome,

of

To be

that

answer

and sales¬

wages;

to be taught anew
of mere order taking.
Big name stores began to run
out of in-family top talent. Macy's
manship

owns

buying opportunities?

Allied;

(Philadelphia Plan)

to

we

shopping
center
deal—Gimbel's
(Sak s Fifth Ave.); Sears; Stern's;

Equipment Trust, Series P

$123,000 semi-annually June 1, 1956

out

the retail big boys?

among

on

Which

chants

Chicago, Rock Island and Pacific Railroad

mature

time

the department
spend an eighth

in tnem, doing our
shopping!
What's go¬

Christmas

facilities.

To

"aficionados."

little

a

this

of

of a year s pay

plying

3%

room

stores—before

means,

no

darlings

let's

today

All of them

$2,952,000

popular

season's board

aggression; (2) cooperation, in the

nual

reasons.

like to discuss

reasons,

And

in this same
city of Miami, Secretary of State

shares are
ones, and

department store

speculative

the national and world situations.

Legion

That answer

$64 billion question.

that

year,

estate

So much for the

Roebuck?

Sears

(2)

tion that does not call for cooper¬

ers,

the past cen¬

over

sentence

the

ation in

with those inside
home build¬

rather complete this
and apprehend that it's

to

Dulles

as

tnis

on

you

con¬

resources

home suppliers, and the real
dealers.
Every association tury and more, ever increasingly,
cooperates, in effect, at least, with have served as foundation stones
the
municipal authorities, with and, with others, made possible
building
of
the
American
the city planners, and with private the
groups
concerned with the ad¬ economy to its unexampled pres¬
vancement
and
improvement of ent height, j, <,
their
But though
community.
There is, in
you
are
occupied
tact, no single endeavor of the in¬ with an indispensable work in the
dividual savings and loan associa¬ cooperative enterprise of produc¬

well

would

the

Just four weeks ago,

as

—with home buyers,

ber 32

not

Your activities

ship

goodly

be¬

lieve, at num¬

special sort of investment hit pa¬
rade.
Are you prepared to gurss
what company
it is?
Huh? Or

that

Resources

portion
of the
nation's
savings and putting it safely, prof¬
itably, and constructively to work.

individuals

Cobleigh

only goes to point up what many
of us knew all along, namely:. (1)

later.

institution,

you

one

1

stands.
U.

on

roster; and

that

any

least of all the
And the place to be¬

of

sively
from
the savings of
i t s
members,

are

resources,

ization

possible points of conflict.
To sum up, the 6,000-odd sav¬

listed

too draw¬

tins

wasteful in every way.

of

or

partment

compete

to

upgraded

industrial

one mer¬

e

be

to

only

store chain is¬

Ira

had

after

d

personnel

management.. Postwar pay
scales for sales and clerical help

There is

chandising

been in

has

and

tion.

tling

intolerably

are

of

merchants

with

er

Slums

spots.

the

a

afford big ad¬

(discounters can't

vertising outlay, or broad display;
they'd go broke if they did).
The third problem of the big

star¬
revela¬

1955,

tax consumers.
and
crime.

are

pre¬

in

sents,

destructive of material and human

any

n s

the

50,"

Autumn

vice

i

rative
t i tutions,

vantage

very

cooperation be¬
the U. S. Savings and Loan

areas

breed

points of common interest and
identity of purpose far exceed

part are

employing it basically for the ad¬

its

served substantial

loan

ite

sue

groups,

acquiring .men*
capital exclu¬
Cole

though their respective
of activity and influence
wider.
And I have also ob¬

tne "Favor¬

as

are

repeat also that this is an ab¬
solute necessity.
It is based on
clear economic facts.
Slums and

the

are

companies, and over 150
funds, usually referred to

I

coope

most

M.

as

ment

mutual

are systematically uprooted
blighted neighborhoods sys¬
tematically restored.

first

United

States

themselves to the same
inspire
the
regional

ate among

ends

'

associations in

Albert

each of these associations cooper¬

sav¬

and

the

and

than six

more

ings

slums

stock

holdings of 50 closed-end invest¬

keep up with the need for
decent
dwelling
places
unless

of which I have
meeting with here
today. The members of

Miami

The most popular common

cannot

the pleasure of

1

equities at current levels.

y

by

the

a

general discussion about the relative attractiveness of their

blight. All the forces
home
building industry

caused
of

that

slums

the

and

areas

old6r and bigger
in

essential

your

government

alter the good housing picture all across the country."

•

that

repeat

function—and it is true for all of

for the recent institution of
housing credit curbs. Says these curbs will be eased as soon
as the inflation
peril ends, and action to this effect will be
taken before any "depression could get started." Concludes,
the temporary moderate check on home building "does not
living, Mr. Cole explains

and

Some seasonal reactions about department store chains,

us,

responsibility of builders and lenders
maintaining and raising the standard of

In discussing the large
in the over-all task of

Enterprise Economist

together.

By ALBERT M. COLE*

,

;

By IRA U. COBLEIGH

tied

inseparably

are

17,1955

Thursday, November

.

Shopping (or Shopping Shares

second,

—

they apply to the world situa¬
tion.
You will find that the two

as

situations

.

domestic

plication to the strictly

situation—that is, as they concern

Housing Credit Controls
Only Temporary

.

defend its right to appaar on

shopper's list.

the best store share

Associated Dry Goods

is a many

splendored thing with a fine sta¬
ble

of

the

renowned

department

stores

Lord

and

Christmas shoppers in

led by
Taylor.

New York

Volume 182

have

for

Number 5482

reveled

years

.

.

in

.

The Commercial and Financial Chronicle

J

Lord

u

and

Taylor's seasonal window dis¬
plays; and the L and T repute for

quality, well
and

sleek

for

its

styled

branches

sets

prosperous

j

We Are in the Pink of Condition'7

merchandise
the

By HON. SINCLAIR WEEKS*

which include Hahne & Co., New¬
ark, N. J.; J. N. Adam & Co.,'

Co.

son

Hills

in

and

ated

Los

Angeles, Beverly
Springs. Associ¬

Palm

Dry Goods

yielding

idend has
of

on a

an

and

34

junior

fast

moving cities—Denver, Seat¬
tle, Louisville, Duluth, Kansas
City,
Toledo,
Cincinnati,
and
Hamilton, Ontario. Mercantile has
a bonus plan shared in
by more
a
quarter of personnel, and
increased its sales by more

has

110%

in

Mercantile

(5.82%)

past

at

24

and

10

years.

yields

well

should

also

well.

wear

Gimbel
as

the

common

been

a

bit

postwar performer

a

looks

erratic

but

now

quite solid grounds.

It

plays both sides of the street.

It

on

has in Sak's Fifth

riage trade

name

Avenue,

and

a

a

car¬

plush elite

clientele, and fine earning power,
bo'th in its Fifth Avenue emporium
its

and

White

Plains

mart.

Altogether
flourishing Sak's

mink-type

there
Fifth

Avenue

Stores.
For the lower bracket

shopping

multitudes, there are Sak's 34th
Street, and Gimbel stores in New
York,
Pittsburgh,
Philadelphia,
Milwaukee; and a Westchester
branch

strategically located,

and

zooming.

better.

than

it

Man

shareholders

by net of
above $3 and a dividend above
the $1 that has been delivered
per
since

annum

mist
s

i

p

hero.

The

yS Cr

dnnrri^

lng

of

ravens
.

For

latest

statistics

on

construction.

new

slight

seasonal

billion

in

we

decline

last

toe

Moreover,
that

But

all-time

$4
bil-

total

$3.9

for

record

expenditures

construction

in

new

reach

about

$42 billion, an increase
above last year's record.

10%

soon

will

we

nublish

of
the

October employment figures. Pre-

increase

25

reached

in

of

years

jobs.

An

age

or

that

will

stores

sales

in

and

managements,
and

values

solid

unbloated

book

market

have

Manufacturers sales in
ber

higher than

were

The

is

same

the end

at

of

to

The average

$52.6

record. Personal

in

Cantor, Fitzgerald

el Bell,

HILLS, Calif .—Lion¬

Harry J. L. Frank, Jr. and

A. Archie Nedelman have become

associated with
&

Co.,

Inc.,

Cantor, Fitzgerald
232

North

is

billion

per

a

up

Canon

ous

inflation and depreciated cur-

To

watch

I
But this trend has been checked,
,

.

The

of

cost

doubled

living,

during

.

which

,

credit

had

dollar

Every

in

today's

ministration

wage

their

pensions

and

ig

savings
protected because, at long
jast) the dollar is stable—in fact,
js the soundest currency

the sun.

1

Where. Do

We

American
dence

Go

business

not increased

caused

a

hesitated
controls

lt

has

months

is

fnr

n

income

high;

all-time high;

an

of

able

business

War, of course,
expansion for

additional defense production. But

is

American

confi-

marked

living

higher

and

keener

standard

men

than

and

willing

to

plan,

they want.

And that spirit will

continue

scale

to

peaks

new

—

'

y

„

•

h

tn

because

not

of

yet

,

.

,

,

Federal Government spending — right now in this peace economy,
induced by taxes and national we find that the rate of spending in the future of the United States,

This announcenknt is not

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

an

$30,000,000

New

England

Telephone and Telegraph Company
Thirty-Six Year 334% Debentures
Dated November

Due November

15, 1955

15, 1991

Price

101.064% a?id accrued interest

a

The

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

long-standing
on

received

the whole
their

HALSEY, STUART 8c CO. INC.

fair

share of the

expanding prosperity,
though agricultural employ¬
ment is higher than last
year; per
capita farm income is 10% higher
even

than

Drive.
are

in

1950;

and

earning good

many

pay

A. C. ALLYN

AND

COMPANY

BLAIR

8c

CO.

DICK

8c

MERLE-SMITH

INCORPORATED

INCORPORATED

EQUITABLE SECURITIES CORPORATION

HALLGARTEN

8c

CO.

farmers

in non-agri¬

GREGORY

8c SONS

BACON, WHIPPLE 8c CO.

BAXTER, WILLIAMS &, CO.

cultural jobs.
A

Joins Davidson Staff

still

(Special to The Financial Chronicle)

SAN
ry

G.

nected

FRANCISCO, Calif!—Lar¬
Fisher has become con¬
with

Sansome

Davidson

Streft.

&

Co.,

members

San Francisco Stock

of

Exchange.


http://fraser.stlouisfed.org/
I
Federal Reserve Bank of St. Louis

few
are

nomic

155
the

labor

*

An

FIRST

surplus localities
by chronic, eco¬

BALL, BURGE 8c KRAUS

of

GREEN, ELLIS 8c ANDERSON

OF

MICHIGAN

CORPORATION

troubled

illness

standing.
But, as

you

address

many

years

know, vigorous
by

new

Sec'y Weeks at the
Annual
National
Savings Band Confer¬
ence,
Washington, D. <J., Nov. 4, 1955.

_

"
people with such an abiding faith
,

$256 billion.

True,

cl

prosperity

rate

a

ar*

spend,

b0rr0Wj and work bard to earn
income for the kind of living

hour.

per

year

ever,

women

manufac¬

at

t3

nr

me desire ior a.m0ner standard

its anticipated out-

Korean

h

t

dpcdrp

thp

Here?

from

in the future of America—

The

has

never

after taxes is at

us

was

fine)

P^CP up sags,
Confidence

under

lays for new plant and equipment,

Certainly it

rise,

in

are

their

reports to

is private

moderate price
finances

using sound, indirect

in

1955

year

pos-

as

three

smash hit

oI

the

abouTt^Lme^vel
in* the signed to encourage steady longJf ™ level aS m the term economic growth. -The Ati¬

Every

a

a

quality
of

aware

shape and the Administration has
programs, ready for Congress, de-

(1) Private Spending —^ Among
the many factors that have made

spending — the direct result of
confidence.
.

be

Federal

1<^°

^

carefully" the
and

SCHWABACHER
November 16. 1655.

8c

CO.

.

Of course, we must

up:

sibility of

the preceding 15

years> has shown a change of less
than
in
past three years,
at

Sljm

$300

current annual

difficulties, farmers
have

BEVERLY

the

Admin-

the

istrationTh*s generation had Others, however, doubt that tha
previously experienced the re- second half of 1956 will show any
suits of policies that caused sen- decline.••

billion

consumption ex¬
have risen from $218

penditures

(Special to The Financial Chronicle)

of

September, reach¬

income

$300

rate of

Join

in

high of $1.90

new

Personal

billion in 1952 to

•

/m.ltef economic potential of the

earnings
of
the
same
manufacturing workers also broke

big stores

black.

un-

following an inventory
but
still
with -each
quarter higher than in the corresponding quarter
of
1955.

^y

hourly

above

the

want

vou

of

soundness

policies

1956,

build-up,

1952—and those wages are in real
dollars not inflated dollars.
The

White Christmas this year, but the
in

that if

the

of

sales.

weekly earnings of

workers

a

all going to be well

_

the

million during the month.

ing

are

conferees,

/

technical adlike most of
believe
pretty

before.

retail

September,

ignored by incomeseeking investors. We may have a

ones

^

is

fidence

Septem¬

ever

of

true

amounted

records

prices, the shares of certain

quote:

modest slide-off in the second half

Policies

in creating con-

—Another factor

Manufacturers' backlog of unfilled
orders

all

should not be

their

.

Financial

Sound

(2)

history.

turing have advanced sharply. The
latest
figure, for September, is
$77.90 — almost $10 above the
weekly average for the whole of

peppy

y

paternal

on

w

ment, did it themselves.

The

What with full employment ard
high levels of personal income ($7
billion more disposable income in
1955) department store commons

earnings' durability
considering attractive yields,

„

opinion, the biggest boosts is worth a whole dollar.
factor in the upsurge of business The American people know that
.

over—

production

lot of

_

I

"Currently your
visors, apparently
.

as¬

upgrading its earning power.
Penney is good in all departments.

a

relying

__

lows—and

and

It
should
be
a
very
Merry
Christmas for retailers. The pros¬

to be

have

me

all-time record high.

an

is

has its backfield in motion;
and May Department Stores seems

stages

suring fact is that the number of

Christmas

ways

by

that|js ^our^y designed to promote and ^investing money in support

for

will

1955

of

Instead

significant

a

estimates indicate

our

pect

management team that al¬

to

United States market and in the
power of the free, private enteris that this sum is 11% above prise system. They are confident
year's October figures, which that the conduct of public affairs

best

a

seems

re-

are

from

September to

in October.

fact

couldn't

biggest

Get That Way?

activity and employment is the
press
the confidence which the American
spending for people have in their President.
They show a They have confidence in the un-

example: today
leasing
through
the

pect.

with

How Did We

and to Dwight D. Eisenhower.

nine years ago. Price of 27 indi¬
cates a fatter dividend in pros¬

begin
to
cover
today. Federated is an
chip; Allied is the
department store chain

as

throughout

class,

all

prosperity
The

now.

the economy have silenced most of

Weeks

back

them

of

blessed

to find the secret of America's
Sinclair

adult workers—the "breadwinner"

authentic blue

been

precedented prosperity, you need
Cnly look to Denver, Colorado,

diffusion

stock).

We

right

has

coming true almost everywhere.

It

sizable

logic, could be regarded as intrin¬
sically more sturdy than it was

such

are

of

liminary estimates reveal another

(equivalent for present
Since then it has plowed
above $13 a share and, in

generation1

general

is

other

50

" no'

pioneers'
dream of "gold in them thar hills"

a

above

repeat

with
we

.expansion and

lion

billion, private
billion;

$19

>t.spending

financial

something.
ever

.current

its

:

„

cases

by the fact that the

Americans

.

the

do

I^

n-u p

momentum

enhanced

to

longer

no

a

14
leading economists from various
important industries, a couple of
weeks ago reported to me as fol-

undertaken by the Administration Washington to expend huge sums unanimously that 1956 will show
f° tackle both the farm problem
prime
employment,
private a higher rate of activity than 1955.
and toe area development
citizens, encouraged by govern«Some members
do foresee
a-

national economy is so Strong and
the Administration is determined

had

pessi¬

Verv

common, like so many
departmental equities, had
big bulge in 1946. It sold then

increased "by

being

are

ing sound solutions in both

"j u s t
rolling

The

measures

of 'Technical
Business Ad-

visory Council, composed„.of

$3

investment by around $15
and

is

along."

1947.

Gimbel

months .ago.

Pros¬

perity
keeps

up

common

few

a

good. Old

so

quarter

quarter of 1955,

billion below the annual
rate of the second quarter of 1954.
But the rate of consumer spending

steady, long-term economic

practical

was

picture, you
retailing giant that ma^ rack

$350 million in sales this year;
and bring new cheer and
joy to

Doing?

Work¬

never

were

Here in the Gimbel
see a

less

never

10

are

We

Business

i

has

IIow Are

economy is in the pink of
condition.
Inflationary pressures

ers

second

municipalities by $3 billion.

'

are

the

the

was

growth.

The

half of this year is likely to set
all-time record. The upturn in

an

.

$37 "billion. Federal spending
'The Committee
third quarter of this year1 Consultants of the

by
in

Reveals the Administration has

encourage

v"

'

units, 20 full size

stores

rise."

designed to

aggrega¬

stores, has top flight management,
a dynamic
growth curve, and fine
geographic spread hitting some

than

moderate price

a

programs
.

Stores,

smaller

department

than

of

32 y2

$1.80 div¬

lot of substance.

a

Mercantile
tion

at

common

5J/2%

over

n

•-

of/business spending this year seems
me no^ on^ *be result of conFederal
spending
declined
$15 fidence engendered by good busibillion while spending by other ness, but also a major contnbusectors of the economy increased
tlon to its continuance,

Asserting /'business never was better," Sec'y Weeks paints a
pleasing picture with statistics relating to the national econ¬
omy. Ascribes situation to: (1) heavy private spending, and
(2) sound financial policies. Holds, however, "we must watch
carefully the quality of credit and be- aware of a possibility

Buffalo, N. Y.; Powers Dry Goods,
Minneapolis, Minn.; Stewart &
Co., Baltimore; and J. W. Robin¬

i

for capital investment for the last

private spending of

was

j

*i-i

widely distributed income.
1953 and the third

Secretary of Commerce

.

tivity. It

i

economic. ac-'

boosted

debt—that

Between

pace

stablemates,

7

(2083)

HIRSCH

8c

CO.

WM. E. POLLOCK

SINGER, DEANE 8c SCRIBNER

STERN

&

CO., INC.

BROTHERS &c CO.

8

The Commercial and Financial Chronicle

(2084)

Federal
1441

Federation

Dealer-Broker Investment

W.

Recommendations & Literature
that the firms mentioned

understood

send interested parties the

to

R.

from

Bright Prospects

—

"Trusts and

—

Co.

Bulletin

—

Laird, Bissell &

—

American

Leaseholds, Inc—Circular—Singer, Bean & Mackie,
Inc., 40 Exchange Place, New York 6, N. Y. Also available
is

circular

a

Electronics

Bulletin

—

Jefferson Electric Co.—Report—Loewi &

120

Review—New booklet—Harris, Upham

Manning,

Atomic Reactor Diagram in four colors with

&

portfolio informa¬
1955—Atomic Develop¬
ment Securities Co., Inc., 1033 Thirtieth Street, N. W., Wash¬
ington 7, D. C.
Atomic Fund

on

of

as

June 30,

Exchange

Bulletin

—

Japanese-U.

S.

Taxation

Bank

Outlook,
Ltd.,

Rates,

and

and

analyses

Sumitomo

of

Chemical

and Tokyo Electric Power

4,

Co.,

Ltd.,

Tokyo

yield

and

market

performance

Quotation

Bureau,

Office

up-to-date com¬

'30

Front

End

Tax

&

x,

—

tjs

■

729

Broadway, New York 5, N. Y.
randum

American

on

—

McDonnell

Also

&

available is

Co., 120

Metal

is

'

Co., Ill

event

roster

a

Barium

list

of selected

bulletin

a

on

Zenith

Shoe

and

Reardon.

Steel

UbC,

Co.—New

views—Lerner

&

Co.,

10

Post

and

Broadway, New York 5, N. Y.
bulletin
Basic

data

are

Atomics,

on

Also available in the
Fargo Oils, Ltd.

Inc.—Circular—J.

F.

Reilly

&

Co.,

same

&

Bulletin"

—

Nikko

in

Co.,

issue

current

Securities

Co.,

42

Broadway^ New York 4, N. Y.
Black & Decker

—

California Quicksilver Mines, Inc.

—

Bulletin

—

—

Reynolds &

Leason

& Co.

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

Canada.

issue is

brief

a

Memorandum

—

Airlines Inc.

Memorandum

—

—

Emanuel, Deetjen &

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

Co.—Memorandum—Kidder, Peabody & Co., 17
Street, New York 5, N. Y. Also available is a memo¬
randum on Thomas
Industries, Inc.
Wall

Colorado
Ill

Dixie

Fuel

&

Iron

Corp.—Memorandum—Talmage

&

Co.,

Cup—Brief

analysis—Thomson & McKinnon, 11, Wall
Street, New York 5, N. Y. Also available in the same
survey
are data on
Douglas Aircraft, Fire Association of Philadel¬
phia, General Telephone, Ohio Oil and
Transamerica

Cor¬

poration.

Douglas Aircraft Co.—Memorandum—Dean
Witter & Co., 632
South Spring
Street, Los Angeles 14, Calif.
Equitable Credit Corp.
80 Wall

—

Bulletin

—

Street, New York 5, N. Y.

General Investing Corp

,

—

Lithium

Ltd., 6,

analysis of Kawasaki Steel

Maier

Co.,

Inc.,

of

&

and

Place,

Jersey

Trust Co.—Memorandum—R.

Bank

Chi¬

of

The First Boston Corporation, and

Phelps,

Fenn
the

Co.,

&

best

Nov.

on

bid

for

16

Com¬

monwealth of Massachusetts s^riM

obligations

totaling
$159,791,000
11
separate
issues

created

for various

turities

of

from

the

1956

The

bonds

to

ournoses.

various

issues

Ma¬
run

2005.

is

group

reoffering

the

at nrices
scaled
to
yield
1.50% to 2.60%, according to

City

2,

The group bid par

for $156,291,-

of

000

the bonds maturing 1956bearing a 2,30% coupon and
$3,500,000 maturing 1956-2005 as
2Y2s.
Major
purposes
include
1.985

highway improvements, veterans'
hurricane

services,

lief,
and

state

office
of

flood

and

metropolitan

water

re¬

district

I

building.

the

group

include:

canities

Member

talk

Japanese Stocks and Bonds




I-

61

BOwling
Head

will

Corporation

"Pay-as-you-see-Televi-

Dec.

15,

Business

panel discussion

a

on

with

1956?"

"What's Ahead for

John

K.

Langum,

Economics, Inc.,. Edward

P.

Rubin, Selected American
Shares,,. Inc.,, and
William
W.
Tongue, Jewel Tea Company, Inc.,
anty Trust Co.; Halsey, Stuart &' as
participants., 1
Co. Inc.; Chemical Corn
Exchange
On Jan.
12 a Midwest Forum
Bank; Blyth & Co., Inc.; Harriman
will be held, consisting of two
Ripley & Co. Incorporated; Smith,
forums in the afternoon followed
Barney & Co.; Salomon Bros. &
by dinner. Principal speaker will
Hutzler; Goldman, Sachs & Co.;
be Grover W. Ensley, Staft Di¬

Inc.; Guar¬

Continental Illinois National Bank
&

Trirt

rector

Company of Chicago;
Savings Bank; Tne

the

Harris Trust &

the

of

Committee of

Joint

Economic

Report.

Northern

Trust Company.
Glore, Forgan & Co.: C. J. De-

vine

Co.;

&

Co.;

Kidder,

Drexel &

Co.:

Peabody

R.

W.

Federated Plans Branches

&

National

Bank:

Union

ated

The

First

St.

National

Mercantile

Bank

Trust

under

D.

The

tional

National

Ore.;

Bank;

Bank

Seattle-First

Building,

under

the

John

the

in

F.

Hurley

Washington,
of

management

Ladenburg,

Blair

&

Rothschild & Co.;

Towne & Skinner With

Thal-

& Co.; Bear, Stearns &

Co., Incorporated;

of

Na¬

mann

pany;

and

Paul M. Warren.

First

Portland,

C.

of

direction

the

Wright

Company,

Louis.

Jenkins

the

in

Building, Pittsburgh,

Donahue

Bos¬

—

has

Inc.

office

Arcade

Co.;

of

Plans,

branch

Securities

Corporation: White, Weld &

Feder¬
opened a

WORCESTER, Mass.

Press-

nrich & Co.; Merrill Lvnch,
Pierce,
Fenner & Beane; The Philadelphia

John G. Kinnard & Co.

Co.;

L.

F.

(Special to The Financial Cskonicle)

Shields & Com¬

MINNEAPOLIS, Minn. — Roy
and Evelyn M. Skinner

S. Towne

F. S. Moseley & Co.; Stone

have

& Webster Securities Corporation;

nrnriminir

uini/V-TP

DEPENDABLE

MARKET0

joined the staff of John G.
&

133

Company,

South

Seventh Street. Mr. Towne was
formerly with Midland National
Bank

of

and

Minneapolis

prior

Harris, Upham & Co.

Form Nat'l Savs. Research
WASHINGTON, D. C.

I

R.

|

Green

Office

9-0186

Tokyo

—

Elmer

BohannOn has formed the Na-

1 tional Savings Research Institute

'

with offices at 2146 P St.,

west,

Broadway, New York 6, N. Y.
Tel.:

1, Joseph S. Wright of

Radio

on

will be held

without obligation

376

following

N.A.S.D.

Material and Consultation

NY

the

sion."

|

Troster, Singer & Co.
Trini'y Place, New York 6, N. Y.

Chamlee

January:

thereto with

on

74

great sporting

Mario

announced

On Dec.

S. Dickson &

J. P. Morgan & Co.,

ton:

maturity.

United Artists

2400

1955.

—

Broker and Dealer

Security Dealers Association

their

meetings scheduled for December

Memorandum

Zenith

First National

Magna Theatre Corp.

y.

and

Coming Programs
have

Card

—

15 Exchange

cago, The First National City Bank
of New York, Lehman Brothers,

JXamttta

N.

Hunter,
UCLA,

CHICAGO, 111. — The Invest¬
ment Analysts Society of Chicago

Co., Xtfl.

Members:

members

America's

of

Kinnard

IIA 2-

introduce

Willis

Chic. Analysts Announce

J. R. Williston & Co., 115

—

Corporation

by Bankers Trust Com¬
The Chase Manhattan Bank,

pany,

Members

Primary Markets

Ceremonies

also

will sing.

Auchincloss, Parker & Redpath,
Northwest, Washington 5, D. C.

and investment houses and headed

fro^

Broadway, New York 6, N. Y.

Club

—

comprising 239 banks

group

embracing

Canital

of

will

Wilbur Johns,
others.

and

events

of

'

submitted

Campbell Cliibougamau Mines
Limited—Analysis—Burns Bros.
& Company,
Limited, 44 King Street, West, Toronto 1, Ont.,

Jess

Fred

guests will hear reviev/s and fore¬

$159,791,800 Commonwealth of Mass, Bonds
A

The

Manufacturing Co.
Bulletin
Co., 120 Bradway, New York 5, N. Y.

Master

many

casts

Analysis

—

jointly

Inc.,

and

Manager

Directors

Bond

Bankers Trust Company Group Awarded

Stocks.

Corp.—Data—Bregman, Cummings & Co., 100

Sanders

Dver

Athletic

On

Convertible Preferred

Red

Baseball

world

Football

Snider, Olympic Diving
Champion Sammy Lee, and form¬
er National
League Umpire John

Co., 30 Broad Street, New York 4, N. Y.

Co.—Analysis—Weill, Blauner & Co.

—Francis I. du Pont & Co., 1 Wall Street, New York
5, N. Y.
Also in the same issue is an
analysis of Eastern Airlines, Inc.

including

Haney, Brooklyn Dodger star

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

and

sports,

Braven

same

Wachovia Bank

Broadway, New York 6, N. Y.

Argus Cameras, Inc.—Analysis in current issue of "Gleanings"

well-known

annual

Hill,

Inc.—Analysis—Cohu & Co., 1 Wall Street,

Industries

Stock

States

Julius

Nopco Chemical Co.

Express Company—Analysis—Ira Haupt &

American Window Glass

available

Fifteenth Street,

United

memo¬

a

will

Duke

Analysis
Broadway, New York 6, N. Y.

%

Memorandum

The

—

Angeles

will present an impressive
of personalities
from the

Coaches

of America.

U. S. Industries, Inc.

'

Co.

Stanley Heller &

Corporation.
Time Inc.

Bros.

Calif.

Los

1-chome, Kabuto-cho, Nihonbashi, Chuo-ku, Tokyo, Japan.

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

—

Street, New York 5, N. Y.

Also in the

New

Street,

Savings Possibilities—Bulletin—Sutro

—

Corporation—Analysis—Seligman, Lubetkin

Pine

"Weekly

York 4, N. Y.
Year

—

Square, Boston 9, Mass.

Sumitomo

Averages, both as to
a
13-year period —

46

Also

Cement

Schering

over

Inc.,

Y.

Riverside

of

Thursday, Nov. 17, at the

on

This

Analysis

—

Company—Report—Harris, Upham & Co., 120 Broad¬

N.

ANGELES,
Club

Biltmore Bowl.

New York 5, N. Y.

Averages and the 35 over-the-counter industrial stocks

National

Co., 404 Mont¬

Corporation, 111 Broadway, New York 6,

Pc'vna«*ex United.

Co., Ltd.

in the National Quotation Bureau

&

Welding Machines Company

Starch Products Inc.

Corporation

Industry Co.,
Gas Co., Ltd.,

Chemical

Mitsui

Barth

Polaroid—Report—Dreyfus & Co., 50 Broadway, New York

parison between the listed industrial stocks used in the Dowused

LOS

New York 5, N. Y.

way,

Secu¬

discus¬

are

Co.,

Bond

Ont.,

1,

West, Toronto

Analysis
Co., 30 Pine Street, New York 5, N. Y.

analysis of Business Results and

Over-the-Counter Index—Folder showing an
Jones

Street,

of

National

—
Nomura
N. Y. Also

Analysis

—

Webber,

hold its 4th Annual Sports Lunch¬

Securities

Pittston

Conventions

Wood,

Co.;

Paine,

Sports Luncheon

R. A. Daly &

—

York.

Folder

Securities Co., Ltd., 61 Broadway, New York 6,
in the same issue "Nomura's Investors Beacon"
of

Analysis

—

Co.—Memorandum—J.

Electric

Aetna

listing current cur¬
throughout the world—International
Manufacturers Trust Company, 55
—

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

sions

National

National Securities

—

&

Co.;

Los Angeles Bond Club

Hentz

Inc.—Memorandum—H,

Moore,

Street, San Francisco 4, Calif.

gomery

Department,
Street, New York 15, N. Y.

Broad

&

eon

Quotations

Banking

Incorpo¬

Co.,

&

Canada.

Monterey Oil

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

rencies of 137 countries

tee

Co., 60 Beaver Street, New York 4, N. Y.

New

Foreign

&

Company, Limited, 44 King

Industry—Bulletin—Smith, Barney
& Co., 14 Wall Street, New York 5, N. Y.

& Research

Maxwell

Massey-Harris-Ferguson Limited

Chemical & Pharmaceutical

Farming and Atomic Energy

&

Curtis; Adams, McEnInc.; The Boatmen's
National Bank of St. Louis; Carl
M. Loeb, Rhoades & Co.

Co., 115

Co., 225 East Mason

Loan Corporation—Analysis—Blair
rated, 44 Wall Street, New York 5, N. Y.

& Co.,

Broadway, New York 5, N. Y.

tion

Inc.;

Co.

&

Street, Milwaukee 2, Wis.
Liberty

Energy

Estabrook

Struthers

Broadway, New York 6, N. Y.

Reprinted

Estates

Company.

Ingen

Jackson &

J. R. Williston &

—

Trust

Van

& Co.; Lee Higginson Corpora¬

tion;

Pacific Uranium Mines Co.

on

J.

Hornblower & Weeks; Barr Broth¬

Gulf Coast

Magazine"—John H. Lewis & Co.,
63 Wall Street, New York 5, N. Y.
Atomic

B.

ers

following literature:

—

Trust

analysis of Philco Corporation.

will be pleased

by John H. Lewis

&

Company, Incor¬

porated; Coffin & Burr, Incor¬
porated; Equitable Securities Cor¬
poration; Dick & Merle-Smith;

Grace—Data—Bruns, Nordeman & Co., 52 Wall Street,
York 5, N. Y.
Also in the same bulletin is a brief

Hoffman
Airlines

Bank

Thursday, November 17,1955

C. Allyn and

A.

Greenwald & Co.,

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

It is

Pacific Electric—Analysis—Maltz,
Broadway, New York 18, N. Y.

...

nriiftprv

Trnn rn

DEMPSEY*TEGELER

o

nn

CL

CD.

to

engage

in

a

North-

securities

business- Mr- Bohannon was formerly connected with B. C. Morton

&

Co.

Volume 182

Number 5482

..

.

The Commercial and Financial Chronicle

(2085)

I

Problems oi the

Independent

will remember

am

during the
mediately
following

Telephone System in Next Decade
By DONALD H. CAMPBELL*

President, United States Independent Telephone Association

dynamic

of

economic

depreciation

the

and

of

erosion

.

problems

lems and

The

main

reason

of

we

the In¬

continue

strong in our internal
organization to meet the demands
of

the

future,

a

of

making

companies.

our

nature

f

o

the

the business in

they suggest

which

we

find

fects

of

ourselves.

We

seek

new

that

know

fast

is

a

growing

and

country
that

the

his¬

tory

of

our

own

industry

shows that the
time
w a

has

al-

placed

y s

bodies

for

in

as

available to all of

now

use

in

in

your

believe that

otherwise

you,

be

will

it

future.

continue

Association will

Your
to help

the

in

is no rea¬

There

growth.

it has in the past,

as

companies

your annual

the future.
I
should like to refer briefly to two
the work of
the Association in this regard. One
was
the launching of a national
recent

examples

advertising
the

was

of

of

adoption

other

the

program;

new

a

em¬

blem, placing all of us in the in¬

dustry under a new, single, recog¬
nizable symbol.
With

Board of Directors
They

program, your

turn

of

address

by

Campbell

Mr.

at

the

58th

Annual

States

Independent
Telephone Associa¬
Chicago, 111., Oct. 10, 1955.

tion,

Convention

of

the

United

an

in

almost

as

those

hectic

the

United

national

velop

and

to

program

distance dialing, the solar battery portunity to
and the "n0"hands" telephone, to are bringing

50

men^on only

maintain

public

ies.

I

century

scarcely

The

did

progress

not

come

we

over-

of

uses

our

and

your

jolted

the year's
ments.

the

been

usual capable and

sparkling

dent

in

comprehensive

a

Telegraph Com¬

sup¬

Telephone

„

and

What about future devices and

Har°ld S. Osborne told us about
telephone possibilities vyhich stag^er *be Pagination even of the
space-world
cartoonists.
His
words have been quoted before,
bu*
think they are worth

are

The

possibilities

startling that

so

hates to

one

mention them for fear he will tax
the credulity of his listeners.

You and I know the

best

tele-

phone has not been designed; the

Alert tele-

rePeating.

best switching system has not been

developed;

telephone facilities

serve

the additional mil-

system

the

has

distribution

best

not

been

There is nothing

that

conceived,
we

do that

us^say>

commented Dr.

Osborne, that in the ultimate,
whenever a baby is born anywhere
*n the world> he is given at birth
a number which will be his tele-

can't be done better.

would

faster,

haven't stolen the show from the

Phone number for life. As

de-

folks who will operate our Indus-

be can *a*k' he is given a watchbke dev*ce with ten little buttons

do

more

the

job

better,

economically

by the brawn of

were
our

indus-

try during the next 10

try. Beginning about 1910, magneto

of

the

began

10

years,

to

give

then manual
about

85%

way

to

manual;

yielded to dial;
of

the

now

telephones

in

In

big

short,

One

years.

problems of the

we

next

therefore, is that of

ac-

cepting the obsolescence of much
of what is

now

used.

*

011 one s*de and a screen on the

i

man¬

This advertisement is not

report

an

The

offer to sell

or a

solicitation of

an

offer to buy these securities.

offering is made only by the Prospectus.

NEW ISSUE
50 Years of the Telephone

Industry

EVENTS
In

Before

Field

Investment

and
store

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

of

Stock

Exchange
Firms meeting of Board of Gov¬
ernors.

14th

Financial

York

New

Writers

Annual "Financial Follies"

at the Hotel Sheraton-Astor.
Nov.

19,

take

1955

(New

York

City)

to

for

what

with

over

tele¬

come.

look

and

usually

spent

in

looking

Security Traders Association of
York cocktail party and

quately

for

the

the

annual
wood

Dec. 2,

future.

tified

Investment Bankers Association

Convention

at

Holly¬

Beach Hotel.

(New York City)

1955

Security Traders Association of
York Annual Meeting at

New

time

in
to

2, 1956

(Philadelphia, Pa.)

Philadelphia annual dinner
at the Bellevue-Stratford Hotel,
with a luncheon and reception
to be

Oct.

held at 12 noon.

24-27,

1956

(Palm

Springs,

Calif.)
National Security

Traders Asso¬

ciation Annual Convention.
Nov. 3-6, 1957

(Hot Springs, Va.)

National Security Traders Asso¬
ciation Annual

Convention.




a

few

we

can

get

of

the

visible

of

of

a

the

previous redemption

These Debentures

of

of

mon

in the

your

the

being offered by the Corporation to holders of its Com¬
the terms and conditions set forth

Prospectus. The subscription offer will expire at 3:30 p.m., Eastern

Standard

sig¬

behind,

are

Stock for subscription, subject to

Time,

on

November 30, 1955. The several underwriters

may

offer

Debentures pursuant to the terms and conditions set forth in the Prospectus.

so

better perspec¬
and

road

invisible
that

lies

ahead.

The

past

50

years

have

the most eventful

in

history of

the

world, and they certainly have

been eventful

point

of

They

have

and

the

our

ones

country and of
from the stand¬

telephone

been

economic

Subscription Price 100%

been

years

the

Traders Association

of

little

a

Stock, through November 15, 1967,

ade¬

today I feel jus¬

tive

markers

make

preparing

taking
review

to

opportunities

But

Convertible into Common

better

unless called for

ahead

that

among
Investment

profit

is

nificant milestones left

the Bankers Club.
March

3%% Debentures due November 15,1975

need

we

to

time

our

dinner dance at the Hotel Com¬

(Hollywood

only

Wheeling Steel Corporation

we

from the experiences of the past,

New

2, 1955

how far

Ordinarily,

are

Florida)

see

backward

we

Nov. 27-Dec.

to

back

me

$19,097,800

in

you

half century of the

phone industry to

to

be

may

I would like

us,

certain

modore.

into the future

peer

see

look

a

the last

have

(New York City)

Nov. 18, 1955

we

try

years

Copies of the Prospectus

of

may

social

upheaval,

years

of

change and innovations,

years

of

great development and expansion,
November

t^ *s.
you

who

are

as

old

aa

be obtained in
the

any

State only from such of the

Prospectus and others

as

lawfully offer these securities in such State.

Kuhn, Loeb & Co.

and years of many new inventions,

Hose of

may

several underwriters named in

business.

»

17, 1955

soon as

c'her. Thus equipped, at any time
when he wishes to talk with anyContinued on page 36

that will be made available to
you.

COMING

as

American

Pany after 42 years of service, Dr.

factors which

were

years

retiring

Future Devices and Improvements

improvements?

large

a

couple of
was

the P"nches-

Social,

economic

with

in his

done

of

a

lions. Methods and equipment that

and

by our Executive Vice-Presi¬

ner

and

additional

needed to

activities and achieve¬

That has

ef-

of

thousands

into action.

us

is old stuff

of the

phone people moved in to supply

to review further

me

years

of

coupled

tied areas—all

port.
It is not for

long

part

methods and devices.

vised

cooperation

your

took

the

emblem

new

course,

engineers who long

accluire the habit of rolling with Chief Engineer

velopment of hitherto sparsely set-

bespeak for the many and

varied

All this, of

yearS' bad years' fair years and a^° recognized the possibilities of

growth in population and the de-

will for all Independent compan¬

few.

b00m years. If they've taught us communications along these lines
nothinS else they have taught us and along other lines yet to be

made

changes,

good

a

YeS) we've had them all, good to electronic

States

the friend you

see

Associa-

Telephone

the

It

call up your

with you.

in order to survive we've had to back> when he

on

think of the posyou

early history around the

governmental

de¬

right1 away! But who
precjict how long it will be
before
phone-television
will
be

how to be flexible and adjustable, explored. Just

new

the beneficial im¬

them

you are not in your office or home wife to teI1 her y°u'» be home for
to answer »y°ur telephone, direct dinner, and you give her an op-

telephone people pioneering with

mem¬

the coaxial

dustry of 1955.

fort

•

*An

of

night.

By adopting and widely
the emblem, all of us can

the

lelephones

a

would recognize the teleDhone in-

have

pact of this great organized drive

respect to the advertising

has it under constant study.

of

Independent

catalogues, directories, letterheads,
telephone booths, and service

trucks.

of

timing devices. voice recorders practical? Just
which take down messages when sibilities when

im

year

Anyone who attended the

tion in its

on

using

of

our

someone

widespread acceptance of
the dial, we have seen many new

automatic toll ticketing, ingenious

about the telephone

during

conventions

reports, in brochures,

better share in

challenge

years?

publications,

company

which
the

biggest business

Now, how

local advertisements,

your

to set up

the long range programs
will be necessary to meet

the

business

emblem for

new

a

party calling from the
other end, and vice versa. The effeet is said to be somewhat similar to holding a conversation with

Wjjj

quiet

the "police action" in Korea,

good 1954 and 1955.

em¬

of the line could

one

the

see

comPanies won't be selling many

know, there is also

you

in

calling from

tic cable, automatic toll dialing,,

relief.

With respect to the service

blem,

it

telephone-tele-

Some of you probably saw
the
newsreels.
The party

speaking to you right out
moving picture screen. I understand the cost of such an ininnovations
in
communications, stallation currently would be $5,000
They have inciU(jed mobile radio Per subscriber, which means our

lic.

lation
to

rate

and

compul-

since

peace-

of peace and

of

you

automation

sory.

Au-

for

making

demonstration of

vision.

cable nlaswiepnones, me coaxial caoie,
pias

few years

history, followed by

dealing with the general pub¬

service far exceeding mere popu¬

son

when

orders

you

results

program

of

24-hours-a-day business

are

with

met

were

is

mechanization-

other factors by governmental fiat

expansion,
in

Tt

highly mechan-

are

too

will feel the ef¬

you

we

3ThpnatlhpatrnieptnfS

They be¬
lieve you will feel it in improved
employee relations, and in the
community and service area levels

ber

demand

practical

the

for

growing

a

backlog

and

capital for plant ex¬
pansion from financial people and
when
you
approach
regulatory

of

passage
Campbell

us

They believe

this organized public relations ef¬
fort in many ways. For example,

feel

our

responsibilities, but

1945,

better friends for

new and

business,

all

time equipment and articles. After

high quality ad¬

messages in magazines
nation
wide
circulation
are

will

America

upon

the

our

vertising

is to be found

all

H.

that

of

came

in the dynam¬

ic

D.

believe

all

pulled out of that

we

?f°^th

property investment.

dependent telephone industry must

to

When World War H ended

telephone

a

the crying necessity of the hour,
Higher minimum wage levels in

gust

of

pic-

the long depression of the
30's,
which brought unemployment and

along came World War II,
increasing our activities, our prob-

consequences

moving into the

are

Increased

extension at

high prices, and (3) the serious

offices

Only last month in San Francisco, Bell System engineers gave,

We

grave

telephone

first

ized.

when

the

the

ture.

business,
Mr. Campbell foresees future devices and improvements that
will tax human credulity. Lists as telephone problems in next
decade: (1) rising costs, (2) a backlog of necessary plant

nature

this country are
automatically operated.
And now full electronic

im-

years

World War, followed by the boom
years of the late 20's and then by

Scarcely had

Stressing the

the business

recession

9

10

The Commercial and Financial Chronicle

(2086)

Situation

The

rnin*

Situation

The Budget

And Tax Reduction
By II. CHAPMAN

Treasury position and
balanced budget for present fiscal year.

prospect of a

only be accom¬

under present circumstances, can

and this,

certain frustration
emerging from the
Treasury
Building
to
make a
speech, especially before an au¬
is

There

a

days in

dience

con¬

cerned

with

it.

have

cause

in these

days all audi¬
ences are con¬

with

cerned

The

taxes.

frustra¬
tion

arises

from

the

fact

what

that

everyone
H.

Chapman

Rose

wants
is

about

for tax

outlook

the

hear

to

speech

a

reduc¬

that there is nothing
very startling to be said on that
subject at this time.
tion,

revenues than we antici¬
pated, because of the continuation
of the good times that we are now
enjoying.
We are opposed to a
tax cut until we can see where
we will get the money to finance

fact, before
any
audience
whatever, be¬

and

In his press conference in Den¬
after he had seen the Presi¬

ver

This

does

wait

to

distribute tax relief
before you have some idea how
much there might be to distribute-.
While, as I said at the outset,
there
is
nothing very startling
about that position, it is entirely
consistent with the tax

was

this:

The present highly
condition of the econ¬
may fairly be said to have

prosperous

omy
resulted in some measure from the

indicated by our
estimates, we
hope to

this

result

in

two

ways:

succeeding
estimate
ings

search

for

savings in the Execu¬

tive Branch—and

without

reduc¬

time; and it is -worthwhile,
therefore, to review some of their
as

because

guide for the

a

the

memory

this circumstance of the shortness

human

memory

was

cally brought home to

when

day

Secretary

referred in

Chicago

of

the

|

us

emphati¬
the other

Humphrey

from
•An
st

a

the

possibility of somewhat

address

joint

by Under Secretary Rose
luncheon of the National Tax
and

Conference

the

Detroit

the

fact

that

one

this Administration was

This momentarily generated

serious

argument

reporters

newspaper

covering the speech,

the

among

who

some

were

of whom

were
r,

1955.

This announcement is neither

buy,

any

an

.i

were

sure

that these controls had

been lifted well before

we

arrived.

offer to sell,

nor

a

in
in

order
order

our

i'ust
just

was
was

Extension

a

pressure generated
tion-orient^d

effecf;

another

one way or

cerning Treasu

J

con-

Administra-

or

tion endorsement of the proposals
whoJe

jn

Qr

their details

Recommendations
and 7

are

numbers

6

follows:

as

by appropria-

arrmintine'

there is

is

the

to

widespread

a

with
von
w,th whirh
which you
acquar ted that the best
®,yo
to spend all of this year s

Potionb

to open vistas—and by this
1 don't, of course, mean to imply
seem

sure

have enough people and material to do the assigned job; even,
and less creditably, to build a littie empire. In fact, the whole

4thcorv

■

to

ex-

you

same

couple of them that

a

career

fastest with the mostest, to be

to point to

be

available

individual

an

ecutive in the government are all
in the other direction: To get there

theory

six-months'

excess-profits

Li

sures on

impossible in
he
analyze a.l the
Hoover Commission recommendations in this area, but I would like

It would

time

anything

1

nil
all

arp

are

way

0/thisyvear's

to

aooroappro

_

inally, it

axiomatic

is

busi-

in

that good cost
accounting and
cost estimating is a
primary and

ness

vital tool of good management
planning. The absence of it tends
to hamper quick gnd
^ deci_
sion making as problems arise and
°crowd jtoo many ,if those deci»

£&"£ST?£f inflationary *£%£ ^
had been brought under
and the budgetary

pressures

better

control

deficit had been

1953, and for 1954 the Administration reflected the expenditure

reductions

in

tax

a

No.

income
and

tax, various excise taxes,
maior

thp

fu
that

bill

revision

tax

«

u

*~vl,slon 01

4-

became effective that year.

And
And

and

sn
so

havp
nave

we
we

from the
linn
tion

nf
oi

come
come

work

intensive

hard
nara

bv
oy

fronts

all

on

budgetary and tax posi1953

Tanuarv
January,

and

when

ex-

iypj, wnen ex

estimated at $78

were
our

at

revenue

«68

billion, to the present situation"of
an estimated outgo of $63.8
as

Vhir a?d \he rellTip"
l

nave

saia,

eliminating

tne

the

in

that

even

of
01
fiscal

nope

soread

remalmng Spreaa

of $1 7 billion

°lYou all

reai

current

remaining

know/ of

makes that task

course,

what

difficult

so

Ap-

proximately $40 billion of budget
exnenditures

doLs
poses,

and
and

are

for defense

hU
nign

a
a

the remainder

are

our-

propor
ion
p
p
ii°n

of

for things like
and the

veterans benefits

interest

imel*

the cost of goods and
timatpd

bp

t

7:

That

charge for
services

es-

rpf.pivpr)

of

cut

$7.4 billion distributed among the
excess-profits tax, the individual

*

.

To &et the full significance of
these proposals, it is important to
understand the degree to which
Federal figure work
ljv

ari.

oxienteu

is

dominated

towarn

the

oh-

'JX ?na uxienieu towara tne on
taming ol Congressional approprn-

^8°od

?

been made

m certain areas of the

,

t0 C"

J*. Pr°gress has

Branch to spend
current

money

either

Pending

on

vear

or

the Department

which
wnicn

hard
nara
hard

are

wholly
wnuiiy
It is

further
turtner

find
una

iob
job,
30D'

savings
savings

suggestion

no

source

therefore
therefore,
inereforer

from

that

our

any

re-

defense

been

have

determined

Secretary of Defense and

control, and by the elimination of
wherever

operations

the

those

of

the

other

areas

resemble

ordinary

business

activity.
Ho

important this area
V
i
A.if ?

.

lng ma^ be for the future
,

illustrated

hv

of

sav

•

is

per-

pvnlr-i

snmp

^t

DeoaTt

throughout
ougriuut

,

,

ment to perform

the
tne
uepartoperations

our

economicallv- how hard

an

V-u"onaicauy now iiard ap-

™

FaJln

thousand citTl"

SS5and'empToy

of operation
in the current
x
£ear\ ln a Department like tne
Treasury, where almost the entire

^out
thousand
now a reduction of7910%
Department-wide,

operating cost is payroll, it has

tw0 a"d «nly two bureaus whose

a

RUt in

thp ripnartmont

1 *?

,

Department we have

,

close relation; in the Defense De-

^^ctttTongXSme plo-

01 ine co.st^s iong ieaa time pro
curement, the relationship is much
remote. The magnitude of
factor
jnfuratPd
hv
thp
l™s lactor is inaicatea by tne
statement in the report that of
...

wnen tnis Administration took ot
fice» the carryover of previous-

to
to

and
ana
and

and

where

or at-

without
wunoui

program
program,

relatively uncontrollable.
slow
low
slow

in government

corporations

in

or
me current year, or tne fir=t
nrst or
second year following; and, de-

lmpainng
essential activities.
I
should like
there
snouia
like to
to emnhasize
empnasize that
tnat tnere

or

Sm

fudg^
1952, particularly

dps uiusiratea by some experiThese annronriations are ences we have had in the Treasury
an°ns\ Anese appropriations are Department wP have heen
hard
authorizations to the Executive
3

3956 expenditures of $62.3 billion
hillinn will
he mnnev
at)0ut
billion will be money
appropriated
m prior
years.
Anappropriaiea m
prior years
aii
i4vA 4-0.4 4nof
other illustration is the fact that

farm
larm

Administration

aDDr0nriated

hut

took of-

nnexnended

Jy appropnatea but unexpended
funds

was

nearly $80 billion.

Bureau6 ol Tngraving

The

Printine

:

.

f"3'"

and
bi
hanknnfe
s a. Dig banknote commm

Pany

.^at prints bills, stamps and

Mj

.

securities; and the Bureau

f

rnliina anri

madeh

a

of the

ctomn

1 ls a J?etal {°lling and stamp^here the coins are

„

35%

These

.
in

z,

two

d

bureaus

have

emnlovment hv

V^ucea weir employment by
h
the

same
period
These
bdr"e. period.
P. noav, inose
3V2 times the de-

uie

'reductions

are

partmental

average

and

are

al-

y
average ana are aimost d°uble the next largest re,,

ducti

hl*

•

„

\n

Treasury

the Hoover reports make
clear, there are many consequences
As

nf
»

course, mere are a number

that flow from orienting Government accounting toward appropriations rather than toward actual

J51 reasons why these two businessjyPe °Perations should have shown

operating costs:

? major factor was
fne ability to follow closely the
PH.sm?ss anal°gy of a system of

e larSest reductions; but,. I

+unVIu^f-4

For

one thing, it is frequently
difficult to get an accurate
picture of the annual cost of operating an agency or a particular

very

e

am

*

.^ctlve. c°st control. While this

Paftern is doubtless incapable or
being applied across the board, it
For any tax cut to be a real cut system is focused on obligational 1S
bein& spread to some extent
must reflect surplus revenues.
If authority, and not on current op- fJ101 ca" be spread far more widely
it simply adds to a deficit and erating cost. As just one example, throughout.government; and I am
therefore to the debt, it is a mere the consumption of an inventory sure that the Hoover report will
postponement to a future day and of material acquired from a prior
,an invaluat)le contribution
still save

.

Burnham and Company

H. Hentz & Co.

Straus, Blosser & McDowell
J. A. Hogle & Co.

program,

because

the

accounting

year's

be

quently fail to be reflected
operating cost of the current

levied

to

offset

the

debt

in-

thus generated

by our improvidence.
1
This principle is as true in the
,long run as it is in the short run.

Copies ol the Prospectus may be obtained from the undersigned
only in those states and by those persons to whom the
undersigned may legally distribute the Prospectus.

C. E. Unterberg, Towbin Co.

found, we can
enough to balance out.

generation of the tax that should
creasp

Ira Haupt & Co.

Recommendation

the executive budget and Congres-

"a

smnal.app^pnations bear, terms
end^of

end of

security; and they come first,
Our hope is, and we still entertain
it, that by close and unremitting

Price $8 Per Share

Stein Bros. & Boyce

3

nar-

our

(Par Value $1 Per Share)

Shearson, Hammill & Co.

substantially

by the President to be essential to

Common Stock

A

appropriation

second

would

consequence

freas

t0 that end.
The immediate

an

year,

results

reason

why this

whole subject is of vital interest
to

me

is, of

course,

the

obvious

from the length of time it takes
the Executive Branch to make up

one; our intensive search for

actual cost of operating a program,

as

more

economies in government as a
Only with a material improvement its appropriation requests and the means of reducing the tax burden
in the international climate in the length of time it takes Congress to on the people.
But there is a
future, be it near or far, is there revise and enact them. Typically longer - range reason of even
any real likelihood of a reduction the basic data for appropriation is greater importance,
of the scale of our national de14 months old by the beginning of
We are in a world-wide contest
fense effort that now absorbs so the fiscal year covered by the ap- with another way of life.
This
large a part of our national budget, propriation. Work started in May, contest goes forward, with an emOur
search for long
range im1954, on the budget for the fiscal phasis that varies from time to
provements must, therefore, turn year which began on July 1, 1955 time, on every plane of human enon finding ways of doing what we
and will end on June 30, 1956.
deavor. The free world is matchneed to do more cheaply and more
A
third consequence is that, ing itself against the Communist
efficiently.
having in wide areas no depend- world in the development of miliIn that connection, I have per- able and current data as to the tary
power, and of economic power
...

sonally




nf

tax eventwas
ol
the

waste

November 16,1955.

*■',

the budget
in balance. On the contrary, those

THE DINERS' CLUB, INC.

Zuckerman, Smith & Co.

sav-

programs be cut to put

150,000 Shares

Dempsey-Tegeler & Co.

as

The Hoover Commission Reports

^ g

major

by the

Hirsch & Co.

the

"frocess ofTuufng

sponsible

solicitation of offers

of these shares. The offering is made only by the Prospectus.

Higginson Corporation

in

present
for

And

year.

j

the

programs

Lee

reduced

to the
billion

$63.8

j
financial
house

was

to

•

4.

,
hen
"h™

a

of

Board

Commerce, Detroit, Mich., Oct. 21,

to

eliminate price and wage con¬

trols.
a

speech that he made

controversial early steps

to

military posture in

a

in

Department, which are giving us

peacetime history; and second,

The

in sight, tax reductions
effectuated.

hillion

short.

is

ing the programs of the Defense

our

dtrections

farther

years

of

of penditures

Parenthetically, I might say that

taken by

the strongest

pur^

came

vear

I'irst, by continued and intensive

billion

the

cut

bit

fiscal

current

cies that have been followed since

of

billion

poli¬

of the fiscal and tax

that

cf

$1.7

had

then still

4

man

achieve

in

January, 1953.

current fiscal

August

Administration

Eisenhower

the

policy that

has followed since it took office

balance the budget
year ending
r.ext June 30. Despite the deficit
the

is

equitably to

future,

We hope to

5n

of neariv $10

fnflation

that we
money

speculate on the form that
take, because you cannot
intelligently consider how most

from the Washington press corps.

What he said in effect

a

layman approaches with humility;
but even a layman can be pardoned for interesting himself in

idle to

major outlines

many

the

an

billion

$78

highly technical subject, that

a

the satisfactory performance of
its personnel. It is hard to reflect
an individuals cost consciousness
in his personnel folder as a plus
on his record. In the absence of
such a criterion, the natural pres-

it might

Humphrey an¬
questions on this
subject, framed with all the in¬
genuity we have come to expect
Secretary

swered

mean

actually in hand, but it must be
clearly in sight. When that time
comes, we shall support a tax cut:
But until that time comes, it is

success

dent,

not

until

of

proposed budget of $78 billion was
immediately pared to $74 billion

higher

taxes—and, in

proposinV

level

taken in many

was

and

these

iust

This is

tbi sUnatton ^orous

plished by higher revenues, or increased economies, or both.
Lauds Hoover Commission Reports and explains problems
of carrying them out.

1

were

we

lih

be real must reflect surplus revenues,

tax cut to

a

-1953

Government budget

on

" when the task force estimates
a possible ultimate saving of $4
i
Of the dollar to 52
billion a year resulting from imw- finre 1930
And the public provements in this area. Of course,
l
rif Which had been I cannot personally vouch for this
oUnwoH
to
drift
into short-term
figure;
the fact that it is put
cpiMirihes
was
not far beloiv the
forward by a task force of the
«75 h fnon statutorv ceiling
eminence of this one is enough to
$
in tnis
In
challenge serious attention.
situation, vigorous action
d(-_

Treasury

Treasury spokesman discusses current
Points out

task force

situ^ and accounting practices.

budget that had

rongress

Pri,.o

the

r

fvnenrihure
?nH ? deticft

ROSE*

Under Secretary of the

^niarv

nf

with

1953

in

therefore to the

Thursday, November 17,1955

.

.

.

found

great

interest

and

much encouragement in the report
of the Hoover Commission and its

it

is

hard

for

the

government to
make cost reduction a criterion of

well; we are competing against
each other in the sphere of moral
values and for the minds and
spir-

182 ''Number 5482

Volume

itual. allegiance

of

all

.

.

.

The Commercial and Financial Chronicle

it

mankind.

Important in this far-flung

Sterling and British Exports

com¬

petition is the relative efficiency
with which
tems

can

sult;

the

governmental sys¬

our

accomplish

a

degree

which

to

given

its own economy to
given quantity of effort
power at the decision point. I

and

have

calling attention to the "Sterling scares" that have occurred

at

internals during recent years, Dr. Einzig discusses

the

of

fear

outcome

the

of

this

struggle, for the advantages
hold, both materially and mor¬
ally, are many and great. But to
we

ficiency of

governmental

chine by so much do

ourselves

ma¬

strengthen

we

this

for

contest, which
may
be long, will certainly be
hard, and will determine for gen¬
erations

if not forever the future

of our way of

life.

subsided, it would be unduly
timistic to

R.

pointed

an

of

ager

Boyd

has been ap¬
Assistant Sales Man¬

Wall

Corp.,
City,

1

ment

advisor

to

Street

Management
Street, New York

Wall

invest¬

and

Wall
I

Corp.,

a

stock

mutual

will

com-

Boyd
direct

fund's

ling,

and

one

instance

in

—

ster¬

in

1949

British
An

be

to

Of

sissippi,
Delaware

and

the District of Co¬

lumbia.
had

He

previously

with

ciated

Carl

been asso¬
Nolting In¬

W.

vestments and Frank H.

&

investment

Birmingham

Co.,

Chappelle

of

exaggerated by distrust.

exchange at the time of the

of distrust created

a

but

&

ston
a

Co.

;new

is

firm

will

York

a

and

be

&

265

of

the

Francisco.

.

Officers of the

shadow

recent

sterling

in
to

July most people
have mistaken the
substance.
They

the

for

of foreign

London

short

to

or

selling

of

ferment

settlement

the

new

corporation

contributed

doubt

sterling

Buckley, William V. Driscoll,
Robert W. Englander, Jr., Eidon

Henriquest,
Jr.-, Frank O. Maxwell and Ed¬
ward G. McEneaney, Vice-Presi¬
dents; H, R. Derrickson, William
D. Fleming, Morton D. Harmon,
A.

Grimm, Harry P.

•

Clifton
J.

W.

Morrill

and

Thomas

Tasso, Vice-Presidents, Assist¬
Secretaries

ant

Treasurers;

Jr.,

B.

James

Treasurer;

Vice-President

Assistant

and

George
and

Simpson,
E. White,

Secretary.

extent

her foreign assets.

as

have
wire

installed
to

Branch,

&

a

Co.,

direct

14 Wall

private

Cabell\&

Com¬

814 East-Main Street, Rich¬

mond, Va.

Jay Kaufmann Admits
Harry J. Lipman on Nov. 7 be¬
came
mann

a

&

partner in Jay W. Kauf¬
Co., Ill Broadway, New

York City,

memfoers of the Amer¬

ican Stock Exchange.




12

goods

would

that

would

the

benefit

there

because

arose

would

owned

the

the

gold

As

are

There

of

ling, they

not

ish
or

would

long

a

a

all

that

it

goods.

The

he

devaluation

will

be

under¬

the
to

foresight
defer

importer who had

or

the good fortune

his purchase

until after

•

solicitation of offers to buy

nor a

x

hi

*.

•

'1/;

■■

...

•

any

of these securities,

V "
'

:,.

-

■

■

■'

.»

:

,

v

.

■

•

■

November 16, 195J

:

260,000 Shares

Arizona Public Service

Company

a

during

Common Stock
$5 Par Value

devaluation

the

Price $22.75

share

present

been

dis¬

frequently—and

has

per

currency—

have

too

Copies of the Prospectus
writers only in

may

be, obtained from

any

Slates in which such underwriters

of the several underqualified to act

are

dealers in securities and in which the Prospectus may

the

British
make

when

with

upon

if

of-this

The First Boston

sterling

confidence

exporters,
-use

as

legally be distributed.

Merrill Lynch,

Corporation

Blyth & Co., Inc.

Pierce, Fenner & Beane

Refsnes, Ely, Beck & Co,

any,

device.

however, that the
necessary arrangements should be
initiated
during a calm period,
that it should become immedi¬

so

ately

available

and

as

William R. Staats & Co.

Stone & Webster Securities Corporation

when

A. C. Allyn and Company

Central Republic Company

Incorporated

Coffin & Burr

Dean Witter & Co.

Hemphill, Noyes & Co.

(incorporated)

Lester, Ryons & Co.

Schwabacher & Co.

Bali, Burge & Kraus

Hill Richards & Co.

Newhard, Cook & Co.

Incorporated

re¬

A. G. Edwards & Sons

during a stormy period.
Should the government be un¬

Shuman, Agnew & Co.

Elworthy & Co.

quired

willing to adopt this proposal the
-

importing

or

the banks of the

countries

could

issue

certificates and

would amount to

popularization

a

of forward

for

exchange transactions
legitimate commercial pur¬

In the absence of

sterling
foreign

through
orders

a

for

a

pressure on

reduction of
British goods

Wagenseller & Durst, Inc.

Bosworth, Sullivan & Company, Inc.
Davis, Skaggs & Co.

Estabrook & Co.

Bateman, Eichler & Co.

Walston & Co.

Crowell, Weedon & Co.

Henry Dahlberg and Company

First California Company

'

Irving Lundborg & Co.

Incorporated

McCormick &.Co.

Stroud & Company
'1

The Milwaukee Company
Sutro & Co.

Pasadena Corporation

Smith, Moore & Co.

E. F. Hutton & Company

Kenneth Ellis & Co.

Incorporated

Brush, Slocumb & Co. Inc.
E. S.

'

poses.

sold by a rival

ISSUE

offer to sell

offering is made only by the Prospectus.

'

It is important,

such

danger is

NEW

an

The

'J

■?;.

way

periods

looked

few

holding sooner

firm imports goods before

>.

».

no

cover them¬
the wave
in the forward exchange
of distrust in sterling is that it4 selves
tends
to
discourage the import marjket.. In substance the" device

that if

*

'

■;

to allay
thing for a gov¬

one

British banks

British

This advertisement is neither

totally different thing for it to

is

later.

of

Building.

the

be

exports

against
a

promises

would

difficulties arising from

with Walston &

now

Chronicle)

Calif.—Edmund B.
Kittinger is now with Willian R.
Staats & Co., First National Bank

Calif—Waltov

BEACH,

scares,
and
greatly mitigate

maintain

During

For¬

are

the

The Financial

SAN DIEGO,

guarantee
foreign importers
against the devaluation risk.

have to replen¬

sterling

With William R. Staats

r

Co., 110 Pine Avenue.

courage of
its convictions, by undertaking to

are a source

their

LONG

Maclndoe is

sterling

is

to

show

positions in ster¬

London

in

«

willingness to issue such

go

honored
a

liable to be
amply covered by

short

i

Securities Company, 208

South San Pedro Street.

buyers of Brit¬

British

of

It

such

reserve.

for

U7

scares.

tion

by countries of

British Commonwealth.

eign balances that

,

they

remove

exchange value of its

enough gold.
But at present a
large part of sterling balances is
blocked,
and
an
even
larger
amount is

of Taiyo

Wltil WalStOn cfc Lo#

they hao
purchases
until

owing to the danger of

fears.

trouble

was

has

if

secured

ernment to declare its determina¬

The most important cause of
pany,

to

guarantees

No harm

1931

Calif. —James
N. Yamamoto has joined the staff

(Special to The Financial Chronicle)

to hold back their pur¬

ernment's

arise, provided that there is
enough gold to pay out overseas
residents
wanting
to
withdraw
In

The firm

'

LOS ANGELES,

Corp.,

Moreover, the psycho¬
logical elfect of the British Gov¬

can

funds

Hutton

or

e

tion remains unchanged.

balances.

U7.

The
for

should

their

Investment

them

when they

of the gold reserve
becomes reduced but the net posi¬

Street, New York City, members

$.

the

almount

gross

of the New York Stock Exchange,

W.

of

free

six months,

this alone would

The

of potential
strength, a secondary line of de¬
fense.
So
is
the
exaggerated
withdrawal of sterling balances,
because banks and others needing

Branch, Cabell Co.

would

valid

be

British

devaluation.

that Britain's foreign short-

withdrawn

W. E. Hulton Wire to

chases

periods

term liabilities decline to the same

Coast

Taiyo Securities Co.

(Special to The Financial Chronicle)

Fort

cor¬

transfer

payment

device

decline

dent; Daniel J. Cullen, Albert C.
Purkiss, and William S. Wells,
Executive Vice-Presidents; Walter

would

for foreign

the difficul¬
ties.
After all, if foreign holders
withdraw their balances it only
means

Joins

formerly
in
Fort Worth office

of the

Jersey-

Association of Chiefs of Police.

importers

and

as

their

ish goods

of

cause

will be Vernon C. Walston, Presi¬

W.

This

however, by a long way the most

important

would

have

cause

not,

were

of
a

of

the

towards

They

scare.

Police, National Association of
Sheriffs, as well as the Pennsyl¬

vania Association and New

direct private wire between the
Worth and Dallas offices.

a

after devaluation.

foreign

by

chasers

deferred

of

to de¬

or

of

was

mortgage bankers.

the

to

They

foreign

say,

receive

would

balances from

sterling by speculators

of,

Burdick

Gulf

their

of

certificates

the

correspond

attributed the difficulties to with¬
drawals

Chairman

Co.,

months. If during that period ster¬
ling should be devalued, the pur¬

that

scare

in

period

discus¬

All these factors have no

San

the

certificates

sterling during adverse periods.
of

Brit¬

re-sell their imported goods.

strengthen

liabilities

Street,

transfer

turn

debtors.

Montgomery

dollars.

to the retailers

course

pres¬

premium

a

wno

sterling

Stock

forward

happy currencies. It is,
a matter of elementary
wisdom to give timely thought to
would

value

payment

of

therefore,

which

of

rate

responding to the current rate of

or

The

Francisco

the

against

two other

the

CL

H.

of

Farrell

Lucille
&

International Association of Chiefs,

would acquire such

to

to

devices

current

the certificates.

Department

safe

as

New

Exchanges and other leading na¬
tional exchanges.
Main cffice is
at

safe,

the

of

exports,

at

formed.

member
San

and

Walston

corporation,

Inc.,

Co.,

will be dissolved

cent

per

developed

Borporaiic®

level

a

the

charge

appeared

FRANCISCO, Calif. —As
of Dec. 1 the partnership of Wal-

to

and
of

certificates

Even if the gold

increase

$2.78

ish exporters

can¬

dollars, Swiss francs and one

sions

Form

later

sooner or

difference between the rate

entation

should increase, it is not

hundred

as

In

SAN

of

The ster¬

not repeat itself
the possibility of

may

to

difficulty. This could
accomplished in the following

way:

which sterling would be considered

firms.

Walslon & Bo. (o

Branch in Ft. Worth

this

overcome

of any

likely

Florida, Mis¬
Alabama, Tennessee,

Miss

Kuch

vania, Delaware and part of New
Jersey. He is a member of the

pound which would have weath¬
ered the pressure had it not been

reserves

lina,
South
Carolina, Georgia,

to

The

wave

years,

meeting of the 1955-56 season on
Monday, Nov. 21, at 6:15 p.m. at
the Barclay Hotel.

Southwestern Sees.

•

charge

Einzig

own

scare

delphia will hold its second dinner

motor

would be entitled to the payment

Paul

say

not be excluded.
Boyd

goods.

device

a:

be

Virginia,
R.

British

as

Mr.

the

vestment Women's Club of Phila¬

effective way

particular

its repetition
James

well

as

certificates" the holders of which

to

for

Caro¬

British

justification by compelling
Sir Stafford Cripps to devalue the

more

correct

Meeting

PHILADELPHIA, Pa.—The In¬

devaluation

a

Export Credit Guarantees
Department should issue "sterling

haps

Dinner

some

During periods
the possibility

result of

a

be

Y FT. WORTH, Tex.—Southwest¬
ern
Securities
Company has
opened a branch office in the
Sinclair Building under the man¬
agement of Howard D. Burdick.

It

Maryland,
North

beneficiaries from

'

Phila. Inv. Women

causes.

not

sterling, British motor vehicles
for instances, might become sud¬
denly much cheaper in terms of
foreign
currencies, is liable
to
discourage the purchase of non-

of safeguard¬
ing sterling would be the adoption

—

distrust

ling

in

shares

in

its

distribution of
the

was

of dis¬

trust

that

fund.

Mr.

there

wave

would be per-

Street

mon

a

justified.

estment

n v

the end of the
war

as

face

to

.

since

proved

dis-

it

Four

times

the

tributor of

op¬

never

recur.

other
would

of tfte
Entertainment Committee, has an¬
vehicles. After all if the price of
nounced that the guest
speaker
Morris cars is suddenly reduced
the devaluation. It is true, whole¬
will be Joseph M. Bransky.
Mr.
in terms of dollars by, say, 25%,
sale importers are in a position
holders of stocks of rival models Bransky, a member of the Treas¬
to hedge against this risk by re¬
ury Department, Bureau of Nar¬
of American,
German, etc. cars
maining short in sterling until
would also suffer losses.
In case cotics, will speak on the topic of:
after they have disposed of the
"The Narcotic Drug Problem."
of a prolonged and acute sterling
goods. Retailers, on the other hand,
During his long career,
Mr.
scare the possibility of such losses
are not organized for forward ex¬
is liable to cause an appreciable Bransky has been a lecturer on
change ;transactibns; ipdbed
criminal investigations in police
reduction of inventories in gen¬
of them have never heard of for¬
schools
and
various colleges of
eral,. leading
to
an
all-round
ward .exchange.
If
rightly or contraction of business.
It is a pharmacy and medicine dealing
with "The Narcotic Drug Prob¬
wrongly they are afraid that ster¬
consideration which deserves at¬
ling may be devalued they are
lem." For the past eight years he
tention.
inclined to seek to safeguard them¬
has
been
in
charge of District
selves by reducing their stock of
No. 3, which includes Pennsyl¬

as¬

that

sume

easier

to

of

slerling is the discouragement of import of British
suggests a device to overcome this particular
difficulty.

LONDON, Eng. — Although the
sterling scare which developed
during
the
summer
has
now

will

Boyd Appointed by
Wall St. Management
James

in

trust

improve the ef¬

can

our

that,

of

some

would

gocds, and

due

industries

such arrangement.
of sterling scares

strengthen sterling during adverse
periods. Says most important cause of difficulties due to dis¬

we

the extent

which

devices

be much

the only

In

a

no

British

By PAUL EINZIG

must "drain

deliver

would

pressure

re¬

each

11

(2087)

Hope & Co.

The First of Arizona Company

Jones, Kreeger & Hewitt

Grimm & Co.

Laird & Company

Hooker & Fay

Pacific Northwest Company

12

The Commercial **nd Financial Chronicle

(2G83)

:.v

than
in the
horse-and-buggy days, and "we understand the psychology
of a cow better than the psychology of a child." Lays increas¬
ing costs of school building to "crazy legislation."
getting

are

From

Elects New Officers

By ROGER W. BABSON

Babson, asserting truck drivers

more pay

So

letters

many

that

would

I

all

week

this

in

me,

taxpayers,

this

like

them

answer

to

come

in

tial

to

column

impar¬

an

out

start

me

pathies

are

distinctly
with

the

school teach¬
and

ers

i

c

espe-

11 y

a

the

with

school

principals.
is

drivers

getting
pay than

are

Roger

W.

babson
more

school

Morally

ers.

this

11

that

true

truck

teach¬

unjust,
employers

seems

but the fact is that the

have substituted motors for horses
and

big trucks for wagons. These
trucks carry as much in a day as

the schools for

the

research.

than

psychology of a cow better
the psychology of a child.
education

control

who

Those

and

"brain"

a

do

of

Possibilities

the

tremendous. But teachers may

be

obliged to supplement their
by giving pupils pre¬

which enable the truck drivers to

scribed diets, or new

have increased wages.

drugs, or

what they were

paid double
20 years ago; but

employers nave adopted sprayers
in place of hand brushes.
Car¬
penters are getting double; but
the employers are supplying them
with electric

instead of hand

saws

The school committees and

saws.

the

city fathers,
on
the other
hand, have not done much of any¬

thing to help the teachers do
efficient
I

pay

used

work.

more

employer,
double what I

typists

my

to

As

an

them, but with elec¬
typewriters and other ma¬

tric

pay

chinery, they give

us

more

a

visit; but he is making us live
longer. Hard-covered books cost
but
for

more,

thing

we

get the
the
price

can

half

same

with

covers.
Radio,
washing
machines, and TVs have all im¬
proved
in
quality,
and
hence
profit returns offset the wage in¬

paper

creases.

Legislation

Increasing
Let

ern

is

the

"What

who

building.

cent of this

brain

foresee

can

presents the greatest promise that
lies

ahead."

Surely, the time re¬

conventional educa¬
75%-, schools will
graduate far more efficient pupils,
and teachers will be paid what

quired for

they are worth, or else they will
be replaced by UNIVAC machines.

Brings Orchids to

LOS

ANGELES, Calif.—Robert
Huff, Vice-President of Fewel
& Co., 453 South Spring Street,
relaxes
by
raising
orchids
on
his
estate.
It
is
an
expensive
hobby with his collection valued
at $10,000.
At the Los Angeles
Exchange
turns

there.

He

Luncheon

Club,

orchid, when Bob

is most

to
unnecessary
classroom space,
glass windows, unused ventilation,

has

and
press

been

in

generous

known

to

air

ex¬

them to New York City for

appreciative friends.

and

similar

associations.

of

cent

the

Fifty

increased

cost

Joins Walston & Co.

per

plumbing, electrical work, mod¬
kitchens, fancy gymnasiums,
auditoriums to please the voters,
not to improve education.
Thirty
ern

per

cent has been due to the in¬
costs

creased

which

Uncle

taxes.

In

a

explains

.

Sam

materials,

of

takes

in

52%

increased
School

costs

the

make

burden

of

committees,

teachers

these

carry

the

costs

by accept¬

The doctors are not

only deliv¬

ing low salaries.

but they are forming

ciations

to

which

new

developing

of instruction to

very

better

few

rooms

FRANCISCO, Calif.—Har¬

S.

Tognazzini

Walston

&

Co.,

is

265

with

now

Montgomery

Street, members of the New York
and

San

Francisco

Stock

Ex¬

-

assure

salaries.

any

asso¬

Three With Daniel Weston
(Special to The Financial Chronicle)

BEVERLY

V.

Littlefield,

Richard

associated

Weston

of

cities where the class¬

L.

Mur-

&

with

are

Daniel

D.

Co., 140 South Beverly

established

was

in

Newberger Brothers and

Henderson.

Under its

new

name,

the firm has expanded to Atlantic

City,

Lebanon

Vineland.

and

member

a

of

the

New

It

York,

Exchanges.

the

No.

heart of

the

Levittown-Fair-

less Hills area, which is one of the
nation's fastest growing communi¬
ties.

Opening

a brokerage firm amid
of consumer prod¬
shopping services is gen¬
erally considered a bit unortho¬
dox, although it may be a fore¬

such

an

array

ucts and

of

runner

future

investment

trends

field.

Lieberman,
Newberger

in

the

Herbert

Mr.

partner in
Company, stated,
"We didn't open up in a super¬
market to make money
sim¬
ply as a public service to dis¬
senior

a

&

.

.

.

to

We believe

has

been

added

to

the

staff of Walston & Co., 550 South

We hear of

&

Co.

must

current

from

and

the

with

far."

As for future plans, Mr. Lieber¬

stated

man

to
as

open

expects

Thriftmart expands into

scheduled

J.;

firm

similar brokerage offices

soon as

such
N.

that the

areas

Atlantic
New

Camden,

as

Hartford,

City,

and

Conn.,

Two With Bache & Co.
LOS

is

by

no

this
man

The pursuit

of

time

with

just

recovering

seem

to be

their

down¬

right dangerous.
Instead

of

harping upon
Eisenhower's
indispensability at this time, you would think
Carlisle Bargeron
our
leaders of public opinion would be
playing it down, and certainly this is the
President's own feeling. Personally I hope that he will feel able
to run again but it is not because I think the
country would go
to the dogs in the event he does not feel so
able, but because his
running again would insure a Republican victory and I think that
that

would be better for the country.
The revival now of the idea
overlooks

lot

a

of

change

become

that

of both

has

President.

nominate

him.

This, I

parties nominating him
about

come

There
were

was

a

present

in

his

attitude

time, according to
upon

the particular

unless both parties

run

did

think, showed his lack of knowledge of

government.

our

if

But

he

nonpartisan at that time, he has repeatedly,
gatherings that he was
thorough-going 100% Republican.
He
has even made the
statement publicly that he thought the Republican party to be
the best instrument of this country's enjoying its full progress.
At the private Republican gatherings he has been less restrained.
At those meetings his remarks have been a delight to the
lowly
Republican precinct workers. He has talked their language. I
was

since becoming President, told Republican
a

have

seriously to doubt he would even entertain
being the candidate of both parties. At least I

reason

of

now

certain
is

he

would

make

it

clear

in

unmistakable

any
am

terms

idea
quite

that

he

Republican.
proposition being advanced is that the two party system
would be maintained by fighting it out over the Vice-Presidency.
The party winning that office would be considered as
having won
a

The

the

of

In the event of the President's

Vice-President

incapacity, the party

would

move
into
power.
What wduld
A Republican President reelected would
mandate from the people to surround himself

happen in the meantime?
nevertheless have
with

a

Democratic

cabinet, with Democratic advisers and to carry
policies. You wonder just how childish some of
ivory tower thinkers can get.
I had thought the death of Roosevelt would have forever put
a

Democratic

out
our

end

to

the

indispensability myth. The stock market dropped,
there were a few days of uncertainty. Then Truman
things moved right along much in the image
of the indispensable man.
There are many who claim Truman

an

of

course;

struck his stride and

attained

a

stature of greatness.

I don't go for that but I do think

the country made progress towards

sanity under him. He quieted
of the antagonisms, and Eisenhower's greatest contribution,
I think, is that he has quieted most all of them. But that is behind

many

accomplishment, and if the Republicans continue in office,
think we shall continue to move away from them, under either
Eisenhower or any other man they might select.
Nixon's nomination would admittedly make for a bitter cam¬
paign.
The leftists and so-called liberals would scream bloody

us, an

I

his election would very likely leave a

lot of

scars

in

midst.
But the chances are that their voice in our national
councils would be silenced for many years to come.
They would
have made their all-out fight and lost. They would knowwhere

they stood. They haven't been silenced under Eisenhower.
still think they carry weight.
There

was

They

considerable

propaganda just before the 1952
Presidential nominating conventions that the
Democrats, meeting
after the
came

Republicans, might also nominate Eisenhower. But this
mostly from Taft Republicans seeking to scare the Eisen¬

hower

supporters.
An influential acquaintance of mine at the
time, however, took the idea seriously and tried to get a campaign
going to this end. He didn't get anywhere and my guess is that
those promoting the two-party
acceptance of Eisenhower now
won't get any further.
'

ANGELES, Calif.—William

W. Blatner and Richard F. Gibson

have

another.

heart attack would

a

our

pleased

very

so

be

right at
indispensable

murder and

are

connected

become

Bache

&

Gibson

of

Co.
was

office

New

York.

Mr.

with

the

formerly
of

Francis

I

du

Two With Fairman & Co.

Fewel Adds Two

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

with

Pont

LOS ANGELES, Calif.—Hubert
R.

O'Neil, Jr. and Eugene T. For¬

rest have become
Fairman &

Street,

With

(Special to The Financial Chronicle)

Hawkins

times

we

devotion

their

and

Staff

LOS ANGELES, Calif.—Lotis B.

it

then

man

it is good institutional advertising

& Co.

Walston Adds

name

accepted the indispensability of Roosevelt there have been influences in
midst, with tremendous propaganda
mediums, who are devoted to the indispensability myth. IP it is not one indispensable

the election.

local

giving double service,
Spring Street. Mr. Hawkins was
with half of the students
coming
in
the
morning, and the other formerly with Francis I. du Pont




firm

as

(Special to The Financial Chronicle)

Drive.

systems

are

half in the afternoon.

The
1899

'

HILLS, Calif.—John

taugh and Kenneth D. Russell

PTA

hear

center.

Haven,
Miami, Florida.

changes.

the teach¬

We

brokerage firms in
the East, established a precedent
in the investment field by open¬
ing an office in Thriftmart, the
nation's largest one-stop shopping

Conn.;

cancer,

of

ers

old

heart
polio. We, how¬

conquer

disease, and even
ever, do not know
is

SAN

now

ering better services for increased
fees,

stock

of

by catering to the voters, are
largely responsible for these highcost school buildings. They should
not

oldest

results

generalway, this also

the

houses.

most

of

Pa. — New¬
berger and Company, one of the

(Special to The Financial Chronicle)

is due

to

would

Candidate,. reflects

occasion, when he said he would not

PHILADELPHIA,

seminate information.

rules
or
regulations .put
through by the labor unions and

these

of

party

reliable informants of mine who

Business at Thriftmart

located on U. S.
1, Fairless Hills,
Penna., is strategically located in

H.

talk

I

new.

since he has

Newberger & Co. Does Big

Highway

district with the gorgeous blooms

per

Supermarket

Thriftmart,

Investment Business

supplying the girls in the financial

Twenty

In

Philadelphia and Baltimore Stock

Huff

benefits

increased cost is due

Newberger Opens

is

of

mod¬

Donald, Jr., Vice-Chairman, Mc¬
Donald, Moore & Company; Wil¬
liam L. Hurley, Secretary-Treas¬
urer, Baker, Simonds & Co.

a

tion will be cut

is

the increased costs

school

active in¬

in

eugenics. As Sir George
Thompson
is reported
to
say,

the

Costs

consider

us

from

undiscovered
electric impulses. Edu¬

cation also may take an
terest

Stock

Crazy

ing year:
Raymond J. Laude, Chairman,
Goodbody & Co.; Harry A. Mc¬

teaching

double the

me

The doctor costs

work.

Group, at their annual meet¬
ing held on Oct. 17 last, elected
the following officers for the com¬
gan

mind

are

are

DETROIT, Mich. —The Invest¬
Bankers Association, Michi¬

ment

"mind," to say

nothing about the probabilities of
extrasensory perception and the
use
of numbers rather than sen¬
tences.

Presidential

Ever since

%

each

but

year

Vice

craziness

the

not know the difference between
a

of the News'

our

understand

We

next

own

means

&

carried
in a week.
In other words, the
employers have adopted methods

today

its

Raymond J. Laude

the old horses and wagons

Painters

tions

parking places

Unfortunately, the teachers' fu¬
ture probably awaits some very
important research.
The schools
are
spending billions a year to
park and lunch children, but—
unlike our large industries—are
spending very little on funda¬
mental

Washington
By CARLISLE BARGERON

Teaching Is Now in the
Horse-and-Buggy Days

sym¬

V-

idea, seriously discussed around Washington and in other
influential places for several weeks and now given publicity, by a
reputable, widely syndicated columnist, that Eisenhower should
be given both the Republican and Democratic Presidential nomina¬

for their children.

by saying

that my

'

,

The

experiments with radio and TV.
Unfortunately, however, too few
parents are interested in better
teaching. Too many parents want
to
work outside the home, and
use

manner.

Let

Thursday, November 17,1955

.

■"

Ahead

school teachers, contends, however, that teaching is now

from both teachers and

.

Michigan IM Group

School Costs
Mr.

.

.

associated with

Co., 210 West Seventh

members

of the

Los

An¬

geles Stock Exchange. Mr. O'Neil
previously with Gross, Rogers,

was

Dempsey-Tegeler

Barbour, Smith & Co.

LOS
S.

ANGELES, Calif.—Howard

Anderson

ton

have

Fewel

Street,

&

and

become

Harold

D.

connected

Mor¬

with

Co.,

453 .South Spring
members of the Los An¬

geles Stock Exchange. Both were
previously with First California
Company.

(Special to The Financial Chronicle)

PASADENA, Calif.
Cobb,

Jr.

has

—

Lynn C.

become connected

with Dempsey-Tegeler & Co., 465
East" Green

Street: "He

w&£ pre¬

viously with J. Logan & Co.

Joins Reynolds Staff
SAN
Joanne

FRANCISCO,
Calif. —
H. White has joined the

staff of Reynolds & Co., 425 Montgomery

Street.

Two With L. Schneider
LOS ANGELES, Calif.—Pern B.
Hoowij and Paul R. Roberts are
now with Leonard B. Schneider,

4909 Melrose Avenue.

Volume 182

Number 5482

..

The Commercial and Financial Chronicle

.

normal increase in credit relative expansion

and employ-

quickly if incomes

Will Consuner Debts

to the volume of purchases. In the
third quarter of this year 77 cents

obvious. Moreover,

ment dry up is

know from the the Great De-

we

pression that unsound elements in

Limit the 1956 Maiket?
1*

of Michigan

| Pointing out Americans have been showing
:

impressive

an

degree of enthusiasm about getting themselves into debt to
other, Prof. McCracken lists as reasons for concern

a

each

•

avoid

into

of the

of

t

1

a c u

a

dramatic fea-

more

year

has been

mer~
In

third

of

volume

the

total

for

consumer

pay

credit

thereby

out-

rise

consumers'

things

17%

during the
preceding
rise

in

hard

ing
even

marked.

more

volume
from

of

this

has

In

four

are,

purchases

of

(1)

billion

or

24%

in

(arising

the

automobiles

one

year.

which,

indicates,

about

wt?'
When
the

is

that

the

mortgage

also

ahead

been

of

volume

debt

running
1954,

figures
of

has

extending,
they are

active

who

volume

stories

news

are

obviously

installment

been

a

from

and

substantial

which

be serviced

must

are

of

were,

to

come)

Americans

consumer

have been showing an
impressive
enthusiasm about get-

the

there

those

it

easier

terms

thpir

initial

will

each

11.8

e modern economy debts (pub'4C or Private) are almost sure to

time

when

could

not

a

story

of

easy

terms

is

little

evidence

inflationary. The consumer price
index has been remarkably stable

Mnrpnver

In

Picture

Dangerous

spite of these considerations

there is, I believe,
the

view
ments

recent

with

much

too

price

level

f0od

prices)

until

tendency to

a

credit

out

demand

for

jng

develop-

goods has not resulted in

in trouble since in¬

us

will not grow by more

than
The
major explanation for the abnor3

4%

or

cents

of

This

L

from 195 to

?

was ^he sharp cyclical rise in output from the 1954 recession. Now

more slowly. And a slower rate of

and

not

the

Even

-

hard

money

(4)
the

appropriate

inflation

We

must,

volume

sumer

than

debts

I

personal

to

rise

incomes.

announcement is

neither

offer to sett

an

nor a

solicitation of

by Prof. McCracken at the
Regional Conference, Financial Analysts
Society, Detroit, Mich., Nov. 7, 1955.

For

this
•'

Continued

on

any

of these Units.

The offer made only by the Prospectus.

the

12.3 cents.

serious

problems

get into

a

might also
if

we

to

serious depression. That

loans, good when made,

TABLE

935,999 Units

pose

were

can

of Beneficial Interest

sour

I

Expansion of Consumer Credit

Hugoton Gas Trust

(Dollar amounts in billions)
Item

Aug:. 1954

Aug. 1955

Amount

%

Consumer credit outstanding...

$23.7

$33.6

$4.9

17

Instalment credit outstanding*.

15.6

119.3

3.7

24

Auto paper

outstanding

10.3

13.5

3.2

31

Instalment credit extended

2.5

3.4

0.9

36

Gas

Instalment credit repayments._

2.4

2.8

0.4

17

Units

goods

only.

TABLE

SOURCE:

Federal

Subject

the limitations of State securities laws, holders of Kansas-Nebraska Natural

to

Company, Inc. Common Stock
at

$4.00 per

Natural Gas

Reserve.

Transferable

II

on

are

being offered the right

the basis of

one

to

subscribe for the above

Unit for each share of Kansas-Nebraska

Company, Inc. Common Stock owned of record

on

November 10, 1955.

Subscription Warrants will expire at 2 o'clock P.M. Central Standard Time

November 25, 1955.

on

Relationship Between Instalment Credit and Purchases of

Unit

Consumer Durables

After the

(Dollar amounts in billions)
Purchases
Year

Cons. Dur.

Amount

Credit

7

Extended

Cons. Dur. Purch.

expiration date, eligible employees of Kansas-Nebraska Natural Gas Com¬

Inc. will receive Subscription Warrants, transferable only

evidencing the right to subscribe

1940

$7.8

$5.7

73%

holders. Prior

1950

28.6

15.4

54

writers may

21.6

73

1953

*1955
♦Third

Instalment

pany,

29.8
_

37.5

.

quarter annual

rate.

28.8

SOURCE:

Federal

Reserve

the

to

and after the

offer Units

at

at

$4.00

per

not

to

other employees,

subscribed for by stock¬

expiration of the last of the Warrants, the several Under¬

the prices and subject

to

the terms and conditions

set

forth in

Prospectus.

77
and

U.

S.

Commerce.

Department

of

Copies of the Prospectus

may

be obtained from the undersigned

only in such stales where the

TABLE

Unit for Units

III

these

Units

in

compliance

undersigned

with

the

may

securities

legally offer

laws

thereof.

Increased Assets at Selected Savings Institutions

(Dollar amounts in billions)
Commercial
Mutual

banks

_

_

_

_

.

G/3U/'54

li/W55

Change

$190.6

$198.6

$8.0

28.3

30.3

5.0

savings banks

Life insurance companies

81.0

87.0

6.0

Savings and loan associations

29.1

34.9

5.8

Pension funds_

_

___

_

_

n.a.

.

*

Total

change

__

__

^Estimated; n.a.—not available.




*

2.7*

The First Trust

Harold E. Wood &

$27.5

Company

Rauscher, Pierce & Co., Inc.

'

November 14, 1955

Cruttenden & Co.

Company of Lincoln, Nebraska
Beecroft, Cole & Co.
The United Trust

be

expect
con¬

rapidly

there

are

'
.

offer to buy

an

de-

to

or

more

'■*

business growth. It is difficult

from the facts of the 1955 credit

of

but
is

think,

of

—-

—

levels—very little more than

run

ab-

be

if

avoided,

4 5% over year-

up

only

sirable

mid-year, but has been ris-

—

-

farm

By

1955

year.

per

mallv large rise from 1054 to 1955

been

relatively stable

was

since July.

ago

an

per year

wholesale increase in credit expansion will

1ve

(excluding

supply is only

alarm.

consumer

getting

comes

t1) The substantial increase in the expansion required for longthe

at the rate of 24%

grow

%e s°me ta
^ead> refIectln8 cost increases),

few of

more s e n s 1

Not

continuing basis. Install¬
outstanding can hardly

^ that full recovery has been
m0ntlf thieved, output will expand

this year's lenders
Credit

a

indefinitely (the 1955 rate) with¬

Substantial as the credit expansi0n has been this year, there
]s little evidence that it has

a

on

perhaps

as

great

tain

the

that

be

the part of

f

ment debt

current debt situation might trigger us into a depression.

first

bit from the very

a

rls^ aC^°

this

of

imnart

on

be

that

true

course,

Ihere ™toTsomeIndent
to draw back

a

(2) The currently large volume

talk

consumers'

savings with alarm. In

little. There probably
been

significance
as

corresP°ndingly to view

*s

over-

found

be

can

debts

outstanding.

quarter

was

of personal debts

and

is,

there

ciirnHdntf

wmiiri

ending with June 30,
selected thrift institu-

is obvious. Last

were

credit

third

figure

other.

automobile

up.

it would be surprising

continuing

of

cases

borrowers

never

It

to respond. While there will con-

the

of

picture might change if a severe
depression were to occur. But

credit

the

course,

year

assets

written on
families
whose debis
It is true that the 1955 debt ex—
-----«««pansion is larger than we can sus¬
if Jiave &ot out oi contro1-

year

opened

was

for every dollar of takehome pay (disposable personal in-

degree cf

♦On

has

maintained.

sensitive

most

In the

year

18%

to

of

the bad-debts de-

with

up

conclusion

ting themselves into debt

that

an

ade¬

quality

are

result

individuals

incomes

resi-

outstand-

about

one

the

they

be

not

may

growth in debts relative to the

..

these

incontestable.

seems

*A

the

there

year-ago

,,

to

matters,

other debts beyond their
ability to
nav
reinforce this
this concern.
ronrwn
That.
pay
reinforce
That

running

above

,j

add

we

fact

dential

mg

has

one-third

the

for the economy.

means

market

new

voaf
next year,

apprehension

screening

loaded

Table

as

a

that

fact

full-length

easing of terms this

ex-

con-

not
nut

is
is

great in 1956 even

so

1955. The collections

proves very

tinue to be credit-sensitive buyers

these

partment. Occasional
0f

With the

terms

other

wouSS!^=

credits

with

The most dramatic increase
has,
of course, occurred in the volume
of auto financing
I

The

as

stimulus
stimulus

credit
creuu

these

others — mortgages, corporate
bonds, government securities, etc.

lot Qf bad loang haye been

&

loaded

well arise
build-up of

just

1955's easier terms

such

for

and

apt to be

Those

interpret

for

Lenders

quately

I

as

consun}ers'_goods) was building up to
bilhon, haying jumped $3.7 of business for

$19.3

ex-

■

snaip

goods.

about

reasons

of debts

been

August the

paper

can

too-rapid

a

The
1Iie

(4)'
w
y

if

discussions

in

debt outstand¬

McCracken

a

Four Reasons for Concern

the volume of

W.

the
must

profligacy,

markets

instalment
Paul

be
wp

producing

automobiles

as

There

montns.

The

fiscal

1955's

contraction

12

endanger the
economy? More

also

standing
was
$34 billion, a
of

debts

of

solvency of the
specifically,
will
1956
hangover year in which

quarter

1 9 5 5

of

with

tions. And the principal way

thrift institutions make these sav-

.

government borrowing,

v e

but inflation
out

associated

often

i

great thrift institu-

our

tinues to be good. The incidence tions increased about $28 billion,
of delinquencies is low and shows If we are going to have $28 billion
no tendency to rise. Indeed by of savings per year, it follows that
almost any measure the current we shall have a $28 billion insituation is at least as good as crease in debts per year. To view
1953, and in most cases better.
that kind of rise in debts with

personal debts?*Does
personal
debts? Does The^rrent
the current Private borrowing.

and

personal
debts.

is

c e s s

savings

these

of

of

volume

,%) There is very little, evidence
made in

capacity. Inflationary debt expansion

Most

into

gome

gen-

economy

jngs available is by acquiring assets whieh represent the debts of

consumer

perience of most institutions

by putting out too much
purchasing power,
causing demand to outrun our
productive

Certain ouestions have inevha-

sometimes forget

we

substantial

a

savings.

that

suggest

not

grates

hard goods.

that

convert a recession
disorderly collapse.
may

a

do

thing

js that the modern

Table II).

boom

flation

notable for spec-

su
sumer

prior

facts

purchases of

(3) Too rapid an expansion of
borrowing may produce price in-

bly emerged in regard to these der economic
developments velopments. Are we developing an
the great growth of con- unsound volume ana sumiuie ui

a

the

Qne

durables

consumer

the volume of installment credit
has been running wild relative to

depression is to

a

in

excesses

which

"not dangerous."
One

These

real sense the time to do

very

something about

regarding this: (1) inadequate screening of credits by lenders;
(2) both good and bad loans can "sour" quickly if income
and employment dry up;
(3) too rapid expansion of borrow;wing may produce price inflation, and (4) the credit stimulus
; is;toot apt to be so great in 1956 as in current year.
Holds,
however, in spite of these considerations, the credit picture is

tures

which

liquidation

of

establish the case
an inflationary

to

have had

we

debt and credit expansion,

not greatly different
from the 73 cents for 1953 or 1940.

importantly triggered the Great
Depression will forever stand as
a monument to that possibility. In

-

dollar

purchased,

to feed on
cumulate. The disorderly

depression

or

that

credit was being extended

new

per

cession

stockmarket

Professor of Business Conditions, University
'

of

the debt structure can cause a re-

itself or

By PAUL W. McCRACKEN*

;

13

(2089)

Estes & Company

Company of Abilene, Kansas

page

•

•

•

46

14

The Commercial and Financial Chronicle

(2090)

The

A Refutation of the

Implication of the Burgess

Burgess

The

implication of the Burgess
that, in the light of the
claims on our gold stock ("United
States gold reserves," in table re¬
fers to our monetary gold stock)
represented by required gold re¬
table

Table of Claims

Our Gold Stock

on

By WALTER E. SPAIIR
New York University

Professor of Economics,

Spahr, contending that the table presented by Deputy

Dr.

balances, the United States
safely institute redemp¬

Subcommittee

March 29,

on

entitled "U. S. Gold Reserve Re¬
.

sible, presents arguments in support of his criticisms. Furnishes
data to indicate that the potential

stock,

as

foreign claims

presented by Sec'y Burgess,

on

gold

our

1119994328402537586
3

a

correct
would

Redeemable Cur-

form,

been

presented in

for facts
that
Dr.

respect
required

have

rency.

Burgess state

When Dr. W.

site to the one he presented to
*he Senate Committee,

Randolph Burgess,
Deputy to the Secretary of

then
the

Treasury,

testified
Subcommittee

Senate
<on

1

n

before

a

k

o

29, 1 9 5 4,
opposition

table,

been

has

table.

But

reproduced

since

in

presented, it contains

tion

which

deserves

important

en¬

"United

that

be made clear.

table
tion

require¬

its

its

to

that,

revela¬

a

respect, it is

characteristics

In April, 1955,

appeared, with
as

it

recent

months with the implication
as

States gold re¬
serve

that

of

an

the

assump¬

validity^ in

a pam¬
phlet on "The Gold Standard" pub¬

ments and po¬

tential claims,

lished

1922

-

of

which

was

53,"

by the Board

the

National

of

table

not

E.

Sp»h>

safely

make its
in gold.1

deemable

currency

re¬

The table was

fensible and

~le
inents, '

I

in

thoroughly indemisleading. Had the

"Gold Reserve Ae.

Hearings Before

he

would

with

Reserve

System, and also foreign holding^
of

balances

bank

investments
which

are

in

United

States

potential claims

on

our

gold."
The

suggestions

referred

the

his

were

that

effect

which

to

he

still

"we

live

in

very
,uncertain world,"
and
that, because of international ten¬
sions, our government should not
act "prematurely" in opening our
gold stock to the various demands
that bould be made upon it if our

for

U.

were

S.

balances

government

banks,

cash

Treasury

hold¬

and foreign bank deposits
amounting to $7,300,000,000 — a
total of

$207,100,000,000 constitut¬
ing demand claims against our
gold stock of $22,044,000,000 of
that date—by far the larger pro¬
portion of which would be do¬
mestic claims.
But

Dr.

all holders of dollars.

gold stock.

our

Even

have dealt with

non-gold
ment

instruments,

facts

of

those

ratios,

deemable currency for this nation.

|(numberS Of columns

are

inserted

deposits
of

reserve

versus

including

eluded

claims

vestment

gold

as

He

well

holdings

as

would

those of

have

represented

(usually

ex-

by in¬

since

converted

currency

and

money

the

instruments

must first be

these

into

non-

bank

de¬

posits), and then he should have
shown

the'proportion of such

cur¬

that tends to be converted

into gold.
Had

r^ouirements and

non-gold

citizens

our

rency

"

all

Dr.

mestic

Burgess

set

claims,

currency

form of non-gold

money

do¬

up

in the
and de¬

there

among

claimants

must

acceptances

gold while

our

than

one

have

vestment

functioning

of

able

fact

to

system

a

He

reserves.

with the

ignores
of

did

not

that,

were

our

demand

gold

for

their non-gold dollar

claims, they

expected, in the light of
experience for a decade prior
January, 1933, to demand from

2.5

to

3%, as a common top per¬
centage, of our gold stock. Instead
of' dealing with the operation of

year,

could

not

mand

for

tential

as

which

of

one

between

mands

should

"potential claims" should be
as

respected

rec¬

claims that should
on

a

basis.

100%

be

That

cur¬

into

converted

Burgess wishes
the United States

other

and

column
(4)
of the Burgess
table, the only valid inference is

ognized

sold,

propor¬

Dr.

that the

requirements and

is

is

into

small

very

gold.

100%.

reserve

All wealth

year.

converted
a

information

on

a

instruments,

only

rency

demands

fall

every

such wealth, including

be

must

potential

eyes

could

so

than gold constitutes a po¬
demand for gold; but, of

If

his

ma¬

of wealth which could

be sold within
other

tion

in¬

some

with

exceeding one year
as a potential de¬

gold,

other item

quaint

lets

He should

be listed

reserve
system, he
carrying the impli¬
cation that gold reserves against

As

bankers*

some

instruments

the fractional

be

to

include

commercial

and

set up a table

should

chose

short-term

recognized that if

turities

also

he

which

and other items.

paper,

them to payment in irredeemable

Burgess table

ignored in
should not

other things not only de¬
mand
deposits
but
government
obligations maturing in not more

properly be ignored by confining
currency.

if

to

various

are

"foreign

balances"

the

in respect

considerations,
table, which he

his

with

and

experience

against our surplus gold
required reserves and
ignore the much larger item,
domestic
currency
claims.
The
implication here is that foreign
can

our

deposits

and

stock above

The

ratios cf

to
gold stock, excluding invest¬

our

foreigners.

re-

a

to

gold

the

money

with

people

our

"

though Dr. Burgess should

overlooked

people's claim

facts

by him to the Senate Com¬

deal

in

the

mittee in respect to foreign shortterm claims as potentials against

dollar

deal

Had Dr.

sented

ances"

satisfied

company's

that

practice, he would have had
picture comparable to that pre¬

foreign
of "foreign short-term dollar bal¬

be

insur¬

an

ignoring

and

reserves,
of
a

have

fractional
Done.

against

other

chose to pre¬
claims in the form

Burgess

sent

the

What Dr. Burgess Should Have

compiled

re¬

Had

ignoring the princi¬
ple underlying the operation of,
and
justification for, fractional

ings,

redeemable

made

were

and

observations to. to

a

currency

confronted

been

$199,800,000,000 of
currency
outside

banks, in addition to which there

short-term

or

the

have

item,

an

them

of top Treasury officials to

lar

interested
as

relationship

short-term dol¬
and consequent de¬

on

foreign

in

bal¬

those

related

net exports

he

stock,

gold

our

have
to

net' increases

for

people with

to the

foreign

balances

ances

to ac¬
Senate

of gold plus
earmarked

gold

account.

should

He

CJ)
United States

United States

required gold

gold

reserves

reserves

1,009

2,695

997

2,649

4,090

1,599

1,237

2,836

3,985

1,558

1,193

2,751

4,083

1,564
1,624

1,639

3,203

2,591

4,215

...

are

based

1,304

3,085

746

2,713

392

2,558

2,729

670

3,399

10,124

3,610

4,911

11,422

4,101

1.301
1,623

12,790

4,170

14,591

5,099

17,800

6,354

1,893
2,158
3.221

5,724
6,063
7,257
9,575

22,042

7,897

3,938

11,835

22,761

8,310

3,679

22,739

11,939

9,997

21,981
20,631

14,202

11,902

4,205
5,375
5,820

20,083

10,868
10,731
11,294

14,350

17,277
20,170

7,074

17,942

6,481
7,135

17,212

24,399

11.894

7,756

24,563

18,429
19,6fc0

10,753
11,005

7,623

18,376

11,720
12,055

9.302

23,252
22,090

1 Data

x

1,967

22,873

estimates

4,284
3,897

2,166

22,820

1954, Jan. 31

4,104

2,673
2,335

4,045

22,868

...

2,483

4,012

20,706

1953_

1,621

1,611
1,562
1,781

,

22,044
based

on

3

9.222

11,771

11,799

11,947

somewhat

differing

20,227
21,022
22,786

10,731

.

12,151

series,

as

23,922
23,746

follows:

1922-28.

1929

figure, adjusted for previous years by changes in
foreign banking claims on the United States as published
by the Department
Commerce; 1929-23, as reported to the Federal Reserve Bank of New
York
hy banks in New York City; 1934-43, as reported to the
Treasury Depart¬
on

of

by
of

zations.

maturing

banks

in

the

United

States.

foreign official and private
For the period
1944-53,

Data

holdings

within

20 months

weight of the gold

after

represent

institutions

date

of

cf

and

U.

purchase

S.

short-term

of

dollar

international

Government

are

bal¬

organi¬

securities

included.

million, the increment resulting from

the reduction in

dollar, January 1934.

Economy; Board of Governors of the Federal

anrPLdeil lKse^ve BullSn M°netary Statistics5 monthly Treasury Bulletin
"United States gold reserves and
required gold reserves: 1922-41
ing and Monetary Statistics, 1942-53 Federal Reserve
Bulletin."




(8)

Gold Withdrawals, 1922-January, 1954

Bank¬

((>)

*fNct Imports
or

Exports (—)
of

Gold
Year—•

(9)

Net

Net Exports Plus

Iiele-s?

Net increases

Gold Held Under

Claims

from Gold

in Gold Held

Foreign Short-

Total

Earmark by Fed. Res.

on

Held Under

Under Earmark

term Dollar

Gold

Foreigners

Earmark

(Cols.[5 and S)

Balances

Stock

((«)■' «mjttcd)

(OOP omitted)

(O.)O omitted)

Fgn. Acct.

(000 omitted)

$238,295

$2,300c

N.A.

1923

294,073

2,256d

N.A.

700

1924

258,073

16,567

N.A.

—42,200

1925

—134,367

27,517

N.A.

1926

97,796

40,567

N.A.

—26,300

1927

6,080

100,058

N.A.

1928

—391,862

1929
1930

175,066
280,087

1931

qo

or>rj

Percentages of

,

(Col.3,Table I) (Col.l ,Tabl

—160,200

154,120

5.9

3.9

272,362

11.0

7.3

—320,800
457,500

175,475

13.4

4.3.

—58,000
82,600

231,455

59.0

5.8

119,500

—55,400

145,325

$l,103,300f

1932

—446,214

275,475

937,900g

1933

—173,455
1,133,912

197,725

898,800"

N.A.

—2,400

•

_

2.6

N.A.

1,739,000
1,116,600

as

8.6

N.A.

1934

z

$102,167

99,958

j

(10)

Gold Withdrawals (9)

—$3,700

112,250
122,733
208,783

1935

(ID

<«>

Our

Short-term

Banks for

(0(F) omitted)

(7)

fYearly Avgs. of
Monthly Data on

1922

13,658

1,137,800i

9,775

—200,400

—

—

-

—

200

—

1937

1,585,500

167,758

778,600
672,eo: J
655,00C k

1938

1,973,600
3,574,200
4,744,500
982,400

420,158

594,00C i

—300,500

9?4,233

508,700^

—D3*,4U0

——

1,518,936

384,000°

—644,700

——

1,979,700

315,700

2,506,775

367,800
246,703

3,114,658

257,700

1944

68,900
—845,400

—458,400
—458,400
—803,bOO

329,703

—459,800

1945

—108,300

3,725,392
4,177,936
4,166,583
3,744,517

392.800

—356,700

463,000

708,300
948,900

465,400
210,000

3,813,850
3,918,133
4,875,775
5,813,200

1,018,700

—159,200

968,400

617,600

1,048,700

—304,800

2,200

4,928,067
6,118,492

904,500

—1,170,803

1,168,600

9.9

5.3

—5,500

6,527,100

923,800

—43,300

48,800

0.4

0.2

1936

1939
1940
1941
1942—

1943

___

1946

311,500

1947

1,866,300

1948___

1,680,400

1949

_i

686,500
—371,300
—549,000

1950
1951

1952

684,300

__

1953

1954, Jan. 31
*

51,000

Data

for

the

Federal

per

fine

827,900

—495,700

898,000

■*—1,352,400

1922-1934 from Annual Report of
Board (1934), p. 122.
At $20.67
through January, 1934, and at $35 there¬

years

Reserve

ounce

after.

—

—

—

—

mm

_

from

N.A. Not

years

Average for three months, October-December.
i

_

....

—

—

—

—

—

—

—

3.4

0.6

734,700

13.7

3.3

1,305,200

22.4

6.3

6.5

2.3

142,700

_

mm

mm

_

rnm

mm

mm

__

•

_

_

1,723,700

mm.

mm

18.7

_

_

7.6
—

mm

d

Average for January-March and July-December,

f

December 30, reported by New York banks only,

December 28, reported by New York banks only,
December 27, reported by New York banks only,
December
5, reported by all banks of United States.
Subsequent items by all banks,

i

Banking and

available.

mm

g

h

1922-1938,

average of end of month
Monetary Statistics (Board
of Governors of the Federal Reserve
System, Washing¬
ton, D.C., November, 1943), pp. 533-537; for the years
1938-1954, Federal Reserve Bulletins.
r

figures,

c

——

—85,900

'

t Data for

nC"r^ec! f-isnshort-term
doIiar balances: Department of Commerce,
in
the World

The United States

on

(a) and (b)

1,652

8,2592

Data

Total

(b)

3,834

4,225 '
4,052

II

(4)

Foreign short-term
dollar balances 1

1,686

3,746
3,900

__

(«)

TABLE

(«)

3,506

3,977

3946

the

Federal

legal

ex¬

experience.

cash reserves,

it

[In millions of dollars]

194U-

TL0

required

For

fact

company's liabilities and off¬

investment

(i)

1927

«».

the

of

of

first.

ample, on Jan. 31, 1954, a month
used by Dr. Burgess in his table,

Burgess

course,

potential claims, 1922-53"

1922__

ances

gold
stock
States,
and
the

by years
the
United

acted

people

if

gold

our

Dr.
ance

set

to

"TABLE I"

End of Year

ment

shows

of

any

not

actual

stock

in the

t

"United States gold

have

get

that

short-

could

to

Treasury
that it contributed something of
value in support of the opposition

someone

reference).

*

I

the record

revealed

"foreign

balances"

to

Potentials should have been
lated

belief of

this author ^Or convenience of

23.

p.

possibly
our

of

dollar

relation

no

clear.

our

,1n'«hy? Mil:,:
*954,

sup¬

have

would

holders

term

has

following data should make

could be

Amend-1 ^ ^ *S rePTOdu<*d belOW

Subcommittee

a

which
the

claims,

the

have shown the ratios of

the
Walter

currency

foreign

inference
as

Secretary of the Treasury for
1954," p. 292, presumably in the

onstrate why
the
United

Dr.

from

Thursday, November 17,1955

..

Burgess dealt correctly
with the issue involved, he would

porated in "The Annual Report of

could

place in

which

reserves

will

suggestions

will

I

the

incor¬

was

signed to dem¬

States

these

think

I

of Directors

Association

Manufacturers; and it

de¬

which

some

pursued

were

separate domestic

at

11

tions

able currency,
he introduced

titled

:

,

alysis of the nature and implica¬

to

redeem¬

a

i

in

the institution
of

oppo-

Circumstances did not permit
preparation at that time of an an-

a

March

on

conclusion

a

procedure

like to enter into the record

made.

pertinent data

Why the United States

Cannot Have

his

deposits

a

onstrate

if

and if he could

he permitted its implications to
speak for themselves. He simply
said (Hearings, p. 22): "I would

port

with the facts.

Burgess Table Designed to Dem-

or

statistics

not in accordance

are

Burgess did not defend the
explain its implications;

table

quirements and Potential Claims" is misleading and indefen-

I

short-term

tion.

Secretary of Treasury W. Randolph Burgess to the Senate

a

foreign

could not

Dr.

1

and

dollar

Monetary Policy

on

is

serves

Executive Vice-President, Economists' National Committee

i

posits in banks, against our gold
stock, he should have had a taole,

Table.

.

j

December 30.

k

December 29.

1

January 4, 1939.

m

January 3, 1940.
January 1,1941.

n

Volume

then

182

have

Number 5482

as

foreign

balances

and

gold

our

volved.

.

The Commercial and Financial Chronicle

shown

withdrawals

yearly

.

.

as

stock

short-term

yearly
gold
percentages
of
short-term dollar
percentages

for

the

Table II, prepared

the

of

by this

author, provides these data.Then

the

he

should

amount

mark for

been

gold

the

fact

emphasized,

tials"

the

when

supply

the

extent

eign

at

owners

be

and

the

earmark

amount
for

of

Out
the

the highest level

to

that

He

time

should

question

gold

(his

Jan.

have

of

on

the

net

our

able.

the

mark

Jan.

on

gold

of

31,

considered

in

"potential"

offset

tial"

if

on

under

$11,947,000,000 in
short-term
dollar
bal¬

7.6%.

the

for

Senate

information
other

and

column

a

claims

cf

claims

in

reported

as

Bulletins"

Reserve

the "Bulletin" to

able

on

demand

tractural
than

drafts
that

of

not

con-

more

for

foreigners;
foreigners

being collected by bank¬
on behalf of their

ing institutions
in

customer^
and

foreign

held

abroad

tions

and

the

United

currency

by

their

States;

balances

banking
customers

institu¬
in

the

United States."

Although

of

Dr.

Burgess

Reserve

United
re¬

total

total

on

ratio

a

a

of

problem

in

maintaining

a

dollar

balances

to

had

an

resources

to

acquaint the Senate with the be¬
havior of earmarked gold and our

In

the

when

for

the

1928

was

facts

gold

not

of

what

to

was

11.8%.

in

form closely
potentials were

any

Burgess

should

have

given the United States Senate.

re¬

Observations

Some

in

Gold. Earmarked

Foreign

9.6%. In 1944, when
gold stock was with¬

in

manner

Governors

serve

arise

which

of

the

the

Board

Federal

Re¬

report
gold.
No

data

—

systematic

vided

the

in

Bulletins"

on

earmarked

tables

are

"Federal

pro¬

Reserve

earmarked

put in

section

a

Statis¬

Financial

"International

of

7.2%, the ratios of our gold stock
non-gold money and deposits
were
all higher—9.6 (1933), 13.7

section.

(1944), and 12.6 (1950). If 3% of
gold stock were allowed for
domestic withdrav/als, those ra¬

marked

gold,

quential

data

total

Implications of Burgess Table

9.3

(i)

(2)

(3)

u. s.

Surplus Gold

the

(1933),

Although this table gives

yearly

monthly and
increases

data

sequence, one

(Col.

6)

Foreign

Percentages of

Short-term

Foreign Claims

Surplus Gold

Reserves

Reserves

Dollar Balances

As

(fi)

Percentages

Actually

Surplus Gold

Withdrawn

(000,000)

(000,000)

55

0

3,834
4,090
3,985

$1,820
2,182
2,491
2,427
2,519
2,353
2,125
2,399
2,663
2,271

$1,009

1923

$1,686
1,652
1,599
1,558

997

46

0

4,083

1,564

3,977

1,624

3,746

1936

10,124
11,422

1,621
1,611
1,562
1,781
1,967
2,166
2,729
3,610
4,101

1937

12,790

4,170

14,591
17,800

1929

3,900

1930—

4,225

1931

__

_

4,052

1932

4,045

1933

4,012

1934:

8,259

1,237

of

.

50

0

49

42

1,193
1,639

65

0

2,591

110

6.5

2,483

117

12.8

2,673
2,335
1,304

111

0

2.078

'

88

0

57

7.7

746

36

0

12.5

1,846

392

21

670

12

0

1,301

20

% 0

1,623

22

0

1,893
2,158

22

0

5,099

5,530
6,514
7,321
8,620
9,492

23

0

6,354

11,446

3,221

28

0

22,042
22,761

7,897
8,310

3,938

28

0

1944

22,739
21,981
20,631

14,145
14,451
12,742

11,902
14,350

1945

20,083

10,868

1935

1938
1939
1940—

_

1941

1942

_

1943

9,997

1946

20,706

10,731

1947

22,868

11.294

1948

24,399

1949

24,563

11,894
10,753

1950

22,820

11,005

1951

1952

22,873
23,252

11,720
12,055

1953

22,090

12,151

1954, Jan. 31

22,044

11,799




3,679

25

4,205

33

1.1

10,979

5,375

49

6.7

6,281

5,820

93

20.8

9,215
9,975
11,574
12,505
13,810

7,074

77

5.0

11,825
11,153
11,197
9,939
•

10,245

table

his

on

of

ume

and

rested

tion.

Still

people

Warren

fessor

was

in 1933.

that

$6,-

was

unfortunate.

that

the

information

im-

this

on

and

History

and

was

the

But

has

been

"Annual

the

fact

repro-

Report

and

Mis-

because

appropriate — fortu¬
it provides another

monetary
otherwise
Important episodes in our mon- miss it, and appropriate because
etary history have rested upon it reveals the procedure of a top
remarkable
misconceptions.
For Treasury official in advising a
example, during the period Oct. Senate Committee as to why the
25, 1933—Jan. 16, 1934, monetary people of the United States should
history was being, made, in ac- not have a redeemable currency,
of easy access to

source

conceptions.

who

scientists

might

co'rdance with the Warren theory

in

the

as

gold

of

out

was

would rise

close proportion.

some

ried

price

the price level

As

car¬

"Sell 'em and you'll be sorry-

the late Professor
Cornell University),
the application of his thoroughly
fallacious theory was in such a
form that the implication was that
the responsiveness of prices to a
change in the price of gold was
Warren

by

sensitive

so

Buy 'em and .you'll regret—
Hold 'em and you'll worry-

(of

that

he

should

he

jar
as

an

Form Ins. In v. Assoc.
CHICAGO, 111.—Insured Invest¬
ment
Associates,
Inc. has been

on

formed

on

who

This advertisement

is

neither

were

an

offer

The

to

Vice-President and
E. Bird, formerly with McMaster Hutchinson
& Co., is also associated with the

dis-

sell

nor a

Fish, President and Treasurer*

George

Secretary.

Nov. 29, 1933, to $34.01

economists

176 West

Officers are Merton

and C. F. Fish

jumped the price
fine gold from

Dec. 1, one among some mone-

tary

offices at

with

Adams Street.
r.

of

by

at

by a single cent lest
the' economy beyond his
revealed in his prices for

ounce

fret."

Rudolph
E.
Jacobsen, Robert C. Bolton
& Co., San Francisco.
in

Sent

perhaps

or

nothing and you'll

Do

firm.

solicitation 0}

an

offer to buy

any

off these securities

offering is made only by the Prospectus.

Marquette Cement Manufacturing Company
262,500 Common Shares*
$-1 Par Value
♦Of which 12,500
arc

shares

outstanding

Price $34.75 per

Share

'•

Copies 0] the Prospectus may be obtained in any state from such of the several i nderxriters
including the undersigned, Iflj may lawfully offer the securities in such stale.

0

A. G. Becker & Co.
Incorporated

6,481

65

7,135

62

7,756

62

7,623

55

0

TheFirstBostonCorporation
Glore, Forgan & Co.

Blyth&Co.,Inc.

.

Equitable Securities Corporation

Kidder, Peabody & Co.

Hemphill, Noyes & Co.

'

"

*

9,222
9,302

78

83

0

0
0
"•

14.6
0

10,731

96

0

11,771

118

11.8

11,947

117

.5

of

Secretary of the Treasury for
1954" would seem to be both fortunate

Monetary

table

the

mittee.
Our

table

duced "in

pertinent fact was
given by him to the Senate Com-

portant

Con-

uncritically by the author, or authors,
of the NAM
pamphlet on "The Gold Standard"

539,009,000 (as of March 31, 1954);
no

to inflict

and

accepted

1954, the volgold reported under earwas

able

the
Pro-

,

that

fact

The

to

which

Administration

0n'the

in-

welfare

nation,

fallacies

to

seem

as an

to the

this

of

statistical

remarkable

foreign account

comparable,

inimical

strument
0f

would

table

That

be roughly

March 29,

mark for

Burgess

that institution of redemp-

gress

testimony

table

Com-

Senate

unwise, then its deducupon an invalid and
misleading
statistical
presenta-

table

a

owners.

the

If

as

was

tion

country.

$33.93
(5)

Potential

Required Gold

_

to its

as

currency

a

was

argument

mittee deduced from the

very

certain number of cents per ounce

(4)

Gold

_

the

various times raise the price by a

is forced

(000,00.'))

_

this

gold.

a

$3,506

1928__

our

his

redeemable.

further, he cannot determine what
proportion of the gold under earmark for foreign
account arose
from withdrawals from our gold
stock or from exports of gold to

tain such

(000,000)

1927—_

in the dark

plans

Versus Facts

Required

to

goes

the

on

Year

1925

one

of

/ tion

ear¬

on

in

decreases

or

1922

1926

if

*

formal
to why
should not be made

table

Burgess

part

earmarked gold, he is still left

on

there are no se¬
the amount of
gold held under earmark. To ob¬

Stock

Above

the

of

or

*

'

When Warren

u. s.

account,

great trouble of building

of

5)

a

be

>

of the Bridges bill which
designed to give this nation
sound-and honest money,,and

was

the

own

involved?;

III

(Col.

not

an

In.I any

passage

gold, or of
the amount owned by each nation

raised

is

"Bulletin,"
1933, 1944, and 1950, following' prior to that date in the "Finan¬
1928, when we maintained a re¬ cial, Industrial and Commercial
deemable currency on a ratio of Statistics
of the
United
States"

been

which nations

month

tics"

have

marked for foreign

that

withdrawn during the three years

would

will

engulfed in

currency.

not

foreign
nations,
Congress and other

people

States

event, the Senate Committee did
recommend 4 to
the
Senate

data

to

of

United

irredeemable

so

Re-

Are these

the

determin-

in

factor

a

our

monetary history at that
time—in keeping
the people of

of the volume of gold ear-

aware

gold.
The amount earmarked during a
on

footnote to a
table with a caption "Analysis of
Changes in Gold Stock of United
States"—since June, 1949, in the

TABLE

1924

to

as

System report—or rather do

not

13.7%.
In
1950,
highest percentage of

withdrawn,

questions

the ratio
of
our
gold stock to non-gold
money
and deposits was 12.6%.'
In brief, when the heaviest per¬
centages of our gold stock were

tios

the 'Federal

been

ing

nate

Serious

gold stock, as compared with
foreign
short-term
dollar: bal¬
was

have

Account.

was

our

ances,

given

members

but

Respect to

for

Congress and
should

When Dr. Burgess was offering

rather

experience

those

Dr.

the

118%,

was

potentials which did

on

emerge

related

was

1953, when his poten¬

percentage

The

was

the

listed,

Yet

potential

than data

posits

deposits

100.

over

gold

the

our

periods

actual withdrawal

of

was

33

k

Senate Com-

a

mittee, and others, were given the
Btirgess table; and it may well

in order that, as funds
people of the United States

Even

12.1%.

stock

of

12

the

20.8.

tial

the

was

of

surplus
withdrawn.
periods of withdrawal

by

supplied;

answer

dear

In March, 1954,
to

data

people

authorities.

serve

interested

the

of

The

fellow, that one
cent is for statistical accuracy!"

ear-

these data is blocked

the

117%, the actual withdrawal

gold

to

access

are

Burgess

gold

interested

of the

percentages of
stock actually

important

other

obscured

well

As

of

(5)

As
one
glances down column
(5) of Table III, he may note that
the Burgess table yields percent¬
ages in 1927-1929 and 1953-1954

pe¬

highest
(7.3) occurred in 1928

with

to

to

nation

our

under

"My

was:

have ready access.
The question to which Congress
should obtain the answer is why

effectively
in column

that .per ounce?"

to

sequential

a

\

members

foreign claims stated
percentages of < surplus gold
for the 33 periods in the
Burgess table. Column (6) gives

to

gold

33

Foreign Claims,

by Burgess, Compare

percentages of surplus gold actu¬
ally withdrawn range from 0.5

con¬

59%.

to
our

next

to go

gold

which

stock

cut

of

percentages

The

the

are

in

For the

the

to

obligation to draw upon Treasury
and Federal

be

our

out

against

the

when

against

made

drawn

are

by

pay¬

a

ear¬

percentages

to

12

of

These

the potential

gold

withdrawals,

course

0.4%

stock

6.3%

loans made to and

year:

acceptances

with

or

maturity

one

items

under

During

zero

of

and

drawn, the ratio between our gold
stock
and
non-gold money and

"represent prin¬

cipally the following

gold

gold

withdrawn, the ratio of our gold
to non-gold money and de¬

These

said

from

short-term

"Federal

are

of

aggre¬

In 1933, when 59% of the rela¬
tively small amount of foreign

foreigners reported by

on

the

Facts.

Table III reveals

in

deemable currency in that year.

short-term

banks in the United States.

Presented

containing
our
gold

percentages

standard

no

interested

on

that

How the Potential

ncn-gold money
and deposits of 7.2%.
There was

claims, of a
corresponding nature, against for¬
eigners held by us. Table II con¬
tains

the

when

short-term

people

required to

could safely institute
demption and should do so.

month—there

negative

percentage

column

"potential" offset
foreign short-term dollar bal¬
ances,
Dr. Burgess should have
the

been

conclusion

'with

withdrawals ranged from 0.2%

to

compiled

have

the evidence supported

States

for

additions

measured

stock,

a

into

ranged

be

further

a

would

the

gold
withdrawals as measured against
foreign short-term dollar balances

foreign account.
As

mark.

times.

could

zeros

riods,

held under earmark for

gold

12

During these

ear¬

could

Table II contains

ances.

picture

as

one

of

suppose, are likely
trouble
to
obtain

state that

exports

only

degree as a
the "poten¬

to

Committee,

and, had he respected those data

stock.

irredeem¬

1954,

some

net

showing

demand of

foreign

of

increases

verted

Senate Committee that the

$6,818,600,000

and

the

1954).

He should have pointed out

the

to

Senate

he

periods listed

table

31,

with

is

should

go
through each "Bulletin,";- cussing the Warren) program
obtaining one item in each. Few asked facetiously — "What is the
people, it seems reasonable to one cent for? Why not just $341

_

demand

periods showing

relationship,

currency

the data which
have
pre¬

among

the

15

to

offsets

increase in the

net

mark

was

the 33

years
a

gate

under

of

Burgess

was

any, between the high volume cf
gold under earmark and the fact

that

1928.

poten¬

Revealed in Table 11,
Unjustifiable Character

record up

dealt

of

real

become

potential

a

—32

concerned

foreign account

at

are

to

(1950)—all

12.2
7.2

these

as

of the Burgess Table.

added

our gold stock.
It should have
been helpful to the United States
Senate if Dr. Burgess cculd have

why

which

to

and
the

Burgess

sented

as

the

on

to

informed the members

above

Dr.

consequently, confines him¬
to the supposedly factual data

Evidence,

under

by for¬
time they

any

(1944),

These

gold in
short-term

foreign

to

13.3
well

"poten¬

gold

disposed

so

listed

listed in Tables II and III.

earmark could be released

might

his

our

the information

offsets

self

have

consideration,

of

possess

and,

ear¬

should

under

were

that

under

to

on

balances, this author does

not

tial

revealed

foreign account for each

and

year

of

have

of

foreigners

on

offsets

claims

form,

dollar

in¬

years

claims

potential

ae

potential

(2091)

Ladenburg.Thalmann & Co.
Merrill Lynch, Pierce, Fcnner &. Beane
Union Securities Corporation
November 15, 1955

Lehman Brothers
Stone & Webster Securities Corp°rahon

White, Weld & Co.

Dean \\ itter & Co.

16

(2092)

The Commercial and Financial Chronicle

which

THE MARKET... AND YOU
By WALLACE

were

but

ures

When the

broke

stock

sharply in late Sep¬
and early
October, a

tember

gap was left in the chart of
the industrial
average run¬

continued to

issue

was

available

feeling

gen¬

ciation

in

a

time, period.
possibly months, to accom¬
Rails Divergent
plish it. That gap was filled
week,

scant

a

Excitement

Over

As the
to

its

Splits

market worked

up

for

action

attempts

re¬

a

A New Favorite

Campbell Soup, largely be¬
it

cause

has done little

since

it

mar¬

became

a

to

hail.

authorization

previous peak, it also Plate's

was

listed

on,

the Stock

Nickel
of

the

the rather wild markets of
cent

re¬

note, the issue held com¬

paratively steady within a
regular payment for the final
range of half a dozen points.
tive with
stock-split candi¬ one of the year was something
Moreover, it stands out more
dates prominent on
strength, of a disappointment, appar¬
prominently as a growth situ¬
including such as Bethlehem ently, and dropped the stock
ation among the food issues
Steel, Kennecott and Mont- a bit sharply, just as it had
because of its heavy commit¬
g o m e r y Ward. Sears, for forged to a new high for the
ments for research and ex¬
which approval of the stock
year on expectations of more
split previously announced liberal action. Rock Island perimentation, in addition to
an
occasional acquisition of
was
a
routine
action
this also maintained the regular
other promising firms.
The
week, went along on some fat payment, but without the sur¬
company denies some of the
gains anyway. DuPont put on prise element, the stock took
large merger rumors that
a few
performances that were it rather calmly.
turned somewhat

somewhat

erratic

motivated

and

largely
single

a

bounce

stock

was

able

session

to

from

a
multi-point
gain of similar proportions before the gong

loss to

a

ended

trading.
*

*

*

also

over

split possibilities. It
within

selec¬

more

*

settled

have

*

on

the firm

re¬

cently, but indicates that its
Rail action was largely in
objective of annual sales of
carriers not included in the
half a billion will probably be
average group, so the index s
realized earlier than the an¬
sluggish manner was some¬ nounced
objective of 1960.
what misleading. MissouriKansas-Texas was in good de¬
Surprising Technical Action
mand at times after the issue

*

From

stand¬

technical

a

had backed off 20

points from
point, the market's ability to
shade over par close the overhead
gap was

American Hawaiian Steam¬ its

peak a
ship has been something of a reached earlier this year.
market puzzle, the rumor With dividend arrearages impressive.
with which

mills filled with
vague
of

possi¬ running around $50 and the
reorganizing the new faces among the manage¬
company. The stock gained no ment dedicated to clearing up

bilities

erated

it

some

speed

the

But

done gen¬

was

caution

among

the technicians who feel that

strong enough base hasn't
early next year,
yet
been built up for a sizable
running into brokers were quite willing to extension of the
rally. That
trouble this week that in¬
put an eventual value of $150 the
good
gains
of
the indus¬
cluded
slipping as much as 12 on the issue. It at least helped
trial average were largely the
points at a clip before it the stock put on some nearresponsibility of a handful of
steadied.
spectacular performances the
highest grade blue chips
❖
3|C
S*C
when the demand bunched

less

than

223A

points

last

a

this situation

week before

somewhat

was

Chrysler
nent

was rather

occasional

on

mand,

a

better

dividend

lot

of

it

promi¬ up. The belief at present is
Many issues have not partici¬
that the recap when it comes
pated in the rebound and
will

based

be

on

even

offered

though the latest declaration
regular - plus - yearend did
little

to

perk

issue.

Chrysler last sold

in

When
the

90

bracket

early in 1953, the
regular rate was double the
present

one.

*

Northern

basic other

the

up

the

on

something of a bundle
quite
on an
exchange basis. been
I

of

yield

that

a few issues that have
doing well have reached
territory on the charts labeled

*

Pacific
was

was

able

to

an¬

clearly that hopes are still
high for action early next
year.

do
*

giving the rail¬
any sort of lift.

road average
The stock had retreated closer
the

to

1955

low

than to

the

dications of

a

rebirth of popu¬

lar interest. Northern

*

General Motors'
newlysplit stock was the high-activ¬

ings in

areas

where prospect¬

Utilities,
in

sive

defen¬

primarily

nature,

backed rather

have

been

cause

of their defensive char¬

acter

and

are

some

also because there

available at around

least
so

has
a

new
now

issues

reached

at

tie with the turnover

far this
year in

vania

com¬

return

on

the blue

ing hopes center, is something

Railroad,

a




There

have
was

plenty of indica¬

tion around of

nervous

willing to sell on the
Pennsyl¬ slightest hint of unfavorable

perennial

this

hold¬

ers

chips that

been

| The
article
time

Boeing's earnings,

as

around

hovering

Orleans

New

over

with gas, and there is gas and transportation service in the
City of
New Orleans area.
About 83% of system revenues are derived
from

11% from gas, and 6%

power sales,

revenues

are

35%

residential

and

from transit.

25%

rural,

Electric

commercial,

28%

Population of the territory served is about 3.9 million.

The

industrial and 9% wholesale to other utilities.
is basically agricultural, but has extensive mineral resources.

area

Principal industries include building materials, ice, cold storage
and packing plants, cotton gins and mills, pulp and paper plants,
oil and gas production and oil refining,
petro-chemicals, alumi¬
num, etc.
There has been a large expansion program in the postwar
period. In 1953 and 1954 subsidiaries completed 766.000 kw. of new
generating capability, or more than iy2 times the capacity of the
entire system at the end of World War II. This
year they brought
into service another 135,000 kw. unit,

2,165,000 kw., which
kw.

compares

raising system capability to
with the 1955 peak load of 1,711,000

Future plans call for installation of

and

a 102,000 kw. unit in 1957
Anticipated load growth indicates
large unit every year for some time.

200,000 kw. unit in 1958.

a

the need for at least

one

Middle South became famous

the

"Dixon-Yates" affair,

dying down.

politically almost overnight with
over which is now rapidly

the clamor

The project

virtually

ended when officials of
Memphis told President Eisenhower last July that that city would
build its own plant and produce its own power. TVA in turn ad¬
was

vised the President that its need for additional
power in that area

longer existed.

no

Hence, the AEC

was

directed to terminate its

power contract

with Mississippi Valley Generating Co., in which
Middle South had a 79% equity interest and Southern Co.
21%.
Construction of the new plant (in its
early stages) was halted.
Thus far, however, the City of Memphis has
apparently made little

toward planning and building its own plant.
serious difficulty, from a practical
standpoint, has
case of Arkansas Power &
Light. The latter initiated
rate increase in May, 1954 and began
collecting the additional

progress
•

A

more

been the rate
a

revenues

under bond in July, 1954.

The application was denied by
in November, 1954, and an appeal to the
rejected in September, 1955. The company then
appealed to the Arkansas Supreme Court but no action is antici¬
pated until next year.
the

State

Commission

Circuit Court

Under

a

was

1944 Commission

been allowed to

6%

earn

on

Order, the company (in theory) has

invested capital.

In its 1954 decision

the Commission adjusted the rate base to exclude
$30 million plant
under construction, so that
earnings on the lower rate bases were

,stated to be adequate. Now this plant has come into operation and
has automatically become part of the rate base.
The company,
recently, therefore, filed a new application with the Commission.
The following statistics regarding its rate
applications have been
issued, based on earnings for the 12 months ended Sept. 30, 1955:

Net

as

Net

as

Old

Kates Under

Proposed

Rates

Bond

Rates

percent of Rate Base- -1944 Order 4.56%
percent of Rate Base- -1954 Order 4.67

These

figures would

to

seem

5.48%

5.71%

5.61

5.85

,

justify Arkansas Power & Light's

application.

new

The first full year of Middle South's operations with its stock
in the hands of the public was
1950, when earnings of

$1.82 were
Consolidated earnings
have gradually increased to the current figure of $2.15 for the
12 months ended Sept. 30, and the dividend rate has been
stepped
up to $1.50. For the calendar year 1955 the management estimates
reported and dividends of $1.10

paid.

were

earnings at

the same figure, but this will include about 25c of
expected net income arising out of the Arkansas rate increase now
being collected under bond. On the other hand, the forecast in¬
increase in depreciation

an

struction.

of about 21c

share and

per

a

share in the credit for interest during con¬
This latter item will be down to a modest level of 6c
per

share compared with 18c in 1954 and 29c in 1953.
Arkansas rate case,

popularity

views
do

not

coincide

in

necessarily at
with

They

this
any

those
are

of the
presented

those of the author only.]

.

•

it should logically regain some of its former
President Dixon estimates that the

growth stock.

electric load will grow at the rate of 8%%
the next few years.
The stock has

compounded annually

recently

been

around 31 compared with the 1955 range of 35%-29%.

issue

new

now

ample and there will apparently be no

common

stock

for

some

time.

The stock

at

selling
Generating
necessity to
the current

price level yields 4.8% and sells at about 14.4 times the $2.15 re¬
ported earnings—or about 16.3 times earnings excluding revenues
escrowed in Arkansas.

Krensky Announces

Joins Leo Schoenbrun

Three Appointments
CHICAGO, 111.—Antone Bertoncini

has

joined Arthur M.

Kren¬

sky & Co., Inc., 141 West Jackson

Boulevard,
and

changes,

expressed

as a

over

York

yield level.

"Chronicle"
news.

Orleans Public Service, and Mississippi
owned except for a 5% minority

fully

all

—

Public Service.
The System furnishes
1,700 communities, including Little Rock,
Pine Bluff, New Orleans, Jackson and Vicksburg, as well as to
large rural areas. Some 50 communities in Louisiana are served

capacity is

5% which is well above the

:*s

old and the

Light

in

Once Middle South Utilities is clear of "Dixon-Yates" and the

widely both be¬

have been carrying the ball.
other than a
pure railroad
ity item beyond any question.
Niagara Mohawk, Duquesne
The trading in it one
day ran speculation which, in the
Light, which is involved in
better than five times that of
past, has enabled it to run
the
runner-up and nearly counter to the trend for the converting atomic energy into
four times the No. 2 issue
power, and New England
the carriers
generally.
Electric are among those that
next day. The volume in
the
*
❖

bined

&

interest

cludes

*

❖

is

decline of about 12c per

Pacific,

with its extensive land hold¬
*

"vulnerable."

better without

It indicates rath¬ high recently, but showed in¬

er

*

sobering.

good de¬

hopes

Power & Light, New

Power

lag¬ publicly -owned enterprise
and

revenues,

largest electric-gas utility system in the south. There
four operating subsidiaries—Arkansas Power & Light, Louisi¬

electric service to

success.

Utilities, Inc.

Utilities, with $151 million annual

the second

was

to

bound later weren't much of

as

investors

Middle South
Middle South

ana

and

ket-wise

somewhat

toere

By OWEN ELY

are

the industrials scaled
Exchange, was slowly build¬
their peak, largely
because
the dividend news emanating ing up a following among the
market students. Throughout
from the carriers was little
gard

weeks from the break.

Continued

Rails

seven

such

no

taken,

short

rather

eral that it would take

this

when

Utility Securities

Min¬

session.

a

as

recently ■»as 1952, and about
ning nearly 10 points. The equal to the peak reached by
tradition that such
gaps are pre-split shares in 1951. That
filled sooner or later sustained
represents a three-fold apprethe bulls with the

Public

the

the 50 bracket which is where

the old stock

of

nesota Mining, where stock
split hopes evidently were
work into
high, subsided with a rush

market volume leader. Pricewise,

so

below

results,

brought
on
enough selling to make the
issue prominent among the
casualties

Thursday, November 17,1955

..

good, black fig¬

somewhat

comparable

STREETE

.

firm, it
M.

as

was

members

the

New

Stock

Ex¬

of

Midwest

Comptroller

Howard
Leo

formerly

was

associated

with Midcontinent Securities.

has

joined

Schoenbrun,

Calif. —Pearl
the

1385

staff

of

Y/estwood

Shelly, Roberts Adds

the

Mr. Ber-

ANGELES,

Boulevard.

(Special to The Financial Chronicle)

announced by Arthur

Krensky, President.

toncini

of

(Special to The Financial Chronicle)

LOS

LOS
A.

ANGELES, Calif. —Ralph
Ramsay, Wendell A. Hutchin¬

son
now

and

Anthony S. Lazzarino are
Shelley, Roberts & Co.

with

Volume

Number 5482

182

Continued

from first

The Commercial and Financial Chronicle

...

enterprises

new

page

So

I

first

cessful

The Present Position

principles of investment today,
but reading this story on the train,
I had to bring out that point.
"The

You

probably

what

think

I

market

is

Market Is Going

Stock

right

Up"

to

want

hear

the

about

stock

I think that it

now.

the stock market

on

naturally divides itself into sev¬
parts.
Is it going up or

eral

What

volved?

it

If

risks

the

are

is

The

"in"
is

to

of

question

a

the

cash

one

own?

that

of

whether

or

without

market

stock

in¬

position
in
money.
And money, or invest¬
ments that represent fixed dollar
long

my

values, have been

a poor

for

years

good

a

many

like

and

now

continue

will

they

medium
to

on

Presidents

has

at¬

toppled
instance.
117

was

we

are

sooner

illness

Its

we

to

are

in

percentage

a

very much.

educate

the

much

very

wider

a

advantages

of

in

educated

which

the

equities

in

manner

This

fluctuate.

they do down as well as
up and often stand still for long
periods.
means

be poor.

Very few people stop to think
that they cannot be "safe" just
by selling their stocks or never
owning any in the first place.
Equities grow more or less valueable and
money
does the same

that so
people do not really know
thing.

is

It

believe

only

The

it.

founder

many

it

of

or
my

firm, Mr. Edward F. Hutton, who
is, of course, much more than a
millionaire, knows that equities
are
always better than money.
When I

in the office

was

day

one

he wrote out his
personal balance sheet. He arbi¬
ago,

many years

trarily

quite

added

indicated

bit

a

to the

value

current

of

equities. He subtracted quite
from

value

indicated

the

his

bit

a

his

of

Impact

let's

80."

makes

York

New

70.

City

quoted at 90—let's call

are

them

the

it

call

bonds

do

I

not

to

sense

any

know

if that

but it is

you

psychology of Harlow Curtice
successful man.

and of every

the

is

It

been

who

banker

often

depositors

advising

has

against

the stock market for

the risks of

who has caused them
losses because, as this informed
audience knows, the cost of things
and the cost of living have been

many years

going

and the true value of
deposits has been going

up

his bank

"warning"
time

who

Professor

The

the

of

issued

a

about stocks at the
Fulbright investiga¬

undoubtedly caused many
to sell good stocks and
positions.

tion,

in

other

fluence
erable

should

that

the

ties

and

tide
is

Equities

always

remember

of

life favors
to

President

His

associates

general has

more

Business has not

its

celled

expansion

plans.

The

The chances of electing a Repub¬
lican president are growing.
We have

tion
to

me

Washington. That means
prosperity Administration

a

seeks

climate

to

for

The

of

of

Confidence

part.

create

all

walk

every

citizens

life

plays

favorable

a

our

to

in

prosper.

important

an

who

split Stand¬
ard Oil of New Jersey the other
day and raised the cash dividend
had

men

confidence.

more

action

the

pockets

stockholders.

helped

it

But

put
of

also

maintain

to

confidence.
of

Their

in

money

their

everybody's
main
objective

The

business administration is to

a

promote

prosperity and a good
always is a part of

market

that.
A

few

days
ago,
Ford
an¬
public stock sale as
timed
for January.
I

its

nounced

probably
this

that

means

will

market

be

equi¬

money.

to

into

get
I

they

feel

favorable

at

or

and

count in dollors not in values and

are

inflationary tenden¬

is any

time

a

an

economist,
analyst

the

against
that

should

be

solely
but

our

masses

a

statis¬

and

never

Stocks
down
not

a

correctly

would
to

reversals

intervals.

1929

recalled

the

have

never

not

gone

extent they did had

employment, production, con¬

and

sumption,

credit

else

affected.

1929

been

threatened

or

everything

There

is

no

ahead

of

us

right now.
Recently, the major stock mar¬
ket factor has been the sudden
illness and recovery of President
Eisenhower.

The stock market was




Motors.

est

selections

from

possible

cost.

this

stocks

the

and

from

the

list

idea

Dow

in

age

comes

trust

The
ter

close

investing is

What

crowd?

can

the

aver¬

who

than

What should he do?

he would
directions.

look

in

be

Well,

and

knows

that

given

any

is

how

he

and

of

find

a

by

a

led

confident

type

the

enough

can

dynamically

the

If

year.

carefully

more

now

out.

are

due

are

The

around

in

South

situation

to

I

rode

said

here last night as I
on
the New York

up

before,

Central.
has

is settled.

'

models

No

success

more

apt

to

be

Tne stock

than

more

uiing

this railroad

oi

doubled

the

over

it

is

was

Securities

Corporation and
prior thereto for eight years with
Scharff

&

Jones,

Inc.

Joins R. J. Buck Co.
(Special to The Financial Chronicle)

BOSTON, Mass.—Frank Brewin
is

with

now

Richard

J.

Buck

&

Co., Statler Office Building.

Kidder, Peabody Adds
(Special to The Financial Chronicle)

BOSTON, Mass. —J. S. Fassett
Maher has been added to the staff

of Kidder, Peabody & Co., 75
eral Street.

un¬

Keller Co.

obviously,
vitally important. The

needs profits next year
to carry it into 1957 and to main¬
tain its credit.

in

This is not

an

Fed¬

Adds

(Special to The Financial Chronicle)

BOSTON, Mass. — Walter J.
Young is now with Keller & Co.,
53 State Street.

offering of these Shares for sale,

offerjd buy,

any

or an

offer to buy,

or a

solicitation of an

of such Sharesv The offering is made only by the Prospectus•

some-

convenient

'.iff i-ffiiyf:

six

■:'

Vv

■

200,000 Shares

It illustrates several
investment principles. The
investor who bet on a change for
the

better

out

OK.

there is
stock

in

management

The

if

market

looks

in

proving

and

the

felt

Pacific

Lighting Corporation

for

a

it

out

The in¬

$4.36 Dividend Preferred Stock

deflated

(Cumulative, Without Par Value)

of

process

im¬

turning

upwards

Three

different

OK.

out

seek

you

out OK.

came

who

situation

came

came

who

always opportunity in the

correctly,
vestor

investor

approaches all paid off.

My

made

was

clientele

Price $100 per

last list of equity selec¬

own

tions

of

up

for

private

a

varying

and

institu¬

manufacturing
in chemicals, merchandis¬
metals,
motors,
oils,
and

group,

ing,

others.

was

The

quality

trend

cause

the

rather

attempted

varied
than

be¬

quality
de¬

common

Copies of the Prospectus
writers

may

Six

dealers in securities and in which the

that

stocks

for

one

more

general

Statisticians

important

market

have

trend.

shown

that

owning the right shares is far
more profitable than
being in and
out of the market at the right
time.
a

success

general
is

apt to

way,

I

feel

that

be self-perpetu¬

ating these days. Certainly since
1946, the tax laws have favored
big companies getting bigger and
it

very

difficult for young

Prospectus

of the several under¬
qualified to act as

are

may

legally be distributed.

BIyth & Co., Inc.
The First Boston Corporation

Dean Witter & Co.

Chrysler

Harriman Ripley & Co.

Goldman, Sachs & Co.

Curtiss-Wright
Montgomery Ward

Glore, Forgan & Cow
Kidder, Peabody & Co.

Incorporated

Merrill Lynch, Pierce, Fenner & Beane

Lehman Brothers

|

Studebaker-Packard
Texas

Gulf

Stone & Webster Securities

Smith, Barney & Co.

Producers

Corporation

Textron

conclusion,

I

am

Union Securities Corporation

going

on my list.
This
is Studebaker-Packard. Here is a

is

agement
where
that

turn it

change in
is

W. C. Langley & Co.
Central Republic Company

A. G. Becker & Co.
Incorporated

Incorporated

(Incorporated)

William R. Staats & Co.

Laurence M. Marks & Co.

Elworthy & Co.

man¬

Here

deflated

is

a

and

hope, but do not know,
new

A. C. Allyn and Company

management

can

J. Barth & Co.

Spencer Trask & Co.

Bateman, Eichler & Co.

Davis, Skaggs & Co.

Brush, Slocumb & Co. Inc.

Shuman, Agnew & Co.

Schwabacher & Co.

Lester, Ryons & Co.

Hill Richards & Co.

upwards.

Please
ble

which

we

the

a

involved.

White, Weld & Co.

to

little about by far the most

a

situation

question is

any

reason

another appeal to me as special
situations as of this moment, in¬

ties?"

the

be obtained from

only in states in which such underwriters

nominator.

speculative issue

that

share

(Plus accrued dividends from October 15, 1955)

tional investors. It included stocks
in
the
aircraft

situation where

made

able

&

Crockett

Club

of the 1956

probably can't be told

also

rail average.

equities are
more
desirable
than
cash, then
the next question is "which equi¬

In

manzuk

til the first quarter and

which,
outrunning the

In

Equities?"

agree

you

This

future

until this

company

The

months capital gain period
of course, is far

talk

than

Building. M!r. De¬
formerly with Equit¬

styling ideas.

Bend.

Co.,

of

thing to watch is for

exists for the

Marvin De¬
trading

the

department

the

truth, 1957 will be the first
completely
reflecting
the

—

joined

Houston

new

changed than the former

The

has

Studebaker-

company

leader,

manzuk

buy into.

cycles
within

industry than over-all.

If

quar¬

real settlement of the labor situ¬

ation

very limited number of men of
his capacity who reach their ma¬

looks

of

Packards

either.
a

a

investor

point

a

third

poor

Nance and Schmidt

only

are

succeed

HOUSTON, Tex.

The fourth quarter won't be good

echoing top flignt American

turity in

statement

year

When Mr. Curtice
says General
Motors never has any bad
years
he is

Nance

Demanzuk

Marvin

are

good.

very

up,

extremely

but in

different

business leadership. There

chances

be

22nd of November. The latter will

the

matter of investment princi¬

a

ple,

its

to

Mr.

Studebakers

investor

faster

run

buy Studebaker-

you

Packard should be the worst piece
of current news imaginable.
The
new

about

he

go

"

per

a profit, the stock
reflecting not only
the sales increase itself, but an
improved regard for them.

eight
selecting

very

sales

increasing the sales to

should

investing.

feels

more

where he makes

investment trust investing. In¬

vestment

tops in

get

most

because

Thus, should

shares

of

of

get

considered

not

pitfalls and deal at the low¬

However,

in¬

buy
rating is high, but
as
high as General

You

Packard

amateur investor who

an

his

an

General

Its

dollar, when

Union

in the Dow Averages would avoid

educated

so

market

and

"Which

guard

a
stock market crash
collapse of all values.

as

as

temporary
at

come

to

I think

made

However, I do think that
has grown so big

business

An this is bullish on equities.

only

like

clude:

cies and abhor paying their debts.

thus,

rail

a

we

Pacific—but the principle is well
illustrated.

economy

that

an

this

cash.

not

am

tician

our

think

not

optimism are bullish on equities.
Politicians know that the majority

have

excluded

You

eyes.

not

yet

as

instance,

might
have included International Paper

time.
do

i

will be.

We

Chrysler.

few variations pos¬

a

view,

moment

sound

in

that

business Administra¬

a

are

of

the

at

sales per market dollar if you

'. ' Union .Pacific
There

because from

point

is

everybody's

Standard Oil of New Jersey

can¬

Republican Tarty is realizing tnac
it is bigger than any one man.

Population growth and natural
increasing human capacities and

hence, favor

better.

business in

very

The

vestment
,

Motors

successful

has

outlook

Motors sales

Electric

sible here. For

a

or

Favors

adverse

the

confidence.

Pont

company

brightened.

getting

and

So the net in¬

cash.

Today
is

that

One

easier

suggested

leaves equities pref¬

still
to

much

think

Life

it

hand,

creasing inflation.

the

of

in

credit conditions and possibly in¬

investors

Tide

re¬

opinion, caused deterioration
the earnings outlook.
On the

lose

their

Illness

duced business confidence and
my

stock

down.

President's

The illness of the President

cash and bonds. In

effect, he said,
"General Foods is quoted at 60—

of

market

company's
rising figure. For ex¬

ample, you have to pay the most
today for one dollar of General

Sears

as

the
the

results at

Geneial Motors

equity ownership, they must also
be

value

Douglas
General

to

because

,

will

ratios

are:

With Crockett & Co.

not

Alcoa

du

or

Marvin Demanzuk

Nance

also

of

President,

Mr.

but

relatively untutored investor.

a

many

basis, it really wasn't
audience

realize

market, the

was

On

exaggerated.
If

If

of

temporary de¬

a

extent

most

market

a

the

of

for

we

stock

a

naturally, caused
cline.

in

more

than

The

level

ability of its Presi¬

nies for first and total investment

every

heart

shares

been

The

1955.

better.

creasing

look

Electric

in the
most
industries. For exam¬

succeeds, tne buyer
only make money
because the figures will improve

I

early in the year and 82 recently.
A prime electronic like General

stocks

me

mean

the

on

dent, Mr. J. J. Nance. It has the
advantage of still being cheap.
will

anyway.

January, to cite one
prime oil like Amerada

A

suc¬

companies

Here they

optimistic,

am

The aircraft

tack.

what

equities. I
might feel the market is "high."
I might feel
it is risky. But I
always have to remember that I
cannot cut down my long position
in

the

"out" of the market today

prefers

one

before

ment

grow.

most

now

stock, every day of the year. In
fact, this year many very good
stocks went down many months

question of whether to be

or

I

say

off

sell

some

I

really

the

ple, I selected eight such compa¬

obviously do not

up

going

individual shares should

in¬

for

When

in

going up.
opinion

An

down?

ripe

to

favor

promising

01 the Siock Market

17

(2093)

don't

confuse

opportunity

in

the

possi¬

Irving Lundborg & Co.

today with the opportu¬
nity that existed in Chrysler last
year.
The Chrysler situation was
superior.

The

Mitchum, Jones & Templeton

Incorporated

Studebaker-

Packard

immeasurably

Weeden & Co.

Walston & Co.

Sutro & Co.
First California

Company

Crowell, Weedon & Co.

Stern, Frank, Meyer & Fox

Wagenseller & Durst, Inc.

Hooker & Fay

Wulff, Hansen & Co.

Incorporated

Bingham, Walter & Hurry, Inc.

buyer of Studebaker-Packard to¬
day

can

lose.

Buying Studebaker-Packard
gets down to making a commit¬

November 15,1955.

^

Financial Chronicle

The Commercial and

18

:

.

Thursday, November 17,1955

.

(2094)

is

East

The Communistic Challenge
By IIARRY A. BULLIS*

Iran

The

keg.

powder

a

of

riches

Iraq are

and

oil
rich

barely necessary.

to stand aloof? The Indo¬
nesian Republic is struggling to
build a responsible free state, but
the Communists" are eyeing
the

fed

General Mills, Inc.

of the Board,

is threat¬

Contending domination of the world by Communism

ened, Mr. Bullis points to Soviet progress and the position
of Communism today. Asserts Russia, as an economic force,

poised for the kill.

"The

is

Paris

to

way

vation

written

was

many

in the last

ago

was

published,
followers

this

of

the

That

in

world

a

have

the

At vhrious times the

to

feasible

it

of Nations; in 1934 to
support the Democracies against
Fascism; in 1939 to reverse this

we

policy

How does one

travel west by

Harry

A.

Bullis

traveling

Quite preposterous on the

the implications of
this road sign find few skeptics.
3 or the Soviets, it is a sheet in
today

a

Russia concluded
non-aggression pact with Japan
same

year,

which it broke four years

is

later.

challenge."

challenge,

real

very

a

the economic, the

on

geo-political

the

and

fronts—all at the same time.
must

must

keep

up

our

arms,

conduct

also

have

and

war

be¬

it contests with the Western

ideological

In

Alliance.

Crand

the

in

cies

that

to "the Communist

It

Democracies

position and join the Fascist coun¬
tries against the Democracies; and,
in 1941 to break with the Fascist
countries and join the Democra¬

face of it.

up

We

but we

economic

an

intelligent

more

propaganda. Unfortunately, until
the initiative has rested
with the Communists for the very
reason that their ethical position
recently

More recently — almost in re¬ with its utter disregard for truth
plan of world con¬
has given them a temporary ad¬
Lenin, with prophetic fore- cent months—the Russians have
y
fight, saw that with the riches deliberately fostered an ostensible vantage. '
For example, consider the CornThe "Spirit
and resources of the Orient in the era of good feeling.
has been inform. This agency of the Com¬
control of the Russian Socialistic of Geneva," however,
Soviet
States,
the wherewithal diluted by the outright sale at munist Government has operated
would ultimately be provided to bargain prices of Czechoslovakian at various times both underground
arms to Egypt and the Arab na¬
and out in the open.
launch new conquests.
It is found
the

master

quest.

paraphrase Lenin, the eco¬ tions. The gesture hardly looks
conquest of the Far East like a friendly one—more like an
attempt to touch off the latent
can point to a showdown with the
keg in those troubled
YVest. Domination of the world is powder
To

nomic

Soviet Progress

there

But

he taken

many

were

steps

to

before Russia would be

a

cwn

For example, on Feb.

might.

4, 1931, Premier Josef Stalin ex¬
plained the purpose of the latest
liussian five-year plan to a group

during

that have been
the lifetime of

today—to recount

history

pages

—

written

for you

the amazing duplicity and

ciplomacy and
apparent success enjoyed by
Soviet
economy
during the

the
the

and

ies,

Communist political part¬
Communist candidacies

democratic ballots. These priv¬

on

ileges are extended without ques¬
tion

the

by

nists

publican"
Russian

at

room

world

powers.

the police

quoted as having said. "We must
make good this lag in ten years,
lilither we do it, or they crush us."
In the course of the next decade

going

concern.

industrial managers.
"We

are

50

transformed from one

Kussia

was

of the

most

backward states into

industrial

great

a

100 years behind

or

power.

Cer¬

tainly, this was one of the factors
that helped assure Russian victory
in World War II.

torship of the Proletariat began—

II, the Russian
state exhibited an amazing display
of economic and social shifting
that all adds up to the principle
that "the end justifies the means."
World

Mid

To

begin

followers
land.

War

with,

Lenin

promised

They would

and his
the peasants
break up the

jig estates, they said, and make
peasant a landowner in his
own right. Tnis actually happened
ior a time. As late as 1929 there

every

25,000,000

vere

primitive

small

lind

holdings in the U. S. S. R.
3Sat in 1952 there were only 100,L00 large and

highly collectivised

In between those dates was

iarms.

tie forced liquidation
kulaks

of
s

or

small

the starvation

nd

c'iier

peasants.
regard

Without

of

to

of millions
landowners,
millions of

human

life

principle, Communists pushed
ahead to forge a new
economic concept of collectiviza¬

■or

ooggedly
tion.
3.

A few

viet
be

Again, "the end justified the

leans."

weeks

Vov.

Affairs

14,

from

in¬

an

The

con¬

to be that the So¬

seemed

certainly not to
underestimated,
that
it
is
is

economy

strong and vital.
tors

Most of the visi¬
at what they

amazed

were

The members of the Ameri¬

who visited
that
while Soviet agriculture is hardly
efficient by our standards, it is
improving.
can

farmer delegates

Russia recently have reported

Everything
heretofore

general

that

is

statement

simply
nomic

this:
force

said

have

I

preliminary
that

like to leave with you

Russia

to

a

should
It is

I

today.
as

an

eco¬

is

succeeding in the
of
a
military or war
far beyond the expecta¬

creation
economy

tions of most Western economists.
be

To

gains
But

not going to the people.

the strong

state holds the

the

and

the

might

arm

its

of the police

people in its power,
of the army, and

undeniable

Communist

—with

productive

Russian

sure,

are

the

of

vitality

propaganda machine
utter
disregard
for

truth, and its philosophy that the
end justifies the means—all these
things
new

are

combining

make

to

inroads for Communism.

First of all, Communism

is busy

digesting all of China. The same
true for the Indo-Chinese
Provinces

Worid

several U. S.

ago,

returned

by Mr. Bullis at the
Forum, Indianapolis, Ind.,

1955.




In

North

Reds.
Communism is

acquired
Korea,

also fortifying itself.

by the

Do

they

in

the

permit

satellite

Obviously there is no

for democratic expression in

Communists,

the

by

all

state.
meeting the challenge poised

In

holds

address

♦An

countries?

Above all,, it is a

spection trip to Russia.
sensus

saw.

1917—when the dicta¬

Between

years.

Senators

the

a

ballot?

balloting

the advanced countries," Stalin is

c::

37

to

"Democratic-Re¬
political party on the

permit

Starting from a
virtual
zero,
Russia is today a
foremost
contender
among
the
past

democracies

Communists—but do the Cfommu-

Soviet

of

agility

It preys upon
processes
in that it

democratic
sponsors

most of us here

capitals.

in foreign

I recite this rather recent world

position to alter seriously the
v;orld balance of power by her

in

the Russian Embassies established

lands,

tX stake.

including

everywhere,

virtually

the

United

States of America is the leader

to

whom all the Western world turns

inspiration,

for

leadership

and

guidance. To fulfill its destiny,
our great nation cannot dodge this
role as leader.
That means that
only our Federal Government,

not

and I—and leaders of
business, labor and social groups
—must individually
and jointly
but

take

you

responsibility for that lead¬

ership.
Now there are

that

we

certain problems

in the United States must

overcome

to

meet effectively

schools, example is the sale by Czechoslo¬

our

Soviets

We

the

live

in

would have us read.
and around the

world

in

free

fiat

a

where labor is enslaved,

people
read
everything competition. The converse also is
They soon surmise that true, since Russia can, through the
perhaps we do net believe about operation of her fiat economy, pay
ourselves all the things, we say higher prices than competitors ■ in

world,
about

us.

the world market by

are.

we

you—DO WE UTTER¬
COMPLETELY
BE¬

So I ask

AND

LY

Her

bid

LIEVE IN OURSELVES?

offering gold.

gold is government produced
can use it as a weapon to

and she

price she wishes for the

any

goods she needs. The only obsta-J
cle in her path would be legisla¬
pect others around the world to
believe
in
us?
Recently
Mr. tion by the countries of the free
Kruschev
broke his
smile long world preventng " the export of
enough to remind the world that goods to the Communists.
if

we

not—can we ex¬

do

still
Another phase of the economic
and Stalin threat is the danger that the Com¬
above all else. There is no ques¬ munists may be able to develop oc
tion but that the Communist State acquire the consumers markets in
leaders fervently believe in t:e the under-developed countries.- If
Communist

the

State

group

believes in Marx, Lenin

principles laid down by these men. Russia herself had the production
The second point — we should facilities and should she think it
avoid becoming too comfortable. worthwhile, she could wage de¬
A few weeks ago General Hershey structive economic warfare in
publicly deplored the softness of places like India, parts of Africa,
our ycuth.
He said the army was Indonesia and other countries.
hard pressed to whip young men
If the way were opened, Russia
into
shape so that they could could use her economic power to
withstand the rigorous tests de¬ dominate vital areas for
produc¬
manded
There

by

is

an

the

Forces.

Armed

analogy

here to our

tion

commodities she requires.

of

the

Middle

East, for instance,
position with respect to the Com¬ she could possibly gain control of
munist challenge. Are we too soft half the oil reserves of the free
and too comfortable to take up world.
the

cudgels

munists

on

and

meet

In

the Com¬

all fronts of the world?

Under

where

dictatorial government:

a

is

labor

where ;

enslaved,

prepared to leave our
cost records need not be kept, and
highly specialized society, where where the books are for the con¬
necessary, and make sacrifices on
venience of the government, pricesvarious
fronts
of the world in
can
be set in world trade which
order to meet it in the economic
the nations operating under a dif¬
sense? Are we prepared to do this
ferent system would find difficult
Are

we

although it temporarily means the

of our living standard,

lowering
and
as

perhaps even hardships for us

individuals?

to be considered.
interest curselves in

The third point
We

should

raising the living standards of the
non-Western world.
Not only to
win their support, but to

help them

appreciate the advantages of free
institutions. The Communists, in
waging economic war, blend prop¬
aganda with token gestures so ef¬

to

This does not mean that

meet.

There
fulfill¬
ment of promises to deliver, terms
of credit and respect for the sov¬

the challenge cannot be met.
such things as quality,

are

ereignty
must

couple
there

quickly than we

more

move

when

did

others, all of which
weight.
And we

of

economic

have

wheat

needed

India

a

years ago, and when
interminable delays in

of

were

getting the enabling legislation
through Congress.
The Commu¬
nists do not have that kind
of

that they actually have
political
minorities in
delay.
many of the doubtful nations. Fre¬
The final point to be considered
quently the only interest shown
and surmounted is an important
by the United States is -through a

fectively
effective

government agency, or a bureau
United Nations.
American business should inter¬

of the

this
area—business aided and abetted

est

itself

more

directly

in

by government. For example, why
wouldn't it be practicable for bus¬
iness investment abroad

in certain

Let me list

the interests tempting to buy friends. We must
do
likewise.
The technicians of
vival, whatever the price the Free World are the best am¬
may be.
bassadors for our side.
The first point in my list of
culture and our sur¬

Economic Aspects

problems is that we must utterly
Before
I get
and
into the fourth
completely believe in our¬
selves." Can
we
conscientiously point, let us review some of the
economic aspects of Communism.
answer that in the affirmative to¬
day? I wonder if we can 'consider We are in an economic war—a

bickering on the industrial war of economic rivalries in which
The Middle front, the racial and religious in¬ both sides are trying to persuade
the

to

threat

can be dumped on the world
market at prices which
destroy

and wage it in
our

a

because

goods

too comfortable.
initiative by investing more abroad
(3) We should aggressively ap¬ and sharing its rewards with the
ply Western ethics and peoples of other lands. In the few
Western philosophy to ele¬ instances
where
this has
been
vate the living standards of
done, pronounced economic and
the non-Western world.
social progress has resulted.
(4) We should define for our¬
Communism is at the beginning
selves total economic war of a
period where they are at¬
of

is

markets

economy

specified areas to be encouraged
by government, through tax con¬
them:
cessions or otherwise, and to have
(1) We must utterly and com¬ business take a more active inter¬
pletely believe in ourselves. est in affairs abroad?
American
(2) We should avoid becoming capitalism can and should take the
Communist challenge.

Al¬

ourselves.

Communism

a

about

read

America

in

Eut

And

cause

ing their objective cf world domi¬
nation. As I said before, the recent

cur

the

All this, and much more, adds

League

of

the

suit.

U. S. S. R.
join
the

in

and

goldfish
Russia in
Moscow dispatches only what

the Russians
in a new

that

same

Negro

the

of

Democracies

nuisance

a

However,

war.

realize

should

social order
democracies,

is

conflict

Soviet armament

used to create trouble for. our

we

bowl.

probably will not result

It

value.

Communism

of

Position

found

State

But

Western

if

The Challenge

hardly took it
r, e r i o u. Js 1 y.

east?

is

the

are

Economic warfare is one of
powerful weapons in the
for accomplish¬

camp.

practice it—I ask you, then,
lies and for
really believe in ourselves?

—and

South. Witness
happening in the Middle

what

The

Com¬

munist

They

countries to come into their

more

States have fair vakia -of armaments to the Egyplabor laws directed against dis¬ tions at much lower prices than
crimination in the employment cf those prevailing in the world mar¬
labor.
I ask you—-if we cannot ket. Such practices permit the es¬
effectively recognize that equality tablishment of commercial beach¬
which in turn facilitate
of race and creed is a basic prin¬ heads,
ciple in cur 'national Constitution political infiltration which can be

Europe toward the
East.

author

of

NATO.

is

the most

races

and many

to get rid of
turning from

want

They

rope.

do

nation on the principle of

Caucasian

cooing

for ultimate world supremacy.

At the time it

the

with a smile. They are
talking about peace.
V/hat they
want is for us to get out of Eu¬

to

Court has force-

Supreme

our

integration

present time, the Rus¬
sians have adopted the strategy of

is a

—and

The

the

At

In the background

faith"—-the only valid

World

Communism.

totals — and
all Italy.

huge

poll

threaten to sweep over

deep-seated conviction that in¬
evitably there will be a clash be¬
tween
Communism,
the
"true

economy.

of his
Nicolai
Lenin, the
first
apostle

life by

of

munists

munist

years

of early Christianity

and modern Catholicism, the Com¬

up

years

eyes

very

ancient seat

Throughout this early era, and
to the present day, the Com¬
society concentrated upon
the development of a war econ¬
omy,
as
opposed to a civilian

through

the

der

far
beyond the expectations cf most Western economists, and the
strong arm of the police state, together with the vitality of the
Communist propaganda machine, holds the people in its
power. Concludes, all this adds up to the "Communist chal¬
lenge" facing us. Advocates an all-out economic war.

Peiping."
That apparently illogical obser¬

like a cobra
In Italy, un¬
of Rome, the

government

young

succeeding in the creation of a miiilary or war economy

is

community

plums eyed by the Soviets. India
is uncertain. Can Nehru be counted
upon

Chairman

the

for

than

reluctance

the

tolerance,
more

It

one.

define

to

seems

should

we

me

define the
be waged, and

objectives,

our

economic

to

war

it—whatever the price

wage

may

be.

That

means

selves,

as

we

will bestir our¬

nation, to help other

a

that we will accelerate
trade; that our technicians
business enterprises will
voluntarily shift some of their re¬

nations;
world
and

our

attention

and

sources

the

from

American market to the Far East,
to

the Middle East,

and to South

America and to other
there is need and
We
men

need

to

areas

where

opportunity.

inspire our young
evangelists, not

to be modern

only for capitalism and free en¬
terprise on the far flung fronts of
the world, but to be ambassadors
for democracy and for the full and
abundant
There

life

is

no

selves—many
are

not

that

areas

ready

democracy.

it

promises.

deceiving

use

for

They

our¬

of the world
brand

our

are

less

for the Soviet brand of police

imperialism.
the Western

them

the

capitalism

Let's

sell

of

ready

state

them

on

philosophy, and show

rewards

that

Only thus will

we

fruits

and

will

be

move

of

theirs.

forward

>

iw«wwwmuu»«<ii<»iiwiwwimw^«m«wc^

Volume/182

in

Number 5482

..

The Commercial and Financial Chronicle

.

economic struggle with the

our

ton-mile

Russians.

unit has

Conclusion

-

0

Revenue*

a hundred years ago two
the great propagandists in the

Communist

ideology, Marx and
together wrote a "Com¬

Manifesto"

munist

which

the

nations

Western

-

By GERALD D. McKEEVER

An

•

The

a

pen

talist

show, in this modern capi¬
manifesto, how our nation

40-hour

placed

ologies of Communism and democ-

are

effects

the

make

to

not in road

nations.

active

greatest

some

to Oct.

10,000

with

1

minds.

And

and

the

in

wage

additional

increase

about

concession

12

cents

hour.

per

end,
it is
people, millions of people, and not
police state vassals, that will de¬

ing

a few days earlier a grcup of leading
10 V2 cents hourly wage increase retro¬

a

the

Switchmen's

On

Oct.

23

of Locomotive

14% cents

per

Engineers settled -for an increase
hour retroactive to Oct. 1 and includ¬

"skill differential" of 4 cents

a

union.

per

Ratio

51.8%

1953

10,064

49.9

8.80

10,581

5,326
5,327

605.8

1952

614.7

50.3

8.68

under

$300,000,000.

The

12-cent rate has

been

consequently

as¬

sumed in the

compilation of the following table of estimated added
upon a 6% across the board wage in¬
crease, or a 12-cent increase over the average hourly wage of
just less than $2.00 before the increase became effective.
wage costs which is based

Offers New England

Est. Incr.

Telephone Bonds :
Stuart
of

manager

&

Inc.,

Co.

investment

an

bank¬

talto.

interest,

Award

of

by the underwriters at
petitive sale on Nov. 15 on

won

of 100.574%.

was

r

-

bid

*

proceeds
the

as

need

at

received,
arises,

are

an

telephone plant,

b

ranging

from

,

in

service

a

to

tan

the

company's

service

other

services

line

within

include

mo¬

and

facilities for private

telephone and teletypewriter
for the transmission of radio
television

programs

for

and

company

had

total

of $138,413,626

and net income of

$12,142,343. In
the like period of 1954. operating

revenbes

amounted to $125,419,550

and net income

was

$11,293,442.

(Special to The Financial Chronicle)

NEW

ORLEANS, La. —Marvin

Breen

man,

and

is

It

being opposed by the Southern roads generally, since thesecharacteristically lower wage ratios and furthermore they
enjoy a growth factor that helps to absorb increasing costs and
which, in any case, they do not wish to retard by rate increases.

have

This

points to the possible fly in the ointment. The present
may be approaching the economic ceiling

freight rate structure
and may

be all that the traffic will bear—that is, barring further

inflation

and

increases

in

the value

the

of

commodities

that

the

4.65

%8.00

.

51.3

22.0

1.3

3.45

8.50

46.4

165.0

10.0

1.25

7.00

50.0

17.2

l.o

2.05

4.50

,

mated at

6,700,000 persons located
throughout a major portion of
Southern
California, principally

Blylh Group Offers
Pacific Lig. Preferred
An

investment

headed

other underwriters
public offering

41

Nov.

15

made

par

value)
Public

$100

share.

a

Proceeds
new

Pacific

of

Corp.

offering

sale

the

of

preferred will be used by the
to repay approximately

;,.%* 5.4

3.70

11.00,

28.6

:%

1.7

3.15

•10.00

struction and expansion programs

45.0

2.7

1.60

$$0.75

31.5

1.9

0.79

4.90

84.0

5.0

2.03

2.h0

137.0

8.2

1.35

5.00

55.0

&

W

81.0

55.7

D. R. G. W

76.0

41.4

Erie RR.

160.0

52.5

Great

264.0

47.9

'

Northern..

0.__._

82.0

45.1

290.0

49.4

Cy. So.$____

68.0

39.9

1_

178.0

Illinois
&

Central

N._

K.

r.

v

37.5

2.3

2.50

6.00

144.0

8.6

2.78

8.35

27.2

1.6

1.56

11.50
10.00

'

49.2

72.5

T

87.8

6.3

2.69

36.7

2.2

2.72

139.0

8.3

1.20

9.00H

44.0

24.8

3.80

8.00

49.1

P.

Syst.ff
__

291.0

44.4

5.25§

750.0

55.1

*

N.

&

St. L._

Y. N. H. &

Nfk.

&

Nor.

Pacific

H.

West.....

157.0

46.8

74.1

4.4

2.15

7.50

155.0

50.8

79.0

4.7

4.40

9.00

200.0

42.7

83.4

98.9*

5.0

0.89

6,25

180.0

54.8

915.0

53.5

490.0

St. L. & S. F

129.5

52.3

67.5

Seaboard

151.0

45.8

69.1

665.0

51.6

342.0

273.0

44.3

121.8

7.2

2.78

13.00

505.0

45.7

232.0

13.9

3.12

17.00

RR.

____

______

5.9

-

'

v

2.37

7.50

29.5

2.23

3.50

4.0

2.28

4.35

4.1

1.72

9.50

20.5

2.25

have

to

(Special to The Financial Chronicle)

ST.

the

from

89.5

52.0

____

intends

company

new.

Joins Curtis Merkel

}

Lighting
price was

company

$16,000,000

Angeles.

preferred stock listed on
the American, San Francisco and
Los Angeles Stock Exchanges.

200,000 shares of $4.36 cumu¬
preferred "stock
(without

47.2%

H

the

lative

190.0

&

The

,

group

by Blyth & Co., Inc., and

including
on

banking

in and about Los

Chic., R. I. & P.—

_______

___—

___

Pacific

flOn

fl!)54

class

«

7.25$

should

Thomas

B.

Shear¬

Jr. are now connected with
Lvnch, Pierce, Fenner &

Merrill

Beane, 915 Common Street.




41.0

35.1

14.0

0.8

0.64

6.00

53.0

43.9

23.3

1.4

2.45

9.00

ratio—%

wage

tfTnree

A.

of

system

mentioned

be

^Consolidated.

rev.

roads

PETERSBURG, Fla. — Roy
Chapin has become associated

F.

with Curtis Merkel Company, Inc.,
601

First

Avenue, North.

•

of the company's

Three With In v. Planning
(Special to The Financial Chronicle)

subsidiaries, and

for general corporate purposes.

BOSTON, Mass.

The company is a holding com¬

Francis

iaries, Southern California Gas
Company, Southern Counties Gas
Company of California and Pacific
Lighting Gas Supply Company,
own
and operate the largest gas
system in the United States in

Street.

terms of customers

served.

1, 1954, this system supplied
natural gas to a population esti¬

E.

New

This announcement is neither

F.

Scally

are

an

NEW ISSUE

now

Joins McCoy

Willard

(Spcoial to The Financial Chronicle)
~

Mass.

BOSTON,
is

Silvester

-now

—

Arthur W,
with

affiliated

McCoy & Willard, 30 Federal St.

offer to sell

. ■

-

that the

corresponding

1955

the

nor a

solicitation to buy any

Offering Circular.

'Offered

as a

^

Speculation

120,000 Shares

preferred

Victor V. Clad

ratios represent

1954 wage

revenues

should show

ratios

SOn

in that

Company

year.

automatic

some

Common Shares

re¬

much as 10% in some cases.

Looking at 1956 and
too greatly amiss since
the assumed 6% increase in hourly wages could account for an
increase of about the same proportion in the wage ratio, other
by

as

Offered at $2.50 per

not be

may

things being equal.

Victor V. Clad

,

the

Theoretically, the annual cost of the wage increase and the
the* roads

all

the full

paid

52%

because of credits for

however,

Federal tax.

one

reason

retirements of non-depreciable property,

in the

of the

of certain

eastern

such

The

as
square

accelerated amortization,

case

might

a one-storv

factory with approximately 45,000

feet of manufacturing floor space at Renovo,

the

Pennsylvania,

gleaned

be

from

is not subject
of Pennsylvania.

opinion of Company counsel the Common Stock

personal property tax of the Commonwealth

A copy

conclusions

of aluminum lawn and
.

Company leases

In the
to

must be borne.

frightening

Pennsylvania corporation, is engaged in
for institutional and

this year,

roads

because
4of flood losses. Some of the roads that are expected to pay little
or no tax this
year, for instance, are the St. Paul, North Western,
•Central of Georgia, D. L. & W., and Erie.
As long as a road
has no Federal tax liability, the full brunt of the wage increase
or

a

patio furniture.

This is not so,
another,

or

Company,

Share

of stainless steel equipment

hospital kitchens. This year it added a line

cost per common share would be only 48% of the amounts shown
if

fabrication

of the Offering Circular may be

obtained from

the

offsetting factors. One is that
the carriers have received freight rate increases compensating in

foregoing if it
large
is

for

part

their

not for two

were

the

extra

wage

burden

in

the

past.

The

Barrett Herrick & Co.,

other

improving operating efficiency due to dieselization and

modernization

otherwise.

The

combined

result,

as

shown in

35 Wall St., New

Inc.

York 5, N. Y.

the

following table, has been almost no increase in the Class I average

ratio
the

over

the

on

average

November 16,

balance for the 1949-54 period and little increase

average

for

the

period

hourly wage.

despite

a

constant

Correspondingly, there

increase

little

was

in

Please send

crease

of

011

wage

been

whole

balance,

cost

little

to

on

or

ton

increase

in

J955.

me a

copy

of the Offering Circular relating to \

ictor V. Clad Company.

in¬
Name......—

.........

..........

-

—

the average for this period in the ratio

mileage
the

moved.

wage

postwar period, while

ratio

Furthermore,
on

the

the increase in

there

has

for

the

average

the wage cost per

I

and

Parks

England, Inc., 68 Devonshire

of these securities. The offering is made only by the

j

,

Dominic A.

with
Planning Corporation of

Investors

As of

Jan.

Joseph

Manduca,

neither owning nor operat¬
ing any gas properties. However,
its
three
public;, utility subsid¬

pany,

—

^Deficit.

combined.

due to the lower level of

distortion

wage

Two With Merrill Lynch

G.

A move has been made for another freight rate increase,
spearheaded by the Eastern and Western roads which have the
highest wage ratios and are therefore most in need of relief.

bank
loans, • which
have financed in part cost of con¬

N.

Rather

For the six months ended June

revenues

1.148

$$1.50

inflated

•

the

7.05

8.40

other purposes.

1955,

11.8

43.0

•subsequently, however, this

tele¬

and

30>

54.7

•

duction, and it is therefore quite likely that the wage cost factors
estimated above on the basis of the 1954 wage ratio may be

the

use,

operating

592.0

6.8

The

in

are

radio-telephone service,
and

4,171

fBillions.

113.8

It

had

typewriter exchange service,
services

♦Millions.

59.7

some

•

bile

1943

196.0

&

"Millions.

territory in which it operates, and
its

1.204

West.

Chic.

stock.

The company also

toll

6.65

5.00

V/.

About 70% of

telephones

Massachusetts.

50.1

6.60

Union Pacific

service. About

of Boston.

654.7

"

of the company's telephones

furnishes

196.0

34.5

Virginia

in

area

5.00

355.0

_:

Southern

metropolitan -areas having
a
population of 100.000 or more,
about 32% being in the metropoli¬

are

1.345

4,352

»

"

'

3.43

So. Pacific

par,

subsidiary

3.975 telephones in

56%

7.45

2.00

Penn.

June

and

49.2

48.5

*

,

30, 1955, the
had 2,628,111 telephones

company

$14.75

1.90

'

Telephone
&
Telegraph Co. is engaged in the
business of furnishing communi¬
cation services, mainly telephone
service, in Maine. Massachusetts,
New Hampshire, Rhode Island and
On

7,623

1.464

637.9

7.3

N. Y. C.

i

England

Vermont.

8,685

:

1.770

1.597

0.7

N. Y. Central

prices

104.064%

4,768

1.872

8.16
'

8.39

12.2

Mo.

plus accrued interest.
New

$3.30

4.7

"

The debentures will be redeem¬

redemption

9,671

1947

of

$16.0

'

able at the option of the company,

regular

1948

50.7

1.917

<

51.4

122.0

L.

es¬

^

526.5

50.6

M.

obtained

under

4,419

36.2

Kas.

time the

the

8,520

33.5

Gulf M. &

parent

ate purposes, including extensions,
additions and improvements to its

at

Georgia

Mil. St. P. P.

D. L.

;

tablished practice of the company
and are used for general corpor¬

'

Net per

Com. Snare

"

expected to amount to

are

'

Est. 7)5

Sly Bef.
Fed. Tax.

77.8

*

49.1

hr,*

P-

*

.

about $44,000,000

1940

$8.85

$1,967

7.80

240.0

D.
-

organization, American Telephone
& Telegraph Co. These
advances,
are

50.2

Per Cam.

12 cents

,

Roll*

■

ment of advances from the

588.6

'

"Net proceeds from the sale of
the debentures will be applied by
the company toward the repay¬

which

Est. Pay
V

:

46.5."': $265.0
-

400.0
■

Chici Great West.

"Chi.

com¬
a

Ch,io___

Ches. & Ohio____

yield V

to
issue

the

Ratiof

\ Chic. & E. I

tures, due Nov. 15, 1991. The de¬
are
priced at 101.064%
3.20%.

&

Central

England Telephone & Tele¬
Co. 36-year 314% deben¬

accrued

% Wage

Rev.*

■

'

bentures
and

Est. '55

Atch. T. & S. F.__ $570.0
Alt. Cst. L.___„__
155.0

is

ing syndicate offering $30,000,000
graph

4,594

C46.2

Wage Rate

.

Ealsey, Sluarl Group ih

; Halsey,

'5,272

3 950

10,290
9,473

•

Hourly

Billion T-HI

roads carry.

hour.

Thus the projection of a 12-cent hourly effective increase
that has been commonly used in rail circles is probably not far
off, and it places the total annual cost for the industry to just

termine the victory of the democ¬
racies and'the Western World.

New

70%

a

Wages per

Milest

549.2

5-day 40^hour week effective Dec. 1 to

with

Wage

Wages*

$4,855

being

the Brotherhood of Locomotive Firemen

the

members

estimated at

hearts

of

service, and

will

their

this

1,

overall

western carriers granted

economic gains for these peoples,
have

the

Dec.

15 the roads and

the Brotherhood

also

round

by the roads at IOV2 cents, and a 5-day 40-hour week
become effective Dec. 1 for almost half of this union wno

may

is the economic development

underprivileged

another

Enginemen, with 60,000 members, accepted a package claimed
by the union to represent a 17-17 V2 cent hourly increase but

:

Whichever

of

&

The scoreboard in this .gigantic
grappling match between the ide¬

the

effective

week

On Oct.

struggle that! lies ahead.

cf

midst

the

Cn Oct.

expected

will fulfill its destiny as the leader >
the victor in the economic

and

cracy

in

are

5, they settled with the Brotherhood' of Rail¬
road Trainmen for a 10V2 cent
hourly increase retroactive to Oct. 1
for the 173,000 members of the union and also
agreed to a 5-day

declaration—we might call it
"Abundance, ; through
Freedom."
us

Analysis cf the Rail Wage Increases

railroads

increases.

new

Let

against

as

$9,371

1951

identi¬

fied the Communist approach with
socialism, lit is high time today
that

balance

on

Ton-

1954

About

Engels,

only 26%

Total

Gross

i

•

;

been

increase in the hourly wage.

".'

of

19

(2095)

.....Telephone,.

-

^

y

20

The Commercial and Financial Chronicle

(2086)

whether

News About Banks

could

CONSOLIDATIONS
NEW

BRANCHES

NEW

OFFICERS, ETC.

Bankers

and

REVISED

the

is

now

CAPITALIZATIONS

radically

Following
of

meeting

a

Directors

of

of

the

The

New

record with more than 51 years of
service.

Nov.

Adrian

9,

M.

Chairman of the Board, and Huibert
S.
Aldrich, President, an¬

Savings

nounced the following promotions:

Nov.

Warren

W.

Side

West

231st

announced on
election of C. Wil¬

the

15

Officer of the company; Walter H.

Berry,

Assistant

North

York,

New

liam Borchers
He

bank.

the

succeeds

who

since

President of the

as

1946.

Savings Bank in 1919 as

ant

At

Vice-Presidents; John R. Bur¬
leigh, Jr. was appointed an As¬
sistant Secretary.
■w

7

■.

•'

At
Board

'

*

of

of

of

the

The

First

Bank of New York,

Nov. 15, Charles O. Stap-

on

ley and

Dan

F.

Porter

were

ap¬

pointed Assistant Vice-Presidents,
and Karl A. Rice, Henry P. Wehr,
Richard M. Smith, Lewis C. Mur¬
doch and Robert T. Heubsch

Stapley is assigned to the credit
department and Mr. Porter is in
the

bond

division,

both

>

head

at

office.
*

*

that

W.

Oswald

as

President of

Company
nounced

and

pointed Vice-President and Sec¬
retary. In November of 1948 he

Assistant

an

New

Nov.

and in December of the same year

elected

was

York

Trust

was

an¬

16 by Horace C.

pany, he served five years as a
member of the U;' S. Army. After

release

rank of

in

1946

^eld

he

the

Major in the Reserves. At

present Mr. Oswald is assigned to
the
Branch Administration De¬

partment of Manufacturers
at the

in

Trust

177

Montague Street Office
Brooklyn.
'

Guaranty Quarter Century Club,
honorary
organization
of
staff
members of Guaranty Trust Com¬

of

pany

York, who

bank

for

25

have

years

or

held its annual reunion din¬

more,
ner

New

the

served

Nov.

on

10

at

the

Waldorf-

Astoria, with 950 attending.
Club's

present

roster

The

includes

1,465 active and retired members
the

of

staff

abroad.

in

offices.

presided

at

New

York

John

the

S.

and

N.

Cook.

spoke

for

ducted

H.

the

the bank, who

club

M.

was

by Herbert

members

1955.
are

and

Sherman, Jr.,

neto

during

Schaffer

dinner

succeeded asTPresident

P.

in¬

Officials

of

members of the

include J. Luther Cleveland,
of the Board; William

Chairman
L.

Kleitz, President; Thomas P.
Jerman,
Executive
Vice-Presi¬
dent; and directors George G. Al¬
len, W. Palen Conway, Charles P.
Cooper, Charles E. Dunlap, Cor¬
nelius

F.

Kelley, William C. Pot¬
ter, George E. Roosevelt, and Eu¬
W.

gene

Stetson.
*

*

.

#

Six
new
members joined
the
Quarter Century Club of Central
Savings Bank of New York at its

Eighth

Annual

Dinner

Toots Shor Restaurant
Each
and

tions

were

Executive

bers

Nov. 10.

made

by James Bloor,
Vice-President of the

Membership

stands at 71.
are

John

in

Karcher,

Robert

Elizabeth

Lyski.

The

J.

the

new

bank

Club
mem¬

Frank

G.

Sartori, Karl

Schweiker
Otto

Trustee, Vice-President
of

the

Biebel,

Fuetterer, Louis

urer

on

at

member received a
pin
$50 Savings Bond. Presenta¬

bank.
now

held

new

a

the

is

North

of

of

Board

Borchers

President

fourth

Side

Bank.
Today the bank
deposits of $116,000,000 with

Savings
has

106,000 depositors in
The

fices.

is

dent
and

its four of¬
elected Presi¬

newly
member

a

the

of

Bronx

Advisory

Manhattan

Upper

of the Manufacturers Trust

Board

Nov.

9

Strippel,

and Treas¬

holds




the

Club

creased

merger

system

field

broad

a

by

the

York

New

on

State

that day a

formal proposal where¬
by the Ramapo Trust Company of
Spring Valley, N. Y. would have
been

merged

Trust

Company

N.

into

the

County

of

White

Plains,

planjbf

The

Y.

that

day

at

tom

merger

approval earl¬

formalized after its
ier

County Trust
stockholders'
meeting,
he
said.
Ramapo Trust's stockholders, it
a

added, had adopted the plan
However, he explained,
the proposal had been under study
was

Oct. 14.

on

in the Banking Department on an
informal

basis since

its

submittal

in August of this year.
the

to

plans

merger

Reference

appeared

in

Sept. 1 issue, page 887.
Of¬
ficial
approval
of
the
merger
our

would have been

vious

contrary to pre¬
policy,
Mr.
declared in his Nov. 9

departmental

Mooney

announcement since it would have

permitted

County Trust, a West¬
institution, with a lengthy

chester

history, to obtain

merger

intendent observed that there has

of

the

little

a

change

general

character

1953,

since

area

more

in

the

July;

than two years

when

County Trust unsuc¬
cessfully sought to merge-the Na¬

ago,

tional
to

Bank

acquire

of

Tuxedo

branch

a

in

in

order

Orange

County. Mr. Mooney went

on

to

say:

Trust

prospect of the large County Trust
system's crossing the Hudson River
and

entering another county.
It
Tuxedo Park, a com¬
munity about 10 miles west of
Spring Valley, the location pro¬
posed today.
The Department's
concerned

unwillingness then to accept an
application caused County Trust
abandon the merger plan."
Mr.

way

on

either
are

does

not

Co.

urban

common

The

Rockland

fraternity has also represented it¬
as
opposed to the proposed

reflect

in

institution, adding that both

in good standing.

Further, he
bar to the merger

said, there is no
from the standpoint
of

than

the

of

which
one

branch

authorized by law.
said:

"Rather

disclosed.

Mooney

While this expression is in no way

decisive in the Department's

stand,
indi¬
cation that the local banks regard
he

said, it is nevertheless

the

an

as a "basic
existing sys¬
While he pointed out that

proposal

merger

departure from the
tem."
the

principals in the proposed
merger asserted that its consum¬
mation would provide advantages

only to their stockholders but
also to the people of Rockland
County, he observed that "this
point is obviously outweighed by
larger public considerations."
the

on

threshold

banking
encom¬

county,

p owers

as

crucial

change in legal
cepts," Mr. Mooney stated:
"The

York

New

State

of

con¬

consolida¬
and

National

Hartford

Central
of

Middletown,

recently created a Joint
Legislative
Committee
for
the
of making

a comprehen¬
of the State banking
It is probable that much of

purpose

sive

Bank

districts.
tial

concern

contained

are

bills

in

proposed

which would
or: spell:; out ^antitrust
concepts applicable to banking in¬
of

some,,

stitutions."

Mooney

disclosed

that

he

had

discussed his policy with the
Comptroller of the Currency, Ray
M.
Gidney, who supervises Na¬
tionally
chartered
banks.
The
Comptroller, he said, is substan¬
tially in agreement.
:|:

:!:

The National Commercial Bank

Company of Albany, N. Y.

which in

September increased its
capital from $3,000,000 to $3,300,-

000,
to

stock dividend of $300,-

further

enlarged its capital
(as of Nov. 7) as a

$4,000,000

result

of

the

sale

of

$700,000 of
new stock.
The increase in capi¬
tal
to $3,300,000 was mentioned
in

our

was

noted

Merchants

Whitehall,

Middletown

National

Middletown

also

N.

National

into

Y.

pant, took place

Bank

the

Co. "with

Trust

$10,000,000.

Bank

with

the

stock

common

of Iloosick

mercial

National

Bank

Falls, N. Y. with

stock

merged

of

the Comptroller of

Currency reports, the merged

bank

had

capital stock of $10,-

a

000,000 in 1,000,000 shares of

into

the

Bank

&

National
Trust

last

$5

less

not

than

3s

3s

At a meeting of the Board of
Managers on Nov. 9, Leslie G.

McGrath
dent

elected

was

of

The

Vice-Presi¬

Bank

of

Montclair1

Montclair,

Savings

N.

J.

pansion

of

the

bank's

mortgage
the last 25

During

he

years

has

been

From

the

also

we

law

and

accounting.

sociated

and has

training in real estate

with

He

was

as¬

the

to

"Mr.

a

Washington

"Post"

quote:

Fleming,

ington,

runner

native of Wash¬

a

joined

Riggs

and

in

in

1907

1925

as

became

President

at the age
of 35.
He
the duties of Board Chair¬
in 1935.
Under his leader¬

added
man

ship,

Riggs'

deposits

have

ex¬

panded from

$36 million in 1925
the current level of more than
$415 million.
to

"Some

of

D.

C.

A

to

by

ac¬

weeks

the

Educa¬

on

he was
Eisenhower

ago,

President

on

of
and

Commission

the
of

the

American

Association,

the

Bankers

Association

of

Reserve

City Bankers, and
Washington Board of Trade,
"Post"

to

Auditorium-Civic Center
city." He is a past Presi¬

an

dent

recent

Conference

serve

for

more

Chairmanship

Advisory Council

few

named

plan

his

include

the
the

added.

in

engaged

title and mortgage work,
had special

ex¬

15

This is

dend.

Mr.

McGrath will be active in the

Dec.

of $1
a
share over
year's special year-eni divi¬

last

tion.

3:

re¬

increase

an

the

$5,803,000.

payable

holders of record Nov. 30.

the Citizens

of

The

special cash dividend of

a

its

reserves

Riggs

his ^65th

Thursday.

share,

a

tivities

and

Fleming,

age at the bank is 65."
another
announcement,
the
stockholders
were
advised
said
the "Post" that directors had de-"

stock, par $10 each; surplus
of $12,000,000, and undivided
prof¬

the latter
bank was

(Nov.

Company

surance

Vice-President
to

become

Gibraltar

*

Mr.

Bisselle, also a native of
Washington, joined Riggs in 1920
and

has

dent

Camillus

Bank

of

as

been

since

Senior

1948.

Vice-Presi¬

He

started

the

of

E.

Kean

has

&- Trust

the

Co.

announced

uel

F.

"Mr.

of

Passaic

Passaic, N! J.,

it

by President Sam¬

Riskin.-

indicated,

Vice-

named

Bank

of

was

From

the

paper

also quote':

we

Kean

Camillus,

N. Y. is reported as of Nov. 4 by

and

3:

John

A.

Diamond
a

Alkali

director

of

Bank

Cleveland
a

by
Loring L. Gel-

bach,

former President of the Es¬

sex

County

Mr.

Kean

Bankers

had

committees

Association,

served

of

the

several

on

N.

J.

Bankers

Association."

Maj.

Gen.

(USA

*

of

R.

Powell

Delanco,

President

of

the

was

Union

National Bank <£? Trust Co. of Mt.

Holly, N. J.
Associated
Newark

on

Nov. 7, according to
accounts to the

Press

"Evening News" of Nov.

8 which said

"He

that

succeeds

old E.
been

the

Longsdorf.

National

Presi¬

Mr. Sar-

joined

gent

Diamond
kali

as

Al¬

Treas¬

in

urer

1946

and

was

John

Presi¬

A. Sargent

late

Dr.

Har¬

Mr. Powell has

During the

intervening

years

he

served as Vice-President, and was
Executive Vice-President prior to
his elevation to the

Presidency.

3c

3c

3c

The Kenosha National Bank

Kenosha, Wis. reports

of

capital of
$250,000, increased from $200,000
by a stock dividend of $50,000,
effective

Oct.

director of the bank since

a

Central

of

elected

dent last year.

*

Clifford

Ret.)

elected

dent.

elected

3s

was

of

troller

"A

President

Co.,

bank's

was

York and six years with the Chase
National Bank.

3c

on

announced

Comp¬
Currency, in New

the

at

meeting
10,

the

of

of

rectors, it

the

Treasurer

Sargent,

experience included five

.

activities Mir.

Bureau, etc.
3:

the examination staff of the

3:

a

10.
3i

*

1926.

"A

of

trustee

National Bank of Newark. Earlier

The

capital

many

Bisselle

di¬

of

Cashier

Assistant

served as President of the
D. C. Bankers Association in
1950-

of

on

an

1940.

Among his

board

years

department,

Assistant

became

and Cashier of the former Lincoln

the

as

and

Nov.

Vice-President

was

credit

an

Better Business

t-

been

President of

1929

51,

v
3c

the*

President in

leaving there

Vice-President

to

elected

as

Vice-President in 1939, and Vice-

According to the Newark, N. J.
"Evening News" of Nov. 7, Arthur

the

3s

the

it

Savings and Loan As¬
3-.

of

announced

3s

in

serving

and

sociation.

8),

having capital stock of $4,200,000,
in shares of
210,000 of common
stock, par $20 each; surplus of
$8,800,000, and undivided profits
and reserves of not less than
$1,290,000.
increase

Later he

joined the Garden State Title In¬

was

Com¬

Company

At the effective date

An

com¬

"Mr.

observed

years,

birthday

mon

com¬

$250,000,

Albany with capital of $4,000,-

000.

of

that

been President of

tirement

of

common

At the effective date

of the merger,

of

Com¬

Nov. 7, when

on

Peoples-First

mon

with

stock of $250,000 were merged in¬
to the Hartford National Bank &

the merger of

mercial National Bank of Albany.
A further consolidation in which
the Albany bank was a partici¬
the

has

In

stock of $250,000 and the

issue of Oct. 27, page 1768,

wherein

reported
30

in

Congress,
emphasize

a

also

who
for

tinued business in 1951.

recent

by

it is added, will become effective
Dec. 13. The Washington "Post"

on

Trust

&

Conn.,

Ad¬

The changes,

was

legislative

000

con¬

when the

Chief

become

ferred

by the Committee in this
regard. Further demonstrations of

& Trust

also

will

anty & Trust Co. until it discon¬

the State is also likely to be con¬

Mr.

by Hulbert T. Bisselle,

who

President of the Essex Title Guar¬

shifting of population within

the

President

The recent and substan¬

an

sidered

in

to
as

time will be de¬
analysis of banking

to

voted

on

secretary to Josha Evans, Jr., then
Vice-President of Riggs. He trans¬

Cpmmitjteds

the

&

Executive
went

Mortgage Cor¬
poration of New Jersey through
1946; subsequently he was Vice-

study

laws.

title

was

of Oct. 28,
National Bank

operations'.

Legisla¬

ture has

the

question is

period

a

substantial

are

Continuing he

of

now

are

in¬

3s

bank

as

not

merged

district-wide

Mr.

merger,

the financial condition of

more

banking

County

self

merger,

each

of

ties and stimulate the flow of sub¬

any

districts,

Co.

summated

expansion to the west.

is

Previously

charter

Hartford

Bridge, the result of which
will be to integrate the two coun¬

of

Mooney emphasized that his

decision

Tarrytown-Ny-

(or

the

under

Tappan

Zee

it

was

14.

>U

"Post"

that he will be succeeded

clared
tion

ack)

the

"This merger also presented the

to

of

.'-'3s

Connecticut

of the

foot¬

a

in Rockland County where
independent unit banks, compara¬
tively smaller, prevail. The Super¬
no

unmindful"

"not

of Oct.

as

-

A

the forthcoming completion of the

hold

been

is

Department,

•'*

Superintendent Mooney further
pointed out that the Banking De¬
partment

Y.,

$250,000, in 10,000 shares, par $25
each, the capital is now $287,500,
consisting of 11,500 shares of the
same par value.

by

further expansion."

for

Pointing out that "we

made

was

Banking Department that George
A. Mooney, New York State Super¬
intendent of Banks, disapproved on

passes

and

unit

N.

3c

•<:

Announcement

Overseas

chapters
are
maintained in London, Paris, and
Brussels, where
the
bank
has
branch

the

to

Mr.

Trustees.

Vice-

Flanigan, President. Mr. Oswald
was appointed an Assistant Secre¬
tary in April, 1953. Prior to join¬
ing
Manufacturers
Trust
Com¬

his

Vice-President

Executive

became

Frederick

Manufacturers

of
on

of

Rockland

Batavia,

announced by the New York State

Banking

say

Chief

and

The

ministrative Officer.

3s

%

The capital of the Genesee Trust

change the basic character

the

new

had

Company.

*

appointment

Clerk.

a

$3,000,000 in deposits
10,000 accounts.
In Decem¬
1946, Mr. Borchers was ap¬

3c

The

Side

institution

the

time

North

the

office,

one

were

appointed Assistant Cashiers. Mr.

Mr.

with

career

ber,

'•

*

meeting

Directors

National City
held

*

regular

a

his

Fred

late

as President
Borchers began

served

Treasurer, and
Perry, Jr., Assistant
Treasurer, were appointed Assist¬

Hoyt O.

would

this

of

%

.

Street,

185

at

Bank

Swift, Assistant
Trust Officer, was appointed Trust
Brown,

of the

trustees

unit

Company of

offering to County Trust
The

Chairman
Oflicer.

Banking De¬
Previously $60,000, the
capital has been enlarged to $100,000 in 10,000 shares, par $10 per

Westchester, has a demonstrated
propensity for extensive branch
The
banking.
possibility
must
therefore be anticipated that tne

*

#

Massie,

the New York State

share.

of

York Trust Company of New York

held

the

alter

Thursday, November 17,1955

.

partment.

banking
system
in
Rockland
County. County Trust Company,
the largest banking institution in

consummation
Board

the

for

time

geographical release of so large an
institution as County Trust, which

,

.

S.

Increased to the extent of
account

press

county

Hatcher

ceeded

dent

the

Allen

Vincetown,
as

suc¬

Vice-Presi¬

bank."
3s

The

000

industrialist,
of

Mr. Powell

of

added:

3s

intention

was

of

V.

made known in

alsa .indicated .that
will

of

continue

Red

Grand

as

Mr.

Board

River

Forks, North Da¬

as of Sept. 29
$250,000 to $400,000.

The

Port

Charleston,

on

Carolina

3:

City
in

stock

common

merged

3:

Bank

So.
of

of

North

Carolina, with

$100,000

was

Oct. 31 into the South
National

Bank

Charleston, So. Carolina,
stock

cap¬

National

enlarged

was

3c

Robert

"Washington Post" of Nov. 9,

which

Fleming

kota,

the

3:

as President of
the Riggs National Bank of Wash¬

the

Bank

$150,-

stock dividend, the

a

of

from

Fleming to retire
ington, D. C.

by

ital

of

common

$2,500,000, under the char-

Volume

title

arid

ter

Number 5482

132

the

of

.

.

latter.

the. effective date of the

The Commercial and Financial Chronicle

.

At

Bank Credit Assoc. of N. Y.
To Hold Dinner

the merged bank, it is announced,
had a capital stock of $2,550,000

shares of common stock,
par $10 each; surplus of $5,075,000
and undivided profits of not less
than $1,800,000.
*

*

*

The

the

Comptroller of

the

Currency

Credit

Meeting

Associates

of

hold their regular

Robert J.

should

be

made

urer,

Francis

D.

Weeks,

Jr., The

meeting at the Railroad
Machinery Club on Nov. 17.

Marine

Tariff, $4.75.

Schirmer, Atherton Branch

Frank

H.

Heiss,

partner

in

Kelley, Drye, Newhall & Maginnes,
er

will speak

Needs

a

on

"When

a

Bank¬

Lawyer."

Midland

Trust

Company.

mer,
an

Street,

*

*

staff of

have

been added to

the

Cantor, Fitzgerald & Co.,

232

North

Canon

has been announced by

Drive,

kami

Editor

are

a

has

been

of

the

news

company's
letter.

it

F.

B. Gerald

J.

Imholz Jr.

Bank

of

Gonzales,

Gonzales, Tex., with

of

$140,000 and surplus of $242,-

266.

The

grad¬

Murakami, Mark Kosterman,

Archie Nedelman and Lionel Bell.

conversion
Bank
of

the

bank

new

on

represents a
Gonzales State

the

of

Gonzales.

of

GOING PLACES

capital

a

bank

new

The

Imholz, Jr. is engaging in
rities

business

from

Spring Lane.

the great turnpikes

with Cities Service...

opening

scheduled

was

V. S, Marett, is Pres^ ident.and H. H.
Braley, Cashier,*
J

f

An .increase in the

>

Citizens

bock,1

National

Tex.

•Qapit'atof.'jthe^?;

Bank

of

Ljub- ^

-

:

-

reported as of
Sept. 29, the amount, then at $2,500,000, comparing with $2,000,000
-

was

%

■,

.

'

previously. The $500,000 increase
was brought about
by the sale of
$500,000 of new stock.
The

First

Great

Falls,

%

*

National

Mont.,

Bank

of

increased

its

capital to $1,000,000, from $600,000
of Sept. 8, as a result of a stock

as

dividend of $400,000.

As of Sept. 14, the capital of the

Pacific

National

jhrantfiseo,

Bank

of

San

became .-$3,576,500, hay¬

ing been; increased

from?. $2,861^ ;^V£1
100/following the sale of $715,400/ ; "'
.

Of

stock.

new

'

1, '?• •

The capital-bf

the/Old National

Bank of Spokane,r Wash, has been

enlarged

from

$2,500,000
3, by
dividend of $250,000.
750,000

of

as

*

The

to

Nov.

*

Royal

$2,stock

a

*

Bank

of

Canada

(head office Montreal), announced
on

Nov, 9 the appointment of M.

M.

Walter

tors

to

President.
Mr.

board

election

In

Walter

the

in

the

his

and

his

will

of

direc¬

a

Vice-

as

new

capacity,

continue

day-to-day

active

affairs

of

the

bank,
assuming
more
general
responsibilities. Mr. Walter com¬
menced his career with The

Bank

of

1912.

Following/World

when he

gained

Canada

saw

in

in

War

.

I,
he

service overseas,

further

experience

number of branches

province

Royal

Oshawa

at

'■r^.K

a
y/:>*#:

in his native

(Ontario),

and

was

,/w//f///"/"//V/y'' "'v

./,/*»«•

•\

^■'y''wi

transferred to the Supervisor's De¬

partment, Toronto, in 1924. Four
years later he moved to the Head
Office

and

subsequently

was

ap-

&:40\

pointer Assistant Manager of the
Montreal Branch.

In

1938

he

WW0M

bey

'r

named

was

an

Assist-

y &nt General Manager at the
Office.,

*

,

;

'

came Manager of Montreal Branch
and in 1944

;

!

•

Head

-\

-

■«-;

/§pdc5cj iof he Financial "Chronicle)
rif'

^SPRINGFIELD, Mo.—Eugene E.

"-■?

Soule is with King Merritt & Com¬
pany,

Inc., Woodruff Building.

Joins Bache Staff-

.

(Special to The Financial Chronicle)
-

*

Driving along the major turnpikes, as millions did last
to

see

that Cities Service has

CINCINNATI, Ohio—Joseph F.
McGlinn

/ Bache

&

has

joined

Co^

the

Dixie*

/ Building.

,

..

.

-

staff

Terminal

(Special to The Financial Chronicle)

Davies is

now

& Co., Carew

the

New

than any

it is easy

on

bought more Cities Service petroleum products than

ever

before.

-

.««.

■

CITIES

„

associated with Hill

and
'•




Cincinnati

i

r

@

A Growth

Tower, members of

Stock Exchanges.

year,

principal toll highways
other oil company. During 1954, motorized Americans

Ohio—Thomas A.

York

stations

.

Now With Hill & Co.
CINCINNATI,

of

more

Number 16 of

a

series

SERVICE

Company

a secu¬

offices

for, Oct. 31.

.

Opens!

LEVITTOWN, N. Y.—Frank J.

*

at

others

sales representatives.

Comptroller of the Currency
Washington, D. C. for the Cit¬

izens National

"Confi¬

The

the
at

special

Mr.
Mura¬
named Associate

issued Oct. 28 by

was

new

21

department.

dential"

Cantor, its President.

saru

as

A charter

men

uates, include: Harry Frank, Ma-

un¬

der the direction of Paul Farmer.

$2,868,750 as of Nov. 1. The
capital was enlarged to that figure
from $2,550,000 by a stock divi¬
dend of $318,750.

new

HILLS, Calif.—Five

The quintet, all university

Atherton & Co. have opened

office at 16 Center

service

Adds Five to Staff
BEVERLY

Inc.,

NORTHAMPTON, Mass.—Schir¬

Mr. Frank will head

Cantor, Fitzgerald Co.

Kurau, Grace Na¬

tional Bank of New York; remit¬
tances may be sent to the Treas¬

dinner

capital of the South Caro¬

lina National Bank of Charleston,
S. C. is reported by the office of

Bank

New York will

'

The

Reservations
with

merger,

in 255,000

(2097)

at

24

The Commercial and, Financial Chronicle

(2098)

22

rnvtimiprl {mm
Continued
jrom

ply immediately available.

6

rmap

page o

FHA contributed to the total

action

inflationary
It would

I
I

w«*jf

ATV
j

softly.

„

^

.

enjoy

cther minority groups, may
a

decent living.

everything depends
in maintaining
and
consistently expanding our
productive capacity. If we should
fail to do this, all our enterprises
would fail.
Our present formidable military power could not be
Literally

success

our

upon

AA£-

lor

their

the

most

would

economies

healthy

part

totter

col-

or

We would soon stand alone
with all the productive capacity of Europe either mimobilized or turned against us,
We might find the lonely burden
lapse.

than

contribute in proportion to its strength and ability,
To hamper it—and I am talking
permitted—to

about'private

But

will

we

have

never

to

lonely burden if
remain alert to the needs of

stagger under a
we
cur

productive

not

hesitate
to

action
the

capacity
take

to

forestall

forces that conthe stability of

dangerous
threaten

stantly

do

and

courageous
or

overcome

forces are
not a sign of weakness. They are
inherent in a free economy. With-

cur

These

economy.

them the economy would

out

not

An

outstanding American

omist

recent!v

his

thirn^q

the

cf

eternal

that

vigilance

Commerce

York

Arthur

bv

of the

enmp

reriuire
will

T

the

of

econ-

riisen^eri

caracrraDhtofrom 'a
last "month
to
th^

man

nnr

reaH

sneerh

of

Chamber
of

State

of

New

Chair-

Burns

F

Council

a

given

Economic

Advisers'
u.

,

,

we

that

must

on

economy

be

E™can. ever
live

m

of

sources

world

a

both

joined

our

the

in

nor

in

of

reces-

distant.

which the

political

Congress

resolved

as

parties

to

pass

people

a

^ ca&nachv

to

If

are

we

narrow

ment

cal,

to

must

and

That

means,

in

stay firmly

and

must

economic

ready

the

other,
on

this

pursue monetary, fishousekeeping
policies

skill

we

on

road, the Federal Govern-

with

tbat

re-

side, from the

one

to

circumspection,
other things,

among

be

alert to

conditions

adapt

our

promptly to them.




p

4

,

.

,

of

core

belief that we had made a mnnine of an important work,

is ^tho Administration's avowed cility-which was specifically de^^ac,
L, belief that tne func- signed to give supplemental aid
tion of tie Federal Government in toward meeting mortgage market
re£Pct tou industry is to exercise situations such as we are now exonly such restraints as may from periencing. The modest but steadtime to time be needed to keep ily increasing interest and partica"y sector of the whole economy ipation in this facility during the
£"om, eccentric movement and past 12 months by mortgage lendtherG^y causing an imbalance.
ers, builders, and other organizaFor example, the Federal Re- tions composing t:e housing inserve Board some months ago dustry clearly indicate that FNMA
a.n

changes
and

01 i

c

be

i

e s

A program of

the

summer,

took

and

in

Falling

steps.

Federal

ap-

Sage purchases

Hous-

which in Novem- ceipt of normally predictable!
ber and December 1954 amounted funds earmarked for purchase of

ing Administration reduced the to >"ly °ne mortga:|e for each
month had risen to 877 in September 1955. To date, liquidity
has been furnished by FNMA
homes from 5 to 7% of the pur- through the purchase of about
chase price. At the same time the 5,000 mortgages aggregating some
Veterans Administration lifted the $42 million. A portion of tnis agminimum down payment from gregate represents participation
n°thing to 2% of the purchase by savings and loan associations,
price and also lowered the maxi- And although it is a relatively
Hnrnp

T

5S,1*n/,s"™.»3
111 va^ous stages of pianmng^or

-RPQrri

•

reflects

a

real in-

terest on the part cf that section

other

imD3Sed

in

eoneprf

Aeenrv

ar?fnh

firm belief that mortgage
warehousing within balanced lim-

my

with' of the mortgage industry.
ta

j

_

imum loss to the Federal Govern-

luipose to Anticipate Possible

ment—and

Inflation
The purpose of these and other
actions

was
—

to anticipate possible
in

other

in before it had

I

mean

—^be portfolio of

words,

to

owned

or

the

taxpayers

mortgages now

which may be acquired

in the future under contracts executed before Nov. 1, 1954.

How-

the sale of these mortgages,
numbering close to 350,000,
with unpaid principal balances of
press
inflation that used to be some $2J/2 billion, and located in
fashionable with insolvent gov- 45 states, the District of Columbia,
ernments.
What our government Puerto Rico, Hawaii, and Alaska
had detected was an inflationary was suspended two weeks ago by
tendency of the most subtle kind action of the FNMA Board of Dia

chance to

ever,

the partiri-ation of private industrv. Here again all the elements that compose our second
greatest national industry—builders
suppliers, realtors, and the
various mortgage lenders — have
shown their adequacy for 1 he task,
And now, before I close, I want
to go back to something I said at
the outset of my remarks here
today. You:; men and women of
the U. S. Savings and Loan
League are engaged with other
savings and loan associations, the
mortgage bankers, the insurance

companies the builders, suppliers

Any substantial curtailment of and real estate dealers in a great
mortgage warehousing might coooerative enterprise,
tighten credit to a serious degree
Your basic task, your basic conand cut home building down to a tribution, is to make American

level lower than the rate of 1.2
million or more a year which we
believe can be maintained during
the months ahead without'having
an inflationary influence on the
small percentage of the total, it economy. And I want to express
nevertheless

Ranu

the mortgages

its is a desirable and necessary
The ultimate objective of the credit instrument.
rontrpl5.
v'lllrnp Federal National Mortgage AssoSome questions have been raised
tbA
,
ciation's management and liqui- about conversations on warehousmortgage evnansinn rmrl
dating program is to liquidate in ing between Allan Sproul, PresiS. 5. . P
P - an orderly manner and with min- dent of the Federal Reserve Bank
know

^eEe

maturity from 30
nan

.

Now I want to toucn on an important element in the credit
structure with which the Government is concerned, as are the
builders and all sections of the
mortgage industry.
That is the

line

maximum mortgage maturity from
30 to 25 years and increased the
minimum down payment on

mum mortgage
tp 25 years>

usefulness and strength.

well-established practice of
"mortgage warehousing" — the
means whereby institutional lenders avail themselves of short-term
is accomplishing the purposes,for bank loans to enlarge their mortwhich it was established. Mort- gage portfolios in advance of re-

noted certain warning signs of an

move

the

inflation

•

Urban Renewal .
j said earlier that I would refurn to the subject of urban renewal—the broad program set up
urKjGr the Housing Act of 1954 to
revitalize our cities. This program
developed into its present form
in consequence largely of recom^ oluntary Lome Mortgage Cred
mendations "made by President
Program
Eisenhower's Advisory Ccmmit1 also spoke last-year about the tee on Housing in December, 1953.
new Voluntary Home Mortgage
The magnetic center of urban
Credit Program. As you know, rencwal |s wfcat has become
this was the mortgage industry s known acr0Ss the nation as the
own proposal — a mechanism to workable Program—the facing by
provide
mortgage
investment a community of the insupportable
funds for FHA-fmanced and VA- cost 0f siUms and blighted areas
guaranteed loans in areas and sec- and jts determination, in the fqrm
tions of the mortgage^ market 0£ a wen_develooed plan, to make
v*here these funds have been Ira- jtSelf a better place for all of its
ditionally in short supply ... by inhabitants.
channeling private funds frcm
Any community with a Workareas of relative plenty to areas able program that has been apcf. n.eed ' * ' thus to reduce to a pr0VGd bv the Housing and Home
nunimum the need for dirert.Gov- Finance Agency can obtain Fedcrnment participation in toe mort- eraj aidj
tbe form 0f grants,
gage marketloans, and mortgage insurance,
1^e P^°Sram, ^1CJ
get under
with or without Federal aid,
way until March of this yean Be- tbe successfuj accomplishment of
tween that month and Oct. Id pri- a comrnunity's program depends,
vate mortgage lenders, includ ng
and aiways, on participation
the savings and loan associations,
prjvate industry. The real esreceived, some 20,000 applications ta+e
0 le
the- SUDpiiers, the
The industry has already granted builders? and. all sections of the
cans on nearly 7,003 of them and mortgage lending industry are the
lent an aggregate of well ov^r
ones wbo carry out the program—
million to home purcnasers in ic- and
tbe past year they have
mote areas and small towns and responded commendably to the
to Negroes and members ot othei cbanenge 0f their responsibilities.
f^nancir^thek
Since the urban renewal proenced difficulty m financing th r grgm gQt under way we haye ap-

0U1 natl0naJ stien&111want to comment chiefly on the the signs of apathy that so often .
only Qne dollar out pf
On toe other side of the shield year's developments in respect to appear in voluntary programs. 1
six're nreSents Dublic money
literally— FNMA's secondary mortgage fa- see for VHMCP only a g.owing _thg nfhpr fivo dollars reoresent

that^ separates the swamps of
of

he

strength

national

inflation

cliffs

points the

extending government further ward with confidence to an in- \]m5 ^ now under way' in more
intT°Jhe mortgage field.
crea^ngly pr^ctive^and rfcec- than 2Q0 communities. Of the
Today, nearly a y.ear later, I tive VHMCP. I
nftpn naillions of dollars spent and be-

^^Sa^Sdingwr

travel henceforth the narrow road

cession, on

vnn r

read a road' sign. It
way clearly.

l»

change, both

by an overwhelming majority the
Employment Act of 1946. we in
ef,ect

hv

which

mv

ours,

f°reig"»# are many.

u

When

like

very

economic

mltfnnc S

and the possible

of such financing

tl0n rec°gnizes Private enterprise
ior what ll

high plateau, neither

a

the threat of inflation

We

however,

recognize,

an

m

poised

industry-would be

abuses

17,1955

some of them had reported to me
The key phrase is "customary
and proper." I read it as I would

sssassws^%®"™.
*»
txr^rsssst sttfwsxsw? & ssuBrtRWS c

last

Inflation

of

available for sale at

«• fw/ .«* Ei«r

propriate
Threat

had provided the machinery
wrjic<b in pay opinion, would in a
reasonable time remove government financing from any general
SUPP
the secondary market

costiy and might be ruinous.

inflationary trend

be free.
The

chartered Federal National MortI said that we

fage Association

Thursday, November

—and I use the word

could bear.

we

together for

The strongest

the commcii good.

in the world,

more

work

must

element is expected—and must be

,

aaswfwartr a

All

-cooperation."

word

elements

.

..

four-family dwellings building industry,

prices calculated to yield about
4J/2%
before
servicing.
Multifamily mortgages will be offered

monetary and fiscal
restraints
could be carried too far, just as
it could stop short of what is
needed. Sucp policies are means
duce
upward
of
40%
of
the to; the attainment of a stable
world's goods and services—and prosperity, not ends in themselves.
distributes them wisely and equi- The
only rigidity that we can moderate
restraints
that
have
tably in its own country and else- afford to admit to our minds is ,
imposed
As Arthur Burns
where—and maintains its econ- the principle that the best way pojnted out j'n the speech from
bmy in proper balance—and stays to fight a recession is to prevent wbicb j quot8d jt i3 necessary to
cn
guard to prevent attack from it from
occurring in the first
.
Qn the narrow road
between
without and decay from within— place. That principle has of late ~he
cl-,fg
of infiation
and the
it will not be profitable to resort-ruled,
and it must continue to swamp3 cf recession Credit '-onto violence in their relations with
rule, our governmental policies." trolg will'be adjusted the moment
the United States and other naThat principle must also rule (Pe government is persuaded that
tions of the free world.
the policies of private industry the danger of inflation has reAt the moment the picture is
—all 'elements of private indus- CGded.
We will not slip oif the
favorable and warrants a reason- try.
There must be a true part- road jnt0 the swamps of recession,
able optimism.
But it does not nership between the legislative
M
hil
npw
housing starts
warrant complacency.
We dare and executive branches of the
f™,
not let down
our
guard, either Federal Government, the state and Th
qpr,fpmbpr fi«ure was 0nlv
against possible attack from with- municipal governments, the local
,
.
JL imdpr thp September
out
or
decay from within.
We governments and civic organiza- '
.
f.
.■
,
,
confident
must keep our whole economy in
tions, and private enterprise.
I .. .
®
'm ronf;niJP to build
balance.
And we must continue know
that
such
a
partnership
homes at a rate of about 12
increasingly to make a fair distri— exists, and I believe it is to:"ay millipn
vpar
nr
a
1jtnp higher
bution of the goods and services more firmly knit than ever beT' bpiipvp vo., shire mv -coniiwe
produce so abundantly — so fore. It is the greatest and most dence
that all the people of the country important cooperative enterprise
*
with
marked
attention
to
the in the world.
Last year when I met with you
needs of Negroes and members of
The hallmark of this enterprise
1]? ?s Angeles I discussed the re-

smile and speak
They have come to
understand that so long as 6% of
the world's population can prodecided to

have

more

one- to

will again be

perhaps tragic, if demand for cer-- for sale on a negotiated basis.
tain building materials temporari- FNMA's management-and-liquiiy j[n short supply had resulted, dating
and secondary market
r.ot in more houses, but in raising
holdings
constitute a reservoir
^ae prices of all houses through- from which long-term investors
0ld the country.
may
readily purchase seasoned
But
the
various
government mortgages to replenis.i theii moitaryencfes that have cooperated to gage investment portfolios whenpreven{ inflation are keeping a ever such action is found dcsirclQse watcb Qn tbe eff^ct of "the
able.

m

-

a

slight check on home-purchasing.
have been highly ironic,

Housing Credit Controls
g*

The ing

anti-

putting

by

.

of

New

York

York,

certain New
Whatever may

and

City banks.

have been said, I think

ago

in

Most fundamental of all these
goods and services is decent liv-

ing.
Slums must be uprooted.
Salvageable homes must be re-,
stored. New homes must be built

a

in all parts of the country,

the

Federal

Reserve on

mortgage warehousing loans was
stated

goods and services they produce,

very

of

tude

the atti-

edipq better places for all of their
inhabitants.
This is a desirable end in itself. It is also a means to an even
more compelling end—the maiiitenance and expansion of our
present level of production, which
is the foundation of our national
security, if not our very existence
as a nation.
Four-fifths of the
American people live in cities. If
these people are to realize their
full productive powers, they must
receive their fair share of the

clearly some weeks
letter which Mr. Sproul

A high standard of living must
be maintained. A constantly higher standard must be sought. For a
high standard of livings—that is, a
high per capita share of all goods
and services—is not only the reter:
suit of high production. Jt is also
—the kind that can develop even rectors pending conclusion of a
"The banks to which I talked one of the causes of hish proin an economy of great abun- survey of the general secondary presumably know the difference duction. And if anyone questions
dance; such as ours when the de- mortgage market now under way. between the customary and prop- that, let him contrast the omducmand for certain products shows It is expected that after this sus- er short term uses of commercial tive capacity of the badly fed,
indications of exceeding the sup- pension is lifted mortgages cover- bank credit to finance the home badly housed workman anywhere
start.
There was, of course, no
possibility of the ldnd of printing

now

to
Congressman
Albert
Rains. This letter does not suggest to me that any drastic action
was then—or is now contemplated
by the Federal Reserve.
I quote from Mr. Sproul's let-

wrote

Volume

182

Number 5482

The Commercial and Financial Chronicle

...

in the world with the productive

Mortgage^ Warehousing Under Scrutiny

capacity "of the well fed, decently
housed American workman.
The

have

builders

the

and

overall task of maintaining and
raising the standard of living. In
addition to performing their spe¬
cific tasks, they must always be

mindful

the

of

whole

economic

structure and help to keep it firm
and

sturdy.
loan

and

And here the savings

associations

contribute

outstanding service. Tney not
only provide the largest single

an

of

source

of

capital for t:ie building
but they also furnish
and
stable medium of

homes,

a

George A. Mooney, New York State Banking Superintendent,

lenders

large responsibility in the

a

great

investment

for

occasionally
asks

savings.

When

uninformed

an

per¬

reveals

steps taken to curb undue increases in bank credit

According to George A. Mooney,
Superintendent of Banks of the

porarily placed with commercial
banks are * essentially subject to

State

of

New

York, recent steps

the

taken

to

curb

undue

plied

bank

increases in

raised

the

called

be the amount of credit extended
to

ware¬

cheap

money, I answer, "Not at
The Administration is doing

all.

everything possible to
thrifty Americans to
savings
fair

to

on

their

put

thus

work,

return

while

encourage

earning

individual

an

ciations

of

re¬

compe¬

enterprise." The
savings and loan asso¬

6,000-odd

stand

second

to

in

none

serving the needs of small inves¬
tors.

And
word

I

now

fidence

to

want

say

that

housing

new

last

a

housing itself. Your

on

the

sub¬

has

been

under

con¬

starts

tions

of

to

George A. Mooney

the

is

task

certain

to

ques¬

examination

by his Depart¬

views,

however,

without
of

of

these

on

The

new types of
operations will
subject
to
closer

be

initially

"

by examiners than ar¬
rangements that are familiar and
have stood the test of time," Mr.
scrutiny

answer

His

calls

other

and

rela¬

inflow

"Understandably,

relative

expressed

institution

expected

mortgage lending

standards applied
ment.

its

to

credit

are

prejudice
control

to

which

the

responsibility of the Fed¬
System.
While
mortgage
warehousing
arrangements take numerous
forms, the Superintendent stated,
credits secured by mortgages tem-

eral Reserve

added.
"By no means,
however, is this to be construed
Mooney
as

intimation that mortgage

any

warehousing loans
unsound

inherently

are

improper for com¬
Full responsibility

or

mercial banks.

rests with the management

in

banks

of the
rela¬
activities

developing

any

tively
new
financing
along prudent lines."

will reach approximately 1.3 mil¬
lion

units

founded.

this

Certainly

demand for
to

be

that
far

homes continues

new

healthy, and
the

more

need

know that

we

for

new

likely to

than to
ahead.

grow

decrease in the years

South Africa

Registers $25,900,000 Bonds

Dillon, Read & Co. Inc.

is

homes

The temporary moderate check
has
been
placed on home

that

Dr. J. E.
for the

Holloway, Ambassador

Union

the United

of South

Africa

-o

bonds

taken

in

various

inflation.
work

Let

together

us

fields
all

and

to

on

hold

to

the

whole economy in balance.

segments
maintain

The South African Government
national

If all
and
private
industry
for
their cooperation
with

Government, our productive ca¬
pacity will guarantee the lasting
strength cf this nation and keep
us
forever a free people.

Bank

for

Development
loan

a

in

(World

Bank)

amount

an

equiv¬

be used by

the Union to carry out
current transportation devel¬

opment

program,

provements

to

its

including
railroads

im¬
and

certain other facilities.

Hill, Darlington Branch
BINGHAMTON, N. Y. — Hill,
Darlington & Co. have opened a
branch
office
in
the
Arlington
Hotel under the management of

The offering of the bonds to the
public will be made by an invest¬
ment banking group headed
by

Dillon, Read & Co. Inc. and is ex¬
pected on or about Nov. 30. The

J. Elwin Webster and Brainard C.

offering is expected to consist of

Norton.

three,
bonds,

four,
five
and
10-year
the amounts and interest
rates
of
which
are
subject to
Gocdbcdy Adds to Stiff
negotiation.
None of the bonds
(Special to The Financial Chronicle)
will be redeemable except in the
SARASOTA, Fla. — Arthur J. case of sinking fund redemptions
Ferguson is now connected with of the 10-year bonds at 100%.
Goodbody & Co., 21 South Palm
At the option. of holders, any
♦

Avenue.

interest

at 4.37 Swiss francs per dollar.
The
an

CHICAGO, 111. —Lee K. Miller
J.

become associated with

O'Brien

&

Co.,

231

John

South

La

Salle Street, members of the New
York

and

Midwest

Stock

payments

,

(Special to The Financial Chronicle)

has

principal

or

be collected in Switzerland,

may

With John J. O'Brien

Ex¬

changes.

Union

of

South

Africa

independent state and

a

is

mem¬

First
South

Florida

Investors,

Court Street.

He

Inc.,
was

21

of recent years,

the

to

West

storms
and

Indies

originating in the tropics, have chosen

where values

area

a

general

Thus, whereas an extended
coverage claim by a Floridian as a result of wind damage to his
home is just as serious a matter to him as one to a Connecticut
resident may be to
in the two

ence

cerned.
built

For

into

much higher.

are

him, there is likely to be

cases

far

so

northern

the

it, and to have

an

important differ¬

the insurance underwriter is

as

home
more

is

con¬

likely to have greater value

refinements

than

the

house

in

Florida.
It may,

therefore, be instructive to look at the extent to which,

the various

leading insurance companies go into extended cover¬
and the extent to which their overall lines are concentrated

age;
in

the high value area of the
brunt of the hurricane losses.

northeast that has been taking the

To be sure, tornado losses continue to plague their natural
habitats; they have not shifted their base of operations as have the

hurricanes.

But

tornado

losses

are

mirtor

alongside

those

from

extended coverage, and hence do not present the problem to the
insurance companies that the extended coverage line does.
In the

accompanying schedule there is given, first, the propor¬
by the various companies in
As this is not available on a consolidated basis,
parent data are used. This is representative as casualty units write
only small amounts. To show the recent changes in the line we
have compared these data for 1954, the latest
available, with 1951.
tion of net premium volume written

extended coverage.

proportion of total net premium

nium,

diamonds,
coal,
chrome and

manganese,

other

copper,

total investment

Union's

half

a

Union
most

and

at

the

external

trie

holdings

time

its

important source of hard
Industrial growth has

currency.

been also

39%

12

15

41

Equitable-_ 17

22

48

direct American pri¬
Union, ac¬

rations

in

automotive

associated
of the

firms

in¬

corpo¬

mining,
manufacture, chemi¬

the

field

of

cals, drugs and cosmetics, electri¬
cal equipment, foods and bever¬
ages,

industrial
oil

machinery
refining,

and

rubber

farm

equipment.

_______

10

33

14

24

7

50

11

9

23

11

14

22

11

6

20

17

12

35

7

5

27

11

11

28

;#

;

Merrill

outstanding.

The accounts of the Union since

Lynch Firm

(Special to The Financial Chronicle)

GAINESVILLE, Fla.

—

William

Baxley has become associated
with Merrill Lynch, Pierce, Fenner
& Beane.
Mr. Baxley was

H.

formerly a
McKinney.

1932 have

partner in Baxley &

With Francis I. du Pont
CHICAGO, 111. -Morgan P.

Underwood,
sociated
&
as

Jr.

with

has

become

Francis I.

du

as¬
Pont

Co., 208 South La Salle Street,

registered representative.

j

i

i

36

I

12

-I

Northern

18

22

51

13

14

34

Pacific

12

14

30

Phoenix

12

12

32

10

11

42

32

36

18

9

7

19

11
12

12

23

U.

River

Wash.

Paul
—_

S.

Fire

Westchester
There is of course

a

14

23

14

15

32

12

14

37

i

natural tendency for a company's largest

volume to be in or around its state of domicile, which accounts tor

proportions as Boston Insurance's 45%, and Providence
42%. But while Glens Falls shows 50% in this

such

Washington's
area,

I

i

40

Union

Springfield

made.

leading

9
14
2

Security

American

or

31

32

14

St.

Commerce, amounted to an esti¬
mated
£69,000,000
since which
time substantial further American

some

Ins.

Republic

cording to the U. S. Department of

branches

8
10

12

Prov.

vate investment in the

clude

11
11

I
11

13

North

grams.

the

i
<

New Hampshire

National

pro¬

companies operating in
Union
through subsidiaries,

_____

National Fire

nor received any grants
from the U. S. Government under

been

34

Ins. Co. No. Amer

quested

have

8

Home Insur.

The Union has neither re¬

investments

12

Hartford Fire

United States which has been paid

As of 1952,

45

Hanover

principal,

"aid"

40

10

Gle'ns Falls

its debt. This includes

postwar

14

10

Great Amer.

has always paiji when

the

Shippers-- 12

Ins.

Fireman's Fund--

the Union's lend-lease debt to the

of

41

Fidelity Phenix

interest and amortization require¬

any

9

Fire Ass'n

enemy-occupied
World Wars,

and

due the full amount of

in full.

6

Firemen's

enemy

ments upon

33

Automobile Ins.

.

territories during the
the Union

10

Continental Ins.

Except for payments to persons
in

__•

__

the 9 Northeastern Statet

10

Bankers &

total

lis

Writings in.

1954

10%

American Insur.

Boston

The ratio

to

debt

Net Premium

Writings-

1951

Agricultural
American

Proportion of Total

11%

Aetna Insur.

debt is 9%.

century the

same

{
Ratio of Extended

(£567,000,000)
in
revenue-pro¬
ducing
facilities
are
deducted
from its debt, the ratio of debt to
ox

average repre¬

,

Coverage Writings

represented approximately 62% of
the national income in 1954, If the

William H. Baxley With
a

by-and-large, the line has about

35% is in New York State, and only 15% in the other eight
Several of these companies not only show wider geo¬

states.

graphical diversification of risks underwritten;
"soft-pedal" the extended coverage line.

but

tney

also

apparent is the divergent handling of the line by
Some have, since 1951, increased the propor¬
tion of this line to net premiums, while others have reduced.
Plainly

various companies.

various

ores.
over

land; New York; Pennsylvania; and New Jersey, while, of course,
some companies are likely to
keep their extended coverage volume

•to Total

equipment,

ura¬

consistently produced a
surplus as to ordinary revenues
Joins Schwabacher Staff
and
expenditures, although the
(Special to The Financial Chronicle)
Union has resorted to borrowing
SACRAMENTO, Calif.—George in order to finance major capital
E. Frioux has joined the staff of
expenditures, including the devel¬
Schwabacher & Co., 1901 Jay St. opment of
railways, hbusing, com¬




"catastrophe"

these

devastation

enterprises.

goods and tires, and tractors and

particularly rich in gold,

pre¬

viously with Beil & Hough, Inc.

when

years

their

key in¬

It is

cipal producer of gold, which is
the most important export of the

ORLANDO, Fla. —William W.
Martin has joined the
staff of

earlier

Florida where the property values were relatively low, the storms

Sept. 30, 1955 amounted to £ 961,000,000 excluding £33,300,000 of
guaranteed debt. The direct debt

country has been the world's prin¬
(Special to The Financial Chronicle)

certain

and

ber of the British Commonwealth.

For

With First Florida Inv,

in

confined

The public debt of the Union at

Reconstruction

alent to 9,000,000 pounds sterling.
Proceeds from both loans would
its

dustrial

national income is 21%.

is also negotiating with the Inter¬

of

another and with the Federal

one

in

the United States.

avoid

continue

to

whereas

low in this area,
sentation there.

Underwrite Issue

to

munications

States, announced that

the Union of South Africa had

building does not alter the hous¬
Nov. 15 filed with the Securities
ing picture. It is a very good pic¬
and Exchange Commission a reg¬
ture all across the country. It will
istration statement covering $25,be a better and more lasting pic¬
000,000 principal amount of Ex¬
ture for
the restraint that was
ternal Loan Bonds, dated Dec. 1,
applied earlier in the year.
1955. The proposed financing rep¬
Our
whole
economy
will be resents the first
public offering of
stronger as well for having been
Union of South Africa
kept in line by the gentle actions

that

more-or-less

volume that is written in the nine northeastern states: New Eng¬

also know

we

Pursuing further the discussion of extended coverage, the fire
insurance line that is proving to be so costly because of the hurri¬
canes of recent
years, a factor that gives concern to the carriers is

Also given in the schedule is the

well-

is

year

This Week—Insurance Stocks

factor.

a

the

intended

con¬

general marke Lability
the mortgages involved also is

study

that

and

following

free

with

that

ject

statement is

moving government from
tition

declared

a

further in the direction

tive

ar¬

thei^r investments

supplying private industry
with more capital and advancing
us

housing

Also

sidered, however, would have to

mort¬

gage

considerations.

funds.

of

when due is among the

mitments

He

American

ap¬

business

prime

prive

average

of

types

propriety of
the
rapid
growth cf so-

rangements.

the

other

to

soundness

Ability of the mortgage
institution, whether the origina¬
tor, the intermediary or the per¬
manent investor, to meet its com¬

questions
about

of

loans.

credit

have

tests

same

funds

me

By ARTHUR B. WALLACE-

arising from rapid expansion in mortgage warehousing loans.

whether the present
Administration is trying to c:e-

son

Bank and Insurance Stocks

\

-

23

(2099)

NATIONAL
of INDIA,
Bankers

Kenya

to

BANK

LIMITED
Government

the

Colony

and

in

Office:

West

London, E. C. 2.
End
(London) Branch:

26

& TRUST CO.

Uganda

Bishopsgate,

Head

FEDERATION BANK

-

St. James's Square, S. W. 1.
In India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

Bulletin

on

Request

13,

Branches

land

Protectorate.

Authorized Capital

Paid-Up

£4.562,500
£2,851,562

Capital
Fund-

£3,104,687
The Bank conducts every description of
Reserve

banking

and

Trusteeships
also

exchange

and

business.

Executorships

undertaken

Lairdf Bissell & Meeds
Members New York Stock
Members

Exchange

American Stock Exchange

120 BROADWAY, NEW

Specialists

in

;

YORK 5, N. Y.

BArclay 7-3500
Pell T'letyve—NY 1-1248-49
(L. G. Gibbs, Manager Trading Dept.)
Telephone:

Bank Stgcks

\

I

24

(2100)

The Commercial and Financial Chronicle

Continued

from

demand

5

page

Thursday, November 17,1955

...

Our

Reporter

Yardsticks in the Evaluation

into

a

certain

in the Government market

amount

of

ratio

to have

appears

resistance, and this

Oi Common Stocks

run

ing the future price-earnings ratio You would think that

carefully as we weigh the
prospects for profits.

just

discounting, in some measure at least, a change
policy of the monetary authorities; (2) The tight money and
rate raising program of the
powers that be is not con¬

in

There
that

sidered to be exactly conducive to

strong and steadily advancing

a

market; (3) Year-end adjustments

bring about

a

new

certain amount of liquidation;
raising and refunding operation

money

Market

are quite likely to
(4) The impending

and the

How

of

they

and

The
1949

for

be

being felt

was

that

the

few institutional investors

invest funds in selected issues of these securities. Positions in
of the more distant

obligations

1.

.J

*

i..

1

il

was

obtained

'ffi

through
*

the longer-term Government bonds.

a

Factor in Price Decline
the intermediate-term

Government

obligations began to get toppy and buyers became
somewhat hesitant, it was not at all surprising to see
prices of these
issues give some ground. The downward adjustment in
prices, so
far, has taken place on very light volume, with prices being quoted
down rather than being forced down because
securities seeking liquidation. This,

of the

is still sound, and should afford those who have been

readjustment in quotations in order to add to their

a

of

pressure

according to reports, is taken
indicate that the technical position of the Government market

to

opportunity to buy the issues in which they have
With

bonds,

on

comes

decline

in

prices

of

the

most

as

as

more

there¬

years

followed

the

war,

were

years. They were biggest
1947, according to the Depart¬

of

and

profits reached

their record high, the Department

inventory

profits (they call it the inventory
valuation adjustment)
billion.

at $4.9

Last year there were no inven¬

tory

profits.

In

the

first

half

of

this year, they were estimated at
the

distant obligations.

annual

rate

of

one

billion.

They will probably be higher in
the second

Two With Allen Inv.

Greenberg, Strong Adds

(Special to The Financial. Chronicle)

BOULDER, Colo. — William H.
Kelley and Edward L. Reed have
joined the staff of Allen Invest¬
ment

Company, 1921

14th Street.

With Denver Securities
(Special to The Financial Chronicle)

DENVER, Colo.—Fred A. Simp¬
son is now with Denver
Securities,
Inc., 711 17th Street

(Special to The Financial Chronicle)

DENVER, Colo.

—

pold has been added

the

staff

of

Greenberg, Strong & Co., First
National Bank Building.

With Wayne Jewell Co.
(Special to The Financial Chronicle)

DENVER, Colo.—Leslie A. Linn
has joined the staff of FIF Man¬
agement
man

Corporation,

Street.

*




444

Sher¬

there.

are

1947

inventory

and

1950,

profits

are

however,
negligible

today.

Therefore,

the

price-earnings
ratio should be much higher to¬
day than it was in 1947, say, or

1950,

because

depreciation

is

so

a

large,

Colo.

now

—

with

Scottie

second

factor

T

dividends.

(Special to The Financial Chronicle)

is

percentage
distribution

L.

Skyline Se-

been

By past experience,
of a higher propor¬

profit

able

dividends is to be

as

as

Conclusions

First, stock prices today are

which

are

relatively

a

stocks

There
in

the

and

have

been

differential

wide

swings

between

bond

stock

yields over the years.
1929, Moody's Corporate Bond
Yield
Average was 5.2%?, while
industrial common stocks yielded
an
average of 3.5%?. In 1949, in¬

relatively high,

its before taxes are

in terms of

too high

not

for

common

per¬

Prof¬

however, making them more vul¬
nerable in recessions.
They are

bonds. Common stocks today yield
around 4% on the average.
Cor¬

pricewise, and make a
higher price-earnings ratio likely
in the future, some observers ask.

low

centage of national income.

an

make

not

high, statistically, in terms of
net
corporate
profits,

current

Another
factor
affecting
the
price-earnings ratio is the relative
yield investors expect from com¬
mon
stocks, as compared with

vulnerable

are

their ^earn¬

paying out only half
ings as dividends.

earnings ratio

porate bonds yield an average of
3.30%. Does not this narrow dif¬

corporations

when

ticularly

12.5,

of

a

as

priceagainst

16 times in 1929,

extreme like

particularly if we keep in mind
the higher quality of current cor¬
porate

and the tendency
yields to be closer to

profits

stock

bond yields.

decline

in

profits
cyclical

corporate

Secondly,

would be vulnerable to

business,

as

a

they have

been.

High corporate income taxes
as a cushion in one sense, but

act

they also make net profits more
vulnerable

in

cyclical

a

it

because

decline

difficult

to

shift

business

becomes

taxes

to

more

buyers

In

then.

dustrial

whenever a business
profits to decline,
be
lessened
because
the
prevailing
price-earnings ratio could rise si¬
multaneously.
This could result
from
fuller
recognition
of
the

7%

stocks

common

the

on

yielded

and

average,

bonds

only 2.9%?.

Today

bpsis

whereas
basis

Stocks

common

points
in

points

more
'49 they

yield

70

Thirdly,

downturn

causes

the impact on stock prices may

bonds; higher quality of profits and

than

yielded 410
and in 1929 it

increased

dividend

an

payout of net

profits.
It is conceivable — this
happened in 1954 — that profits
yielded
170
basis points more. could decline moderately and divi¬
In fact, net prof¬
Compared
to
1929,
stocks
are dends increase.
cheap in terms of yield as com¬ its could drop by 20%?^ and cash
pared to bonds.
Compared with dividends rise slightly, if corpora¬
1949,
they
are
awfully
dear. tions want to pay out 70% of
Which is right?
earnings again instead of 50%.
In 1929, we had a security mar¬
The price-earnings ratio could
ket dominated by individual in¬ tend to rise also, even if profits
vestors.
were
to
decline
moderately, if
Comparing stocks and
bonds, individual investors prefer people continue to invest directly
stocks.

of

more,

the other way

was

dollar

A

is worth

interest

holder

the

in¬

dollar

a

with

because

income

stock¬

benefit

the

gets

and

stocks

on

on

bonds

file

least

bit—0.1

the

years

stocks
of

aver¬

only the

was

than

1%?—more

the yield on bonds.

Between 1919

and 1935, the period when the in¬
dividual

investor

dominated

security

markets,

stocks

Since 1935,

it has been the other

Why?

What

sentence:

one

after

panies,

of

the

sum¬

The

in¬

invest¬

The change became
1935.

for

Since

been
com¬

banks

bonds

and

pension funds.

more

of

smaller

investors

"bargain hunters."

the day

to

tend

On Sept. 27,

after the spectacular break
by the
illness, odd lot pur¬

in the stock market caused

President's
chases
and

lot

exceeded
more

were

sales.

A

cline, instead

750,000
than

shares,

double odd

moderate

price

de¬

of discouraging the

public from investing directly in
equities can encourage such pur¬

although a
catastrophic
decline, as in the
1930's can discourage direct public

and

protracted

investment
a

in

equities for almost

generation.
I

1935,

has

by life insurance

market

dominated

be

can

be

mar¬

chases,

What happened?

happened

marized in

the

persist¬
bonds.

ently yielded less than
way.

more

ket declines because the rank and

yield

average

individual purchases of

stocks could become

was

the

on

In fact,

pronounced when the stock

only two exceptions, '24 and
yield

chases.

the
lower

than

age

tinue to step

1935,

with

'26, and in those

equities a larger proportion of
savings, arid institutions con¬
up their equity pur¬

their

common

1919

yield

in

of

earnings.

Between
average

dividend
than

income,

also

retained

of

more

dividend

the

around, bonds

recently

These institutions,

Form Ackerson-Hackett
SALT LAKE CITY,

Ackerson

and

Utah—Ruth

George

Hackett

"

wrongly_
an(j for many investors I thillk
wrongly—distributed earnings are

which

valued

securities, drove down bond yields
to very low levels.
Absence of

Rightly

more

a

to be

expected in the future.

the

affecting

has

price-earnings
low
earnings paid out
the relatively

of

dividends.

tion of

which

been

dollar of dividends again
considered as valu¬
a dollar
of interest, par¬

stocks,

recent

the

down

has

marked

the
price-earnings ratio is the level of

Skyline Securities

DENVER,

ratio

re-.

are

yield

the

to

eomes

too

factor

holding

as

in

•

'48, they paid

only 36%.

One

stitutionalization

negligible, instead of

corpora-

And

and

ment market.

A

Branch

out

50%.

like '47

are a

DENVER, Colo.—Henry L. Mc- part cf reported profits.
is now with Wayne Jewell
Dividend Pay-Out
Company, 818 17th Street.

With

about

much higher and inventory profits

Bride

Joins FIF Management
(Special to The Financial Ch"onicle)

half, because commod¬
moving up here and
By comparison with years

ity prices
like

Robert Leo¬
to

out

years

come

reported

with,

compare

we

pattern of
the '20s and the first half of the
'30s.
As individual investors and
such institutions as pension funds
broaden
demand
for
common

■

tions paid out an average of twothirds of their earnings in divi¬
dends.
This year they will pay

years

of Commerce estimated

City member banks, last week, for the first time
in a long while, extended their Government
bond maturities in
fairly sizable amounts. This reportedly was accomplished through
into the

that

certain

out

those

New York

issues

some

Commerce, when they
almost $6 billion. In
1950, when the Korean War broke

New York Member Banks Extend Maturities

near-term

inadequate

grossly

was

aggregated

buyers of Government bonds. It is
indicated that these institutions have been
putting funds to work
in the discount 2%s as well as the 3s of 1995.

switches from

than

more

abnormally swollen
by "inventory
profits." An iryventory profit, as
•we
use
the tefm, is the largerthan-normal markup on low cost
inventory sold in a rising market.
When the commodity price level
rises, business is selling low-cost
inventory at higher prices, and
that gives an added profit which
is
called
an
"inventory profit."
That profit may be perfectly valid
to the accountant, i,t is misleading
to the security analyst
because,
unless commodity prices keep on
going up, it's non-recurring. Once
prices level out, there is no more
inventory profit. So, from the
point of view of the security ana¬
in

ment

according

well

It

1945 and for

in

advices, has not, however, been too sizable.It is also reported that banks in Middle West
the Pacific Coast have been

lot

a

post-war

Government

The amount of these
purchases,

worth

inventory profits are non¬
recurring and of little value.
Inventory profits
were
very
large in the profit stream of the

interest.

an

distant

to

that

is

result

turning

earnings as 4;videndsla-

re¬

lyst,

looking for
holdings, an

reports that Treasury trust accounts have been buy¬

of these securities.

ers

to

the

are

profits

switching out of the intermediate and short-term issues. A
substantial, though smaller amount of new money was also put into

Liquidation Not

Profits

The

Corporations-have been paying
out an-abnormally low percentage

ferential

the

When quotations of the long-term and

much.

as

Secondly, during the period of

from the highs- registered Jn the recent upJ
swing in quotations of these Government obligations. A good part
of the money which went into these securities

with

allow¬

times

inflation

some

i

depreciation

after.

were

i.1

!■

not too far away

of

three

in

rebuilt after they had been
cut down with the upward trend in quotations of these securities*
In some cases, the prices paid for the^bonds which were
acquired?*
were

only

total

today.

these

inclined to

were

to

amounted

about
adequate, to finance re¬
placement of productive capacity

purposes and this took a certain amount
Of the pressure away from this part of the market.
The long-term Government bonds were
being put into many
a

First they

This year, depreciation will
around
$14
billion,
fully

ciation

obligations for liquidity

portfolios, since not

reasons:

profits reported. after $4.6 billion
of
depreciation. Depreciation is

Nonetheless, without very much help from the Federal Re¬
Banks, funds began to seep into short-term Government
institutions that had to have

good

ported after $14 billion of depre¬

serve

were

1946

kind

ance.

near-term sector of the market.

securities because there

of

not

were

could not be replaced

assets

sharply in the

more

1948,

major scale.

a

on

earn¬

was

like

$4.6 billion. Due to inflation, fixed

Treasury issues moved independent of the shortobligations because the pinch of the money tightening opera¬
that

in

ance

The longer-term

powers

ing to common stocks increasingly,
some of them, like pension funds,

-

gate corporate depreciation allow¬

distant Government obligations because certain institutional
investors had funds available for the purchase of these securities.

the

1950

and

years

altogether inadequate allow¬
ance for depreciation. The aggre¬

more

tions of

highly than retained
ings in most instances.

the

years,

Institutions also are turn¬

stocks.

earnings

quality,*;®®?"'
1° the. 20s, which
the years.
last prosperous decade we

poor

much

worth

not

profits of

distributed

more

an

coming year at levels that would be comparable to those currently
existing.
enlarging demand

of

are

quality for two

or should be eased in the future.
This would be done
in order to keep certain segments of the economy
operating in the

an

aualitv

good

represented profits reported after

heads of Government agencies that

was

of

values

have

To be sure, quotations of most

and would

time, there

are

their recurring
profits are re-

worth more. If profits
likely to recur in the

'

encouragement to the belief that money rates were tight enough

term

are

If

are

future, they
J

interested in the availability of credit, as well as the statements
of other important individuals in the financial
district, gave some

same

By

thev

not

are

are

the

profits?

currine

Treasury obligations have had a fairly good rise, on not too much
volume, because it was felt that the tight money policy of the
powers that be would be eased in the future. It appears as though

At

ket

quality

measure

one

characteristics.

Slowing Down

the statements of the various

in the higher income
brackets
would prefer earnings to be retained, so that they can be reinvested for his benefit without deduction of personal income tax.

a

does

as

edge off Government bond market.

forces

investor

an

few

last

has been reversed. People
are regaining confidence in their
ability to invest their own money
directly in securities. A growing
proportion of individual savings
is
going
directly into common

change in the quality But human nature being what it
and
since
institutional
and
of profits.
Thus, today's profits is,
are
worth more than the profits some other investors are not af¬
fected by income taxes, the mar¬
of a few years ago.

though the combination of continued tight money
resurgence of the equity market has tended to take the

seems

of

number

a

produce these

One is

of the Treasury is
tending to create a certain amount of hesitation among potential
buyers of these securities; (5) The improved trend in prices of
common
stock; and (6) The keen competition for available funds
from loans, mortgages, private
placements as well as tax free
obligations.

It

are

wide changes
in the price-earnings ratio.

interest

Government

as

the

In

process

is being attributed

to a number of things,
among which are the following: (1) The
rise in prices of certain of these issues had taken them to levels
where they were

the price-earnings

forcing
higher.

terest,

By JOHN T. CHIPPENDALE, JR.
The uptrend

valued
of in¬

than a dollar

at much less

up¬

time, and a dol¬

same

lar of dividend came to be

Governments

on

yields

stock

forced

ward at the

or

highly in the market

curities. Inc., 1719 Welton Street, than retained earnings,

as

a

rule.

sonal

collected

savings

discouraged

the

as

direct

bulk

the

of

per¬

depression

investment

have formed the Ackerson-Hackett
Investment Co. with offices in the

in
Continental Bank
gage in a

Building to

securities business.

en¬

Volume 182

Number 5482

..

The Commercial and Financial
Chronicle

.

25

(2101)

Record Increase in
Capital
McGraw-Hill

Spending Planned

finds that greatly increased
expenditures
for 1956 are
planned by manufacturing companies, commercial
banks, railroads and other transportation and communications
firms. Thirty percent rise
envisaged for manufacturing com¬
panies. Notes unprecedented optimism
regarding sales pros¬
pects* Sees favorable expectations
carrying over until 1957.
American
spend

survey

business

13%

for

more

and

equipment in
the
largest
planned capi¬

spending
since 1951,
when

to

plants

than

increase

meet

Ma

n

during

in

the

much

so

Korean

considerable

t

ened

boom.

expenditures

1956.

the

in

-

in

in

boost

Planned

sharply

increases

chemicals and

13%

in
34%

are

for oil

re-

In metal working, the picture is

*.v

jjng companies'^:

dominated

plcin

program of the automobile indus¬

to

in--

suits of

a

of

sur¬

vey

of

ness

plans

Dnxter

M.

ing

Keezer

for

plants

new

next

year,

to

well

as

produce

were

announced

and
Nov.

Mr.

any

has

Keezer

that

the

of

the

survey

conducted

de¬

to

date,
He emphasized

said.

made,

autos'

was

President

Eisenhower's

I

illness.

Present plans for American

whole

a

call

for

billion

in¬

for

1955, and

$4.2

than the $29.2 billion

more

in

spent

1953, the previous peak

year.

boom in capital

new

spending
A large
proportion of the reporting com¬
panies states they expect to equal
may

carry

into 1957.

on

exceed their

or

1956 expenditures

the

following year.
Key results of the preliminary

Paper
also

and

are

(1)

rubber

while

industries

in

companies'

1956

is

by far
the
largest reported since just
after
Korea.
Expenditures
by
commercial
other

up

business,

railroads,

transportation and

nications

companies

substantially,

commu¬

also

will

according

be
to

intentions.
(2) The petroleum industry as
a
whole plans a 6% increase in
1956.
Expenditures
by electric
and
gas
utilities will be down
present

slightly, and spending by mining
industries

will

also

be

lower.

Companies in almost every
field expect sales to rise in 1956.
For manufacturing
as
a
whole,
the anticipated
increase is 7%.
Optimism
on
sales
widespread than in

was

more

recent

any

survey.

reported

in

this

survey

preliminary, because many
companies do not complete their
budget reviews until later in the
year, but, in the past, these ad¬
vance
estimates have accurately
shown the trend of capital spend¬
are

ing.

u

Capital Spending in

and

Though companies are planning

higher expenditures in every line
of manufacturing, the largest in¬
are in primary metals, in

creases

automobile

next

Plans in

the

two

last

levels,

expenditures

industries

are

at

years

the steel

and

for

reduced

non-ferrous

planning

new

and

large increases in spending—72%
for

steel

ferrous

and

group

54%
—

In

in

the group of indus¬
capital investment is
and one-third of total

where

highest,
employment in all industry.

MIAMI, Fla.—Amanda N. Freels
has

been

Frank

Samuel
a

H.

Kaplan

securities

textiles,
firms
expect
the offices at 33 West
largest increases; each of these New York City.

42nd,

Street,

the
&

staff

of

8340

Co.,

Avenue.

(Special to The Financial Chronicle)

is engaging

business from

to

Joins First Florida

♦

manu¬

added

Edenfield

Northeast Second

S. H. Kaplan Opens

chemicals in

L.

ORLANDO,
Oldt
First

has

Fla.

become

Florida

—

Leslie M.
with

affiliated

Investors,

Inc.,

21

South Court Street.

l»J

a.}

for

the

non-

along the

same




+■*

a

new

moder¬

name

a

Other Industries

the

major non-manu¬
industries covered by
the survey, the petroleum indus¬
try

to

expects

spending
ing

6%

and

ment

increase

in

1956,

its

oil well

new

total

with

ex¬

drill¬

other

production equip¬
6%, the refining sector

up

WINN-DIXIE

13%, and marketing 7%. How¬
new
pipeline construction

up

ever,

is

scheduled

resulting in
penditures

to

decline

continued
for

in

STORES, INC.

1956,

lower

ex¬

the

transportation
division of the industry.
the

time, the mining
cutting spending by
year,
with the drop

same

industries
15%

are

next

coming
mainly
in
non-ferrous
mining while coal and iron min¬
ing
expenditures
remain
about
the

same.

Railroads

plan to boost capital
spending 27% in 1956, reflecting
the high level of rail traffic and
improved earnings of the railroad
companies.
and

Other

transportation

communications

industries—

airlines, shipping, trucking and
telephones
also plan to raise
spending by 16% for the group
as

whole.

a

But

electric

together
10%

are

less

in

and

utilities

gas

scheduled

to

spend

1956.

This is pri¬
drop in spending
on
gas pipelines.
Electric power
companies will spend less on gen¬

marily due to

erating

a

equipment,

transmission

but

and

more

on

distribution

>.

■

a merger

v

WINN

&

of the operations of

LOVETT GROCERY COMPANY

equipment.
An

increasing number of

mercial

business

ticipating

in

firms

the

are

com¬

limited

and

department

McGraw-Hill

and

mail

r and

DIXIE-HOME

STORES

order

the reporting firms show
an increase of 10%
in capital ex¬
penditures next year,
which is

strong
indication
of
higher
spending for this category.
a

Outlook for

■

.

par¬

Though this sample is
to large chain stores

surveys.

still

industry, and in the
the suvery

With

expected to be up 8%.
facturing,
machinery,

In

year.

Among
facturing

industry,

showed.

year.

(Special to The Financial Chronicle)

all

textile

planning

stores,

Manufacturing

the chemical

next

of

—

(3)

Plans

for

companies expect
their sales to increase 7% on the
average.
Commercial business is

50%

companies

food

are

this continues

At

Manufacturing
increase

30%

prospects

Manufacturing

tries

than

scheduling much higher

outlays,

show:

survey

workers

Companies in almost all indus¬
are
optimistic about their

tries

sales

more

record
expendi¬
$1.3 billion in 1954. (These

penditures for

Survey results indicate also that
the

employ

1956.

total

capital expenditures of
$33.4 billion in 1956, an increase
of $4 billion over the $29.4 bil¬
estimated

top

do
not
include
special
tools, dies, jigs and fixtures.)

business

lion

to

Frank Edenfield Adds

previous

ture of

food
processing,
long-term growth
trend, but in textiles, it is an up¬
turn after several
years of cur¬
tailed capital spending.

as

1957

will

ately higher capital expenditures

dustry

ing.

industry already have
Companies
reporting
in
Mc¬
plans, and just under 30%
Graw-Hill's annual survey of pre¬
of
the reporting firms
in steel
liminary capital spending plans
and
petroleum are planning for

bring spending to $1.9 billion; the
largest total for any single manu¬

most of the results received, in
October, well after the announce¬

survey

of

manufactur¬

ing capacity, and this probably
explains much of the plant ex¬
pansion being scheduled.

production.

and

ment

(Special to The Financial Chronicle)

DENVER, Colo. — William M.
Logan, Jr. has been added to the
staff
of
Carroll,
Kirchner
&
Jaquith, Inc., Denver Club Build¬

for 1957 and continu¬

cars

automation

figures

in

present

substantial

•

Department

Company's
Economics, which

conducted the survey.
The num¬
ber of firms
participating was the

greatest

to

Carroll, Kirchner Adds

re¬

not

as

facturing industry and exceeding

partment

additions

without

could

re-

11
by Dexter M. Keezer, VicePresident and director of the Mc¬
Graw-Hill Publishing

of

achieved

expectations

survey

tremendous

The planned increase of 68%

busi¬

equipment

the

equipment

styled

pre¬

liminary

by

facilities

new

*

re-

sales

this

»

spending by..,;..
30%:
< : v .%: ;
>:• These

in

try, as the major automobile com¬
panies plan substantial expansion

their

crease

The

and

'fineries.

rgenCy.iv
ufactur^

be

paper,

1955.

ported

such

defense
supporting
1951-53, then slack¬
1954-55, now plan to

capacity

chemicals,

chemical

capacity

War

industries expects a 9% gain over

rubber, airlines.
In all these
industries, at least a
third of reporting firms
already
plan to increase spending in 1957.
Nearly
half
the
firms
in
the

The chemical and
petroleum re¬
fining industries, which also built

in

Korean War '■
e m e

lines that added

plans
boosted

were

to

new

1956

1955,

tal

plans

The
longer - run
outlook
for
capital spending is particularly
bright in these individual lines:

now more

than

ever

before—

"thefastest groiving food chain in the South"

1957

Over half of all companies
par¬

ticipating
to

spend

in

the

the

expect

survey

same

in

1957

as

in

1956.

In

every

major group except rail¬
at least one company out
already
plans
higher

roads,
of

manufacturing,

and

in

five

spending for two

years

from

now.

WINN-DIXIE STORES, INC.
General Offices

•

Jacksonville, Florida

f

The Commercial and Financial Chronicle
26

..

.

17,1955

Thursday, November

(2102)

Continued from

of

ception

first page

Funds Grow Cautious

Investing In
Series
stock mutual invest¬
ment fund providing a supervised
investment in securities selected
common

possibilities of long-term

growth of capital and income for
and

shareowners. Prospectus

its

information

other

tained

dealer

from

be ob¬
investment

may

your

or:

&

Established 1930

New York 5, New

Broadway,

120

(see Table
stock hold¬
ings is even greater than would
appear from the figures because
stocks
appreciated in price 6%
from June 30 to Sept. 30, accord¬

maintained."

The

II).

Corporation

Research

York

surveyed

Management Reactions
do

the

Some

merely

tion of lower stock prices.

OF

a

Incorporated 1933

be

bearish

for

through common stocks
selected for their invest¬

of assets in

from your

Distributors

REQUEST

ON

Fund,

points

take

of the Value Line
Fund have been apprehensive of

dividends,

market price
for some time past, and have
a defensive position for that

level

for

reason
never

New England
Fund
ORGANIZED 1931

two

But

years.

position

been as large
and still is.

it has been recently

as
.

over

in the Fund's career has the

defensive

.

stock

.

The Fund holds a sizable com¬

on

commitment.
the

Fund's

yields

terms of fundamentals and to keep

Imrie deVegh in the quar-

tions.

terly report of the deVegh Mutual
Fund
states::: "In line with the
of

last

quarterly

which

our

re-

the

were

Putnam, C

his

would

name,

cautious

manager

.

in his Septem-

55

ASSETS,

IN

above

largest

reserve

common

for the

stocks

the

Common
Stocks

Total

$28
5

$18
19

$87
53

$33

$37

$120

Corporate Bonds &
Preferred Stocks

$21
29

$50

Total

TABLE

Common

II

Grade Bonds and Pret'erreis

Stocks Plus Lower

June 30

Open-End Balanced Funds:
American Business Shares

56.1%

51.7%

Axe-Houghton Fund "A"

61.6
62.7

60.4
60.7^

53.8
68.5

51.8
44.6

68.5
96.2

66.6
89.8

Scudder, Stevens & Clark
Stein Roe and Farnham

line

Value

Line

—

Fund

Wellington Fund

the

—

Wisconsin Fund, Inc

Open-End Common Stock Funds:

inT

:»>«» 4

Broad Street

Massachusetts Investors

BOSTON

Growth Stock Fund

PORTLAND

Shares..

—

Corporation..
Corporation

State Street Investment
Wall

Street Investing

Closed-End

Century Silares

invest in

.

76.1

90.1
93.6
58.9
88.6
89.7
93.8
88.6
81.2

,

85.6
71.5
95.2
82.1
81.3
89.4
81.7
78.2

89.0
79.9
80.8

92.2
83.2
82.7

Securities

Corporation
Tri-Continental Corporation
National Shares

vAassachusett. investors Trust

89.1
83.9

Companies:

American European

BANGOR

HARTFORD

Stock

Growth Stock

Selected American

Incorporated
Founded 1898

:

...

Fund

T. Rowe Price

Coffin & Burr

NEW YORK

Street

-

88.4

Massachusetts Investors Growth
Pine

^

87.5

Investing..

Knickerbocker Fund

i

.

90.5

deVegh Mutual Fund
I
Eaton and Howard Stock...

ufun d

Assets
s
September 30

Per Cent Net

,

Affiliated Fund

National Distributor

issues, in

OPEN-END COMPANIES

Cash and

Stock Funds

purchase

since

oils, was

I

Governments

Balanced Funds..

program

provides

and

quoted

x,

,

pro¬

in

is

such

(Millions of Dollars)

yield
bonds.
of Sept. 30,

investment

'

in

years

September Quarter, 1855

grade

increase

This

the

recent

groups, including the
lacking. Other defensive

TABLE

INCREASE

jn

actions

the

of

but

the heavy concentration of trans-

to

best

seem

attitude

the

summarize

of the Fund's assets
cash, bonds and preferred

in

stock.

of

ties the pronounced favorites,

a^^|

of tne trustees of the fund bearing

19.3%

with

Overall purchases were cut
down by 15 /2% during the period
under review with electric utili-

.

~,u

,

p,

„

,

^

to

George

...

Concentration Lacking

G

during the quarter from
23.9% of net assets."

creased

than the

high

on

You will note that as

1955,

*n a confident manner.

States
were
in-

stock averages,

less

is

that

the best American common stocks

in

ness

United

securities

Government

11.6%

report,
and

of cash

your

sounded

caution

note

serves

feet on the ground. Busileaders seem to be going
ahead with them expansion plans
one.s

so
that average
declined to around

have

It is the opin¬
managers

posi-

portfolio

in

^

stocks

growth

obtainable

of

shifts

nounced

have made pro-

rather

caution

bearishness

bull market has resulted
sharp
advances
for
many

3%

ion

Of

As

we see it, this is neither a time
for pessimism nor undue optimism
~xt 1S a g°°d time to think in

who talk
than outright

managers

some

stock

market decline are unlikely.

longed
in

no

Caution

of

and prospective

months

recent

During

preferred

rary

Even

decline close to the
yield obtainable on high grade
bonds, then a large reserve in
cash, bonds, and possibly
pre¬
ferred stocks may be established.'

mitment

(13.0%) in highest grade
stocks. . . . The large
position in high-grade bonds
(41.3%) should be considered a
temporary commitment only. In¬
deed, even the high grade preferreds are, in a sense, a tempo¬

the

of

the end

at

Words

buying opportunities. If occasions
when the yields on repre¬
current

held

report

arise

common

general

his

be established at times to
advantage
of
subsequent

may

quarterly report to his share¬
under date of Oct.
28:

the

com¬

bonds

government

and

based

York 5, N. Y.

pros¬

moderate reserve

sentative

Group, Incorporated

63 Wall Street, New

A

stocks.

cash

of

of the time in

most

vested
mon

"The managers

investment dealer

favorable

have

to

holders

his

the

capital

.

.

junior equities, let us
read what Mr. Bernhard says in

quality.

PROSPECTUS

A

growth

set forth in

as

of

pects for continued growth in
earnings and dividend payments.
!
The Fund is to be fully in¬

some

during the Sep¬
tember quarter he has become a
heally bold bear.
After looking
back at the Value Line's 441/2%

ment

believed

time recently, but

investing

re¬

ment in common stocks which are

cautious attitude, others
in their expecta¬
Arnold

to

its

and in¬
of income through invest¬

crease

Fund, for example, has been

known

Fund,

appreciation

outspoken

Line

the

of

Bernhard, President of the Value

Group Securities, Inc.

in

Fund

Prospectus, is To seek long-term

express

THE COMMON

are

Stock

Growth

strongest defensive position since

about their policies of

say

Baltimore, has likewise placed

his

the

of

managers

STOCK FUND

and

eating a policy described as 'cautious but not bearish.' We see

President
out

Milbank,

that the chances of a severe

port to stockholders dated Oct. 17,
he stated: "The major objective

Some

retrenchment?

income

time

September quarter "On Sept. 30,
1955
our
'reserves'
(net
cash,

seeking longappreciation, T. Howe Price

Poor's 90- organization. In his quarterly

and

What
funds

being have outrun
dividend
expectancies.
If

term

of

Stock Average.

for

R.

Street

Another manager,

in

decrease

Standard

to

ing

A mutual fund

Pine

in

time

for

companies

National Securities

the

for common stock funds.

Table I
shows the approximate additions
of cash and governments, corpo¬
rate bonds and preferred stocks,
and common stocks for the openend portfolios during the quarter.
The degree to which several of
the funds retrenched during the

National Growth Stocks

for

of

to shareholders: "For
we
have been advo-

ber report

reason materially to change
this policy except possibly to put
slightly more emphasis on the
their
bonds and preferred stock) were
cautious side. The bulk of new
this view is proved correct, the
increased to approximately$l,969,money coming into the Fund durFund will, in due course, have an
000 or 17.85% of total assets, as
ing the past year has been inopportunity to buy the soundest
compared to a total of approxi- vested in fixed income securities
equities of the strongest compa¬
mately $1,105,000 at Sept. 30, 1954, —bonds and preferred stocks. .
nies at considerable more advan¬
which amounted to 13.25% of total
The uncertainty caused by the
tageous prices than those
now
assets at that time." As with the
President's illness cannot help but
prevailing.
It is your manage¬ Funds directed
third quarter can probably best
by Messrs. Bernaffect confidence and therefore
ment's belief that such an oppor¬
be indicated by a selected run¬
hard and Price, this too repre- have some influence on the sensitunity
will
present
itself,
and
for
down of the decrease in percent¬
sented the largest percentage of a
tive security markets and on busithat reason the strong defensive
age of assets in common stocks
Fund's assets held in reserves since
ness. With an exceptionally strong
position
is
being
temporarily its
and equivalents of a third of the
inception in the Fall of 1949. business background we believe

Interested In,

a

April,

in

Fund

some

Samuel

Are YOU

the

1950."

V

frus t

ATOMIC SCIENCE
through

Canada General Fund

a

¥

designed to provide

a

managed investment

in

a

OF

RESERVES:

BOSTON

INCOME:

companies participating
resulting

objectives of

relating to the shares of any of these separate
investment funds may be obtained from authorized dealers or

GROWTH:

Series B-2, B-3, B-4,

Series K-2, S-3, S-4

Prospectus from

VANCE, SANDERS & COMPANY

NEW




your

The Kleystone

61

CHICAGO

YORK

Broadway

izo

South LaSalle Street

LOS
Zio

ANGELES

50

West Seventh Street

Congress

Otreet
Af-

1033 THIRTIETH STREET, N. W.

*

Company seeking

long-term CAPITAL GROWTH and
certain TAX BENEFITS under
Canadian Laws

4
local investment dealer

or

t

DEVONSHIRE STREET

BOSTON

WASHINGTON 7, D. C

fully managed Canadian

? -1

111

GET THE FACTS AND FREE PROSPECTUS

V

A

A

from Atomic Science.

Atomic Development Securities Co., Inc.

Fund

of Canada, JFtd.
Investment

Series B-l

K-l, S-l and S-2
A prospectus

variety of

in activities

Witb tbe investment

Bond Fund

Inc.

is

Custodian Funds

Woe

ATOMIC DEVELOPMENT

MUTUAL FUND,

eystone

.eystone

(1954) LIMITED

MUyJAL FUND.

^

X

Company of Boston
Boston 9,

JMass.

Volume

182

Number 5482

..

The Commercial and Financial Chronicle

.

particular, natural

ular

ance

months. Mixeu sentiment

gas and insur¬
stocks, were also purchased
balance, but so also were equi¬
ties with pronounced
cyclical char¬
on

acteristics such

auto

as

parts,

oils,

ferrous

metals

senting

a

attitude

from

But there
ion

on

and

shift

the

in

the

was

the

were

no

rails,

tinued

to

and

mer¬

might

same

meet

with

did

as

con¬

divided

a

the

be

equip¬

amusement

The

list

of

less

familiar

initially

in

issues

portfolios

rather meager during the
pe¬
riod. Domestic Finance
Corpora¬

repre¬

tion
was
purchased
by
AxeHoughton "B" and Southland Life

Insurance
wealth

and

Co.

by' the Common¬

Investment

Massachusetts
Co.

ance

unpop¬

portfolio

of the Johnston

Company.

Indemnity

was

a

newcomer

three
ments

initial commit¬
Automatic Canteen, the

—

Rowe

Corporation and California

Water and

porated

Telephone Co.

Investors

acquisition
witn

an

of

heralded

informative

stock.

was

This

gether

plete

Fund.

Other

Co.

by

State

Corporation

Street

and

Grolier

Rand,

-

half

dozen

were

to

the electrical

rather

So¬

in

Sperry
was

was

of

the

and

pur¬

Remington

lightened

of

General

equipment and elec¬

quarter,

in the

group

in

A

mutual

investment,

seven

company which

an

di¬

a

versified group of se¬
curities.

the June

eliminated

owns

supervises

popu¬

ailong with

Electric during
was

29

consolida¬

Philco, second least

lar issue

page

fund

Sperry

and

eighth.

sellers

shares
stock

One

portfolios and eliminated from

managements

noticeable

9,000

two

Deiaware

com¬

eliminations.

on

of

53,600

representing

from

removed

was

Continued

to¬

sales

totaling

received
of

All

ten

were

New

Rand,

ciety by National Shares Corp.
One

of

tion

Warren

Investment

the

there

chased.

interesting

purchases included S. D.

Westinghouse.

portfolio

block

also

bought by National Securities'

Stock

were scarcely offset by one
purchase of 4,000 shares. Sylvania

Electric

bought General Electric

sold

Westinghouse,
shares, seven

com¬

issue

another.

and

story detail¬

steel

portfolios and decreased in
Total
sales
of
44,300

three
shares

poration

the

Steel

ing the various steps in | the in1'vestigation of t lis company lead¬
mon

namely, the Com¬

Green

Continental. General Capital Cor¬

Incor¬

Harrisburg

issues:

monwealth

Investment, Bowling
Fund, Incorporated Inves¬
tors, Selected American Shares,
the Lehman Corporation and Tri-

interesting

Insur¬
the

tronics

Mutual

Fund, while Delaware Fund made

ing to the acquisition of its

appearing

non-

foods

steels

The

was

change in opin¬

textiles,

quarter—the

stocks.

management
June quarter.

rubbers, which remained

buildings,

opinion

two quarters, with
Westinghouse
again the least popular issue. Also

balance

second

ments and airlines. Chemicals

equipment issues bore the brunt of
the selling as
curing the previous

on

dis¬

was

Laid about the agricultural

com¬

terest continued in the rail
equip¬
ments., Electronic and electrical

sold

the

chandisers.

liked and in¬

were

in

ance

ma¬

chinery and industrial equipment,
and aircrafts.
Drug prod¬

ucts, finance companies and

during the previous three

played toward four major groups
which had been bought on bal¬

paper

mercial banks

as

27

(2103)

from

Balance Between Gash and investments of 65
Investment Companies
End of
Quarterly Periods June and September 1955

wet casn

&

Governments

Thousands of Dollars

Open-End Balanced Funds:

Investment Bonds and
Net Cash & Governments

Com. Stks. Plus Lower

Preferred Stocks

Per Cent

Per Cent

End of

Grade Bonds & Pfds.

*

Per Cent

Copies

Pv, J

June

American Business Sh-^es
,

§Axe-Houghton Fund
§Axe-Hcughton Fund

7,060

"A"_.

"B"_____

___

Boston Fund

Commonwealth Investment
Diversified Investment Fund, Inc

Dodge and Cox
fDreyfus Fund
Faton

&

-

•

*

7,192

Sept.

June

Sept.

June

Sept.

21.8

21.8

22.1

26.5

56.1

51.7

10.0

31.7

29.6

61.6

60.4

4.1

23.0

21.9

73.6

74.0

3.0

24.6

24.7

73.6

72.3

4,572

6.7

1,652

2,035

3.4

2,841

4.132

1.8

8,690

11,333
1,150

8.7

■

10.1

1.0

~

15.3

15.8

76.0

2.0

25.8

26.2

73.2

71.8

6.7

8.2

20

22.9

22.9

48

70.4

68.9

0.5

1.0

4.3

9,135

3.6

9,056

95.2

95.4

5/7

24.5

25.5

69.7

68.8

'

~J_"

-

Howard Balanced Fund

_i__r

" •*

'

'

5.8

Fund—
1.099

^General Investors Trust
Investors Mutual
r

Johnston Mutual Furd__

15.4

18.1

9.4

6.7

321

75.2

75.2

10.4

10.1

12.3

12.1

27,660

77.3

77.8

2.9

3.3

28.1

259

27.2

360

69.0

69.5

6.2

8.3

21.0

20.8

72.8

70.9

2.0

2.4

12.9

12.6

85.1

85.0

13.7

15.1

30.1

30.5

56.2

54.4

1,040

George Putnam Fund..

Scudder, Stevens & Clark____.
^Shareholders Trust of Boston

,

3,467

1,245
3,850

1,726

2 142

1.5

1.8

26.6

2,4r8

26.7

71.9

3,703

71.5

4.7

7.0

32.6

32.3

62.7

60.7
74.2

1,040

1,117

6.0

6.3

19.1

19.5

2,513

74.9

2,854

19.2

21.1

27.0

1,703

27.1

53.8

3,404

51.8

15.9

32.8

15.6

43,793

22.6

68.5

48,593

44.6

9.5

10.5

22.0

22 9

213

68.5

219

66.6

3.8

3.3

42.5

43.0

-53.7

1,028

•53.7

3.8

10.2

None

None

96.2

89.8

31,839

36,621

9.5

10.9

Ncne

None

111

90.5

89.1

337

1.6

4.7

19.4

17.0

24

79.0

78.3

18

3.3

2.7

17.2

17.2

Stein Roe and Farnham Fund

§Value Line Fund__

;

386

Delaware Distributors, Inc.
300

__

_

_

Axe-Houghton Stock FundBowling Green Fund
Blue Ridge Mutual Fund
_

Investing_

1,589

79.5

80.1

1,414

6.0

5.6

None

None

1,859

94.0

94.4

1,867

2.4

2.4

10.1

3.230

11.7

87.5

85.9

3,317

12.3

12.5

0.6

0.6

87.1

2,365

86.9

649

7.7

1.9

2.9

2.6

89.4

1,113

95.5

2,518

11.6

23.9

None

None

88.4

29,094

76.1

33.443

15.3

17.1

0.3

0.3

84.4

4,770

82.6

7,258

9.9

13.9

None

0.5

S0.1

4,147

85.6

6,648

93.5

__

__

Bullock Fund
___
_

de

Vegh Mutual Fund
Dividend Shares
_

Eaton

&

Howard

Fidelity Fund

___

___

__

_

Stock

____________

Fundamental Investors

Capital Corp.
Group Securities—Common Stock Fund
__

_

_

82.4

1.8

None

None

96.6

98.2

2.9

3.4

None

None

97.1

98.6

4.3

6.5

11.3

9.6

84.4

83.9

5.8

8.0

None

None

94.2

92.0

1.4

13.4

5.0

15.1

93.6

71.5

19.6

19.9

26.2

26.3

7,649
412

3,683

5,544
1,859

54.2

53.8

12,550

9,462
15,868

1.4

1.7

None

None

98.6

98.3

884

3,717

1.1

4.8

None

None

98.9

95.2

1,028

1,148

15.2

15.8

13.6

11.7

71.2

72.5

1,095

1,040

2.0

2.0

None

None

98.0

98.0

1,617

1,539

1.3

1.3

None

None

98.7

98.7

824

4.3

6.6

32.5

29.2

63.2

64.2

538

5.2

4.9

6.2

13.0

88.6

82.1

928

9.3

16.5

1.0

2.2

89.7

81.3

_

518

____

£64

_

T. Rowe Price Growth

80.2

242

_____

_

0.4

6,494

9,125

___

0.4

3.4

_

Massachusetts Investors Trust
Massachusetts Investors Growth Stock__
Mutual Investment Fund

±New England Fund
Pine Street Fund

98.0

17.2

313

202

National Investors
National Securities—Stock

98.2

604

_

Fund

94.7

None

v-

.

"

Knickerbocker Fund

Loomis-Sayles Mutual

3.2

None

19.4

__

_

3.2

2.0

1.8

3,402

Institutional Foundation Fund-

Investment Co. cf America

3.3

6,126

3,925

_

Incorporated Investors

2.1

5,583

_____

General

Stock

509

1

|

Scudder, Stevens & Clark—
Common Stock Fund
Selected

American Shares.

Sovereign Investors
.

_

1_

__

State Street Investment

Corp
Wall Street Investing Corp._

__

96

247

0.9

24

None

None

99.1

97.6

2,8/1

4,958

6.2

10.5

None

0.1

93.8

89.4

13

29

0.9

1.2

3.6

3.0

95.5

95.8

17,103

28,000

10.6

17.5

0.8

0.8

88.6

81.7

1,218

1,401

18.8

21.8

None

None

81.2

78.2

4,190

2,817

5.4

3.7

0.6

1.6

94.0

94.7

r

___

ABERDEEN
FUND

A MUTUAL

INVESTMENT

__

__

_

Securities

__

General American Investors
Lehman

your

Service.

Corporation

__

National Shares Corp..
Overseas Securities

_

DAVID L. BABSON

DISTRIBUTING CORPORATION
40 Broad St.

120

Broadway

*

Boston, Mass.
New York 5, N. Y.

•

Have You Considered

ELECTRONICS
as an

Investment Medium?

invest in

can

a

diversified

__

_

____

_

1,181

3.1

8.2

4.7

2.8

92.2

89.0

1.050

3.9

3.1

1.0

2.4

95.1

94.5

TELEVISION-ELECTRONICS

6,384

6,396

10.0

10.6

None

None

90.0

89.4

FUND, INC.

1,233

1,442

6.2

7.3

None

None

93.8

92.7

18,218

7.5

8.3

0.2

0.1

92.3

91.6

3,764

4,479

16.0

19.1

0.8

1.0

83.2

79.9

256

806

7.5

26.0

None

None

92.5

74.0

4,662

1,248

1.8

0.5

15.5

18.7

82.7

80.8

8,937

9,476,

6.7

7.1

None

None

93.3

92.9

__

_

§Tri-Continental Corp.
fU. S. & Foreign Securities
_

_

__

_

_

group

through

the shares of

467

16,785

__

dealer

or

1.341

_

American International

General Public

Prospectus from

of electronics securities

Express

American Euronean
.

FUND

You

Closed-End Companies:
Adams

Broadway, Camden 3, N. J.

GROWTH

§Affiiiatsd Fund

Delaware Fund

from
undersigned.

the

Open-End Stock Funds:

Broad Street

(pro¬

request

74.1

329

Securities—Income____
Nation-Wide Securities

Whitehall Fund
Wisconsin Fund, Inc..

1,453

.

23,723

National

Wellington Fund

■

I

,

FACT
available

on

348

592

294

of

BOOK

spectus)

End of—

June

3,0Q8

Fund

Fully Administered
Group Securities

Sept.

Get the

bootlef-prospecfus about the

Company from
dealer

or

your

investmeet

mail coupon to

TELEVISION SHARES
MANAGEMENT CORP.

SUMMARY
♦Investment

bonds

for

bonds;

for

preferreds.

stock
1955

into

Fitch's

policy.
figures
U.

S.

&

and

preferred

AAA

through

stocks:
BB

and

tFormerly Nesbett Fund;
^Flexible

corrected.

Foreign

fund
HU.

with

S.

and

Securities.




Moody's Aaa through
approximate

flexible

current

fund

balanced

International

equivalents
with

policy.

Securities

current

§June

135 S. La Salle St.

Changes in Cash Position of 65 Investment Companies

Ba

Open-End

Companies:

Balanced Funds
Stock Funds

_

_

__

Chicago 3, III.

Plus

Minus

18

1

4

23

21

5

6

32

Unchanged

Total
NAME
ADDRESS

merged

Closed-End

Companies

—

5

3

2

10

12

65

CITY

!

f

*

Totals

44

*•

«■
-

9

*

115

Broadway

New York 6, N.Y.

The Commercial and Financial Chronicle

(2104)

23

.

.

Thursday, November 17,1955

.

Changes in Common Stock Holdings of 49 Investment Management Groups
(June 30

■T7ir fjcoyqe

Transactions
more

PUTNAM

J

sold

completely eliminating the stock from their portfolios.

or

No. of

No. of

No. of

No. of

No. of

No. of

Trusts

Shares

Shares

Trusts

Trusts

Shares

Shares

Trusts

Mead Johnson and Co._

None

None

Pillsbury Mills

3,000

1(1)

2(1)
2(1)
2(2)

2(1)

J/Jo&t

Agricultural Equipment

9(2)

Food

Deere and Co

14,100

2

3,000

Auto

and

Auto

Parts

Street, Boston

Chrysler

48,400

4,000

1

None

None

Murray Corporation..

None

None

Timken Roller Bearing

None

None

__

2

3,304

Fruehauf

2

4,000

3

2,200

2

300

1

7,000

Trailer

General Motors1

3,800

Ye7ffufef/a, Y/Y.

14,369

American Airlines

3(1)

21,300

Boeing

6(2)

44,400

North

5

19,705

United

2

7,205

Airplane

American

Aviation

Airlines2
Airlines 3

Western

3(1)

117,300
400

1

500

1

5,000

2(1)

None

None

4(1)

Report available
•

'

t

•f

•

Carl M.

Loeb,

Rhoades
Members Hew "York,

42 Wall

4(1)

21,500

Carrier

2(%)
2(2)

12,000

Celotex

2(2)

Equipment

Corp

None

National Biscuit

None

None

West Indies Sugar

3,800
10,700
8,000

None

None

Wilson

42,700

_

Co

and

Babcock

and

Wilcox

3(2)

3,500
7,900

Bucyrus-Erie

2

9,500

Caterpillar Tractor

None

None

Combustion

None

None

Food

Engineering
Machinery and Chemical--.
and

Cerro

1

1,600

Aluminium, Ltd

3

11,500

1

7,000
None

None

None

de

2,500

Pittsburgh Plate Glass

4

7,500

Yale and Towne4

2

10,800

Radiator...

American

__

Office

None

None

None

20,000

Burroughs Corp

1,500

2(1)

21,500

National Cash

41,500

5(1)
4

11,500

Marathon

1,250

4,600

3(2)

4,000

2(1)

1,700

National Lead

22,500

3(2)

1

2

None

None

Rayonier 9

None

None

Union Bag

2(1)

3,900

Mission

15,500

3,500

Street, New York

3(1)

6,200

2(1)

10,400

2

5,000

American Cyanamid
American

Potash

Tennessee

11,500

"B"

Int'l Minerals and

Chemical

Corporation

I 4,400 <^'1
3,300
4

'

.

Corporation __!

International

None

None
None

None

None

None
1,000

None

None

None

1

5

14,040

Pa,per

2,750*™w

>2

2(1)

4,000

2(1)

None

Register

Paper, Pulp and Printing

Johns-Manville

5(3)

5 --f.

>

Equipment

None

Chemicals

Stod{ Exchange

None

3

1 6,040*™*$$■:*,

£■}

Mueller. Brass

Company

15,800
3,117

Reynolds Metals 8

None

Trane

2(2)
2(1)

7,000

St. Joseph Lead---

None

None

3,000

None

Copper-—-i—--

None

None

None

Mining

Magma Copper-

None
1

1

None

20,000

Pasco.

Kennecott

None

1,500

2,800

None

None

2

11,245
__

Co.

&

General Foods

None

::V,

overseas.

•

11,000

I
Building
Construction and

fund investing in Canada
and

Cola

Coca

12,800

None

Metals

Beverages

A non-diversified mutual

Products

None

2(2)

3(1)

Aviation
5

5,600

No. of

,

Machinery and Industrial Equipment

!69,825(™W>1
172,560(016,20(1)

Thompson Products

*y1<rf Q/or/@

G&ff/i,rYa/*ffiten Y

f\

700

3(2)

6(2)

■

Sold

—Bought—

Sold

No. of

Putnam Fund Distributors. Inc.
50 State

September 30, 1955)

buyers exceed sellers—or sellers exceed buyers—by two or more management groups. Issues which
than bought are in italics. Nurperals in parentheses indicate number of managements making entirely

—Bought—

FUND

—

which

managements

purchases

new

in

Petroleum

Development..

S

33,084

Phillips Petroleum

None

r

:

,

?('2)

-42-400,

•

200

1

None

None
1

1,500

duPont
Eastman Kodak

Texas Gulf

Sulphur

Containers and

Blue

3(1)

Ridge

25,800

/^~

__,

1 V,.

1,500

None

Illinois

None

j___

Glass

Corning Glass Works
Hazel-Atlas Glass

200

7,500
24,700
9,000
None

Colgate-Palmolive

V

None

2,100

2

5,700

3(2)

Merck and Co

1,000

1

Ripley & Co.

r_

4,000

Philco

Sjperry-Rand 5

Sylvania Electric

Aetna Life Insurance Co

2

2,600
1,300
5,500
3,100

2(1)

3,750

Chase Manhattan Bank

2

960

2
.

.__

Westinghouse Electric

2

-y

Electric

9,000

2(2)

O

21,000

Stromb erg-Carlson $ a

None

2

,

44,300

None

2(1)

CHICAGO

Vegh

Sprague

\t

Income Fund; Inc.

Capital Stock
subscription price is

;

2

,

2(1)

.

'

Bankers Trust Co.
Beneficial

(N. Y.)

Finance

Continental

___

Co

Assurance

Co. 6

47,000

Texas Pacific Coal and

4,500

Company

Cities Service

None

None

Gulf Oil

None

None

Houston

KD

9,100

Ohio

Oil

2(Mx)

37,500

Pure

Oil

None

None

Oil

99,749

3(1)

4,900

2

22,600

8,000

2(1)
3(3)

4,500

2(2)

53,600

10(7)

2(1)

Standard Oil of Kentucky

Republic Natural Gas

5,400

Shamrock Oil and Gas..

4,000

United

Consumers

Montana Power.

2

2,400

Pacific Gas and Electric

None

2(1)

3,000

Puget Sound Power and Light._

None

None

3

13,400

None

None

2

1,900

None

None

None

None

None

City Bank of N. Y.__

None

Industrial

Acceptance Corp..

None

None

None

None

None

None

1,500

4,320
4,500

Nat'l Life and Accident Insurance

9,165

Northwest Bancorporation_

None

None

Stone and Webster

None

None

American

Travelers Insurance 7

Invest.

Co.

of Illinois

Power 12

3,000

None

3(2)
8,700
2,825'new )3
25 (old) 1

4(2)
5(1)

1,600

2

6,300

2

1(1)

None

None

None

None

4

20,650

___

3(1)

None

None

..—

*

Corp

Iowa-Illinois

First Nat'l

None

—

8,800

None

2

91,000

1,000

14,575

None

None

Gas11-.

Panhandle Eastern Pipe Line—

2

None

4(1)

17,400

Gas

American Natural

Gas

2(1)

9,356

45,200

_

6

Fidelity-Phenix Fire Insur. Co._

None

_

2,000

Public Utilities

1,500

14,000

_

_

_

None

None

__

__

_

__

.None

None*
«

Southern

and Electric__

Gas

_

None

None

None

None

None

None

None

None

None

None

Gulf States Utilities-

9,100

New

6,8bQ

-England. Electric .^u&texp-

None

PennsylvaniaPower

None

Virginia Electric and
-

None

None

West Penn Electric.

-■

1

3,700

Company

-

4

__

(Texas)-

None

2(2)

18,800

;

Natural

16(3)

Oil___

_

None

None

—_

Union Oil and Gas

None

4(3)

None

Associates Investment Co

4

2(1)

3(2)

None

Texas

None

"N None

13,000

Co

15,800

8(1U

:

17,500

value per

asset

None

None

i>Nbrie ;

3(2)

;

None

-

Southland Royalty

2(1)

Financial, Banking and Insurance

Street, New York 5, N. Y.
.

None

11,000

____

None

National Distributor

None

None

Philips

None
None

None

Electrical Equipment

N. V.

None

1

PHILADELPHIA

:

Sobering Corp
Smith, Kline and French

4,000

•

None

None

Gloeilampenfabrieken.

or

Incorporated

net

Can

None

None

the

2

None

None

The

Glass

None

be obtained

may

from authorized dealers

'

Socony Mobil Oil

None

,

1

Sinclair Oil Corp

43,900

Owens

3

de

22,900

5

Owens-Corning Fiberglas

2(1)

•

5(1)

4(3)

1,800

None

BOSTON

2(1)

2,900

2

63 Wall

2,973
51,10 0

3(2)

3(2)

Fund

*

Royal Dutch Petroleum

Drug Products

Stock

Harriman

84,500

2

1(1)

Prospectus

5(3)

Continental Can

None

A Common

7(1)

3,QC0

2

Mutual Fund, Inc.

American

9,000

_

,

.

_

.

•

Radio and Amusement

4(1)

6,400

Paramount Pictures.

None

None

Loew's

_______

None

None'

2(2)

18,500

share, without the addi¬
tion of any

sales load or

Selected

commission.
•

•

#

-

Mail the coupon
a

copy

•

below for

of the Prospectus

I

SOVEREIGN

american
A MUTUAL

de

Vegh dC Company

One Wall

Street, New York 5

A MUTUAL FUND INVESTING IN SECURITIES OF THE SOUTHWEST

.

.

prospectus may

TEXAS
"

Name
Address.




shares

be obtained from

FUND

your

investment dealer

Principal Underwriter

TEXAS NATIONAL BANK BLDG., HOUSTON

1, TEXAS

Teletype HO — 566

.Prospectus upon: request .

INC.

GEORGE

MANAGEMENT COMPANY

Investment Advisor and

CApitol 7-0211

or

INVESTMENT TUMI

Profpectus from

jfotlr dealer or

A.

MS LAND TITLE

BAILEY

& CO.

BLDG, PH1LA. 10, PA.

Siltded Investments Co.
135 S.Lo Sail* SL, Chicago 5,

HI

General Distributor
RIttenhouse 6-9242

Number 5482

182

Volume

—Bought—

..

.

.

'

.

The Commercial and Financial Chronicle

.

;■

v

Sold

,

Continued

No. of

No. of

No. of

No. of

Trusts

Shares

Shares

Trusts

None

None

None

None

from page 27

Funds Grow Cautious

Railroads
2

Kansas

3,200

2

7,900

4

-P "15,300

None

City Southern

Norfolk and Western

__

Southern Railway

None

Coast

Atlantic

__

_

Line

1,500

2

4,000

3

lists

and

popular

Sprague
with

The

funds

lone

purchase

on

1,000

Chicago, Rock Island & Pacifier-

29,100

9

electric

1,000

Denver and Rio Grande Western

34,200

4(1)

ments

division,
acquiring

shares

of

>

New

1,200

York, Chicago & St Louis

7,600

4(2)

2
1

;

None

Pennsylvania Railroad

18,200

2,200

Seaboard Air Line

50,400

7,500

Southern

None

Western

Pacific_
Pacific

_

2

V.

abroad

for

the

in

the

three

of

Philips.

were no

General

Central.

8,000

5

3,100

3

Metals Sold

Wellington

Equipment

seller

3(2)

42,500

A. C. F. Industries

2,

13,500

General Amer. Transportation..

4(3)

Union

86,000

Tank

1,000

Kl)

None

Car

None

None

None

and

of

The

2,700

2(1)

52,500

lightening

sues

5,000

None

None

while

None

None

11,500.

_

3(1)

4,200

Montgomery Ward

3(1)

5,400

J.

None

None

St.

Penney

__

_

Rubber

3(1)

_

and

__

_

907

_

2,000

Goodrich

1

2,000

United

_

States

2(2)

_

Inland

6,200

8(3)

22,700

4(1)

8,500

Bethlehem

1

2,000

Republic Steel-

None

None

...

_

United

Steel_

None

block

3(1)

10,000

American Enka

19,524

Beaunit Mills 14

2(1)

34,000

5

adding

Dodge

6(1).

liked

26,500

9(iy2)

James Lees and Sons

None

1

Industrial RayonJ. P. Stevens and Co.

None

9

__

Celanese Corporation

1,000

None

_

United Merchants &

17,245

None

None

None

None

None

None

5,500

2(1)

_

17,000

2(1)

—

13,000

4(3)

2(1)

4,000

_

Mfrs.16

2(1)

8,900

of

the

3(1)

American

5,500

■1

■

_

* y

'

having

issue

group

General

2

8,500

Hilton

2(1)

3,500

Minnesota Mining &

Hotels

__

None

None

None

None

None

Mfg..

None

None

American

None

Diamond Match

Optical

._

17,500

2

1,200

2

None

None

W. R. Grace and Co

4,600

2

None

Remington Arms

8,000

2(1)

_

current

Phelps

switch

to

1

Excluding

,

11,505

w.

i. stock listed in holdings

shares received

3

Includes

4

Exclusive of 417 1/3

5

Excludes

5a

2,205 shares

stock

Exchanged

quently
900

7

Excluding

8

Excluding

sequent

9

Not

with

sell¬

Tri-Continental

and

poration.

Rock

Island,

again

the

unpopular

funds lightened

nine

managements

shares

while

of

5,484

11

50,313

12

8,265
30,800

6,024

15

Additions

16

Shares

from

shares received

for

2l/z

shares

14

Dynamics

on

a

distribution from

from

purchased

for

5

was

currently

on

American

food stocks

Cor¬

in

in

share-for-share
Continental
the

from

1

made

dozen

as

volume.

by

two trusts
Rubber shares

holdings to¬
tenth trust

industry groups to be sold

balance during the quarter un¬

on

der review.

a

in

1,000 shares.

disposed of
Seaboard
Air

(Opinion

was

pur¬

predominated in 13.)

United

States

Rubber

elimi¬

was

selected

(1)

at

managed investment in
list

of

ferred stocks and
.•

available

bonds,

common

for their

20

basis

stocks

possibility of

conservation of capital, (2)

current income and

(3) in

some

appreciation in value.

cases

for

advertisement

this

Mail

detailed, free information.
Noillfi,

.

.if.

««•«...

•>«

Address.

•«...

>••««

*....«..«•

nated

from

in

lightened

two

portfolios

four

others.

and
Sales

three months, currently
sold by five managements.
trusts disposed of a total of

set

addition

by

block.

of

share

2,000

a

7,600 shares of New York, Chicago

Goodyear, however, was purchased

Western

CORPORATION
49 Wall Sf.
New

I

S.

200

York 5

Tryon St.

Charlotte 2, N. C.

Goodrich also encountered

liquidation, five decreases in

and St. Louis.

INTERSTATE SECURITIES

equaled 9,200 shares, partially off¬

holdings

totaling

35,700

shares.

Atlantic Coast Line

Pacific

were

each

balance, stimulated in part by

offering.

rights

lightened in three

a

a

ments

purchased

30,800

of

portfolios and
total of 18,200 shares of Pennsy.

sold by two funds. Southern,
second best-liked carrier in the

bought

on

which

Nine manage¬
52,200

Continued

bal¬

N

shares,
acquired

were
on

30

page

for 6.

and

subse¬

Casualty.
for

1

split-up and sub¬

United Funds
HUDSON FUND, INC.

rights.

exercise

Basis:

of rights.
1

for

1

for

Basis:

5.
1

A

for 20.

Canada Ltd.

10.

stock

result

distribution.

of

5%

.

-

NOTE—This

survey
covers
65
investment companies,
but purchases or
of funds sponsored by the same management are treated as a unit.
example, the three funds sponsored by E. W. Axe and Co. are considered
as
having the weight of one manager. Individual portfolio changes in the
Loomis-Sayles Fund are not surveyed.

sales

★

For

★

★

Open-End Companies:
Balanced Funds

Stock Funds

Closed-End Companies
Totals




with

1

cretion,

I

ing

WADDELL

Companies
Sold

6

8

9

23

13

13

6

32

2

6

2

10

21

27

17

65

Matched

diver¬

company

management

dis¬

currently emphasiz¬

common

slocks.
and

prospecfut

from your investment dealer

Sales of

Bought

full

Information

or

|
or

open-end,

investment

i

1|

★

SUMMARY

65 Investment

mutual,

sified

stock dividend.

Excess of Net Common Stock Portfolio Purchases

&

REED, inc.

Principal Underwriters

I

New York, N. Y.

40 Wall Street
|§h Ma-m 'i « .

1 35 S. LaSalle St.

I

Chicago 3, 111.

jp

(5)

1012 Baltimore Avenue (6)
*

* *

*

g
M

♦' fa

tJ|

— — —

SHARES

MANAGEMENT CORP.

I

|

Kansas City, Missouri

mail coupon to —

TELEVISION

I

Total

l|

a

pre¬

two

,

a

A

fund

sales charge.

diversified

divided

eight other groups while

chases

balanced
2 %

a

new

34,200 shares of Rio Grande West¬
ern and a like number liquidated

split-up.

with rights. Basis:

10%

as

A

in

balance

on

light

l

General

•

represent

find«

was

represented the sixth in the half

previous

shares received in conversion of preferred.

distributed

Investment

several issues,
balance out of a

managements

chased

!-

Sterling

among

bonds.

through

shares bought through
shares acquired

trans¬

no

Pillsbury Mills
and
a
added
to
third
existing
holdings. Mead Johnson was pur¬

others purchased
Southern Pacific,
number two favorite along with
Chesapeake and Ohio during the

split-up.

1

converted

equaled
last

the

of these three lat¬

of the

commitments

shares.

June quarter, was
1

com¬

exchange for Sperry and Remington Rand.

additional shares resulting
25% stock dividend.

shares

13

in

Sons

During

selling on
portfolios

Two

heaviest

carrier

of

Foods, National Biscuit, West In¬
dies Sugar and Wilson and Co.

sold rail in the June quarter, was

was

from preferred.

shares, purchased through rights. Basis:

received

represents

including

10

result of 3 for 1 split-up.

a

of preferred.

conversion

converted

for General
sold.

shares

6

from

as

and

Opinion

Selling

on

2

One initial

well divided

scattered

during

the

shares

ing 13,700.

Fund, Blue Ridge Mutual,
Fidelity Fund, Selected American

Shares

and
FOOTNOTES

any

St., Philadelphia 9

19,524
of

Viscose, three purchases of 15,100
shares offsetting four sales equal¬

shares.

Boston

Four

None

fairly

marked particularly by liqui¬
dation in
the portfolios of the

was

None

None

in

Broad

Telephone: Klngsley 5-3311

diversions

c

quarter there had been

was

Line

Shoe Corp

16,100

Lees

ter issues.

South

123

portfolio addition

a

shares.

actions

ing of rails from the bullish atti¬
tude of the previous three months

2,200
2

James

34,000

Nickel,
the least

been

the

in

and

a

new

stock

common

6,024

CO.

&

Distributor

num¬

made

totaling

the

couple

Six

Miscellaneous

of

stock.

the June period.

50,400

'

'

•

1

5,000

—

_

'

.

old

mitment

4,400

International

and

latter

initially invested in

Tobacco

'*1

*

in

FAHNESTOCK

the

purchasing

managements

from the bonds.

5-for-l
a

of 2,800
divided on

was

taling 29,100 shares;
Tobacco

the

sold

total

a

Opinion

25,700

Burlington Industries is

9,490

None

...

in

sixth

in

10,000 shares. A like

of

shares,

ferrous company to be purchased
on balance currently, three trusts

the

Corporation

issue

funds

commitments

Pasco, also most popular
issue in the group during the pre¬
vious quarter, was the sole non-

The

3(3)

total of
ber

favorite

three

group,

Cerro de

7(2 y2)

Textiles

the

was

Mills,

a

Request

on

Mer¬

were
each disposed of by
couple of trusts, American Enka

represented

as

Prospectus

Celanese,

United

and

which

15,800

_

Steel

States

KD

None

Youngstown Sheet and Tube

None

None

2,000

_

_

None

Industries,

Beaunit

35,700

6(2)

the holdings of another.

Stevens

Magma Copper. Five managements
disposed of 6,040 new shares of

split-up

9,200

a

funds

Ltd.

P.

©PFI

fourth;
being

a

shares

and

Reynolds received

None

Steel

three

1

_

Harrisburg Steel.

34,000

3

Steel

Armco

18,800

lightened in

and

to

1,000

chants

popular
Four other

Aluminium,

5

Steels
2

sold

9,500

...

Kennecott

A total of 3,300 shares of

share

Rubber-

J.

of

portfolios,

each

Tires

Goodyear

52,200

KD

1

Industrial

lightened in
of

Burlington

is¬

was

and

added

pe¬

10,800 shares
purchases
equaled

three

of

the feature of the tex¬

was

block

a

least

group.

Joseph Lead

four

C.

of

the

disposed

Kroger

_

shares

the

in

INC.

A Mutual Investment Fund

tile shares, a total of 13,000 shares
being eliminated from three port¬

metals

other

among

also

was

stock

Federated Department Stores...
...

non-ferrous

riod,

trusts

2(1)

the

A

transactions in New York

liquidation

Rayon

pronounced

a

mining stocks during the

which

Retail Trade

was

FUND

pur¬

shares.

Norfolk and Western. Opinion was
divided on Santa Fe and there

Opinion

on

15,300

of funds each also added
stock of Kansas City Southern and

folios
Railroad

totaling

couple

3,000

Electric, five purchases of 18,100
shares countering four sales total¬
ing 25,500.

6(1)

chases

manage¬

total

a

PHILADELPHIA

by four managements,

ance

un¬

balance

currently divided

was

None

N.

was

managements.

looked

1

2

also

two

KD

None

29

(2105)

NAME

ADDRESS

CITY

115

Broadway

New York 6, N.Y.

30

(2106)

The Commercial and Financial
Chronicle

Continued

from page\29

shares

ting

with

two

purchases

partially offset¬
10,800.
Johns

Funds Grow Cautious

each

disposed

and

Mueller

of

and

in

funds

Trane

the

exercise

of

these

agements

rights.
Heavy Trading in
Heaviest
groups

volume

which

upon

divided

those

opinion

in

occurred

Oils

among

was

the

oils, ac¬
counting for almost 10% of the
periods total transactions on both
sides of the market.
with

Socony
the

Mobil

most

front

the

Oil

for

popular
even

after

shares

new

the

was

out

disregarding
upon

forced conversion from the called
bonds.
each

Five

of these

which
in

managements

companies, three of
initial

made

commitments

Royal Dutch and

clair.

liked

Purchases

of

in

one

the

Sin¬

latter

to-

Phillips,

Hmiiiianiai

■■■■■■■■■■a*

HHiaiiia

■■■■■■

Nieeeee

■ ■■■■■■■'M

■■■■■■

■■■aaaarM

■■■J■

42,400 shares of
three
sold
13,000

and

Socony, but there was
liquidation in the two other

no

oils.
of

Four

purchases

Texas

Pacific

made

were

Coal

and

acquisitions and

totaling
of

15.800

Texas

liked

made

were

couple of funds

Mission

Southland
and

A

addition

one

shares

Co.

Development,

Royalty and Union Oil

Gas.

Selling

balance

on

troleum

division

Oil

five

in

the

in

featured

was

portfolios,
totaling
45,200 shares. Two partially off¬
setting purchases equaled 37,500
Pure Oil's stock had been

split two-for-one during the pre¬
vious quarter as had been Ohio
Oil's shares,
sold

trusts.

A

which also currently
on
balance
by four

like

number

of

funds

disposed

of 9,356 shares of Gulf.
Service, Houston Oil and

Cities

Oil

of

Kentucky

panies.

Opinion

-

your

Jersey,

as

on

it had

investment dealer

PHILADELPHIA

3, PA.

13,000
sales of

five

6,520.
tively

light

in

the

chemicals,

a

group
upon
which management
opinion appeared to be split in the

block

of

200

total

A

of

from

three

lightened in

a

Kodak

was

sold

funds.

American

group

one

shares

51,100

was

shares

portfolios' and

fourth and Eastman

by a couple of
Cyanamid was
favorite
with
three

polio additions amounting to 15,500
shares.

American Potash "B"

was

bought by three managements and
two purchased shares of Interna¬
tional Minerals and Chemical and

make your money grow,
and

what

we

intend

to

take

consider sensible risks

we

in that direction.

chases.

from

your

the Tennessee Corporation.
Opin¬
ion was light and divided in Union

Carbide,

transactions

were

represented by
share
purchase
and

in

which

single 700

a

two

sales

equaling 2,200 shares.
Mixed

(prospectus) free
dealer

Reaction to

DREYFUS Corporation

Broadway, New York 4

tion,

four

made

tions

and

an

vorite
was

fund

favored

pur¬

share

less

concentrated

with

American

two portfolios.

West

Penn

Power

appearing in the port¬
folios of Blue Riige,
Delaware
Fund, Fidelity Fund, Incorporated
Investors, Massachusetts Investors
Trust, Mutual Investment Fund
Selected

Company and Montana Power,
purchases totaling 13.400 and 3,000
shares respectively. Also purchased
on
balance, each by two funds,
Iowa-Illinois

of

like number of addi¬
made

to

Electric.

had
1

the

least

shares; there
of

Inland

totaling 22,700
complete ab6,200 shares of

was

a

selling.

Steel

added to

were

made of Armco

well

as

as

;

Harris-

-

company

potential.
was

concentrated

little

,

evidence

of

during

the

currently sold

eliminating
portfolio.

the

been

Sales

issue

a

fa¬

quarter,

and

portfolio

a

Power

funds,

sales

diffused

the

and

also

Wilcox

were

only

scattered

were

and Food
enced

Machinery also experi¬
selling on balance.
Corporation
was
the

some

Marathon

only issue in the paper, pulp and
printing division to be shown any
marked

well

preference, although

group.

Stimulated by distribution of

a

issue.

as

total

Eastern

The Sears

most

picture disclosed three
purchases of 12,900 shares set off
against four sales totaling 3,317.
In

the

agricultural

division,

Deere

purchased
folio

equipment
continued to be

balance,

on

additions

commitments

and

port¬

seven

two

initial

equaling

14,100

International

three

Harvester, how¬

purchases

of

3,500
shares
being
overshadowed
by
two portfolio eliminations and two
decreases

equaling

51,000

initial

one

Airlines

commitments.

of

11,500

Purchases

in

the

concentrated

more

though

over-all
in

airlines
than

were

sales, al¬

opinion

was

the

group
during
American
Airlines

Pipe Line

shares

of

and

commitments

trust

making a- new purchase
and two others
adding to blocks
already held for a total of 4,900
shares, but a fourth eliminated

in

the

mental

three

block

Merck

acquired by

vestment

a

companies.

concentrated

Selling

United

on

were

couple of in¬
Gas

was

Cor¬

poration, four trusts disposing of
20,650 shares. Partially offsetting
were

two

portfolio

additions

the

was

Bag

and

favorite

in

the

In

issue

the

had

previous
been

sold

quarter
on

bal¬

Colgate-Palmolive and
Schering were also liked, but with
less enthusiasm, while two man¬
agements liquidated holdings in
Smith, Kline and French. Opinion
ance.

to¬

was

taling 4,000.

divided

been

the

on

group

June period.

Chrysler

lightened

Union

drug product industry, four port¬
acquisitions equaling 24,700
shares.

each

in

folio

this

Gas

number

same

Paper.

1,000 shares. Republic Natural Gas
and

of the

Popular

rienced

Chrysler was liked in the auto
division, six funds acquiring a
total
of
48,400
shares, two of

some

Pfizer which

favorite

in

had

the

Aircrafts also expe¬

popularity

with

a

third of the purchase transactions

occurring in North American Avi¬
ation.

Two

new

commitments and

di¬

the
was
.....

m

offsetting sales

elimination

Investors

the

and

favorite,
five
acquisitions
equaling 14,369 shares. However,
was

Panhandle

the group,

Oil

this

concentrated

five trusts.disposing of 14,040
shares. The newly-split shares of
Rayonier were sold by two funds

popular stock in

Shamrock

was

International Paper, as during

the second

the

included

without

Selling

was

shares.

Bought

purchased

rights, three funds making

throughout
the
with opinion divided on
Sears, Safeway and Allied Stores.

group

on

total,

was

the

a whole was favored on
balance. Four managements added

group

rights,

these

in

of Caterpillar Tractor.
Combustion Engineering was
eliminated
from
two 1 portfolios

year,

interest in

Department Stores
2,700 shares.
Sales

two

registered

however,

parallel

a

made

and

the previous three months

shares, but

by

Funda¬

a

100,000

of

-

\v
i

>1

fourth quarter of 1954. Five addi¬
tions of
United
Aircraft
repre¬

41,500

throughout

Babcock

A pair of ini¬
was

holdings

Mu¬

were

favorite

portfolio addition to¬

a

commitments

increases

under review, pur¬
off
25%
from
the

Transactions also

the

Federated

completely
its

tial

in

Although the natural gas shares
ranked second in
popularity dur¬

sold.

was

taling 7,900 shares.

portfolio

Investors

Erie

the

sitions and

Light

eliminations.

ing* the period

old

machinery and industrial
equipment group, two new acqui¬

balance by two
the last named

representing

the

realizing

netted

share

from

Bucyrus

on

of

of

ethers

total of 2,825 cf the
recently

a

in

their

and

management

split shares.

Virginia

from

holdings
three

and

stepped

was

one

16 managements acquired
almost 100,000 shares of American
Natural Gas.
Half of the

balance by

totaled

accumulative plan

respectively. One

commitment

period.

on

shares

addition of Kroger equaled 52,500

of

June

totaling 4,200

and 5,400 shares

portion

had

Four trusts

and
Delaware Fund
were
purchased tual
and Penney,, prominent buyers,-but Affiliated

Ward

acquisitions
new

mer¬

stock
on

managements

Montgomery

vided

offering of rights. American
which

activity in the

lightening

this

of

stock

-

each sold

because of

There

the

Pennsylvania
were

vestment

shares

National Life and Acci¬

Profit-taking

in Travelers;

up

portfolios.
Gulf States Utilities,
New England Electric
System and

Steel, the latter of which
having been mentioned previously,

Incorporated Investors
exhaustive investigation of its in¬

dent.

Power,' half of whom completely
eliminated

three
were

17,300

to

however, was
by two purchases each
Life, Fidelity-Phenix

Aetna

Fire and

during
along with
Virginia Electric Power, the latter

quarter under review.

sence

of

popular issue

sold

added

preference,

indicated

in the electric power
group
the previous quarter

conviction, five
portfolio additions and three ini¬

each

qYiite widely throughout the group.
Minor

Consumers

tial

also

were

As has generally been the
prac¬
the purchase of equities in
the insurance field was diffused

du¬
during the third

was

auto

tice,

Consumers

company still enjoying
bious distinction

commitments

Elec¬

half the acquisitions were

been

the

Selling on balance
was confined to
Thompson Prod¬
ucts, three funds decreasing port¬
folio holdings by
3,800 shares.

added to six portfolios

was

over

purchased with rights.

Shares.

Youngstown Sheet and Tube

of

of 7,500 shares of
Towne was stimulated

and

the favorite with

holdings

major

Gas

comoanies
In

Murray Corporation and Fruehauf

managements

Trailer

but

tional stock

and

much less concentrated
Three

quarter, currently ran
taking. One manage¬
69,825 shares of the

parts grcup, Timken Roller Bear¬
ing was the favorite, three trusts
buying a total cf 2,200 shares.

balance

on

sold

were
negligible, two
acquiring 300 shares.

tric, Pacific Gas and Electric, Puget Sound Power and Light and

addi¬

profit

each acquired stock of the South¬

were

with

only
block acquired.
of steel shares

purchasing

was

•

June

"when issued" shares and ten
others disposed of a total of
72,560
shares of the old stock. Purchases

ern

other

Republic

usual.

Carrier

totaling
21,500
acquisitions
Pittsburgh Plate

five managements, one

systematic payment plan

reac¬

initial

The

Radiator,

Fund

of

2,000

one

The

on

purchases

Yale

by

a

were

Celotex.

Mutual

trusts

Two

Glass and

four

mixed

a

purchases

shares.
were

Founders

no

shares while three sales amounted
to 3,000 shares.
Opinion wavered

Building and

building and construction
third classification which

experienced
with

50

25,700

ever,

In the

group, a

or...

the

with

hand, al¬
though seven trusts sold 15,800
shares of Bethlehem, four pur¬
chases equaled 8,500 shares.
Six
managements liquidated a
total

Construction

Illustrated booklet

On

Steel

very

Three

only

initial commitments and two port-

to

States

were

Han

issues

shares of du Pont while

nated

hope

disposed of 28,500 shares of

United

individual

commitments.

new

as

chandising
shares
with opinion chases were
split between buyers and sellers.- previous quarter.

the

we

sellers. Nine funds

were

the

into

course

of

the Common Stock Fund of Group
in all

Paramount
eliminating

during the period, although,
weighted in favor of the
buying. Both purchases and sales

Of

initial

Motors, however, which
heavy accumula¬
Chrysler during

had experienced
tion along with

total

the

Notably

made

General

in the oils, rep¬
resented about 10%. cf the overall

the Fully Administered Fund and
Securities

two

Thursday, November 17,1955

.

ment

period as well as during
the previous June quarter. Seven
trusts disposed of a total of
9,000
small

Dreyfus Fund

during

review.

burg

countering

of Texas Gulf Sulphur was elimi¬

In the

under

shares

bought.

FUND-INC

profit-taking

quarter

and

ity group, just

industry giants suffered somewl at

portfolios and two purchases

current

DREYFUS

of opinion on tie
discloses that the three top

from

of

acquiring

.

which

Transactions in the electric util¬

division

been in the previous three
months,
four acquisitions totaling

Concentrated activity was rela¬

Prospectus from

or

com¬

divided

was

Standard of New

A
steels

Airlines.

Loew's.

Profit-Taking in Some Steels

were

each sold by two investment

192

pe¬

by
decreases in the holdings of Pure

Standard

FOUNDED

Oil

equaling 47,000 shares, while two

were

\fELUNGTON

■anr,

■■■■M

of

of

shares.
■«■■■■■■■■■■■■■■
BKaaaKaKfflS
■iiaaiaaisaaiMP1^

total

a

shares

as

in

received

nated

new

honors

issue

and Phillips also

group,
in

Sinclair vied

Royal Dutch Petroleum and

22,900,
of
Royal
Dutch
84,500, of Socony, 43,900, and of
Phillips, 33,084. Two trusts elimi¬

increases

were

pictures

taled

two

Western

light in the
group wita four man¬

amusement

by

two.

through

with

case

holdings of

Transactions

were

by three

Brass

the

was

of

Manville and National Lead

.

purchased

in

■?

%

7s-*?

-

*

•

the

3

PLANS

FOR

INVESTORS

sented in part stock received from
conversion
of
the
preferred as

*

Cumulative

*

Systematic Investment Plan

Investment Plan

income plan

Affiliated

with

Prospectus may be obtained
Jrom

authorized

dealers

A

FOUNDERS

Common Stock Investment Fund
are

for

its

Prospectus

Building

COLORADO




Income Plans

shareholders.

upon

fif

request

Teletype DN 249
2

insurance

objectives of this Fund
long-term
capital
and
income

growth

CORPORATION

DENVER

*

without group life

Investment

MUTUAL DEPOSITOR

1st National Bank

.or

Fund

or

MANAGEMENT CORP.,

Home Office:

Lord, Abbett & Co.
New York

—

Chicago

—

Atlanta

—

Los Angeles

principal

underwriter

Sherman St., Denver 3, Colo.,
phone PE 3-J{675
Sales offices in 27 cities in
U.S., Hawaii and Alaska
.

Volume 182

four

Number 5482 :.

The Commercial and Financial

totaled

additions

portfolio

.

44,400 shares. Three managements
also bought Boeing on balance.

Bancorporation

Northwest

Formed in Dallas

was

the commercial bank favorite with

First

and

finance

National

companies also

Is

were

the

Adjustments

Richard

I.

C.

both

ward

it had been in the

with

rail

The
to

previous

as.

quar¬

light

1

experience their popularity of

and

was

for

the

added

of

list

the

and

and

and

of

of

total

purchasing

of

shares

2,900

J.

Arthur

Clark

Strasburger

w.

American
Can
had
only preference indi¬
cated
in
the
previous
period.
Hazel-Atlas
Glass
and
Corning
Glass Works were sold on balance

The firm will engage in

elim¬

others

two

but

their portfolios.

offer financial counsel, and
investment opportunities
the standpoint of thorough

ness,

explore
from

Enarson, and R. W. Fleming,
Editors—Harper & Brothers, 49

own

investment

ness,

J.

busi¬

securities

Perkins and Co., and

F.

ing business in Dallas for 15 years.

Federal

and

submitted

Stability:

Papers

by Panelists

appear¬

&

Stautz,

Inc.

in

engaging

is

a

Tax

Policy

securities business from offices at
1442

Of¬
Deringer,

Gulf-to-Bay Boulevard.

Superintendent
i

U.

of

Report

ficers

are

Douglas

M.

previously operated his own

Mr.

for

25

years.

Strasburger is

a

fice,
Washington
(paper).

25,

D;

President, and Lucille T. Michuda,

&

ger

Derin¬
formerly

and Mr. Stautz were

Inc. and

with Security Associates,

Martin,

Moore

Equity Consultants

Equity

to

business.

offices

in

engage

Officers

at

Goldberg,

and

Priscilla

Mr.

Gilbert

investment

Trust

&

bank

are

Louie

Kimple, Dr. Lewis C. Sams, and
Mayer H. Halff, of Dallas; C. B.
Hasford

and

and

John

R.

Brodhead,

Josh

R.

Mcrriss, Sr., Texar-

kana.

Inv.

Secretary.

with

formerly

Planning Branch

WORCESTER,

Vice-President; Planning

Mallery,
was

Di¬

Co.

Samuel M.

Gilbert, President and Treasurer;
Ruth

Bank

and

securities

a

are

405

York

New

Avenue,

Lexington
City,

with

Cliff

Mr.

attorneys.

has Piano; Milton Vanderpool, Tyler;

Inc.

Consultants,

been -formed

Dallas

Vice-President

Oak

rector,

new

Form

is

Advisory board members of the

A. M. Kidder & Co.

Mass.—Investors

Corporation

of

New

England, Inc..has opened a branch
office

at

Main

507

the direction

First Investors Corporation.

Street

of Hervey

under

Ross.

Economic Indicators

ment to

BALANCED FUND

STOCK FUND
Managed by

the Committee Staff and

intendent

of

Documents,

~

BOSTON

BOSTON
ESTABLISHED

333. Montgomery Street

1924

SAN FRANCISCO
:^jk J'

Prospectuses from




your

Investment Dealer

or

the above.

these

History, The—William

Smyth-Simon and Shuster, 630
Rockefeller Cen¬

the

com¬

dividend

rec¬

but

only natural for the com^-

to assure itself of an ade¬
quate supply of the raw materials

pany

entering

reserves.

and oil
This effort has met with

outstanding
—

Press

15 East 26th Street,
York
10, N. Y. (cloth),

of

gas

present

and

success

exceed the require¬
the carbon black divi¬

of

Company,

sion. These resources

New

proportions that they have
promise of becoming the key fac¬
tor in future earning.
To illus¬

$15.00.
Regulations

Concerning Dealings
Foreign

and

In

Gold

In

Belgium

and

In

Exchange

the

Grand

Sixth
Supplement—Bank for Interna¬
tional Settlements, Basle, Swit¬

Duchy

Luxembourg,

of

zerland—13

plete

with

tion

francs

(com¬

original compila¬
six supplements, Sw.

work

francs

Sw.

increased by 50% to total

1.55

trillion

and

crude

equal

cubic feet last year
gained 1,700% to

oil

million

15.1

barrels.

Note

Internation

Movement Statistics, The:

Gold

and

Sociology,

Your

J.

Princeton,

as

yet have had no real bearing
income. Furthermore, the com¬

Business:

A

Handbook

is known to have substantial
liquids reserves. While no of¬
ficial estimate has been made of

Management Aids for the New
York Businessman—New York
State

gas

liquids, production of close to
barrels

Department of Commerce,
Albany 7, N. Y.

112 State Street,

year

sug¬

of at

Now

with

investor

this

caliber

features

pective

opportunities exist for
to buy an issue of
with

plus
oil

and

above

the

all

1.67

of pros¬
lands behind

acres

gas

each share of stock.

Now

Carbon

Columbian

that

has been established

of the

one

as

outstanding values in the oil and
gas business, how does it measure
up on the basis of earning?
I ex¬
pect net income to approach-$4
per share this year, an increase of
38% over 1954, and other non¬
cash
charges may well exceed
$3.50.
Together with dry hole
estimated for 1955,

these add up to $9 per share.
recent

of

price

stock is only

The
Columbian

the

five times this total,

compared to an average ratio of
five times for the 10 oil companies
mentioned

above.

have

earnings

not

Do

entered

forget,

rising

a

trend and important gains are also

expected
What

in

will

beyond.

and

1956
the

be

the

in

in¬

of

sources

earnings

future?

is, primarily from ris¬
crude

of

fol¬

oil

lowed by
and

higher natural gas sales
prices and thirdly from non-

oil and gas

operations. For

exam¬

ple. at the 1954 rate of production

(538,000
life of

is

barrels) the theoretical
company's oil reserves

the

28

over

industry.

But this production rate
the

related

to

present

reserves

company's

future

oil

a

expanding

output.

what

Now,

total

show

would

much wider margin for

the

is

picture

for

In the past nine years,

have exceeded

payments

net income
an

13

to

compared

years

for the total U. S. petroleum

years

average

50%

of

during each period for
payout of 64%. Bear¬

ing in mind this generous distri¬
bution, the excellent earnings out¬
the strong financial po¬

look and
sition

(net working capital of $20

million), I believe the $2 dividend
will be increased—in 1955!
ED.

NOTE:

written

Oct.

Columbian
nual

article

Above

raised

Carbon

dividend

to

rate

was

On Oct.

5, 1955.

18

its

an¬

$2.40

per

share.

Sirafliy to Address
Bosion Investment Gluts

Tuesday,

22,

Nov.

Yacht

Club,

guest

speaker,

Carbon

stack

up

First,

companies?

with

let

oil,

gas

equivalent

and

gas

reserves

exceed

115

million barrels and the stock mar£

4-1%

/\

the

address

K.

group

"Canadian Investments Today."

Mr.

Strathy holds the office of

Stock

of

the

Toronto

Exchange and is Chairman

oil of the Investment Committee of
reduce Trinity College at Toronto. Since

then

liquids

G.

James

other
us

demonrelate
the results to the total stock mar¬
ket value of the company. These
crude

on

The

Wharf.

reserve

Columbian

dbes

will

Strathy,

Boston

the

at

Rowes

Vice-Chairman

this kind of

how

position,

Imi

(paper) on request.

last

gests something on the order
least 25 million barrels.

inator—barrels—and

of

many

the

gas.

all reserves to a common

(paper), on request.

in

Not

BOSTON, Mass.—The November

Oskar

Morgenstern—International Fi¬
nance
Section, Department of

of leases
Saskatchewan,

acres

meeting of the Boston Investment
Club will be held at 5 p.m. on

1.5'million

of

tions

and
and op¬
Canada.

States

United

the

1,586,000

1954 and

found between 1952 and

pany

Validity

in

rights

1,100,000

than

more

lease, fee or mineral

that 85% of the oil resources were

on

Commission, Washington,

has

under

1945 and 1954 gas

trate, between

—

40).

have reached

such

reserves

this

far

reserves

ments

for

the search

into

development

Carbon
acres

dividends?

producer of carbon black

material

made

been

have

Also, note that Columbian

year.

exceptional

an

a

$6.00.
Taxes

and

marily

ter, New York 20, N. Y. (cloth)

Federal

earnings

it

by

36th edition—The Ronald

long
steady

Columbian has been pri¬

and

additions

production

growth and income situation.

was

admittedly conserv¬

were

10 months ago and

ative

answer

1916;

Since

Bear in mind that the above es¬

timates

ing

ord, the latter
dating back to

as

pany?

The

something new and substantial has
been
added
which
places
this

investor

the lowest per

creased

and

Lucian L. Vestal

the 10 with
barrel value aver¬
aged 71c. Is this a carbon black
company or an oil and gas com¬
investigated,

panies

mostly to con¬
servative ac¬
of

the

way

appealed

counts because

Fifth Avenue,

Montgomery's

have

the prime investment
mediums which should appeal to

Prentice-Hall, Inc., 70 Fifth Ave¬
nue, New York 11, N. Y. (cloth)

N.

~

past

stock among

ington 25, D. C. (paper), 40c.

Lessons of

the

In

shares

Office

Gov¬
Printing Office, Wash¬

ernment

Economics

INCORPORATED

24 Federal Street

and
out¬

look.

of Statistical Standards—Super¬

Princeton University,

HOWARD

earnings
dividend

—

D. C.

EATON & HOWARD

stock presents a rare op¬

Prepared for the Joint Commit¬
tee on the Economic Report by

merce

EATON & HOWARD

common

By

costs of $1.50,

Company

Carbon

Columbian

pany's

States—Part I—Interstate Com¬

&

Columbian Carbon Company

Historical and Description Supple¬

Transport Economics in the United

EATON

LUCIAN L. VESTAL

Analyst, Rotan, Mosle & Co.,
Houston, Texas
Members N. Y. Stock Exchange and
American Stock Exchange

C.

partner in

Strasburger, Price, Kelton, Miller

Mr.

Best."

Documents,

$3.95.

President, William L. Stautz, ViceSecretary-Treasurer.

common

S. Government Printing Of¬

liam D. Ellis and Frank Siedel—

businesses

P.

sider

—

IIow to Win the Conference—Wil¬

and

have—

we

investors should con¬
R. Mallory & Co., Inc.
"The Security I Like

Committee

Joint

Economic

the

on

—

Industries, Inc. in charge
concrete
products operations

of

conclusion

reach

many

ing before the Subcommittee on

Mr. ClarkYvas Vice-President of
Texas

will

you

for Economic

Tax Policy

Growth

"

CLEARWATER, Fla.—Deringer

Perhaps

portunity to purchase both a much
East 33rd Street, New York 16,
undervalued issue and one with
N. Y. (cloth), $3.50.
a n
excellent

all phases

has been in the investment bank¬

Deringer & Stautz Open

Electric

it with
other
electrical-electronic

of the

same

that

Reprint

L.

investment securities busi¬

the

of

analyses
and
com¬
Burroughs was the fa¬ operational
vorite
in
the
office equipment petent business management.
Officers, and directors, in addi¬
field, interest spurred by its elec¬
tion to Mr. Perkins, include J. W.
tronic research, and National Cash
Bateson, Chairman of the Board;
Register was also liked.
Arthur J. Clark, Executive ViceAlthough a more friendly atti¬
President; Henry W.' Strasburger,
tude
was
being shown
to the
Secretary-Treasurer; and A.
B.
tobacco shares, American Tobacco,
Moore, Director, all of Dallas.
as
during the June quarter, was
Mr.
Batesorf is
a
nationally
the only
issue in this group to known contractor and President
enjoy any special preference, three and Chairman of the Board of
funds acquiring 5,500 shares. Coca
J.
W.
Bateson" Construction
Co.
Cola also was liked by four man¬
Mr. Perkins formerly headed his
agements,

—

the

of

Compare

address before Southeast¬

an

the authorized shares

increase

Policy: Irving Bernstein, Harold

(Nov. 12)
by Jack F. Perkins, Jr., President.
Tower, was announced

currently.

inated it from

Goldstein

—

Emergency Disputes and National

two

the

been

Plans

Sharing

-

Pension

of

(paper).

a

Fibreglas.

Van¬

to

indicated by

recent announcement of a plan to

group.

—

brought

may
soon
be
dramatic fruition, as

plans

promoting

Exchange—Pension
Planning Company, 260 Madison
Avenue, New York 16, N. Y.

Owens-

acquisi¬
tions each were made, of Conti¬
nental
Can
and Owens-Corning
while

Glass

Illinois

Amendments
Profit

ern

Can

American

number

to

degree

stocks

Press,

Meyer M.

of

shares
like

a

price-earnings ratio in some

the

CN

Booklet

—

distributing books

Current

—

25,800

Manuscripts

i'..

■

of container and g^ss
was
concentrated in four
three funds acquiring

stocks

Century
West' 42nd Street,
36, N. Y. (cloth),

330

Inc., 120 West 31st
Street, New York, N. Y.

Buying
issues

D. Hum-.

Twentieth

—

York

and

liked.

well

Section,

(paper), $2.00.

tage

third, and

a

—

Industrial

—

describes services for

Transportation

General American
was

recently

time

first

Lester

management toward expansion in
substantial degree, some of which

Book

purchased by two. trusts

to

In¬

Area

in

cheap

common

30's? Before answering
question, consider the longterm growth trend, interrupted by
troubles that appear to have been
of
a
temporary nature.
Adjust

stock.

86,000 shares. A. C. F. Industries
also

of these

N. J.

phrey

portfolio increase totaling

one

A.

an

Employment

$6.00.

commitments

initial

three

with

indicated value per

reflect the fine pros¬
pects of the titanium subsidiary.
Add in the plans of an aggressive

New

June period, Union
outpacing the group

Car

ing debt) totals $80 million

dol¬

Department
of
Economics
and
Sociology,
Princeton University, Princeton,

Fund,

J. W. Bateson

Jack F. Perkins, Jr.

the preceding
Tank

Expanding

and

in

American Imports—Don

Credit.

equipments continued

Practices

Controls

Relations

to¬

mixed

was

activity especially

Commercial

in

of

Financial and

T.

Credit

Commercial

ter

reaction

stitutional

Shortages:

Labor

to

Finance and Industrial Acceptance

Fund

Mallory

the upper

Management

Corporation.

less,

total of 35 major oil and gas com¬

City.

purchased on balance with a cou¬
ple of managements each favoring
Associates Investment, Beneficial

for an
barrel of 69c.
of comparison, out of a

is

million

interests.

tions—Bankers Trust, Chase Man¬
hattan

a

lars than the book value

cated for three New York institu¬

The

approximately

by

slight preference also indi¬

some

2

page

domestic businesses

small

Inc.,

Adolphus

the

in

offices

Co.,

and

Clark

Perkins,

of

with

from

The Security I Like Best

DALLAS, Texas—Formation of
the new Dallas investment bank

Companies Bought

,

Continued

Perkins, Clark Co.

Finance

Banks and

Some

31

(2107)

Chronicle

1927

a

the

Dominion

Corporation

and Vice-

partner

Securities

in

director

President

and

Dominion

Securities

Ltd., he is Manager of
stock department.

of

the

Corporation

the firm's

32

The Commercial and Financial Chronicle

(2108)

.

Thursday, November 17,1955

..

V

Continued from page

the long-range pattern of interest

3

rate

in

dent

the

of

resembled

respects; they were a period

expansion and high-

of prosperity,

capital investment, but long-

level

interest

term

decade.

drifted

rates

closing

the

until

the

fact,

In

lower

of the
American

years

has been characterized
by dynamic growth and progress
through most of its history, yet

economy

interest rates have both risen and

declined

the years.

over

Although
rates

the

of

most

For

given overwhelming evidence of
its ability to grow and expand
even
while Government support

quarter

past

being reduced and curtailed,

was

above

are

commercial banks made larger additions to their holdings of mortgages and of securities other than

Present

Treasury obligations in 1955 than
they did in 1953, and increased
interest their
business
loans,
including

long-term

toaay

conditions in the investment
kets over the years,

the

levels

loans

for

mortgage

warehousing,

Demands for
in

__

the

vestment
have

a

course

economic

SemanSs

the
funds

that

en-

for

toto

appear

major impact upon the
of long-term interest rates

the

are

Investment Funds

present

vironmenl

mar-

demands

that

stem

from

this business borrowings, state and loyear. Finally, credit restraint has ca]
government
financing
and
cal perspective. In fact, long-term not resulted in the unsettlement of rising real estate mortgage'debt,
rates in the United States are still investment markets which devel- These demands have increased
near the lowest levels to prevail oped two years ago.
steadily in recent years* their dolat any time in the 20th century,
Current Prospects — Economic lar amount this year will be about

economic controls were removed,
The postwar decade has impressively refuted the notion, frequently postulated some 20 years
ago, that the American economy
was essentially stagnant, afflicted
was in 1899; important new forces
with a chronic problem of finding
have
developed in the past 25 investment
outlets for current
years that will affect the future savings. Instead of stagnating, the
course of interest rates.
private sector of our economy has
of Economic

our

of the immediate postwar years,
they are still quite low in histori-

to
be that we must beware of the
blithe
assumption that
current
trends
will
inevitably continue,
An
appraisal of the outlook is
even
more difficult today than it

Change

and

p

The lesson of the past seems

A Quarter Century

of

.

Yields on long-term
Government and corporate bonds
in 1945 were actually lower than
at the start of the war. However,
the experience of the war financing also showed that a corrollary
to the maintenance of artificially
low interest rates was a tremendous inflation of bank credit,liquid
assets, and the money supply,
which exacted its toll in the xorm
of higher commodity prices, partly
during the war, but more importnntlv in ihp nnstwnr vears. when
tantly in the postwar years, when

1920"s for exthe present in

The

past.

ample,
many

periods

Recent Trends

investors.

in the light

interest rates bear up

earlier

and loan associaAlso, the

banks, savings

tions and pension funds.

evi-

was

business history.

Analysis oi the Outlook
For Long-Term Interest Rates

An

which

movements

with the exception of the period
from the mid-1930's to the early

by

greater

much

a

conditions

1950's, when interest rates^ were rates

suggest
in

firmness

amount

the

over

continuing
interest

long-term
near

term.#Credit

depressed as the result of easy
money conditions, war financing

pressure

or postwar pegging of Government bond prices. Significantly,

tinuing to expand for the purpose

nrncnnt

tHpTHc

hnnH

aro

ctin

During

markets are currently feeling the

.

of

..

Bank loans are con•

.

.

fjnanring inventory accumula-

gage

The Postward Record

—

A large

si0ns of the Korean War.

is

was

bv

the

developed in the real estate mort-

rates reflected

gage market, and discounts on

only

part

of

the

But this

explana-

tion; to

an important extent
the
strength of investment demands is

due to the dynamic qualities inherent in the American economy

remain heavy.
In
stringency has already

part of the postwar rise of interest

the elimination of

10

past

accumulated deficiencies of canital equipment at the end of World
^ui^ucm di me eiiu oi w oria
War II as well as the renereus-

m0ney

fact, some

the

spending

unquestionably stimulated

to what may be considered de- tions, the marketing of crops, and
pression levels, although business instalment sales of consumer duractivity, employment and demands able goods, as well as to meet
for investment funds all are far commitments for mortgage warehigher than in any earlier period, housing. The corporate financing
Powerful forces seem to be op- calendar in the months ahead aperating in our economy to restrain pears modest, but the volume of
a rising interest rate trend and new financing by state and local
we may entertain some doubts as governments seemj to be building
to the vigor and momentum of up> and requirements for mortthe upward movement.

of

*7t„

__

_

much

investment

years,

of seasonal borrowing re-

quirements.

Mncp

present bond yields are still close

50% above 1950, partly of course
as the result of price inflation.
>

in-

as

evidenced bv the

resurgence

investment

spending

past

an

year

in

during

of

the

atmosphere not of

but of peace. Many important
forces will continue to operate in

war

the

direction

of large

and

prob-

ably rising levels of' investment
spending
However
economists

However, the fear of depression the comprehensive controls over sured and guaranteed mortgages are divided on the question as to
and unemployment still lingers on interest rates that had been main- have increased.
whether the pace of steadily risment of generally plentiful
and and expresses itself in a continu- tained long after the end of the
while these trends and prospects ing investment spending, so eviat times superabundant — credit, ing popular bias in favor of easy war. Bor several years, the Fedmay
weu jeacj
sorne further dent in the postwar years, can be
interest rates by all past standards credit and low interest sates.
eral Reserve continued to support a(jVance in long-term rates in the maintained in the decade ahead,
have been extremely low. Only in
Institutional Changes—The past the prices of Government secun- course 0f the year ahead, the deBusiness spending on plant and
part
has this environment re- quarter century has brought im- ties, and thus effectively placed cisive factors will
be
business
equipment turned up this year
the American economy
operating in an environ-

century,

has been

results

the

fleeted

.

of economic portant changes also in the organ- a ceiling upon long-term interest

^

forces; predominantly, and asPec~

ization of tbe market for invest-

cially since our entry into World
II, it has been the result of
measures on
the part of Govern-

ment funds. The ties which formerly linked the investment mar-

War

kets

de-

ment and of credit authorities

countries

various

of

have

the

considerably, if not

to

movements

the reactions of the invest-

upon

entire

The

of Depression

Legacy

War—Actually, much
and

ing

often

felt

national

interest

rates

centers

throughout
investment

in

were

the intercommunity,

leached

accoid

an

under

which

pressures
ancj

the

upon

plant facilities

]abor

supply increase, if
„raw materials become

scarcities of
v*/idesnread

ereater

if

shortages

the latter was released from the ^' investment tods and otter
responsibility for supporting the typical signs of a business boom
long-term

Pric®s

Government

bonds.
As

should
serve

a consequence

credit

policy

of this accord,

acquired

greater

tain,

develop, the Federal
may

be

or even

sure

expected

to increase, the pres-

the

upon

to

Remain-

short-term money

of business activity and corporate
profits,
but
the
general
trend
should be upward. Research and
technolorrv

are

nrodnpinf?

pvpt*

newermachines,^processes

and
products; capital is continuously*
being substituted for labor as competition compels business to hold

down costs in the face of advancing wage rates. Down the longer

today changes in interest rates flexibility, and long-term interest market. In such an environment, road, we face the prospect of coabroad seem to have no appreci- rates became free to respond to the Treasury conceivably would lossal money needs as the result
ab\e effect upon investment con- fluctuations in business activity make some effort to tap the in- of the industrial use of atomic

and

of the think-

which

planning

policy

of

important financial

and indeed upon
present-day economy,

markets,

ment

the

rates,

interest

of

structure

but it was not until March 1951,

after considerable debate, that the
Whereas in- Treasury and the Federal Reserve

been stretched

maintain low interest altogether severed.
rates.
The policies, concepts and vestment capital in earlier decades
practices of this long period have tended
to
flow
fairly
readily
inevitably left their mark upon across national boundaries, and
signed

trends and credit policy. If busi- and is in a rising phase, at least
In the immediate postwar ness continues to expand and is cyclically. Some fluctuation in
years some progress was made in accompanied by growing specula- business spending is to be exshort-term interest rates tion financed by short-term credit, pected with changes in the level

rates.

ditions and interest rates in the and to the resulting changes in vestment market through an of- energy. However, the great bulk
Un.ited States, except possibly to credit policy. Since the accord, fering of long-term bonds in order of business requirements for funds
mained with us.
In that decade, a limited degree in the short-term
bond yields have fluctuated over to help temper the boom. Such a is traditionally financed out of
the general philosophy developed
m°ney market.
Investment re- a wider range, reflecting chang- sequence of events would clearly reinvested profits, does not take
that the Federal Government must turr]s
in the United States are ing demand-supply conditions in enhance the prospect for some the form of new security issues,
assume a large measure of responl°wer than in many parts of the the market place.
further increases in long-term in- and has little effect upon the
contributed

to

rates

in

terest

level of in-

low

a

1930's has

the

re-

sibility for maintaining a satis- world, but this has not contributed
factory level of employment and
a sbarn outflow of funds into
business activity, that low interest foreign areas.
xates were a desirable goal of pubFurthermore, the rapid growth
lie
policy because they helped of institutional investors appears
stimulate
borrowing for capital to have introduced greater rigidity
investment, and that investment into
the market for long-term

should

•activity

antee programs or

thp

Tn

1930'*

HpnrP^PH

difficult to arhipve

ofInterest^rates*
itv

ital

to

a

would

without

However

for

of

Government
rates

War

contrast

in

World

War

the

—j.—

interest

low

11

levels

%

of

1%

low

fare

for

of

credit

financing

to

of

ti-

the
the

over

and ranging from
3-month

on

from

on

the

Treasury

longest term

Government bonds.

Despite
financial

some

l

■

•

7

±

ro*e

-

rates, based upon

2V->%

*

SflVav^
played by

fixed pattern

a
1

.

7

,

me iciiifi

.

Government espe-

c*ahy in the mortgage field, where
? 0n inLsured and guaranteed
pNHjgages do inot reflect the dayby~day °P®rat10n of market forces
but instead are established periodically by regulation.

skepticism in the

community, the Treasury

Over

time,

an

of

extended

course,

period of
investment poli-

pan ui

restraint,

and

state

and

It

this situation.

commercial

banking
the

does

system

was

that

reserves

that

of

enabled

the

banks

ligations

not

absorbed

to

purchase
huge amounts of Government ob-




by

seem

the

the rise of
marks

probable,

institutional

recent

for

con-

however,
changes

together with
goals and bench-

decades,
new

economic

and

credit

other policies, have importantly affected

local

governments

in tbe aggregate in 1955
one-fourth higher than
Spveral

changed

firmed

to reach the levels that prevailed
in the spring and summer of 1953.
This appears all the more remarkahie as demands for investment
funds
by business,' homeowners

r5«s

adjust to

rates

kut have failed so far

once more

ditions in the investment markets.

will

emu a ^iau-

interest

succeeded in this ambitious effort.

with

interest rates,

Rapid population growth and
migration of population are keeping public facilities and housing
under continuous strain. One of
the safest predictions is that borrowings by state and local governments are likely to be well
maintained for some years to

Shortages of public facilities are commonly recognized and
there is widespreading insistence
to press forward on construction
budgets. While outstanding debt
has risen sharply in recent years*
it does not as yet appear to have
reached the point where it is become.

barrier to further bor! .«■
Demands for real estate mortgage money in 1955 are likely to
be as much as 70% above 1950,

coming
rowing.

a

mem

s^ciiuuik.

i^wcvci,

ca

a"1-*

wov

..vu.vu,

ual shift of credit P°licy toward perience of 1953-54 indicates that liberal financing terms,

Federal Reserve policy was shaped
to meet the Treasury's needs, the

provided

0f long-term rates is likely to be
downward. Assuredly, a return of
interest rates to depression levels
aooears remote; the prospect of a
depression comparable to that of
the 1930's is extremely unlikely

course of long-term

,estat? mortgages. Conse- serve policy of aggressive credit
quently> financial compartments ease all contributed to the decline,
have been erected which impede As a result, by the middle of last
the. readY aPd easy flow of insti- year, most long-term interest rates
although the number of housing
tutl0nal savings, and rates on dif- (except yields on state and local for the predictable future, and starts in 1950 was not far different

rea

of
in-

carried

depression days
bills to

effec-

decided

at

war
i

nicip.al b?nds' ™hlle th.e average the expectation of reduced investPen81°n xfund has no interest in ment outlets, and a Federal Re-

action

II

the

the

to

rates

the abilitv

in

even

led

have

maintain

demands

Tn

nance

to

wns

investment

Government

World

ctuDendous

it

low level

interest

tivelv demonstrated

terest

a

nrobablv

level

low

even

by

guar-

^

in

demand's

of

can

of

and

by direct Gov-

loans.

ernment

not

assisted

be

insurance

Government

Recent Developments—The flue- terest rates. At the same time, it
tuations in long-term rates in re- seems reasonable to conclude that,
cent years indicate some of the barring the growth of acute inflafactors that may be expected to tionary pressures, most of the adaffect their behavior in the period vance in long-term rates in the
ahead. Market interest rates rose current cyclical upturn in busirather sharply during the latter ness is already behind us.
funds. Various classes of invest- half of 1952 and the first half of
The record since the Treasuryment institutions, such as pension 1953; this was a period when busi- Federal Reserve accord indicates
funds, life insurance companies, ness was expanding and the Fed- that, under a flexible credit polsavings and loan associations and eral Reserve was pursuing a pol- icy,' long-term as well as shortothers' have developed rapidly, icy of credit restraint. From about term rates tend to move in the
and each type seems to follow lts mid"1953 to mid-1954, however, some direction as economic ac°.wn dlstinctlve investment poll- long-term interest rates declined tivity. We may be sufficiently
cies
practices. Thus, savings even more rapidly than they had ci0Se to the peak of the nresent
and loan associatlons do not as a advanced in the preceding 12 business cycle to assume that the
^ ? Purchase corporate or mu- months: sagging business activity, next broad and major movement

factors

demand

1955

in

for

was

the

help

to

about

in

1953.
explain

Much of the larger

investment

matched by

investment

to
savings
insurance

are

an

funds

institutions,
companies,

funds

in

increase
flowing

such

as

savings

additions

to existing
houses, the turnover of existing
only a modest easing in business houses, and record levels of cbmconditions,
long-term
int^est mercial building,
ratps
may
nevertheless decline
There is considerable informed
fairly sharply.
opinion that the expected rate of
household formation, couDled withc
Looking Ahead A Decade
increasing obsolescence and demObviously, any attempt to ap- olitions,
could support housing

even

in the face of continued hivh

and

improvements

demands for investment funds and

,

.

praise

the

interest starts at or somewhat above the
one million annual level for the
indefinite future; also, any sign of
grief the experts of starts dipping much below current

outlook

for

rates over, say, a decade may well
founder on the same shoals which

brought to
1899. Possibly, however, we may

levels would probably be met by
somewhat by a return to more generous lending
considering some of the broad terms
for
Government-insured
economic forces likely to affect and -guaranteed mortgages. Furreduce

this

hazard

Volume 182

Number 5432

..

.

thermore, ambitious

programs

slum

urban

clearance

velopment

and

only

are

The Commercial and Financial Chronicle

of

rede¬

getting

now

under way, and added efforts
may
be made to stimulate rental hous¬

ing. At the

time, commercial
building also continues strong and
same

and

supply forces will be achieved
conditions of rising or de¬

perhaps

under

prevailed

clining interest rates must await

At

the unfolding

of the years.

How¬

it does seem tenable to con¬
clude that, under the assumptions
ever,

here made, the trend of long-term
Tl}e outlook thus points to interest rates will be neither radi¬
continuing
large
demands
for cally upward nor downward.
mortgage money over the years
The substantial capital require¬
ahead, but it should be kept in ments in prospect for the years
mind
that
amortized
mortgages ahead are likely to prevent a re¬
are now the general rule and that
turn of long-term interest rates to
the flow of funds from amortiza¬
the levels that prevailed in deep
tion payments will rise substan¬
depression or under regimented
tially in the years ahead.
and
controlled
credit
markets.

Demands

for

investment funds

likely to be further stimulated

by

Government

the

policy;

Government's

in

efforts

fact,

to

en¬

courage investment spending may
be intensified in the future. There

is

little

doubt

high levels
to

are

the

that

the

of mortgage

current

financing

can

Government's

insurance

and

As of today,

expanded

an

highway program; while specific
financing techniques have not yet
been established, the net result
be

also

large

exert

tion of some
interest

requirements
may
in the direc¬
increase of long-term

pressure

rates

from

past, and
fective

may

floor

help place
under

these

ef¬

an

economy will

enhance

to

a strong advance of
interest rates in the

long-term

ahead.

years

the

in

current

outlook

for

interest rates, in comparison with
earlier decades, is the emergence
of Government as an active agent

affecting conditions in the invest¬
ment markets. While interest rates

will

continue

of

with

fluctuate

to

Encouragement

Activity

other countries as well

—«

the expansion
facilities, and similar
thereby adding to total

In

a

FROM

as

rates,

may

the

maintain

high and rising levels of
business activity. To this end, the
economic policies of Government

maintaining relatively low inter¬
est rates; in fact, the two objec¬
tives appear to complement each,
tend to stress the desirability of other. In an environment such as
maintaining a relatively low level the present and the foreseeable
of interest rates as a general in¬
future, however, where demands
ducement

into
as

to

investment

borrow¬

In addition, in

funds loom large,

these two objectives not

flow of funds

a

of investment regarded

areas

for investment

Continued

economically, politically or so¬

on

CRAFTSMANSHIP

STUDEBAKER
AND

COMES

ENGINEERING

PACKARD
'I

In

addition,
Treasury may be expected to
taking funds out of the

-k

^

.

A

^

continue

investment market

the years

over

in

furtherance

of

extending the maturity of the

Federal

its

of

stated

goal

debt.

Finally, larger demands for in¬
vestment
abroad.

funds
The

will

mittedly beset
imponderables

by

here

is

*

*

ad¬

greater

even

than

cloud the domestic

from

come

outlook

those

that

On bal¬

scene.

ance,
should
the
international
climate continue to improve, for¬

eign
be

lending

expected

and

investing

increase

to

years,
although
these activities

the

may

the

over

growth

of

is
likely to be
gradual rather than spectacular.
On balance, therefore, the pros¬
pect over the long term is for an
increase in the aggregate require¬
ments for investment funds, but

with

cyclical

and

below

fluctuations

above

the

long-term
likely to continue.

*

trend

rAi

I

This

prospect speaks strongly
against the probability of a re¬
newed downward trend of longterm interest rates, but it does not

;

.

]

,

:

: ■'

...

by itself assure their steady and
rapid rise. In an expanding econ¬
omy, both personal incomes and
savings will increase, so that the

volume

of

ment will

funds

seeking

invest¬

continue to

also

grow.

Supply of Savings—The amount
of funds in

savings institutions has
increasing year after year;

been
the

accumulation

funds
in

this

1950

will

year

by

of

about

about

kept

always at

that

exceed

step

with

an even

rising

although
This

pace.

growth is certain to persist.
The

admitted

assets

companies

surance

are

of

at

are

life

rising

tinuously, and writings of
surance

Packard

What is THE

in¬

built

below

in

1955

the

may

record

expanding

run

rise

rapidly.

in¬

Now

enhance

the

of

Striking

a

luxury cars
the

that

our

the best cars... that individuality
live, today, stronger
v

and lines found in

Packard deliberately de¬

new

—

a car

^

...

choice in fine

a new

cars, as

it

was

^ And

thirty years!

Clipper deliberately de¬

signed to set new standards for

medium^priced cars—with features

all

no

other

hundreds of dollars of its

car

within

price!

destined to be

America's first choice for

grow¬

you'll

soon,

baker

see a new

Stude-

deliberately designed to set

the low

that will

price field

on

fire

—

a car

outstyle, outperform and

outvalue any

other in its price range!

further

therefore, is

one

of expansion both in the require¬
ments for investment capital and
in the

new

a

signed to upgrade America's idea of

are

Balance—The outlook

the decade,

. . .

the first cars born of THE BOLD NE\A/ IDEA:

you can see

Pension

rapid increases in pension funds.
Thus, the stream of savings and
of institutional funds seeking in¬
vestment
is
likely to broaden,
mirroring the long-term increases
that may be expected in employ¬
ment and in personal income.
over

simply this: We believe that cars can be

production lines without sacrificing craftsmanship

year;

benefits

prospect

NEW IDEA?It is

BOLD

modern

...

ing larger year by year. A mount¬
ing number of plans, higher
employment and continued liber¬
pension

spine-tingling to motorists

design and true pride of workmanship are not dead, but
than ever in the new Studebakers, Clippers, and Packards.

slightly

last

increase in assets has been

of

as

4

goal must always be to build not the most cars but

funds, both corporate and govern¬
mental, are still in a period of
accumulation; in fact, the annual

alization

there's nothing quite

of

levels.

savings and loan associations
still

ours

con¬

new

record

on

Deposits of mutual savings banks
are also growing, although the in¬
crease

of

Corporation is doing.

60%.

demands in recent years,
not

exciting, changing land

(and that means all of us!) as the news coming out of our automobile capital. And today's
news
is of THE BOLD NEW IDEA-the idea back of everything Studebaker-

investment

By and
large, the flow of investment funds
has

In this

In

the

short, you'll see a

brilliant array of new motorcars in every price class-cars built to

highest standards of craftsmanship in the industry today-cars

ment

of THE

BOLD

CCl/Pd

/C?V

that are the embodi¬

NEW IDEA.

STUEDEBAKER

•

CLIPPER

•

PACKARD

C&Zdd ■——

^

supply of funds seeking in¬

vestment

balance

outlets.

between

Whether

these




the

demand

WHERE:

PRIDE

OF WORKMANSHIP

STILL. CON/IES

only

ap¬

contradictory but raise the

pear

OF

HERITAGE

THE

capital.

period of relatively low in¬

vestment
activity,
Government
be programs to encourage home mort¬
encouragement gage financing and the like are
of capital investment in order to not inconsistent with a
policy of

long-term

order to stimulate

many

public

demands for investment

The basic objective of
Government policy, as far as it

ing and spending.

rates

to

purposes,

—

seems

icies in the United States—and in

Investment

of

Government

programs
maintenance of

residential building,

might otherwise be
perhaps even to re¬
possible long-range ten¬
dency toward higher rates.
a

business

activity, the conclusion
justified that economic pol¬

the

press

described

One of the fundamental differ¬
ences

directed

average, than
the case, and

affects

Government Policy

cially desirable, the

3»

has undertaken various

requirements

for investment funds.

the

probably miti¬

favor
the
maintenance
of
lower interest rate levels, on the

gate against

the compara¬

tively low levels of the immediate

same

will

important degree due to

an

guarantee programs.
the prospects favor

will

These

the

around the levels that
near the middle of 1954.

time, the large and
increasing volume of savings that
will be generated by the Ameri¬

active.

are

(2109)

FIRST!

page

34

34

The Commercial and Financial Chronicle

(2110)

Continued

from

are

33

page

generally

possibility that total demands in
markets

investment

the

will

ade ahead

run

achieve

balance

a

supply, presumably by

of higher interest rates;
fact, the Government might

in

way

contribute

tively

ment of such
own

the

to

such
guarantee

and

ac-

attain-

balance by curbing

a

programs,

surance

the

de-

between

of

The

mort-

In practice, however,
such action is likely to encounter

course

considerable resistance.

best

Pressures Toward Low Rates

Steps

moderate

to

Government

both raise

Once

problems,

some

of providing incentives to capital investment by
a

program

of advantageous credit terms
and the like has been adopted and
maintained for a time, it becomes

way

part of the fabric of the political
economy and attempts at curtailwill

ment

sions.

have

broad

This is equally

repercus-

true if the

moderating influence should come
as a result of higher interest rates,
For

instance,

probably necessitate
Government

declined

several

-guaranteed
make

to

other

mortgages

them

order

media;

the

bonds

is

of

only

of the rise in interest rates in the
past 10 years has been due to the

at

but

present

throughout

the life of the mortgages.

For ex4% corporate bond yield

ample,

a

would

probably require that in-

sured

and

they

be

competitive

investment markets.
est

mortgages
in

the

have

fluctuated

Indeed,

trend.

Rising inter-

around

a

the

con¬

In

rates.

succeed in

to

are

we

be

as

state

and

rental

capital projects of

local

ef¬

ready

as

to

cushion

boom

restrain

to

designed to foster

programs

a

recession.

a

Government

ambitious

a con-

tinuously high level of investment
activity, accompanied by a general
disposition to favor relatively low
interest rates, suggest that action

re¬

Contem¬

programs.

plation of these

consequences il¬
lustrates the obstacles that would

confront

porate

rise in

a

bond

assuredly not
torical

high grade

yields

4%,
high rate in his¬

a

perspective.

Furthermore,
forces

*

when

market

permitted to redress

are

of

excess

cor¬

to

even

investment

an

demands

over the supply of
funds, it means
that not all prospective borrowers
are
able to raise aU the

money

they desire. In all, the authorities
-

.

comprehensive

as

measures

be pereffect
upon the trend of interest rates
which they exercised in earlier
periods of our economic history,

forces

mitted

Thus

have

to

we

likely to

not

'are

the

be

mav

same

tnat

smnin

long-term

fates will move within
narrow range

in

justified

thaf lone "erm

-

level

a

as-

interest

merest

relatively

in the years ahead.
~—

—

We See

—~

vide

varleu

larger reserves to the banking system in order that the banks
ment

the

marifetf'fhtrely maldS^

deficiency

in

the

supply of
savings.
Or the Treasury might
be urged to
adopt the principle
of
^

"sheltered"

which

means

interest

that

it

rates,

would

be

called upon to make funds
avail¬
able for favored
purposes at rates
below the market; this in turn
would increase
the

the cash drain

on

Treasury and raise its financ¬

It need not be taken for

that

the

authorities

will

granted

always

and

fully yield to pressures of this
kind. However, the net result of
these Government policies and of
the very real pressures for Gov¬
ernment

retard
in

action

the

rise

is
of

likely to be to
interest

rates

period of expanding business
activity. On the other hand, there
a

are

few real barriers to

a

decline

of

long-term rates when business
activity is in a sagging phase. The

combination of these
forces, which
solidly entrenched in our
economy, makes it questionable
whether interest rates in the decappear




cold shoulder

serious

of information

their acts. That is to say, whether they have come to the
conclusion that they are tired
enough of fiscal extrava¬
gance to do without the things they now deny the authori¬
ties the funds for—and if the

Much

This
in

same

frame of minds carries

is on the way to carrying over, to the innumer¬
extravagances of all government in this country
during the past two decades ^nd more. Have they faced

file

and better roads

we

must have

^

we are to go on as we have been doing to motorize ourselves almost completely, and to carry on our business
accordingly, and that these roads must be paid for either
or

out of current taxes. Have

they
that if such huge sums are to
be devoted to roads
as an
example — we shall have
almost of necessity to
give up some of the fol-de-rol that
sense
—

we

have been

throwing billions

away on

is involved in these issues than

more

might be

means,

of

course,

a

thorough-going about face

a

revolution in the minds of the rank and

what

they expect the government to do for

means

about

them. To

put the matter simply and directly it means a
return to traditional American thinking and acting—the

managed our affairs before the New
the scene. When can we bring our¬

way

in which

we

Deal

appeared

upon

it?

selves to

Public Service Stock

for decades?

Are

they prepared to find the funds for real essentials
by taking government out of the many fields into which
it has been injected
by dreamers of recent decades? These
questions, apply, of course, not only to state and local

headed
which

Corporation

& Co., Inc. jointlyunderwriting
group

Blyth
an

publicly offered yesterday

(Nov. 16)
of

new

a

Service

Public

stock

($5

par

value)

share.

per

Upon completion of the current

sale, the company will have out¬
standing 2,900,000 shares of com¬
stock

mon

in

addition

to

$18,-

preferred stock and
$66,028,000 of debt. Dividends on
562,000
the

of

in

common

being
25

stock

currently

are

paid at the quarteny rate
cents per share.

Proceeds

will be

used

for par¬

tial payment of loans incurred for

construction

and

other

properties.
Total operating revenues for the
12 months ended Aug. 31,
1955,
income

$37,098,000 and net
$4,442,000. The com¬

to

was

supplies electric and/or gas

pany

service in 10 of Arizona's 14 coun¬

ties.

issue of 260,000

Arizona

common

$22.75

purposes.

The

com¬

estimates construction ex¬
penditures for the balance of 19c5

pany

Now J. E. Call of D. C.
WASHINGTON, D. C.—The in¬
vestment business of Coombs &
Company of Washington, D.
now

C. is

being conducted by J. E. Call
of Washington, D. C.,
Fourteenth St., Northwest.

& Company
1012

New Waddell ReedBranches
&

Waddell

Long
under

Reed,

Inc.

have

branch office at 242
Lane, Upper Darby, Pa.,
the direction of Douglas H.

opened

Rogers

a

and in the Nissen Build¬

ing, Winston-Salem, N. C.

under

Robert G. Pfefferkorn.

and for the next two years at ap¬

proximately $29,700,000. The ma¬
jor portion of this amount will be
for

electric transmission and

governments/but to the Federal establishment. Are the

tribution

voters

mainder

prepared to insist that they all withdraw from

Boston

facilities

distribution

amounted
First

The
and

at

realizing

available.

now

and in the attitude of the voter
the financial operations of his government. This

in turn

Co.

a

the

fiscal management

our

toward

able

to

with

huge amounts for extremely doubtful purposes. Incredibly
large proportions of these funds have been raised through
borrowing in such a way as to "monetize" enormous
blocks of Treasury deficits. The net result — or one of
them—is to enlarge what is now popularly termed our
money supply many times over, and to do so in such a
way that it is next to impossible to get it reduced again, v
This vast expansion of bank credit has not, in our judg¬
ment, as yet nearly found full expression in prices. In
short, a vast potential inflation remains unutilized in our
economic system. We simply can not afford to have it
keep growing larger and larger.

over, or

come

situation

current

supposed. We in this country have been on a spending
spree for well over 20 years. We have raised enormous
sums—a large part of them to defend ourselves, but also

shares

out of funds borrowed

the

Bankers Offer Arizona

to know, first of all, is whether

more

of

Much Is Involved

tlle voters acted in lull cognizance of the implications ol

to the fact that

students

good of their country at heart would like to be able to
answer, but which it is difficult to answer on the basis

projects of a

What We Should Like to Know

W'lat onet

'

on

sort.
|

up

ing requirements.

It

begiqning. A strong opposition to further increase in the
Federal debt has arisen in the past few years, and the
public may have become conscious of the ever rising
burden of debt that we as a people have laid upon our¬
selves. Superficially this seems to be the case. Further
and detailed analysis of the returns the country over
would be necessary to a firmer belief that such is the
case. What is certain is that in a
degree surpassing any¬
thing since the New Deal got us so deeply in the habit
of borrowing indefinitely for all manner of things, the
a

that

de-

downturn. The conclusion there¬
fore seems to be
that market

~~—

People have turned

extremely hazardous state of affairs? And, if so,
they reached the point where they are ready to take
the action necessary.to correct it? Are they at the thresh¬
old of fresh and more rational thinking about all this?
Or was the voting last week a reflection of popular feeling
about other matters'which have no particular bearing
upon such questions as these—local political personalities,
the manner in which the proposals were placed before
the voter, and the like? These are some of the questions

have

signed to ease credit in a business

bond yields today

S &

of this
.

to be as swift, as vigorous, or as

Continued from first page

As

voting last week suggest that the people of

country are beginning to come to a realizing sense

f0 moderate a boom is not likely

of

governments,

housing, and of urban

construction

Does the
this

that

our

One

largest, if not the largest, of these assumed liabili¬
ties is that growing out of the social security system—
and word from Washington is that in the struggle for
votes next year Congress is all but certain to add very
materially to this staggering total of debt.

investment demand

interest

*

forefathers would have seemed astronomical.

our

supply
of
investment
achieved near recent

of

provide.

of the

As a

it is

rates would also raise the ef¬

fective cost of

to

approximate bal¬

an

and

However,

interest
rates in the current period. Much

5% to 5J/2% rate in order

carry a

that

guaranteed

matter of conjecture.

between

must

of -long-term

termination of credit policies carried over from the war; in recent
years,
long-term rates seem to

a

ance

If

There is no conclusive evidence
a strong and sustained upward

movement

demand* and

forts at economic stabilization, we

un-

however, would add to the monthly carrying cost to borrowers not

forces of

long-term
interest
rates
might be expected to fluctuate
cyclically, with yields on high
grade corporate bonds, for exampie, ranging between a low near
3% and a high around 3W%.

likely.

this,

The

event,

However,

very

of

strike a balance in the
ahead must obviously re¬

levels

the

in

supply

can

funds may be

the Period of pegged prices for
Government

with

competitive

investment

somewhat
weeks.

some¬

run

the

funds

we

now popular with the politician
with the voter, too) of avoiding
a full reckoning has been to as¬
sume
contingent liabilities, to guarantee this and that and
to "insure" private citizens against sundry risks.
The
obligations of this sort assumed by the Federal Govern¬
ment and still outstanding add up to a total of the same
order of magnitude as the admitted Federal debt—which

may

ceivable that

interests rates that prevailed
Great Depression and dur-

and

in

immedi-

Perhaps

of

benchmark assumption,

present prospects still point to
continued
firmness
in
interest
rates until there is evidence of
some easing in business; should
the recovery display continued
vigor, long-term rates might well
rise moderately above the levels
of a few weeks ago. An easing
in economic activity will be accompanied by a decline in inter-,
est rates, but a return to the levels

higher rate

a

insured

-

in¬

at the moment is that

have

in long-term interest rates would
on

business.

past

material increase

a

long-term

business; in fact, long-term rates

upward movement of interest

rates,

years

main
for

might

excess

time

(and up to now anyway
for the moment at least

corrollaries of

what average level of inter-

supply

already experienced the
greater part of thb rise in interest
rates for this cyclical upturn in

in support of investment
activity, or the countenancing of

demands
in

At

have

we

—

programs

an

of

ment

est rates

ately ahead thus depends upon the
guess

as

and not to permit taxes to rise—if at the
demand those things which only huge

money

same

One of the methods

slack.

ease,

outlook

terest rates in the period

gage loans.

the

and

funds, with the balance being re¬
dressed
in
periods of
business

periods of expanding business and
credit restraint and declining in
periods of business adjustment
and credit

years,

what

rising cyclically in

policy,

for

growing economy. In periods of
rising business activity, invest¬

.

of business activity and

course

credit

the in-

as

period of

Summary and Conclusions

policy to permit market forces to
mand and

demand

supply of investment funds may
be
expected to expand over a

On balance, long-term interest
rates under a flexible credit policy may be expected to move with

might then appear a relatively
simple solution for Government

row

a
.

^

It

the

Both

creeping socialism that is all about us and which is
really creeping at all but actually running. It would,
course, be folly to deny governments the right to bor<

of

increased

have

Thursday, November 17,1955

not

are

sharply.

trend,

upward

supply of savings and
inflationary pressures.

funds

..

the

they
1953,

higher levels and demands for

investment

display any real

may

ahead of the
thus add to

its

at

Analysis of the Outlook
For Long-Term Interest Rates

lower than
early part of

though economic indices

even

An

the

in

were

.

facilities
to

with

the

be-expended for

dis¬
re¬

William I. Hay
William I.

Fales

&

Hay, partner in Hay,
New York City,

Co.,

gas passed away

Nov. 9.

Volume

182

Number 5482

..

The Commercial and Financial
Chronicle

.

Continued from page 4

alone.

In

surance

Economy's Dependence on
Consume! and Housing Credit

,,

.

,

i

lmPr°vement "J
a?(Ju
change 1
of the business and of
u

j

their

that

did

ment

this

and

made

remarks about

a

this type of credit

importance

element

necessary

in

our

I expressed hope that
misconceived regulations, such as,
economy.

"W,"
and

would

that instalment

be allowed

by

to

people

even

ridicule.

deal

good

Since

would

required

as

and

a

that

taken

of

Those
on

my

criticism—

time

to

great

lifting

consumer

credit

a

olace

Mv

bas^d

statements

broad

increasing

influ-

respect for the

of American

mass

young

in

men

the

Army,

Navy,
Marine Corps, and Coast
Guard,
in Europe, in
Africa, and the Far
East.

Most

from
It

15

to

the

was

of

these

30

years

first

men

time

were

junior,

my

that

I

had

had direct association with
grouos
of

Americans since

young

War I, and

World

the experience force-

fully revealed tome, as a matured
lawyer and banker, how completely out of step and how far
behind the

of

group

and

As

men.

an

partially
welfare

but

to

in

this

fearless,

de-

patriotic

young

executive

officer

and

out

for

of

their

combat, I

to know them well

came

realize

in

with

was

responsible

only

safe

I

dynamic,

manding,

not

times

that

America

was

their

hands; that neither
Germans, or Italians, nor French,
nor
Japanese, nor Russians could
stop them; and that they would

different

theme

lar

reference

to

constitute
and

most

the

of

one

constructive

consumer

instalment credit,

housing and $30 billion for
mercial

bank

business

com-

the

American

present

time,

about

loans,

I

the thought that this $26
consumer
credit has a

influential

more

impact

the

on

over-all credit structure today than
any other form, both as an indi-

cator

naturally

are

items

try

60%

of

of

its

soundness

and

as

a

sold on credit; and instalment credit alone prov.des
about $20 billion a year for these
are

front

of

the

production
Without

nanced

credit

luxury

a

expenditures

considered

was

who

man

In

fion

urban

He

is

suburban

or

generally about 25

and

under

mass

and

be

production,

zance of consumer credit as it has

an

taxpayer.

+hP

Rllf

hp<?t

<?nrial

■

and

pm--

norn;c

PffGrt

permanent

derived

from

this

residence

and

home

it has

on

Even

if'

to

the individual's children.
the

man

appreciate
his

0f
likpiv

tn

the

it

misspd

Allowe^o

dmi

potential

position

he

rhil-

Hve in the

same

a

lo

same

tne

form

social

ships

with

friend-

of

citizens,

have a greater
potential than

other

they
social

cer-

have

the

and

Consumer instalment and hous-

ing

they

are

and I

exist today, and to emphasize
high degree of the economy's

than any other, beas
well as a' li-

more

social

nancial problem.

45

Housing

Credit

nto consumer financing,

social

like, but simply

may

^

of

n«

p

me

"

%

*

i

peopie warn,

So, in closing, I ask you not to
maV-^et the walls of your banking
it is house,
or
the curtains at its

yaulted windows keep from you
sound and sight of the obvious
requirements and demands of the
Pe°Ple and the industries twhom
y°u are chartered primarily to
serve. Try to guide their think-

arbitrarily restrict consumer
credit. My belief is that from now
on these credits must be given at
and

some

de-

or to

equal consideration

to

T^IntiLIri pariimpnvp::mpnt +ndavmnS hJ Vp
tnwh tth
PLnt
hut

they

as

In

actm|nt L distrSsinff

pendency* upon them. You
want to think seriously when
next proposed to limit too rigorousl'y the terms of housing credit

least

Housing credit is also

LI""?,®

e ders

what you

financing;

has

aver-

not that

you,

expanding

a

pessary in many instances; and
third, to assure a steadily expand-

credit are the most popular
goats of people who want something to kick around or who are
interested in distracting attention

steadily

ment.

comes

uent and healthy; second, to make
funds available to individual borrowers at less cost than is now

children of itinerants.

consumer

probably

Loan Bank System and has a
three-fold objective: first to regIS
'
w/ ua+vieYu
the amount but rather with a
V1^w .° making consumer credit
extcnsion and expansion more
uniform, and to keeping it pru-

scnoois,
and

children

Pretend to see now

Patterned after the Federal Home

series of years,

contacts

called

is

legi.sIati°" relatinS
n

hardly

thp

Congress

*heush??e °* *uch legislation,;but
?
jn°I he surprised ^fit is

good-

is

hv

community for
auenu

when

personally fails

of

sustained high level of
employThus, this form of credit,

a

work
"P??

ownership is the influence which

and

is

of home mortgage credit. Many
y°utPresent will probably still
be actively engaged in financial

from abuses in other credit fields.

^liquidity of consumer
heavily contingent upon

terms

resident

sound

the

of

As time passes, you may expect
the Government * to take cogni-

mass

out.

dictation

unnecessary.

progressively made into a man
of estate, a substantial permanent

tainly

impossible,

and

ence

savings.

I have tried to present a picture
of these two credit structures for

credit

is

portion of which
into the property as a form
In other words, he is

goes

moral

_

years of age, is married
children to support, has

payment
a

wordSj continued high
employment is largely contingent upon the full use of a

and

an

as

increasing

an

of

rental

regarded

shall

the prudent side. And

on

this may mean at times that by
voluntary action we must slow
down a too rapid expansion of
these credits. Bankers, more than
any other group, can exert constructive influence in that direction and make Federal interfer-

penalty,
making a monthly dehis good living account,

posit to

mass

Qther

system

with

man

chiefly
dweller,

he

Our only con-

cern need be that lender risk

now

is

level

stupid and

improvident

an

income.

would

of 1946 cannot be carried

actuality is the unusual case. The
typical instalment borrower today

is not

it

provisions of the Employment Act

unreliable; but now one who refuses to capitalize on his potential
and confines himself to financial

small

credit,

employment would not be possible.
Without steadily increasing
employment opportunities, the

trom personal experience—usualJy ln lr°m 18 to 36 allegedly easy
lessons.
when

consumer

generally admitted that

now

monthly

which

home-owner

.

Without

Ject most of them know about

was

now

purchases.

news.

Time

is apparent from the fact that

about 65% of all automobiles and
about half'of all major appliances

The public likes to
reac* about and talk about conSUI}ier credit because when so
^°.1In.g lt is r?ally reading and
talking about itself. It is a subPa£c

on
the
basis
of
private
spending.
We
should have
no
fears about it; we should welcome it and nurture it; and we

grow

his home has

on

of

natuie of things, is tinctured with forecaster of future commercial
s^r1onS color ot' public interest, activity. Its importance to indus-

of

given him

opportunity to became a responsible citizen, a part of his
community. He has acquired the

a

At

It has

an

he is

even
though the total of such
credit is only about $26 billion as
compared
with
$84
billion
for

because this business, in the

lodgers into a
population and of

of

tied him to his community and to
the stable values of life. In place

using

lend-

consumer

unit

the labor force.

continue

with 60% of American families

today's
role of government with particu-

stable

term, orderly, and sound expansion of consumer and real estate
credit? We must have this credit
expansion if our ^economy is to

house

monthly payment

ficates

of

boarding

mind, when properly handled by
lender and borrower, these certi-

billion

this

this desired growth for the economy if we do not have a long-

must make it safe.

venture

stress

per-

his down payment has
small, the big gain has been
converting that man and his
family from renters, itinerants, or
been

pride of ownership and all of its
appeals to his better senses. Every

tions, of the people.
I

di-

though

in

centage of delinquencies and repossessions certainly attest to the
wisdom
and
safety of these
Human Trust Certificates. To
my

to the needs, desires, and aspira-

ors

and

and

soundest

in close contact with hundreds of

in

feeling of

a

occupations

in

types of credit offered today.

citizens, and a
strong but unconfirmed feeling
that the old order was
changing,
For four years I had been
living

confidence

on

amounts

people

eminent—on all three of its divisions with equal force. The trend
*s definitely toward more control
by tbe people. In spite of what
°ur desires and opinions may be
to the contrary, our government
anc* major industries have had to
become more directly responsive

families use consumer credit.
With this many
users, the figures on the current
volume of consumer credit, on the
terms of such credit, and on the
characteristics of consumer debt-

were

small

many

different

localities. The amazingly low

a congovernhighly ac-

educational p r o g r a m

and

are

lending
many

verse

,

and

in-

rein-

ence of popular opinion on gov-

ing,

animosity

then

credit

expand

head

has

eliminated

industry.
brought down

remarks

of

be

soon

Our

immediate

complimentary

and about its growing
as

.

by
to

ar-d
our
rapid
communication
systems, both contribute to the

ber of the Federal Reserve Board
in 1946 I talked with a
group of
Morris Plan bankers at
Virginia
Beach

.

.

celerated

-

impress me,
after becoming a mem-

soon

.

.

life

a

other

and

often part of the
picture.
The lender

credit

stitutional representative

com-

munity responsibility.
much

,,

cases,

achieves his diversification of risk

personnel the onginal framework of

j

So

such

policy,

forcements,

The

35

(2111)

re-

spect with the several other types
of bank and commercial credit.5
Of course, in a grave national

*ng and
actions along sound
social and economic lines. Bear
uiind that this postwar popuquacks.
He is the man I referred to earemergency, all credit has to be ^Lon is probably more capable
What was most s;goificant to Ler — the man who will not
be
phase, strictly limited, but only as a of thinking through on its reme
was
the realization that this
stopped by foreign foes or domesToday
over
four-fif hs
of
all
temporary part of a complete Quirements than we of the prewar
group believed America belonged tic
fogys.
He
has
committed homes, both new and
existing, are blanket of controls that are dis- generations. Remember always
to them, that they were deterhimself to a regimen of small purchased on amortized
mortgage carded
once
the emergency
is that you cannot whip something
mined to run it as they
thought monthly payments for the pur- credit. Most of you bankers felt f)ast.
Normally, the traditional
nothing, and when proposals
it should be run.
They were not pose of acquiring an equity. To as I did about the too liberal means
of
regulating
the
total are ma(fe with which you cannot
going to be restrie'ed or limited him these payments are essen- terms of the
housing program— availability of credit are sufficient a§ree> try f° come up with some
socially or economically by past, tially savings. And when you stop no down
payments and too-long for fostering stable financial
reasonable and constructive cornstrait-laced
concepts of govern- to think about it, what more sen- maturities.
However, alter think- growth. And the distribution of promise or substitute,
ment, sociology, finance, or par- sible use of savings is there than
ing the matter through, I am— our credit resources among comAs to consumer and housing
sonal
conduct.
Above
all, they their purposeful application to an reluctantly and to my own surpeting uses, including consumer
not

long be led astray by domestic

income of about $5,000, and
often has sizable financial assets.
aSe

well

as

as

financial

a

a

problem,

In recent years home construction
has virtually attained a mass
production
and
distribution

_

held

a

ment

and

conviction

should

the

serve

served

that

Govern-

economic

structure

them

Since the

well

as

by them.
war

I

have been

in a'

in all

men

sections of the United States.
on

came

The

while

active

duty with them have
been forcefully confirmed. Those
boys, as we called them 10 and 14
years

the

and

ago,

people who

this country.

good

jcb

though
with

are

wives,

are

now

running
making a

They are
it, too.
And

of

even

cause

me

to

disagree

much

that has taken
place,
satisfied, from their conduct, that if the Government and
I

am

the banks and other industries do
not

operate

largest

so

of

largest number of

benefit

to

as

number

people

in

the

then they
going to change the Government, or banking or other busitheir

ness

to

who

are we

wrong?

My

ways,

of

pact

of

aspirations.

to say

And

they would be

"

point

math

is that,

three

the

wars

as

an

and

military

after-

the

draft

truer

actually

become

a

imon

we

much

democracy, while retaining




investment

an

banker

and

broker years ago I became familiar with Equipment Trust Certificates
and
regard
them
as

as

I

was, and mainly because
its social aspects.

course, the combination of
down payment and maturity
terms in housing credit can be
too liberal and risky for a prudent
lender position, just as consumer

instalment credit

equipment

But

trust

certificate

is

predicated upon

unreconciled

as

once

amongst
the soundest forms of
investment.
As
you
know, the

the

record

be unsound,

can

shows

that

even

them.

I hope that you will not let your
reactions to some flamboyant ad-

be

So, as a final word, don't
shocked or surprised or too
upset when they get more of the

vertisement

same—under the benign

to terms

as

by

some

overly aggressive retailer, builder,
or lender blur your vision of consumer

credit

real

and

serving

upon

paper, in my

opinion, finds

a

close

parallel in equipment trust

paper,

Consumer instalment notes

might

well

be

termed

Trust

sumer

Human

or

Con-

Certificates.

They differ from the Equipment
Trust
on

Certificates

in

that

chattel

physical asset is not

a

an

in-

variable requisite of the transaction. In consumer lending, transactions vary one from

the

importance

many

the

of

by

credit

of

another in

the

security

comoonent.

In

the financial strength
borrower is so buttressed

cases

the

employment

and

down

if

written

a

some
a

is

payment

importance

much

on

building

time

that

not

the

is

a

that

rower,

the

and

is

enables

in

serviceability

housing property.
compensating social

The

of

tended

man

liberal

been

mortgage

enormous.

into

his

By

own

terms

social

our

advancement.

considerable

It

measure

these

two

is

the

of

over-all

We

categories

credit

all

give

leave
of

men
a

many
are

structure

lip service

larger

at

amount

to

the

the

Just how

are

we

bureau-

own

with

you

America's

the motto of
most

Thomas J. Watson of

—

wisely

—

really great
emphasizes one
a

portant word

man

who

big

im-

THINK.

I

of

consumer

Those

g

Hughes is engaging in

'

.

rmes

.

,

Business

a

secu-

f,.

from

.

offices
Frost Pond & Piping Rock Roads,
under the

name

of John S.

Hughes

Company,
M

n

*

I

INow W. IN. JJaviS Inc.
PITTSBURGH, Pa.
The firm
of Davis-Mclnnes, Incorpo-

name

who

going to realize

t-I
k
H
!~lUgnes Upens

Q

LOCUST VALLEY, N. Y.—John

prospect

have this reaction need to give a
lot of thought to the question:

credit.

its

salesman
IBM

is

have

housing

to

helpful
undoubtedly its best

bankers and business-

alarmed

guidance

citizens and

fcr

private enterprise and private
spending as
the
basic
driving
forces in providing such growth.
But

demands

dependent

objective of economic growth and
we give unctuous endorsement to

of

even

I
one

seri-

and

a

people—and

liquidity and ultimate soundness.
Our

and

cratic salvation,

and

gains

moving

home,

to

simply too irrevocably interdesmall, pendent for this not to be true.

of equity within

reasonable

the

moral

critical

transaction

basis
up

of

light of the occupation, age, and
earning circumstances of the bor-

residential

general credit standing

terms

on

be able to make only

may

stability, as well as proved credit
worthiness, that loans can be exon

people

liberal than were known in
the first 140 years of this RepubBe.
The mere fact that people
more

contributors

requires

paternalistic governmentlooking to the welfare of its

a

ever

estate

ously important that you bear in
mind that all bank credit is to a

credit

of

credit; but, rather, that you will
look at these two types of credit
as important solvent units in our
financial structure and as great

mortgage
is only two decades
long, but it has proven economically sound, on the whole, to make
homes generally available to de-

instalment

the

to market forces.

ity is based, partially on the
erating life Of the equipment.
Consumer

that

public

under liberal mortgage terms, defaults have not been excessively
large. Our test of the amortized

op-

convinced

am

and housing credit, should be left

a chattel mortgage
equipment and the corporate
note of the borrower; and matur-

on

versus

millions|Of our young people,
have

of

As

the

are

fit

This is investment in life itself.

basically conservative

m,y

leanings

their

prise—not nearly

*

.

position to watch these
conclusions to which I

be

as

y

credits, I

improved standard of living for
the saver himself and his family?

t
.

d

F-

'

t

Nationai
'

Bank Build...

]n£h has been changed
Davis Incorporated.

,

to

w

w. jn.

/011A\

The Commercial and Financial Chronicle

.

..

(2112)

36

have

9

Continued, from page

management

their

own.

Problems o! the Independent
he will pull out
the device and punch on the keys
the number of his friend, then,
in the world,

the device over, he will
voice oi his friend and
fee his face on the screen, in cojor
and in three dimensions.
If he
does not see him and hear him, he
will know that his friend is dead!"
turning

the

hear

of

indifferent

our

into?

ahead, is going to be revenue re-

read

your

few

scientists

working

are

now

will

a

on

people's

device

that

minds.

Now, I don't know about

read

draw the line
say
that

the rest of you, but I

this

development stages, and

won't be ready for use for

that it

five

least

at

Well, thank
imagine

yeras.

that!

for

trouble

what

is still in

little gadget

nosy

the early

God

scientists

The

that!

at

Can

you

mind-

of these

one

__

.

4

XT

„

television

20

which is the only kind of war the

and the full iu-

major powers could possibly wage
under prevailing circumstances.

Jacobson of the Northwestern Bell

Telephone Co. said that "Although

irom

years

now,

value

ture

will

service

such

of

like

be

developments

the transistor and the solar bat-

as

I

quirements.
course,
that

It is true,
bilizod

Mlationof^heeaHy

1975

probably holds the

'A

nearly

in

every

ol the average

home; routine
dialing; portable
personal
radio-telephones,
rural
private line service; available
room

transcontinental

combined telephone and television

wide

service;

use

(hands

phone
rapid

and

_

graphic

of the speaker-

telephone);

free

transmission

easy

of

(facsimile); and
vehicular, train,
airplane mobile service.

and

"It

is

1975

o{

use

sincere hope that by

our

telephone

will

service

social

and

it does within

as

contacts

our

but

w°PM
Well,

we

are

go

for

put

Current

menits

indicate

higher

wage

our

a

companies

certain

necessary

even

that

down, or will
awhile, necessettle-

we

.

.

recently, at least,

toward

trend

a

a

be commensurate.

been convinced that

never

increases.
Most of
are still faced with

amount of backlog of
plant expansion at high

property

investment,

due

to

or business subdamage to the ex-

tent of $50 or $100 a day because
he had no telephone connection,
Such a valuation placed upon this

service by the subscriber himself
may or may not be realistic.
It

addition, the reluctance of
regulatory
authorities
to
recognize
the
serious
conse-

indicates, however, that we are
selling something which is highly
valued by the public.

be

.

®

.

during the next ten

our

population

hard-pressed
pie

to

as

Wu 1

them

tip

our

Rennrt

Report

housing.

smaller

rural

our

So

areas

independent

in

xu-

1

the

of

.x

special

to

in
application

our

independent companies.
hear
frequent
predictions

numerous

We
about

the

pany

and

vanishing small comthe
inevitability
of

large-scale organization in these
days

tions in

of

But

our

have

Planning
Necessary Expa„sio„
.f
.

mergers

and

consolida-

non-regulated industries.
telephone companies do

-p

.,

certain

wroofheiner

,

advantage*

in

advantages

and

Ford

page

4

Motor

Co.

near

130,000,

Industry

"Ward's" added that domestic

easily delivered over 500,000 new cars in October and
actually wanting for more 1955 and 1956 models to sell.
The statistical service said that some United States plant

dealers
were

will build the 7,000,000th car of
truck output combined to more
United
1954

States

car

and

1955 this week, pushing car and
than 8,000,000 units.

truck

production

date

to

leading

is

while in Canada the margin is 29.8%, despite
the lengthy General Motors of Canada strike.

45.1%,

by

continuance of
Personal

spending

plant

and

United

the

expansion,

States
the
high annual

Department of Commerce observed, brought about a rise in
nation's total output of

goods and services to a new

$391,500,000,000 in the third quarter.

rate of

the final figures for the July-September period,
about $500,000,000 off a preliminary
gross national product made by the President's
of Economic Advisers last month.
However, the latest

In computing

.

Since it is clear, therefore, that

investors

on

carry

that

we

must

appeal

to

work, and perform

our

public service obligation.
Th
whnip
nimire
sums
The
whole
picture sums

tWpfn™ a«®
e
things

ciation

mified whote
whole.

un

up,

The'
The

e» as a unified whole. The
which your national asso¬
is doing, were

Council

the

of

total is still about

$6,500,000,000 above the previous high seasonally

this
$359,000,000,000.
Personal consumption expenditures led the third quarter ad¬
vance, the department noted, with a rise of $5,500,000,000 to an
annual rate of $256,000,000,000. Spending for durable goods, paced
by the rise in auto purchases, accounted for $2,000,000,000 of the
rjse, while non-durable goods purchases rose $1,500,000,000 and

adjusted rate of $384,800,000,000 recorded the second quarter
Last year's third quarter rate was

year.

services took the rest of the increase.
durable

able

goods

goods

at

was

all

nicture

Our

mCnt

wo^k

$92,000,000,000.
Fixed private

investment was at an annual rate of $58,000,000-

000, $2,000,000,000 higher than the preceding quarter, as business
outlays for new plant and equipment continued their strong
advance, the department noted.

Inventory accumulation dropped sharply from the quarter
before, the report stated. The third quarter rate was $2,500,000,000,
compared
rnmnarpd with $4,500,000,000
$4.500.000.000 in the April-June period,
period. "A shift
in

inventories, which

dealers

auto

friends

in

increased in the second

clared.

Steel Production Scheduled at 98.8% of

designed to

ConS

Capacity

This Week

every

Steel prices may go up

our

ment- Uur work in congress, our

win

were

liquidated in the third, accounted for a substantial
part in the reduction in inventory growth," the department de¬

accomDlish-

of

in

non-dur¬

$127,000,000,000 rate and services at a rate of

a

contribute to the fulfillment of this
ovpr

For the quarter, buying of

at an annual rate of $37,000,000,000,

quarter and

our

in work before the administrative
caiH
*
h•
fa*?6!? ^lserl" nnrn:_ nrJL be storms of eco- and regulatory agencies, our uni!
Economic noraic ^essure if they are able to fied ffort to create good will and
to rl
Congress, and I quote: help each other in the field of
x

.

The State oi Trade and

estimate

XI

x-

unity is

many

company

li.

adage of strength

cities,

areas.
•

hnwer

to residential

as

industrial

into

to
of

are

.em moving out into the

u

suburbs,

service

As

cities

provide for peo-

needs—both

s

and

.

years.

grows,

to

®

n

the Commerce Department cut

toll of postwar inflation, may be
putting our companies in an earn-

T

xi-

—

telephone

Continued from

.

i—

per-

ct

wf

hear about a damage suit for
professional

scriber claims

jn

scarcely

we

and

can

x

wSanen"sC<^

the §rowin8 masses of subscribers
had scratched the surface of
posthe future are going to demand
sibilities
in selling the
services ings position which is more diffi- pver-improving as well as everand equipment already available, cult
than we realize ourselves. increasing services, we must lay
New ideas and new methods of When
the
plant is being con- our Pians accordingly
including
merchandising will play a vital sumed, and is not being restored Plans for adequate compensation
part in our future operations. But through sufficient rate increase,
that service. I need not remind
I will
not go into this
subject, the economic consequences might ^ou that we are in competition on
because
we
have a man
much not show up for years.
The fact a nioney-raising basis with nonmore
qualified than I who will that we may not be holding our regulated industry which is able
speak to you on that subject Wed- own, economically, can be tern- to Pa^ hlSher return on mvestnesday morning.
porarily obscured by raising new orient than telephone companies
During the last minute I have money. When such funds must
ever be allowed to earn. Yet
been talking to you, six babies So
into replacement of plant, history has shown that there is a
were born in these United States
which has been worn out in the well-defmed group of investors in
and
three people died
public service, we are not holding the United States who look to our
If this continues, it doesn't'take our own.
Public utilities for secure income,
xatuci
nicux
auyil-10116t
wx
^v^xx
much arithmetic to reckon what
T~
rather than
short-range or
even
our population growth i* anin« tn
niH
Jnii d*fbcult situation th.e. speculative profits. It is to these
until

—

lc^'!ul77auu

s,f® faC^°S^S.£C„eSn|tionl

p^a^e- Early in the sessions a
same time. Perhaps then better,
known as the Morgan-Milmoe was will understandwho
each o.hertell—the
i"
??1Sat
vSn0lf
\° Perhaps—and
may be one of the av-

public

loss of telephone service in which

contract

some

up

telephones

over

i^itv uvu

■'!i
bill

^

don t know yet,

we

talk

A«6i«ai..c

s »«=

quanuVofTervice whfchtohigher Inmost folks thought that there and praying,

theSf qU!nC?K
°£ erosion
ec0™micofdepreciation
and
the
telephone

™

finding out

had duidng the last legislative

"ou

VVUXKI"en h ^umptmsdiiun ixdw, uie enues which will heip to establish
^ ra^ ° Dup ^n°?hi permanent peace in the bright new
the American public expects to kn0w
0ppos?tion ' of organized world for which we are all hoping
receive a aualitv of service or a , '
n
rj ,,
xu
Lx xu x+u
i have

prices.

today.
th.W
tmngs.

to

stay

even

sarily.

country

own

going

are

be

playing the part it is technically
capable of playing, of bringing the
people of all nations together in
business

we

they can do their job. The
responsibilities are great, but the
rewards should

The

'50 s.

investing

the

problems. I don't mean by that,
that we are all equally capable,
rather I rriean that regardless of
our capabilities, each oi us can
make a contribution to the industry.
As we face the vast new field
which is opening up in communications, let us commit ourselves to
greater individual participation in
the affairs
of the industry as a
whole.
Thus we can hasten the

be illustrated by an experience day when the whole world can

it

our

command the conboth the subscribing

and

every employer interested in its
passage had written his legislative

thinks constructively and lets others know how he feels. Whether
y°u as an individual operator
agree or disagree with what you
think others believe is not the important thing. The important thing
1S lf y°u think constructively and
make your conclusions known,
you will be assisting the industry
a whole in reaching sound
viewpoints.
The importance can
of
this individual participation

that

ranid

thp

from

would have routinely supported
the bill left the floor before it
came to a vote. I submit that if

representative, the bill would have
been passed.
•»;.••• •
I urge you, therefore, to recognize that the next ten years will
the participation to which I re- require our individual ; effort as
furred in my opening statement, well as our collective effort. We
The smallest operator can help can't afford to sit back and wait
the industry as a whole if he for the other fellow to solve our

than that same public is willing
ulatory lag between higher ex- to pay for, under a fair and reapenses and necessary rate relief
sonable system of rates. We in
may not be as desperate, on the
the telephone industry are still
whole, as they were in the imme- in the fortunate position of selling
diate
post-Korean
War
period, a service which is far more valuthere is nothing on the pres- able than it costs the customer to
ent horizon to indicate that oper- enjoy, by any standard of measating expenses in the near future urement. Every once in a while

records

common

sompwhat

that

How-

serious consequences of reg-

more

telephone

public

service ,

extent

bill.

the

passed

it was not passed by the
Senate because three Senators who
ever,

con-

can

of

fidence

price levels have sta-

tery 'cannot yet be imagined' the

following:

the

to

companies

"deluxe
d
u
e

of
o

pra
era

only

js

am

future bv

this
tnis

Tn
in

rapid progress in telephony makes
it 'impossible to prophesy' what

recently, President A. F.

will

Association

Telephone

xr

assuming, of
our
nation—despite
the threats of international conflict—will be permitted to go forward without catastrophic war—

More

Assembly

The United States Independent

lion

„

industry can confidently meet

the challenge of the years ahead.

among

reading
machines, geared with
phone-television, could get a man

who

you

thoroughly learned a
weeks back that electronic

wrote to their legislative representatives asking for their support
of the bill. What happened? The

ourselves becomes tinue to keep abreast of the reself-evident. And I repeat, it is sponsibilities which have been
in the field of ideas, both ideas placed upon it in a dynamic era.
for new business, and for taking Your officers, your directors, and
care of old business that we can your committees will do their part
help each other by exchange of to live up to their trusts.
practical suggestions in our effort
The results of their efforts, I
toward common goals.
repeat, however, rest with you as
In the final anaiysis> we must individuals. I am thinking about

- prise

The expectation is a $500 bil- face the basic business challenge
economy by 1965 that would of the future, which I repeat is
be $143 billion more than last a growing America and a growing
year.
telephone subscriber public which
is multiplying faster than the
Problems in Next Ten Years
population itself. For this we are
In view of these facts—in view going to need new and more plant.
of all this decentralization of in- We are going to have to plan exdustry and business growth, it penditures for high-priced equipprobably is superfluous for me to ment and high-priced construestand up here and tell you what tion. More than that, to serve this
some of our problems are going new America of the future, we
to be during the next ten years.
are going to have to have new
We do not have to be econo- and better service.
These future
mists to realize that our basic subscribers will not accept obsoproblem, in the months and years lete telephone service,

of

Those

newspapers

for

As long as we can depend on that
unity of support, we can be sure

consider

wasn't even a remote chance that
the bill would be passed. Despite
this pessimism many employers

for all
whatever we

work,

our

phone company membership, we
find examples of good, bad, and

Independent

our

operation. And when
the responsibilities
which face us in the future, the
need for more cooperative enter-

multiplying and improving,
research and technology are constantly ^opening up new opportunities, and our public policies
generally encourage enterprise
and innovation. With so many
favorable factors, a continuation
°f rapid economic growth may
reasonably be expected."

all

and

plans,

hope to achieve in the years ahead,

we

are

for

dation
our

tele-

Telephone System in Next Decade
one

problems
-i

Within

Thursday, November 17,1955

quarter for

$12 a ton by next July, "Steel" maga¬

Monaay of this week. An upward revision might
prices or extras, depending on which products are

zine reported on
be

in

most
one

base

severely

time.

pinched profit-wise.

Increases will not come at

They may start this year and recur all

through the first

*

Our

population is rapidly increasing,
educational levels are
work skills

rising,

mcomes

are

consumers

their
men

infT
.

are
new

widely

are

living

are

eager

to

standards,

improve
business-

actively engaged in start-

^uld b^tter be d?n? tban through
H1® m®'

^

VT ??

;]®nf'^ch ,as^\he ,Umted States

uePendent Telephone Associae national level, and

the

1(fcal levfl

associatlons on

PnfprnricDc

.

xu

ing old

improving,
distributed,

lde^ 1 do not kn°w how that

x

i

ones, the tools




^
of

industry

must recognize, of course,

that small company organizations

the telephone companies, are all
part of that picture.

And y°u are also a very important part of the picture. In fact, I
Would

say

you

the most imthat picture, be-

are

portant part

of

cause it is at

the grass-roots level

membership, such
here today in this meet¬

of association

as we see
ing, that

we

must look for foun-

half

of

1956, climaxing when steel wage

paid for beginning next July.

settlements have to be

Little advance notice will be given,

it continued.

Economic

pressures

producers have
weekly

added.

no

have

built up

to

a

point where

Wages

cost

more.

Plant

construction

is

more

their money.
prices have increased 126% since 1940, but during the

costly and stockholders are crying for more return on
Steel

steel

choice but to raise prices, the metalworking

Volume

182

Number 5482

..

The Commercial and Financial Chronicle

.

37

(2113)
period,

same

costs have jumped 206%

wage

tion 178%.

V

;;

Steel companies

'

•

,

and plant construc¬

made to look

\

.

.

profitable than they
by the government's antiquated policy on depreciation, "Steel"
declared.
If producers could set aside for depreciation what it
takes to buy new capacity, earnings before taxes would be much
less than wnat they are today. The book value today of a ton of
are

a

The

steel producers last year,

between stockholders and reinvestment, this trade weekly noted.

Many

investors, it added,

trying to decide whether the
is such that they are
willing to have the bulk of earnings retained Tor investment
instead of going to them as dividends. This is important, con¬
sidering the 50% expansion planned in the next 15 years.
long-term

for

outlook

the

are

steel

industry

Meanwhile, steel demand which has kept steelmen working
at or near capacity levels for the last three weeks is building up
particularly for steel plates.
It comes from a big
jump in demand for railroad freight cars, pipelines and Army
tanks.
Structural shapes and hot-rolled sheets are also hard to
get with some fabricators working only four days a week because
even

of

more,

lack of

a

The

struchyals.

American

Iron

Steel

and

Institute

announced

that

the

operating rate of steel companies having 96.1% of the steelmaking
capacity of the entire industry will be at an average of 98.8% of
capacity for the week beginning Nov. 14, 1955, equivalent to
2,384,000

ingot

tons of

steel

and

castings

for

99.6% of capacity and 2,404,000 tons (revised)
The

based

annual

on

For the

duction

capacity

like week

2,386,000 tons.
because

comparable
The

125,828,310 tons

of

month ago the rate

a

A year

placed at 1,892,000 tons

was

week

a

79.3%.

124,330,410

tons

Jan.

of

as

1,

1955.

1,

pro¬

The operating rate is not

lower

was

percentage figures for 1954

Jan.

98.9% and

the actual weekly production

ago

or

capacity

of

as

was

than

based

are

on

capacity
annual

in

capacity of

week's

1954

week

and

2,421,000,000

kwh.

like

the

over

week

in 1953.

Car

Loadings Moved Moderately Lower

a

Week Ago

freight for the week ended Nov. 5, 1955,
3.2% below the preceding week, according

revenue

decreased 26,687 cars or
to the Association of American

at

274.32

Railroads.

Loadings for the week ended Nov. 5, 1955, totaled 808,709 cars,
an increase of 112,683
cars, or 16.2% above the corresponding 1954
week, and an increase of 60,841 cars, or 8.1% above the corre¬

•:

Nov.

Trifle in

a

announced

■;

7, comparing with

the corresponding date

on

\

largely based

was

be taken next

in

year

'.\'r

v

the belief that legislative action

on

to bolster farm prices.

prices in face of the largest supply in
history, according to the Department of Agriculture, is due to the
large quantities of old crop wheat held in Commodity Credit
Corporation inventories and to the reduced 1955
production, leav¬
ing relatively small supplies in commercial channels. The
quantity
of wheat placed under
government support through Sept. 15 was
reported at 124,000,000 bushels, or much less than the
233,000,000
bushels from the 1954 crop under
support on the same date a year
earlier.

Trading in

Board

of

bushels

Trade

44,800,000
Cocoa

a

soybean

active

futures

the

on

Chicago

and

averaged about 48,300,000
48,900,000,000 the previous week and

marketings exert¬

on prices.
The current quotation of
pound for the Accra grade compares with 52 V2 cents
Warehouse stocks of cocoa were reported at 233,580

a

ago.

year

bags, against 238,329
The undertone

fill-in

some

The

week previous, and 92,200 bags

a

in flour

steady, although new business, aside
wheat flour bookings, continued dull.

Spring

coffee

green

irregular with prices

was

the

raw

easier.

ample

supplies
market

sugar

Following

the

in

sight
quiet

was

slight

sagged to the lowest level in
of the heaviest

for

new crop

in

balance

prices

of

the

trending

year,.

five-day marketing session of the

year.

Spot cotton prices continued to work moderately higher the
past week. Helping to support the market were the continued
heavy flow of the staple into the Government loan, a further
drop in the certified stock, and the continued improvement noted
the cotton goods market.

CCC loan entries during the week ended Oct. 28 totalled
388,bales, against 337,500 in the preceding week. The mid-October
parity price for upland cotton was reported at 34.97 cents a
pound, unchanged from a month earlier.

Last week the industry assembled an estimated

181,230 cars,
(revised) in the previous week. The past
week's production total of cars and trucks amounted to 208,633
units, or an increase of 15,072 units above the preceding week's
output, states "Ward's."
output advanced above that of the previous
while truck output rose by 1,120 vehicles dur¬
ing the week. In the corresponding week last year 116,737 cars
i»nd 21,496 trucks were assembled.
car

week by 13,952 cars,

Last week the agency reported

in the United

States.

there

were

This compared with

27,403 trucks made

26,283 in the previous

Canadian output last week was

the

placed at 6,005 cars and 801
Dominion plants built 5,722 cars

trucks.

In

and 667

trucks, and for the comparable 1954 week, 2,687

previous week

686 trucks.

cars

and

Automobile
1956

models,
diminished.

week

ended

Nov.

10

industrial

failures

from

in

237

the

declined

preceding

to

207

higher than
street, Inc.
levels

week,

in

Dun

the

&

Inc.,

1953.

Compared with the prewar level, failures were 23% lower
than in 1939 when 269 were recorded.
%
All of the week's

decrease

was

concentrated

among

failures

involving liabilities of $5,000 or more. They fell to 161 from 207
a
week ago and 192 in the corresponding week of 1954.
Small
failures, with liabilities under $5,000,

rose

to 46 from 30 in the

previous week and 35 last year. Nine of the failing businesses had
liabilities in excess of $100,000 as compared with 16 a week ago.

Wholesale Food Price Index Dips for 6th Straight Week
Down for the sixth successive

week, the wholesale food price

index, compiled by Dun & Bradstreet, Inc., fell to $6 on Nov. 8,
from

$6.02 a week earlier.

This represented

a new

low since June

20, 1950, when it registered $5.96.

It compared with $6.80

corresponding date

drop of 11.8%.

a year ago, or a

on

the

Up in wholesale price last week were flour, oats, barley, lard




by

reported

Street, New York; Mr. Erich Bartels, 579 Trysting Place, Cedarhurst, Long Island, N. Y., and Mrs.
Agnes Madsen, 2005 Coyle Street,
Brooklyn, N. Y. Each will receive
share of

one

Corp., an investment
company listed on the Stock Ex¬
change.
Spokesmen

in

1955

rise

in

models

the

sales

of

greatly

were

retail

trade

in

the

week

1

was

to

5%

a

year ago, according to estimates by Dun & Brad¬
Regional estimates varied from the comparable 1954

the

following percentages: New England and Pacific
Coast —1 to -f 3; East 0 to
-f 4; South and Northwest -f-3 to +7;
Middle West and Southwest
-f 2 to 6%.
'
Consumers moderately stepped-up their
purchases of apparel
week. Volume in men's topcoats and
heavy suits expanded,
with interest in sportswear considerable. Women
last

Winter cloth
the

coats

coats

and

occurred.

suits, while

Knit

dresses

best-selling accessories
Total

volume

at

upsurge

and

skirts

the

moderately

were

exceeded

the four

recorded.

7%

weeks

Board's

ended

a

For the period

estimated,

servers

a

year

would

index

for

of the

Jan. 1,

week

1955,

an

ended

Nov.

was

1955 to Nov. 5, 1955,

5,
In

reported.

increase of

drop

a

in

6%
a

8%

ahead

of

the

like

was

reported,

com¬

sizable increase in sales, thus
compensating for
week

before.

year.

For

preceding week, Oct. 29, 1955,
the

curred.
recorded

1954.

four
For
a

weeks

the

rise

an

ending Nov. 5,

period Jan.. 1,
of

1%

the
per¬

registered at the Sutro booth,

watched

short technicolor movie

a

describing functions of the Stock
Exchange, and received literature

investments,

the

information

operation
how

modities

of

on

brokerage

a

securities

and

com¬

bought and sold, and
pertinent data on the in¬
are

vestment markets.
Members

of

Sutro

Bros.'

re¬

search

department,
headed
by
Stephen Floersheimer, partner of
the firm, and including Melvin K.
Allen, and Herbert Burger, deliv¬
ered lectures
on
investments to
many heads of women's organiza¬
tions

represented

the

at

exposi¬

Victor V. Glad Stock
At $2.50
Barrett
Nov.

16

increase of 7%

1955,

1955

from that of

Herrick
offered

120,000 shares of

a

&

Share

Co., Inc.

for

public

common

on

sale

stock of

Victor V. Clad Co., priced at
$2.50
share.
An
old
established

per

Pennsylvania manufacturing firm,
its principal business is the fabri¬
cation of metal equipment for in¬

stitutional

and

commercial

food

service, and production of alumi¬
lawn

This

is

of the

and

the

first

patio furniture.
public offering

company's stock.
company

proposes

the proceeds of this
the

purchase

and for

of

to

use

financing for

new

equipment

working capital. The plant

is located at Renovo, Pa.
The company manufactured and
installed the stainless steel kitch¬
en

of

the

Waldorf-Astoria

Hotel

in New

York, the Bellevue Strat¬
in
Philadelphia
and
has

ford

placed

kitchen

installations

number of other

the east and

in

a

leading hotels in

in

various hospitals,
stores, schools and industrial

plants.
effect

this

to

sale

company wilJL have 294,000
of
common, stock

the

shares

outstanding,
$55,000 of debentures and $27,594
of notes payable.

Western Sees, of N. Mex.
ern Securities
Corporation of New
Mexico has been formed with of¬
fices in the Simms Building. Of¬

to
the

dent;

an

Nov.

was

5,

1%

Robert L.

William

C.

McGee, Presi¬
Paxton,

Vice-

Secretary and Treasurer. Mr. Mc¬
and

Mr.

Paxton

were

previ¬

ously with Western Securities

Corporation

of

Utah.

In

George L Ohrstrom

recorded.

increase of

are

President; and Daniel T. Brennon,
Gee

According to the Federal Reserve Board's index, department
store sales in New York
City for the weekly period ended Nov. 5,
1955, declined 8% below that of the like period of last
the

proved

was

gain of

City last week, trade ob¬

approximate

the

educa¬

exhibit

very popular
to visitors to
exposition. More than 6,500
sons

ficers

volume

securities

their

ALBUQUERQUE, N. M.—West¬

New York

Electric and Veterans Day
promotions, it

10%

taken from

like period of last year.

increase of 8%

an

5,

the

as

ago.

bined to effect

the

that

investment

Giving

country-wide basis

Nov.

Retail trade volume in

a

corre¬

registered above that of 1954.

was

period

the

i
on

preceding week, Oct. 29, 1955,

For

shoppers sought
in the buying of

popular, and
leather gloves and handbags.

were

wholesale

an

sponding 1954 level.
Federal Reserve

for

reported

tional

The
of

stock of Tri-

common

Continental

num

marked

a

inventories

1955, increased 1% above that

reports. The toll fell short of the 227 in the
similar week last year but remained about the 155 occurring in
Bradstreet,

dealers

while

interest in Winter

consumer

high level.

a

Department store sales

Business Failures Receded the Past Week
and

at

The dollar volume

the

Commercial

last year with

merchandise sustained

j

,

slightly in the period ended on Wednes¬
Total dollar volume was slightly above that
rose

of the similar period

fur

week and 21,496 a year ago.

buying

day of last week.

compared with 167,278

Last week's

at

Slightly Higher Level by
Seasonal Buying

Output in the automotive industry for the latest week, ended
11, 1955, according to "Ward's Automotive reports," scored
the second highest peak in its history and climbed to within 3.7%
of the all-time high (216,629 units) attained in the period
April
25-30, 1954.

Middleway Circle, Forest Hills,

N. Y.; Mrs. Ina Lee, 37 West 26th

800

Consumer

Eileen

tion.

Some early selling was induced by the slow export
movement,
uncertainties regarding next year's loan rate, and
expectations
that the next government crop forecast will show a sizable
in¬
crease over the October estimate of
13,928,000 bales.

Highest Peak in History

Regiment Arm¬

Luoto, of 254
Brooklyn, N. Y.;
Mrs. Kate
Seusing, 552 Lincoln
Place, Brooklyn, N. Y.; Mr. Leslie
Lewis, 1417 Weaver Street, Scarsdale, N. Y.; Mrs. F. W. Fredericks,

slightly

of a week ago, hog prices
eleven years under the influ¬

last

held

was

71st

Street,

other

the

with

gain
over

Trade Volume Maintained

Nov.

Mrs.

Henry

house,

attributed to increased offerings of

was

closing

week ago.

a

which

in the

ory:

on

market

moderately lower than

year ago.

a

was

awards

Exposition
week

firm

ago.

weak with pressure of new
crop

was

cents

from

and

depressing influence

a

32 V2

against

year

a

grain

remained

day,

per

the

following had re¬
at the firm's ex¬
hibit at the Women's International

5

wheat

S. Automotive Output Last Week Advanced to
Second

Awards at Exposition
Sutro Bros. & Co., members of
the New York Stock
Exchange,

sponding week in 1953.
U.

Sutro Bros. Announce

pound

per

ceived

on

previous and with 278.02

Strength

in

Loadings of

finished

•

Support
would

ence

advanced

25,000,000 kwh. above that of
the previous week, when the actual output stood at
10,853,000,000
kwh.; it increased 1,681,000,000 kwh. or 18.3% above the com¬
parable

week

a

With

.

output

price

production countries at reduced prices.

the electric light
power industry for the week ended Saturday, Nov. 12, 1955,
estimated at 10,878,000,000
kwh., according to the Edison

This

index

Weakness

Electric Institute.

the

Grain prices in the
Chicago market were generally strong,
continuing the upward trend of the previous week.

1954.

The amount of electric energy distributed by
and

of

Commodity Price Index Eases

year ago.

1955.

Electric Output Extended Its Gains of the Past Week

was

a

ing

ago.

industry's ingot production rate for the weeks in 1955 is

The

274.77

with

compared

as

total

sum

daily wholesale commodity price index, compiled by Dun
Bradstreet, Inc., continued to move in a narrow range last

&

$556,200,000 from 33
leaving $605,600,000. This had to be split

the

The

week.

took

beef, butter,

rye,

Latest Week

investors.

Government

represents

Wholesale

taxes, producers do not have enough money left over
to satisfy reinvestment needs and make dividends attractive to
Federal

index

wheat, corn,

were

steers, hogs and lambs.

cocoa,

raw foodstuffs and
meats in general use and its chief
function
is to show the general trend of food
prices at the wholesale level.

After

The

coffee,

of 31

steel ingot capacity averages $60.
To build capacity
steel company will have to spend about $300 a ton.

existing

On the down side

eggs.

more

are

today,

and

sugar,

oc¬

1955, the index

corresponding period of

George

L. Ohrstrom, senior
partner of G. L. Ohrstrom & Co.,
New York City, passed away at
his

home

in

the age of 61.

Virginia

Nov.

9

at

.

I

The Commercial and Financial Chronicle
38

(2114)

The following

Indications of Current

latest week
week

Business. Activity
Latest

IRON

AMERICAN

STEEL

AND

operations

*iee<

iuuicaiec

Week

INSTITUTE:

ipercent

capacity)

of

Nov. 20

£98.8

Nov. 20

§2,384,000

or

statistical tabulations

or

Previous

Month

Year

Week

Ago

Agr
79,3

98.9

"9J.G

PETROLEUM

output—daily

Gasoline

(bbls.)

Nov.

4

Nov.

4
4
4
4
4

<

output
Distillate fuel oil
Kerosene

Cbbls.) _—————
Nov.
(bbls.)
—„Nov.
Btocks at refineries, bulk terminals, in transit, in pipe linesoutput

Residual fuel oil
Finished

output

unfinished

and

(bbls.)

Kerosene

Residual

fuel

oil

(bbls.)

at

oil

(bbls.)

at

ASSOCIATION

iieight loaded
freight received

ENGINEERING

CIVIL

11,691.000
8,076,000

11,250,000

7,811,000

7,712,000

7,839,000
149,138,000

35,355,000

38,178,090

151,988,000

151,566,000

145,598,000

137,198,000

45,932,000

48,299,000

47,021,000

50,4tjj,UU0

Nov.

5
5

808,709

835,396

807,035

696,025

693,360

699,384

691,237

611,756

Nov. 10
.'.Nov. 10

8267,920,000

$394,011,000

8345,812,000

162,168,000

278,458,000

228,694,000

151,329,009

————;———Nov, 10
—Nov, 10
—„—— Nov.v 10

105,752,000
62,163,000

115,553,000

117,118,000

210,153,000

96,869,000

84,757,000

152.232,000

43,589,000

18,684,000

32,361,000

57,921,00^

(no. of cars) —Nov.

Steel

Month

of

of

Wholesale

1

5

*9,9.90.000

10,100,000

U.

9,835,000

8,597,000

Nov.

5

455,000

478,000

537,000

521,000

Nov.

5

128

126

125

127

DUN

INDUSTRIAL)

AND

(St.

Zinc

(East

MOODY'S
S.

u.

St.

S.

State

corporate

:

at

10,853,000

10,878,000

9,197,000

10,599,000

—
-

-

237

207

5,004,222

$44,300

$43i00

$43,100

11,900

11,900

11,800

234.000

23,400

22,500

$79,600

$79,200

$77,300

OF

203

227

COKE

Production

5.174c

5.174c

4.798c

Oven

$59.09

859.09

$56,59

Beehive

$44.83

$14.50

$44.83

$34.00

Nov.

9
9
9
9

42.800c

42.700c

43.025c

29.700c

43.425c

43.300c

42.750c

30.550c

96.125c

96.625c

96.000c

90.625c

15.500c

15.500c

15.500c

15.000c

9
9

15.300c

15.300c

15.300c

14.800c

13.000c

13.000c

13.000c

11.500c

Oven

Group

AVERAGES:

DAILY

YIFLI)

15
15
15

———Nov. 15
—Nov. 15
Nov. 15

—•:

—...

Group.:

and

_____

OF

lignite

(net tons)

(net

tons)-j

stock

millions

in

Total

Repair

110.70

111.62

111.62

111.25

115.24

109.97

109.79

108.60

112.56

Single

Charge
Service

102.63

105.00

106.56

106.21

109.06

108.16

108.16

108.16

111.07

109.24

109.06

'

Personal

FEDERAL

523.279

667.8G6

472.502

400,902

545,485

353,712

130,640

122,281

118,790

41,780,000

41,000,000

36,652,000

2,136,000

*2,333,000

2,194,000

goods

.4,505,100
4,464.900

*166,357

40,200

1,991,641

*2,063,913

3,916,787

$33,636

$32,896

$23,736

26,155

25,476

21,901

13,547

13,038

10,349

5,762

5.676

5,294

1,589

1,570

1,642

5.257

5,132

4,616

7,481

7,420

6 835

2,629

2,535

2,312

3.019

2,991

2,734

1,833

1,834

1,789

RE¬

credit

term

—

.

loans

loans..

-

..

"

credit

loans.

r

accounts
credit

;

(DEPT.

OF

(running

18

*6,395,422
*6,229,065

160,419

31:

Aug.

modernization

Oct.

of

6,393,348
6,232,929

SERIES—Esti-

_

COTTON GINNING
As

tons)

credit—

payment

COTTON

(net

credit

Non-instalment

112.19

103.70

V

of

as

and

107.62

107.62

THE

OF

intermediate

and

consumer

107.80

105.39

1,118,333

531,542

OUTSTANDING—BOARD

Automobile

107.98

102.80

_____

of month

end

at

consumer

Instalment

99.25

107.62

„_

tons)

CREDIT

short

95.82

102.80

$1,786,199

993,961

Sept.:

tons)

(net

SYSTEM—REVISED

95.92

107.98

(net

GOVERNORS

mated

of

tons)

(net

coke

95.33

110.52

$995,781

$1,525,503

MINES)—Month

MINES)—Month

OF

coke

SERVE
*

of

Month

.

(BUREAU

coke

5.174c

8

EN¬

omitted):

__CC—

■■

(BUREAU

$59.09

Nov.

—

—

October:

8

15
Nov. 15
Nov. 15

-

-

A

BOND

7,701,533

7,053,615

(000's

CONSTRUCTION

Pennsylvania anthracite

8

Nov.
Nov.
Nov.
Nov.

Baa"———

Industrials

DEPT.

municipal

OUTPUT

Other

——,——

...

-

MOODY'S

S.

September

NEWS-RECORD

Bituminous coal

AVERAGES:

DAILY

Aa

Group

*9,382,325

7,378,247

REPORTF.D BY

construction-—

and

Nov.

—Nov.
———.—.Nov.
Nov.
Nov.

at

at——
at

PRICES

Utilities

10,502,000

August

construction

CONSUMER

.—

—

-

Public

46,611

COM¬

construction

Public

Nov.

Nov.

-

Railroad

of

Month

—

(000's

U.

OF

Louis)

BOND

120.332

13,417

$1,488,400,000 $263,OCO.OCO $1,266,200,000

October

,.

Government Bonds

Average
Aaa

York)

of

&

at

Louis)

Month

CORPORATIONS—U.

GINEERING

QUOTATIONS):

J.

York)

(New

(New

Lead

OF

——_

ENGINEERING

CIVIL

PRICES:

M.

&

refinery

Lead

—

DEPT.

—

S.

COAL

copper—

tin

Straits

133,551

9,8.98

tons)—

omitted)

of

Domestic refinery at
Export

—

————.

Private

(per gross ton).
(E.

130 606

produced

—

(net

Total.

INSTITUTE:

COMPOSITE

PRICES

castings

._

SERIES

NEW

Retail

8371,482,000

MINES):

OF

AVERAGE =100

(COMMERCIAL

fcieciroiytic

Ago

(millions of dollars):

Total

Nov. 10

METAL

for

Manufacturing

>

Scrap steel

of Sept.

September

COMMERCE

Nov. 12

AGE

Month

INSTITUTE:

products

steei

INVENTORIES

BUSINESS

I

INDEX—FEDERAL RESERVE

SALES

■*V sTEIVI—1947-49

IRON

end

tons)—Month of October-

Federal

DEPARTMENT STORE

FAILURES

September

STEEL

steel

ingots and

(net

Shipments

—— ——

BUREAU

S.

ELECTRIC

of

(short tons)

CASH DIVIDENDS—PUBLICLY

ENGINEERING

—

Nov.

EDISON

Year

Month

aluminum in. the U. S.

AND

IRON

MERCE

151,006,000

CONSTRUCTION

....

(U.

Previous

MINES):

tonsMonth

short

of that date?

are as

Latest

,

—

OUTPUT

COAL

2,395,000
10,330,000

36,436,000

from connections

construction ——
State and municipal
—
:

2,066,000
10,488,000

151,607,000

of cars)

(number

Public

Federal

2,050.000

36,4 44,000

construction

Private

2,311,000

152,004,000

construction

S,

U

6,9 41,000

23,053,000

4
4
4

.NEWS-RECORD:

Total

7,191,000
.25,353,000

RAILROADS:

AMERICAN

OI

revenue

Re/enue

6,191,350

6,690,150

7,476,000
27,075,003

(4

(bbls.)

———

fuel

Distillate

6,749,500

6,777,100

117,561.000
26,433,000

at————_—Nov.
Nov.
—Nov.
Nov.

gasoline

at™

(in

1,892,000

2,386,000

of quotations,

cases

OF

of primary

AMERICAN

bbls.)—
Nov.
(bbls.)———.—————,
.— Nov.

output

(BUREAU

Stocks of aluminum

(bbls. of

average

gallons eachi

42

Crude runs to stills—daily average

*2,404,000

in

or,

either for the

are

'

INSTITUTE:

condensate

ana

on

c;ruue

(net tons)

and castings

ingots

ALUMINUM
Production

Equivalent to—
Steel

AMERICAN

production and other figures for the;

cover

that date,

on

Thursday, November 17,1955

Dates shown in first column

month available.

month ended

...

PRODUCTION

COMMERCE)—

bales)—.—
U.

—

S,

DEPT.

7,819,807

7,189,552

OF

■

U. S. Government Bonds
—

2.85

2.80

2.82

Nov. 15
Nov. 15

P-28

3.29

3.30

3.13

3.08

3 03

3.10

2.89

Nov. 15
Nov. 15
Nov. 15

3.17

3.18

3.19

3.03

3.28

3.30

3.30

3.14

3.58

3.58

3.59

3.45

...—_—.....-——Nov, 15
—.— Nov.
15

3.36

3.37

3.33

3.22

——

——

.

Aaa

:

Aa

-t—

....

A

.

.

Baa

;

Railroad

Group

Utilities

Public

industrials

Group

received

(tons)

Percentage

of

OIL,

AND

=

3.27

3.27

3.11

3.22

3.24

3.05

—Nov. 15

430.2

398.6

'405.5

411.1

5

437,655

284,924

379,667

317,710

Nov.

5

297,935

288,522

289,693

259,6)2

..Nov.
Nov.

5

103

102

102

95

5

725,673

591,291

677,874

447,385

Nov. 11

107.12

107.15

106.83

106.17

Nov.

—£
———

of period

at end

REPORTER PRICE

DRUG

AVERAGE

3.27

AGRICULTURE—1955

Production

500-lb.

EMPLOYMENT

PAYROLLS—U.

S.

l:

14,843,000

13,923,000

13,696,000

13,399,000

13,231;COO

12,577,000

7,623,000

7,576,000

6.965.000

5,776,000

5,705,000

5,612,000

108.3

107.4

101.7

159.4

154.8

138.0

16,925,000

16,319,000

15,972,000

9,632,000

9,575,000

8,887,000

7,293,000

7,224,000

7,085,000

$24,778

'$24,563

$23,836

19,516

*19,375

18,223

$44,294

*$43,938

$43,059

27,389

*26,731

23,113

$30,421,000

$30,317,000

$29,985,000

DEPT.

SERIES—Month

of

Durable

goods

1

Non-durable

Emp'oymcnt

workers)

(production

manufacturing

—-

—

,

goods .—J.;—_h-———S—____w-

(1947-49

Indexes

Avge.=100)—

1

manufacturing

Payroll
All

Indexes

(1947-49

Average=100)

manufacturing
number

Estimated

of

employees in manufac¬

industries—

turing
All

—

—

manufacturing

Durable

Igoods

Non-durable

—

_

goods

TRANSACTIONS FOR ODD-LOT ACCOUNT OF OI)D-

STOCK

oi.AI.EKS

i,ul

SPECIALISTS

AM)

EXCHANGE —SECURITIES

sales by

Odd-lot

dealers

MANUFACTURERS' INVENTORIES AND

STOCK

Y.

N.

COMMISSION:

EXCHANGE

(DEPT.
Month

purchases)—t

(customers'

value

Dollar

ON

—

Odd-lot purchases by dealers (customers'

Oct. 22

973,161

1,261,044

1,205,959

970,777

Oct. 22

$50,879,324

$65,732,153

$67,876,525

$49,877,550

sales

Oct. 22

741,158

1,075,018

1,083,527

953,010

Oct. 22

4,634

10,181

3,866

7,521

Oct. 22

736,524

1,064,837

1,079,661

945,489

Oct. 22

$36,935,557

$57,896,498

$57,097,900

$42,929,083

by dealers—
167,970

269,790

306,870

278,280

.Oct. 22

167^9 70

269", 790

306,870

278~,280

Sales

»

CIRCULATION—TREASURY DEPT.

.Nov. 22

423,860

479,500

428,510

317,390

of Sept.

As

AVERAGE YIELD OF
COMMON STOCKS—Month of October:

100

EXCHANGE

ACCOUNT

FOR

Total

AND

round-lot

SALES

ROUND-LOT

OF

ON

THE

STOCK

MEMBERS

N.

Y.

STOCK

(SHARES):

Total

sales

TRANSACTIONS

ACCOUNT

FOR

ODD-LOT DEALERS AND

OF

Oct. 22

373,800

437,120

522,700

434,770

Oct. 22

8,772,270

12,269,010

12,087,740

10,370,020

Oct. 22

9,145,070

12,706,130

12,610,440

10,804,790

Short sales

Total

Other

sales

sales

transactions initiated

Total

on

the

Other
Total

Other

sales

sales

:

transactions

Total

initiated

off

the

Short sales

Total

:

sales

round-lot transactions for

Total

account

Other

...

sales'

sales

WHOLESALE

PRICES,

NEW
=

SERIES

100):

products

—

S.

U.

DEPT.

—

1

commodities

♦Revised
of Jan.

1,

tNumber

348.420

323,757

976,695

887,195

924,179
150,658,921

Oct. 22

193,280

226,110

220,050

232,110

Oct. 22

1,059,100

1,658,590

1,282,870

1,000,860

Total of customers'

Oct. 22

1,252,380

1,884,700

1,502,920

1,232,970

Market value

Oct. 22

229,470

454,440

342,220

343,680

Oct. 22

18,240

19,700

20,800

20,200

Oct. 22

222,020

418.440

303,210

310,330

Oct. 22

240,260

438,140

324,010

330,530

Oct. 22

501,050

566,425

552,780

472,130

Credit

Cash

extended

other than farm

figure.
1955,
of

as

Ulncludes

872,000

against Jan.

orders




not

and

1,

reported

foods..

PERSONAL

44,870

Oct. 22

417,730

566,294

680,290

417,937

Oct. 22

462,600

633,524

820,520

484,987

140,230

67,230

of

Oct. 22

1,874,000

Oct. 22

256,390

2,951,275

2,429,960

1,981,230

313,040

381,080

319,360

Oct. 22

1,698,850

2,643,324

2,266,370

1,729,127

Oct. 22

1,955,240

2,956,364

2,647,450

2,548,487

of

barrels

of

foreign

111.2

*111.3

introduction

111.2

85.2

85.6

86.7

92.2

99.0

98.8

99.8

104.3

Nov.

75.6

Nov.

119.1

crude runs.

§Based on

of

Monthly Investment

77.1.

"118.7
new

annual

79.4

87.4

118.7

114.5

capacity of

borrowings on

125,828,310

197,536,241

197,994,193

104,547,615

103,996.732

95,588

108,381

2,233,556

2,167,455

109,349,656
168,476
■

1,437,260

STATES
COMMERCE)—Month

INCOME IN THE UNITED
OF

Distributing. industries
—
Service
industries ——-—
Government

211.6

■—.—

——

employees

Less

for

contribution

social

v

83.1
52.5

27.9

*27.8

26.3

35.7

37.2

33.9

5.3

5.3
7.0

Personal

26.6

*26.4

income

rental income—
interest income and dividends

transfer payments.
non-agricultural income

Total

OXIDE

(BUREAU

OF

195.8

*55.7

*47.9

of

$286.7

56.0

7.0

ZINC

..

*91.7

48.3

labor

,

*212.4

92.0

in¬

—:—

_.—

:

Proprietors and

Total

4.6

6.6
,

'

43.1

24.7

16.8

16.9

16.1

290.9

*291.7

271.5

MINES)—Month

September:

Production

tons

*$205.3 ;

$305.0

income—.

personal

Wage and salary, receipts, total
Commodity producing industries—,—".

,

Plan.

S. Govt. issuesother collateral

on U.

"

Total

103.7

Nov.
Nov.

-

bonds—.

listed

33,742

August (in billions):

Other

Nov.

free credit balances—

of listed shares——z.

value

Member

S.l

67,050

Oct. 22

1954 basis of 124,330,410 tons.

since

and fn banks in U.

hand

on

Member borrowings

OF

foods

I

Meats

370,620

'

v

1,165,420

.

I

commodities—

Processed

All

$2,752,279
42,679

$2,081,277

43,457

Sept.

firms carrying

1,534,960

Commodity Group—
All

$2,848,115

to customers——____—

of

"

(000's omitted):

surance

LABOR—(1947-49

Farm

margin accounts—
Total customers' net debit balances

EXCHANGE—As

STOCK

YORK

1,930,410

of members—

purchases

Short sales

Total

4.57

1,143,480

'

Other

3.00

(DEPARTMENT

Total sales

4.82
4.50

30

floor—

purchases

6.02

4.50

3.93

Market

Short sales

/ 4.91
4.06

4.16

—

(200)

Member

floor—

purchases

,

4.62

2.67

NEW

MEM¬

SPECIALISTS:

of specialists in stocks in which registered—
purchases
Oct. 22

Other

5.34

(24)—

4.12

(15)

Average

Transactions
Total

& Tel.)

2.73'

Banks

t

BERS, EXCEPT

Amer. Tel.

4.43

3.76

3.96

—

^—,————

Insurance

sales

ROUND-LOT

(125)

(25)

(not incl.

Utilities

-

sales—

Short sales

Other

Railroads

TRANSACTIONS

(000's omitted)

30

WEIGHTED

Industrials

STOCK

——————_—.

-

MOODY'S

purchases by dealers—

ROUND-LOT

SERIES—

of dollars):

Total

Oct. 22

Round-lot

SALES

.

.

.

.

Durables

MONEY IN
Oct. 22

TOTAL

.

NEW

(millions

August

Non-durable

Dollar value
Round-lot

COMMERCE)

OF
of

Inventories—

sales)—

Number of orders—Customers' total sales

as

AND

Nov,

September:

INDEX—

100

Crop as of
bales

gross

LABOR—REVISED

OF

All

ASSOCIATION:

—

(tons)

/ V

All

activity..

orders

PAINT
■

INDEX

•

3,21

—L————

;

V

Nov..15

——

(tons)

Production

Unfilled

—

Groun————.

PAPERBOARD

NATIONAL
orders

.

COMMODITY

MOODY'S

-

—

——.

2.55

,—Nov. 15

—

corporate——

Average

13,841

(short tons)

Shipments (short tons)
Stocks at end of month (short tons)

*

13,824

12,217

13,073

13,736

12,200

12,045
12,454

14,454

Volume

Number 5482

182

.

.

The Commercial and Financial Chronicle

.

99

(2115)

•;

i

* INDICATES

Securities Now in
•

Aeco

Corp., Beverly Hills, Calif.

development expenses, etc.
Underwriter—Hudson-Bergen
Securities, Inc., Cliffside Park, N. J.

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

basis.

Price—To

be

Amanda

Uranium, Inc.
July 27 (letter of notification)

sup¬

plied by amendment. Proceeds—To repay borrowings;
for exploration and development of oil and gas prop¬
erties and further acquisitions.
Underwriter—None, of¬
fering to be made on a "direct communication" basis
by brokers. Statement effective Nov. 7.
Allied-Mission Oil,

•

mon

stock.

Price—One

cent

6,500,000 shares of

com¬

share.

Proceeds—For

mining activities.
Weber Investment Co.,
Ogden, Utah.

Underwriter-

expenses

incident

per

to

American European Securities Co.
Oct. 11 filed 91,875 shares of common stock
(no par)
being offered for subscription by stockholders on the

Inc., Tulsa, Okla.

Oct. 3

(letter of notification) 598,800 shares of common
stock (par one cent). Price—50 cents per share. Proceeds

Oct. 31,

1955; rights to expire

Nov. 22. Price—$28 per
share. Proceeds—For investment. Underwriter
Dominick & Dominick, New York.

acquisition, exploration, drilling and development
Address—P. O. Box 1387, Tulsa, Okla. Under¬
writer—United Securities Co., same address.
of leases.

★ American Greetings Corp., Cleveland, Ohio
Nov. 14 filed 200,000 shares of class

Aloha, Inc., Las Vegas, Nev.
Aug. 8 filled 900,000 snares of common stock (par $1)
and 900,000 shares of preferred stock (par $10) to be
offered in units of

share of each class of

one

stocks

Price

C-:.

Alouette

Uranium

&

stock

common

a

(par

mon

193

Oct. 1, 1975 and 609,193 shares of com¬
stock (par $1), of which all the debentures and
109,shares of stock are being offered in

outstanding 48,530

shares

of

exchange for
preferred

6%

cumulative

stock on.the basis of $50 of debentures and 2lA shares of

■

v

'

-

18

Radio

Co.)

&

"■ ■;

•

CALENDAR

I

1

(Bids

(Offering

invited)

$2,625,000

underwriting)

$1,097,529

International Metals Corp.—______
Inc.)

Otis,

&

.—Common

(Offering

stockholders—underwritten probably by.
Lawrence
Securities Corp.)
$400,000

to
J.

Cyrus

Texas American Oil Corp....

(Dillon,

Read

Co.

&

Inc.

Consolidated

Edison
(Bids

Kawecki

to

(Tuesday)

&

Chemical

Revlon

&

(Bids

Co.;

North

Shore

Securities

(Columbia

Corp.)

23

November

S.

(R.

Dickson

(Wednesday)

and

Co.

&

November 28
Brothers

(Baruch

7

Common
|

200,000

November 29

(Bids

to

Atlanta

A

$750,000

Pfd. & Com.

Gas

Daitch

Light

Co
be

(Bids 8:30 a.m. PST)
•

.

•

•

"-i"

to

(Blyth & Co., Inc. and
&

$18,000,COO

Preferred

be

to

invited)

15

Debentures

$25,000,000

|

-

&

Co.)

$1,000,000

:

to

preferred
Proceeds—To repay bank loans and for
program.
Underwriter—To be determined

(par $100).

Co.

and

Probable bidders: White, Weld

Kidder, Peabody & Co.

(jointly); The First

Boston Corp.; Stone & Webster Securities Corp.; Shields
& Co.; Equitable Securities Corp. and Union Securities

Bids—Expected about Dec. 14.

Atlas

Industries, Inc., Houston, Texas
y
Oct.-10 (letter of notification) 200,000 shares of com¬
mon stock
(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,
Texas.

it Atlas Plywood Corp., Boston, IVTass.
14 filed 100,000 shares of common stock (par $1)
be offered in exchange for the outstanding 291,431

to

common

stock of

Plywood, Inc. at

an

exchange

at least

an additional 133,809 shares in order to
bring its
holdings of such stock to 80%.

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
manufacture and sale of the "grip-lock"
driver and
screw.
Office—137 Grand St., New York, N. Y. Under¬
writer—Ellis-Greenberg Co., 1051 Carroll St., Brooklyn,
N. Y.

Banking Corp. (11/22)
$1,500,000 5Vz% capital convertible deben¬
tures due Nov. 1, 1970. Price—At 100% and accrued in¬
terest. Proceeds—To repay bank loans and for working
capital. Underwriter—Reynolds & Co., New York.
6

filed

Debentures
$2,000,000

Debentures

_4

Nov.

10

loans

and

filed

$30,000,000

construction.

for hew

by

(11/29)
first refunding mortgage
Proceeds—To repay bank
Underwriter

competitive bidding.

—

To be

Probable bidders:

Halsey, Stuart & Co. Inc.; White, Weld & Co. and The
First Boston Corp. (jointly); Harriman Ripley & Co. Inc.
and Alex. Brown & Sons (jointly).
Bids—Expected to
be received

on

Nov. 29.

/

.

*

Continued

(Monday)

on

page

Preferred
(Reynolds & Co.) $6,000,000

January

11

(Wednesday)

New Orleans Public Service Inc

Preferred

(Bids to be invited) $6,000,000

.

January 17

>

Common

1

stockholders—underwritten by Merrill

(Tuesday)

Pennsylvania Electric Co
(Bids

,

to

be

Bonds

invited)

$20,700,000

„

Pennsylvania Electric

& Co.,

Inc.)

$1,875,000

Co.__

Preferred

$25,000,000

"t

Preferred

stockholders—underwritten by White,
&




Co.)

$5,490,090

to

be

invited)

$8,000,000

>»

January 18

______Bonds

Africa

Weld

(Bids

Common

Alai, Inc

Crerie

Natural Gas Co

(Offering

stock

determined

underwriting) $300,000

$5,000,000

(Dillon, Read & Co.)

Western

-.V-'-l

of
sinking fund bonds due 1990.
Common

Investing Corp.)

'

Union of South

cumulative preferred
primarily to members of the Ocean
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—

Preferred

Merrill Lynch, Pierce, Fenner

Beane)

Lynch, Pierce, Fenner & Beane) 100,000 shares

H.

100,000 shares of 5%

Club, Inc.

it Baltimore Gas & Electric Co.

(Thursday)

Magnavox Co.

(Wednesday)

Telephone Co

(F.

filed

V

30

Montana-Dakota Utilities Co.__

Puerto Rican Jai

7

Oct.

invited) $3,000,000

Telephone Co

(No

-i;

Miles Laboratories, Inc
—
;„-Common
(Offering to stockholders—underwritten by The First
-j
Boston Corp.) 106,962 shares
i

(Offering to

Preferred

(Wednesday)

January 9

Bonds?

.

November

Porto Rico

V-

(Md.)

$5,000,000

Crystal Dairies; Inc

'

•

Bonds
$10,000,000

General Capital Corp._

Debentures!

Gas & Electric Co—

.

Under¬
by

company or

Automatic Tool Corp.

$300,000

(Tuesday)

invited)

(Bids

(General

$10,000,000

Co.)

•

Proceeds—For working capital.

Staats & Co. and Blyth &

(William R.

San Diego

Co.)

Colohoma Uranium, Inc

$30,000,000

—

&

(Monday)

invited)

December

shares

___Bonds

Inc

Ariz.

stock to be offered

shares of

Preferred & Common
Rhoades

13

be

(Hirsch

Aircraft,

Phoenix,

ratio to be determined later. Atlas presently owns 496,680 shares of Plywood, Inc. stock and desires to acquire

(Thursday)

Brothers)

be

to

(Bids

Lincoln Service Corp
Debentures?
(Johnston, Lemon & Co. and Union Securities Corp.) $4,000,000.

Northrop

8

Light Co

to

New Jersey Bell

$757,500

Co

invited)

be

Co.,

Automobile

(Tuesday)

Baltimore Gas & Electric

Finance

Nov.

$2,500,000

EST)

a.m.

December 14

—Common

Anthony Securities Corp.)

Corp.)

(Wednesday)

Loeb,

&

(Bids

Rochester Gas & Electric Corp
Commoii
(Offering to stockholders—underwritten by The First
Boston

Preferred

Delaware Power & Light Co

(Monday)
Inc.)

Public

$12,500,000

Common

(Bids

$2,600,000

Eagle Newspaper Enterprises, Inc
(James

shares

_____-_Bonds

December

(Friday)

Co.,

&

■<

Common

Co

(Vickers

$500,000

Mines, Ltd

Canuba Manganese

373,900

EST)

a.m.

M.

Delaware Power

underwriting)

75,000 shares ./

Old Empire, Inc.

Sons) 128,597 shares

Kayser (Julius) & Co

Arizona

Sept. 16 filed 78,006,081 shares of common stock to be
offered for subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20

Corp. (jointly).

Common

Co.)

&

11

(Carl

Debentures}

Fitch, North & Co.)

(No

Bonds

Common

December 12

Whitaker Cable Corp

November 25

York

Inc.)

Co.,

Common

(Morgan Stanley & Co. and Alex. Brown &

(Barret,

shares

$70,000,000

National Propane Corp

^

Maryland Ry._

Western

New

Rhoades & Co.)

11

(Bids

Common

A. C. Allyn
200,000 shares

&

250,000

$300,000

Co. of America

Insurance

of

invited)

December

United

Co.)

Corp

Gas

Class A Common

Corp.

Co.

December

& Chemical

U. S. Automatic Machinery

com¬

stock. Price—10 cents per share.
Proceeds — For
exploration and development. Office—314 Radio Central
Bldg., Spokane 1, Wash. Underwriter—None.

mon

&

Virginia Electric & Power Co

Common

Staats & Co.; Dominick & Dominick; Bache
and Schwabacher & Co.) 175,COO shares
>u-

R.

^ Anaconda Uranium Corp., Spokane, Wash.
Oct. 31 (letter of notification)
2,000,000 shares of

by competitive bidding.

(Tuesday)

Co

(Reynolds

400,000 shares

Inc.)

(Blyth & Co.,

Siegler Corp.
(William

Products

Common

Kimberly-Clark Corp.

Sept. 30 filed 200,000 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

construction

(Eiyth & Co., Inc.) 94,700 shares

Debentures
$1,500,000

Co.)

6

$2,400,000

Pacific Employees Insurance Co

Automobile Banking Corp
(Reynolds

Preferred

& Co.)

and The Ohio

be

(Carl M. Loeb,

November 22

■

Co.

None.

^

$300,000

/■'•;"//

Insurance

★ Atlanta Gas Light Co. (12/14)
-;.
Nov.
15
filed
30,000 shares of cumulative

California

—

Deetjen

December

Common

Woods & Co., Inc.)

(Kramer,

Co. and Fiist
Co., Inc.) 450,000 shares
&

Columbus & Southern Ohio Electric Co.__Common

Common

Motorists

Common

Dillon

(Emanuel,

$400,000

Long Island Trust Co

(Monday)

Corp

Reading Tube Corp__

underwritiiig) $500,000

company—no

(Gearhart

Oil

(Eastman,

Inc._rDebs. & Com.

:;,yy;

American

Beach

Common

stockholders—no

to

$296,000

(Franklin Securities- Co.)

(Offering by

LeCuno

...Common

Entz-White Lumber & Supply,

•—None.

Oct.

Equip. Trust Ctfs.
be

to

Sans Souci Hotel, Inc

Brothers

(Monday)

Corp.

common stock (par $1) to
employees of company and
option warrants. Underwriter

Assateague Island Bridge Corp.

(Thursday)

Missouri Pacific RR

December 5
November 21

Finance

Nov. 10 filed 277,410 shares of

salesman of the insurance firm.

and Lazard Freres

Credit

-k American Investment Co. of Illinois
be offered to officers and
key
its subsidiaries pursuant to

writer—None, sales to be directly by the

December

Debentures

for each preferred share (this offer ex¬
1, 1955, unless extended). The remaining
500,000 shares are under option to certain persons at $4
per share.
Underwriter—None.
on

cents per share.

$299,475

stockholders—underwritten by Lehman
& Co.) $100,000,000

to

•'

s

Common
Fuller

D.

of America..

Corp.

(Offering

•

(Friday)

Chromalloy Corp.
(S.

*

ISSUE

NEW
November

•

ISSUE

share. Proceeds—For general
corporate purposes. Office

debentures due

-

REVISED

—Chicago, 111. Underwriter—None.

J.;-,"

Montreal, Canada
.SW-"'
July 22 (Regulation D) 1,000,000 shares of common,stock.
Price—30 cents per share. Proceeds—For exploration and

ITEMS

$1). Price—To

American Hi de & Leather Co.,
LowelI, Mass.
Sept. 28 filed $2,426,500 of its 5% convertible subordinate

Copper Mines, Inc.,

PREVIOUS

For

be supplied by amendment.
Proceeds—
general corporate purposes, including construction.
Underwriter—McDonald & Co., Cleveland, Ohio.

—$11 per unit. Proceeds—For construction of h$el and
related activities and for contingencies, stock in-.trade,
and working capital. Underwriter—None.

stock

Dec.

on

—

—For

common

pires

ADDITIONS

SINCE

(Wednesday)

Ford Motor Co

Class A Common

(^lyth & Co., Inc.; The First
&

Co.;

Lynch,

Kuhn,

Pierce,

Loeb

&

Fenner

Boston

Co.;

Corp.; Goldman, Sachs
Lehman
Merrill
Brothers;

& Beane; and
6,952,293 shares

White,

Weld

&

Co.)

New York

'

Boston

Philadelphia
I

Pittsburgh

San Francisco

Private Wires to all offices

Chicago

Cleveland

40

40

The Commercial and Financial Chronicle

(2116)

Continued
Basin

jrom page 39

Natural

Gas

<

■

N. Mex.

Corp., Aztec,

(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.
Office—109 W. Caco St., Aztec, N. M.
UnderwriterColumbia Securities Corp., New York, N. Y.
* Bethlehem Mining

& Exploration Corp.

notification) 1,000,000 shares of common
Price—10 cents per share. Proceeds—For mining

Nov. 4 (letter of

stock.

Office—504 Granger Bldg., San Diego,

expenses.

Calif.

Underwriter—None.

Proceeds—For expenses incident to mining
operations. Office — 441 Thatcher Bldg., Pueblo, Colo.
Underwriter—Investment Service Co., Denver, Colo.
share.

Big Owl Uranium Mines
I
July 29 (letter of notification) 2,000,000 shares of com¬
mon stock.
Price—15 cents per share. Proceeds—For ex¬

Underwriter

to mining activities.
Cranmer & Co., Denver, Colo.

incident

penses

—

Big Ridge Uranium Corp., Reno, Nev.
notification) 9,000,000 shares of common
stock (par one cent). Price — Three cents per share.
Proceeds—For exploration and development costs. Office
Oct. 19 (letter of

St., Reno, Nev. Underwriter—Mid

North Virginia

—206

City, Utah.

America Securities, Inc., Salt Lake

Nev.

(letter of notification) 3,000,000 shares of com¬

23

mon

stock.

—For

Overton,

Uranium Corp.,

Ute

Big
Oct.

share). Proceeds
Underwriter—James E. Reed

Price—At par (10 cents per

mining

Nov. 3 filed 140,000 shares of 5Vz% preferred
stock; 10,000 shares of 4% second preferred stock; and 4,000 shares

expansion of subsidiary and working capital.
writer—Morgan & Co., Los Angeles, Calif.

of 2%

expenses.

Co., Las Vegas, Nev.
(by amendment) 435,000 shares of $1.20
preferred stock (callable at $20 per share)
and 870,000 shares of common 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.

Co.,

&

Houston, Tex.,

on

"best efforts

'i/\

Blackhawk

Fire

—

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 60,000 class warrants
to be offered in units of five shares of class A stock and

warrant

one

chase

one

$2.50

per

Casualty Insurance Co.
Oct. 28 filed 200,000 shares of common stock (par $2.50),
cf

which

shares

170,527

be

to

are

publicly

offered to

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,
III.
Underwriter
Arthur M. Krensky & Co., Inc.,
—

Chicago, 111.

unit.

& Uranium Corp., Denver, Colo.
July 29 (letter of notification) 1,000,000 shares of com¬
mon stock
(par 10 cents). Price — 30 cents per share.
Proceeds
For expenses incident to mining operations.
Office—612 Kittredge Bldg., Denver, Colo. Underwriter
—Peters, Writer & Christensen, Inc., Denver 2, Colo.
—

Uranium,

Inc., Denver, Colo.

pur¬

of

be

voting common stock, class B
in

offered

share.

of

units

class A

two

Price—$5 per unit.

capital.

Chromalloy

10 cents)
class B

one

Proceeds—For general work¬
National Bank of Commerce

Office—505
Building, Charleston, W. Va.
Investment Co., same address.
ing

(par

and

Underwriter—Crichton

Corp.

Uranium

Corp., Salt Lake City, Utah

Aug. 10 (letter of notification) 7,000,000 shares of capital
stock

(par

2nd

Price—Three

cent).

one

mining

Securities, Inc.,

Denver,

nated

due

1975

2,450 shares of class A
stock).

common

Oct. 28

capital
N.

$245,000 of 6% subordi¬

(with warrants to purchase
and 490 shares of class

common

Price—99%.

subsidiaries.

to

Proceeds—To

Office—1028

supply

Connecticut

Ave.,
Underwriter—Emory S. War¬

W., Washington, D. C.
& Co., same address.

ceeds—For

ren

it Brooklawn Country Cfub,

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

Nov. 4 (letter of notification)

Inc.

$25,000 of 4%:% first mort¬

gage bonds due July 15, 1966, to be offered to members
cf Club.
Price—At par. Proceeds—To pay off existing
Lank loans and for

working capital. Office—500 Algon¬
quin Road, Bridgeport 4, Conn. Underwriter—None.

short-term

obligations,

etc.

for

and

working capital.
Co., Denver,
Colo.; and Joseph McManus & Co., New York, N. Y.
Underwriter

Mountain States Securities

—

+ Colohoma

Uranium,

Inc.

(12/15)

Nov.

9

Nov.

2,500,000 shares of common stock (par one
cent). Price—40 cents per share. Proceeds—For explora¬
tion and development expenses and for general corpo¬

shares of 6%

rate

purposes.

it Broughton's Farm Dairy, Inc., Marietta, Ohio
3
(letter of notification) not in excess of 3,000
cumulative preferred stock, to be offered
for subscription by employees. Price—At par ($100
per
share). Proceeds—For working capital. Underwriter—
None.
Die

&

Machine

Co., Detroit, Mich.
Oct. 31 (letter of notification) 90,000 shares of
stock (par $1) to be offered for subscription
by
stockholders

on

the

basis

of

one

five shares held of record Oct.

working capital.
Mich.
•

Office

share

3545

Scotten

common

Public

for

each

Detroit,

27

Mines, Ltd.

filed

500,000 shares
Price—$1.50 per

of

(11/28-12/2)
capital stock (par $1-

Canada.

Underwriter

—

Baruch

Brothers

&

Co.,

Inc.,

Caribou Ranch Corp., Denver, Colo.
July 15 filed 505,000 shares of common stock (par $1.)
?rice—$4 per share. Proceeds—For acquisition of prop¬
erty and equipment, construction of additional facilities,
etc.

Underwriter—Mountain States Securities, Inc., Den¬

ver,

Colo.

Carolina Casualty Insurance Co.,
Nov. 2 (letter of notification) 30,000

Burlington, N. C.

shares of class B
(par $1) to be offered for subscription
by stockholders. Price—$10 per share. Proceeds—For
working capital, etc. Office—262 Morehead St., Burling¬
stock

Underwriter—None.

of

22,500

common

shares

of

stock

purchase warrants for

common

a

total

stock, par $1 per share).
Price—At 100% (in units of $500 each). Proceeds—For
working capital, etc. Underwriter—Paul C. Kimball &
Co., Chicago, 111.




Gas

Co.

256,503 shares of

To be supplied by amendment.

Service

Co.

stock

(par $5).
Proceeds — To

of Colorado,

ing—Expected today

the selling stockholder.
Corp., New York. Offer¬
tomorrow (11/17-18).

or

★ Columbus & Southern Ohio Electric Co.
Nov.

15 filed

Continental

250,000 shares of

debentures

common

(12/6)

stock

(par $5).

Comet Uranium Corp.,

Washington, D. C.

(letter of notification)

cent).

700,000

shares

Price—Five cents

Co., Inc., San Francisco, Calif. Statement Amended and
Name Changed—See Channel Oil Co. above.
Cook 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
purposes.
Underwriter—Central Securities Co., Dallas,

Texas.
Coosa River Newsprint Co.

Oct.

filed

19

122,200 shares of

com¬

share.

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¬
mon stock
(par one cent).
Price—Two cents per share.

Underwriter
Grand

expenses

Vista
—

Grand

Columbia

common

being offered for subscription by
on

the basis of

as

of record

Price—$70

one

stock

share for each three shares held

new

Nov.

8, 1955; rights to expire
share.
Proceeds—Together

per

(par $50)

stockholders

common

Nov. 29.

on

with

funds, for expansion. Office—Coosa Pines, Ala.
writer—Blyth & Co., Inc., New York.
Corpus Christi Refining Co.
Sept. 2 filed 500,000 shares of common
cents).

Price—At

stockholder.

the

market.

stock

Proceeds—To

Office—Corpus Christi, Texas.

other

Under¬

(par

10

selling
Underwriter
a

•

Credit Finance

Corp., La Grange, Ga. (11/21)
(letter of notification) 148,000 shares of common
stock (par $1). Price — $2 per share.
Proceeds — For
working capital. Office—Mailory-Hutchinson Bldg., La
Oct. 28

Grange, Ga.

Underwriter—Franklin Securities Co., At¬

lanta, Ga.
Cross-Bow Uranium Corp.
Aug. 29 (letter of notification) 5,000,000 shares of com¬
mon stock.
Price—At par (six cents per share).
Pro¬
ceeds
For mining operations.
Office — 1026 Kearns
Bldg., Salt Lake City, Utah. Underwriters—Potter In¬
vestment Co., and Mid-America Securities, both of Salt
Lake City, Utah.
—

ic Crown Western

Investments, Inc., Dallas, Texas

Nov.

amendment)

14

filed

incident to mining operations.
Road, Grand Junction, Colo.
Securities

Co.,

Denver

and

Junction, Colo.

* Consolidated Edison Co. of New York, Inc.
(12/6)
Nov. 9 filed

$70,000,000 of first and refunding mortgage
bonds, series K, due Dec. 1, 1985. Proceeds—To repay
$65,000,000 bank loans and for additions to utility plant.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan

Stanley & Co.; The First Boston Corp. Bids—Tentatively
expected to be received 011 Dec. 6.

(by

market.

additional

an

shares of Diversified Income Fund

100,000

Series D2. Price—At

investment.

Proceeds—For

Cuno

Engineering Corp., Meriden, Conn.
100,000 shares of $1 cumulative preferred
stock (no par — $14 stated value) and 100,000 shares
of common stock (par $1) to be offered in units of one
Nov.

filed

3

share

of

each

class

of

stock.

Proceeds—To repay, in
with purchase from the

Price — $16.50 per unit.
part, bank loan in connection
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

4%

$250,205 and (2)
loan.

5-year bank

to

pay

off

in full

a

Underwriter—Putnam

$400,000
&

Co.,

Hartford, Conn.
Daitch

Crystal Dairies, Inc. (12/15-20)
$2,000,000 of 4% convertible subordinated

filed

28

debentures due

1975.

Price—100%

of principal amount.
debentures, together with funds
to be received from, institutional investor, to be used in

Proceeds—From sale of

with
proposed merger with
company
of
Shopwell Foods, Inc., and for expansion program. Office

connection

—Bronx, New York City, N. Y. Underwriter—Hirsch &
Co., New York.
Deerfield

Gas

Production Co.

together with Kearney Gas Pro¬
Co., filed 935,999 units of beneficial interest in
Hugoton Gas Trust, being offered to common stock¬
company,

duction

holders

of

per

Proceeds—For mining operations.

Office—170

Corp.

five

and

•

Proceeds—For

Production

Proceeds—For

Sept. 30 this

by amendment. Proceeds—To re¬
Underwriters—Dillon, Read & Co. Inc.,
New York; and The Ohio Company, Columbus, Ohio.

one

through

shares of stock.
Price—$50.50 per
acquisition of production payments.
Office—Las Vegas, Nev.
Underwriter—First California
unit.

duce bank loans.

(par

made

29 filed $3,700,000 of 15-year 5^2% income de¬
bentures due Sept. 1, 1970 and 870,000 shares of common
stock (par 10 cents) to be offered in units of $50 of

Price—To be supplied

stock

be

Office—Kansas City, Mo.

Aug.

Oct.

common

'

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

Interstate

Underwriter—Union Securities

mon

ton, N. C.

—

Aug. 20

York.

common

filed

28

Price

Proceeds—For

Ave.,

Colorado

common

Canadian).
share. Proceeds—For ex¬
ploration of mining properties in Cuba. Office—Toronto,
New

Office—Montrose, Colo. Underwriters—
Investing Corp., New York; and Shaiman & Co.,
Denver, Colo.

Oct.

Underwriter—Wm. C. Roney & Co., same
city.

Canuba Manganese

Oct.

—

new

26, 1955.

filed

General

•

Buell

None; stock sales to

—

Washington, D. C.

(letter of notification)

debentures

share.

per

Colo.

Citizens Credit Corp.,

Sept. 27

cents

Office—2630 South
Underwriter—Denver

expenses, etc.

West, Salt Lake City, Utah.

stock

mining expenses. Office—1154 Bannock St.,
Denver, Colo. Underwriter — Mid-America Securities,
Inc., Salt Lake City, Utah.

Underwriter

—None.

(11/18)
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.
Cisco

mem¬

share).
including

general corporate purposes,

Association's employees.

Proceeds—For

Parking Service, Inc..
Aug. 1 (letter of notification) 120,000 shares of non¬
voting common stock, class A—(par 50 cents) and 60,000

B

(letter of notification) 3,000,000 shares of capital
(par one cent). Price—10 cents per share. Pro¬

to

Charleston

Proceeds—For

Blenwood Mining

Bonus

(warrant holders will be entitled

class A share at 62V2 cents per share). Price—

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.

•

&

filed

18

For

—

cash requirements necessary to meet
requests for re¬
demption ahead of maturity on outstanding certificates
of indebtedness and 5V2% preferred stock and to finance
accounts receivable; also to improve existing facilities.

Channel Oil

cumulative

3hares

Stacy

Salt Lake City, Utah

Underwriter—Utah

Utah.

third preferred stock to be sold directly to
the Association. Price—At par ($25 per

bers of

Office—810 Deseret Building, Salt Lake City,
Securities Co., same City.

activities.

to

basis."

Under¬

Proceeds

Uranium Corp.,

Chaffin

Co., 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—
Porter,

74,000

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

Co., Inc., Reno, Nev.
Black Panther Uranium

filed

4

Oct.

Big Chief Uranium Co., Pueblo, Colo.
Sept. 20 (letter of notification) 1,500,000 shares of non¬
assessable common stock (par 10 cents). Price—20 cents
per

shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds — For

Nov.

19

Sept.

Thursday, November 17,1955

..

it Consumers Cooperative Association

Inc., Burbank, Calif.

Century Engineers,

:

.

record

of

Kansas-Nebraska

Nov.

Nov. 25); and

Natural

Gas Co., Inc. of
(rights to expire on
to its eligible employees. Price—$4 per unit.

10

on

1-for-l

a

basis

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 Trust Co.,
Co., Chicago, 111.

of

Lincoln,

★ De'aware Fund, Inc., Camden, N. J.
15 filed (by amendment) 2,000,000 shares of addi¬

Nov.

tional

common

stock.

Price—At market.

Proceeds—For

investment.

^ Delaware Power & Light Co.

(12/13)

Nov. 16 filed $10,000,000 of first mortgage and collateral
trust bonds. Proceeds—To repay bank loans. Underwriter
—To be determined by competitive
bidding. Probable
bidders:

Halsey Stuart

Co. Inc.; Kuhn, Loeb & Co.
(jointly); Lehman Bro¬
Corp.; The First Boston Corp.
and Blyth & Co. Inc., (jointly); White, Weld &
Co. and
Shields & Co. (jointly); Merrill Lynch,
Pierce, Fenner
& Beane and Kidder, Peabody & Co.
(jointly); W. C.

and

Salomon

thers;

Union

Bros.

&

Securities

&

Hutzler

Volume 182

Number 5482

..

The Commercial and Financial Chronicle

.

(2117)

41

/

Langley & Co.
ceived

Bids

Dec. 13.

on

Tentatively expected to be

—

sidiary. Office—Munsey Bldg., Baltimore 2, Md. Under¬

re¬

writer—None.

.

* Delaware Power

&

Light Co. (12/13)
Nov. 16 filed 50,000 shares of preferred stock
(par $100).
Proceeds—To repay bank loans and for new construction.

Fori Pitt Packaging

50,000 shares of five selling stockholders. Price—$3 per
Proceeds—For working capital; for exploitation

share.
of

(jointly); Lehman Brothers; W. C. Langley & Co. and
Union Securities
Corp. (jointly); Morgan Stanley & Co.

Bids—Expected to

be received

Delta Minerals

on

Dec.

"Totosave"

Ray"

to

Freedom Insurance Co.

Nov. 10 filed 60,000 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds — For
expansion program. Office—Middle Branch, Ohio. Un¬

of common stock (par $10).
share. Proceeds—For capital and surplus.
Business—All insurance coverages, except, life, title and
mortgage.
Office—2054 University Avenue, Berkeley,
Calif., c/o Ray B. Wiser, President. Office-^—Berkeley,
Calif.
Underwriter
Blair & Co. Incorporated, New
June 6 filed 1,000,000 shares

Price—$22

derwriter—Merrill, Turben & Co., Inc., Cleveland, Ohio.
Dinosaur Uranium Corp., Salt Lake City, Utah
Aug. 15 (letter of notification) 15,000,000 shares of common 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

University Ave., Provo, Utah.
Investment Co., Provo, Utah.

Underwriter

Fremont Uranium

Salt Lake

—

Gallina

pre¬

(par; $4) and 125,000 shares of common
stock (par $1) to be offered in units of one share of each
Of the

City, Utah.

Underwriter

—

Moab Brokerage

Uranium

Mountain

common

shares, 74,180 are being
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¬

Underwriter

New

York.

same

address.

—

Prudential

Securities

Corp.,

Gas Hills Mining &

Oil, Inc., Kemmerer, Wyo.

tal and other general corporate
purposes. Underwriter—

(letter of notification) 1,000,000 shares of capi¬
tal stock (par five cents).
Price — 25 cents per share.
Proceeds—For oil and mining expenses. Underwriter—

Scott, Horner & Mason, Inc., Lynchburg, Va.

Empire Securities Corp., Las Vegas, Nev.

ceeds

1

General

Capital Corp. (12/15)
(letter of notification) $300,000 of 10 year 8%
debentures.
Price—At par (in denominations of $100,
Oct.

For expenses incident to mining operations.
Office—352 Colorado National Bldg., Denver, Colo. Un¬
derwriters—R. L. Hughes & Co., Denver, Colo, and G.

3

—

W. Allen & Co.,

Proceeds — For purchase of
commercial paper.
Office—4309 N. W. 36st St., Miami
Springs, Fla. Underwriter—None.

$500, $1,000

Cheyenne, Wyo.

Eagle Newspaper Enterprises, inc. (11/28-12/2)
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

James

—

Anthony Securities

and $5,000).

General Molded Plastics, Inc.

•

Sept. 30 (letter of notification) 297,500 shares of common
(par one cent). Price—$1 per share. Proceeds—
For acquisition of machinery, molding equipment and

stock

working capital. Office—Tower Petroleum Bldg., Dal¬
las, Tex. Underwriter—First Securities Co., Dallas, Tex.
if Genie Petroleum, Inc., Grand Junction, Colo.
Oct. 31 (letter of notification) 75,000 shares of capital
stock. Price — At par ($1 per share). Proceeds — For

Corp., New

York. I

drilling expenses,

Eagle Rock Uranium Co., Salt Lake City, Utah
Sept. 19 (letter of notification) 30,000,000 shares of non¬

Junction, Colo.

assessable

July 18 (letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.
Proceeds—For expenses incident to mining. Office—701

share).

common

Proceeds

activities.

stock.

—

For

Office—214

(one cent per
incident to mining

expenses

East

5th South, Salt Lake City,
Underwriter—Valley State Brokerage, Inc., Las
Vegas, Nev.

Utah.

East

Basin Oil

& Uranium

drilling for oil and
Office—Colorado Bldg., Denver, Colo. Underwriter
—Philip Gordon & Co., Inc., New York.

gas.

Edgemont Shopping Center, Inc., Chicago, III.
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.,
fropi builder of
center. Underwriter—None, offering to be made through
officers of company. Funds are to be held in escrow (if
not enough is received, funds will be returned to pur¬

general corporate purposes.
Mass.

three films

finish

under

Phoenix, Ariz.
Oct.

26

filed

For

and

one

share

of

Price—$1,825,000, plus accrued interest of $29,632. Pro¬
ceeds—To purchase certain working or leasehold inter¬
ests in oil and gas interests. Underwriter—None.

20-year,

stock.

Price

—

$50

per

-

increase

lets.

unit.

retire $80,000 of outstanding debentures;
inventories; and to establish additional out¬

—For mining expenses.

19

common

on

the basis of

one

new

share for each




Proceeds
Office—E-17 Army Way, Ogden,
Intermountain

Brokerage

Price—$5 per share. Proceeds—For administra¬
engineering expenses. Office — Metropolitan

stock.
tive

and

Airport, Canton (Norwood P. O.), Mass.
)

A

class B

or

Hunt Uranium Corp., Green River, Utah
Aug. 22 (letter of notification) 1,200,000 shares of com¬
mon
stock.
Price—At par (25 cents per share).
Pro¬
ceeds—For expenses incident to mining activities. Un¬
derwriter
Elmer K. Aagaard, 323 Newhouse Bldg*
Salt Lake City, Utah.
—

Hydro-Loc, Inc., Seattle, Wash.
25 (letter of 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,
Oct.

Indian

Sept. 6

Monument Uranium Mining Corp.
(letter of notification) 3,000,000 shares of com¬

stock

cent). Price—10 cents per share.
incident to mining activities.
Byington Building, Reno, Nev. Underwriter
■—Richard L. Dineley, same address.
mon

Proceeds

(par

For

—

one

expenses

Industria

Electrica de Mexico, S. A.
(Electrical
Industry of Mexico, Inc.)
Nov. 7 filed 157,632 American shares representing a
like amount 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
share

for each common share held of record Nov. 28;
rights to expire on Dec. 13. Price—At par. Proceeds—
For general corporate purposes. Underwriter—National

Financiera, S. A., a Mexican corporation controlled by
the Mexican Government, has agreed to purchase all of
the additional

new

common

stock not subscribed for.

Inland Oil & Uranium

Corp., Denver, Colo.
July 18 (letter of notification) 1,200,000 shares of com¬
stock

mon

(par 10 cents).

Price

—

25 cents per share.

Proceeds—For expenses incident to oil and gas

Office—3975 East 58th

activities.

Underwrite*

Ave., Denver, Colo.
—Shaiman & Co., Denver, Colo.
if Insulated Circuits,

Inc., Belleville, N. J.
cumulative convert¬
(par $5). Price—To be supplied by
amendment.
Proceeds—For general corporate purposes.
Underwriter—Alexander Watt & Co., Ltd., New York.
Nov.

10 filed

100,000 shares of 6%

International

Investors

Inc., New York

Aug. 23 filed 200,000 shares of capital stock (par $1),
Price—At market. Proceeds—For investment. Business

foreign securities of the free world out¬

the United

Underwriter—I. I. I.

States.

Securi¬

•

Corp., 76 Beaver St., New York, N. Y.

International

Oct.

filed

4

Metals Corp.

400,000

Plastic

Industries

None.

«

>

1

•

Corp.

(letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For advances to Arliss Co., Inc. for purchase of equip¬

Office

ment, etc.
N.

Y.

—

369-375 DeKalb Ave., Brooklyn 5,
& Co., New York.

Underwriter—Kamen

Israel

Industrial

&

Mineral

Development

Underwriter—

Corp.

200,000 shares of common stock (par $25).
Price—$27.50 per share. Proceeds—For general corpor¬
ate purposes. Underwriter—Israel Securities Corp., New
Oct.

5

filed

York, N. Y.
"Isras"

Israel-Rassco

Investment Co.,

Ltd.

Sept. 28 filed 9,000 ordinary shares. Price—At par (100
Israel pounds each, or about $55 in U. S. funds), payable
in State of Israel Independence Issue Bonds only. Office
—Tel

Aviv, Israel.

New York.

Underwriter

—

Rassco Israel Corp*

,

Jurassic Minerals, Inc.,

Cortez, Colo.

Aug. 26 (letter of notification) 2,855,000 shares of non¬
assessable common stock (par one cent). Price—10 centi

share.

activities.
Colo.

Proceeds—For expenses incident to mining
—
326 West Montezuma St., Cortes,
—
Bay Securities Corp., New York.

Office

Underwriter

New York.

ir K. B. & R. Mining Development Corp.
(letter of notification) 20,000 shares of

Nov. 7

if Helio Aircraft Corp., Canton, Mass.
Nov. 3 (letter of notification) 24,000 fehares of common

10

shares held. Price—$30 per share. Proceeds—To form and
invest in the capital stock of an insurance company sub-

class

Hugoton Gas Trust

per

of capital

Corp., Ogden, Utah.

(letter of notification) 10,000 shares of class A
stock (par $10), to be offered for subscription by

stockholders

Corp., Ogden, Utah

Underwriter—United

Utah.

Underwriter—None.

Finance Co. of America at Baltimore

Oct.

Half Moon Uranium

Aug. 10 (letter of notification) 8,000,000 shares
stock.
Price—At par (two cents per share).

Proceeds—To
to

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.

7% sinking fund
debentures and 10,000 shares of capital stock (par $1) to
be offered in units of $50 principal amount of deben¬
tures

•

International

investment.

Gulf Coast Leaseholds,

to Repub¬
Gerard R. Jobin In¬

Supply, Inc.,

of

either

Oct. 12

if Guardian Mutual Fund, inc., New York
14 filed (by amendment) 30,000 additional shares
of common stock (par $1). Price—At market. Proceeds—

(11/21)

$500,000

of

See Deerfield Gas Production Co. above.

Insurance Co.,

Ariz.

Nov.

vestments, Ltd., St. Petersburg, Fla.
Entz-White Lumber &

share

one

—

release contract
—

Los Angeles, Calif. Underwriter—

public through Kenneth K. Pound, President;
and Law L. Lovelace, Secretary-Treasurer.

Office—53 State St., Boston,

Underwriter

Hill St.,

offered to

Underwriter—None.

lic Pictures Corp.

South

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.
Underwriter
None.
Some of the stock will also be

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

basis of

subscription privilege); rights to expire on Dec. 5. Price
—$1.62 % per share. Proceeds—For general funds. Office

Oct. 26 filed 700,000

Micro-Ledger Accounting Corp.
(letter of notification) 297,000 shares of com¬
mon stock (par 10 cents), to be offered for
subscription
by stockholders.
Price—$1 per share.
Proceeds—For

the

stock in exchange for each two Federated shares. Stock¬
holders will vote Dec. 6 on approving acquisition of
assets of Federated. Statement effective Oct. 19.

(11/21-25)
shares of common stock (par 19
cents). Price—$1 per share. Proceeds—To finance ex¬
ploration and development of mining properties of Recursos
Mineros Mexicanos, S. A., Mexican subsidiary,
and to discharge note. Office — Houston, Tex. Under¬
writer—Gearhart & Otis, Inc., New York.

Phoenix,

Sept. 28

on

ties

Great Southwest Fire

stock).

stock, which are to be offered in
exchange for Federated Petroleums, Ltd. common stock:

side of

None.

Electronic

Home *Oil Co., .Ltd., Calgary, Canada
Sept. 26 filed 1,500,000 shares of class A stock and 3,793,231 shares of class B

Sept. 29

—417

•

:

Acceptance Corp., Salt Lake City; Utah
Sept. 1 (letter of notification) $300,000 of 25-year 6%
junior subordinated debentures due Oct. 1, 1980. Price—
At par (in denominations of $1,000, $500 and $100). Pro- ceeds—For working capital.
Office—837 South Maine r
St., Salt Lake City, Utah. Underwriter—Edward L. Bur¬
ton & Co., same city.
1

—T0 invest in

(letter of notification) 171,429 shares of com¬
mon
stock (par $1) to be offered for subscription by
common stockholders of record Nov.
14 at the rate of
one new share for each
17 shares held (with an over¬

Proceeds—For expenses incident to

of

Underwriter—Robert J. Con-

Great Lakes Oil & Chemical Co.

•

Co.

Home

ible preferred stock

Corp., Aurora, Colo.

Colo.
nell, Inc., Denver, Colo.

(letter of notification) 1,500,000 shares of com¬
stock (par one cent).
Price—20 cents per share.

chasers

Office—460 White Ave., Grand

Moline St., Aurora,

Oct. 25
mon

etc.

Underwriter—None.

Gibraltar Uranium

Price—At par

($10 per share). Proceeds—For working capital. Under¬
writer—Howard, Weil, Labouisse, Friedrichs & Co., New
Orleans, La.

Office—205

Aug. 1

Dome Uranium Mines, Inc., Denver, Colo.
July 12 (letter of notification) 1,300,000 shares of com¬
mon stock (par one cent).
Price 20 cents per share. Pro¬

Shreveport, L*.^

Inc.,

Wash.

Corp.

July 29 (letter of notification) 500,000 shares of common
stock (par one cent). Price—An aggregate of $50,000.
Proceeds—For mining expenses. Office—82 Beaver St.,

Corp., Rome, Ga.

125,000 shares of 36-cent cumulative

Co., Salt Lake City, Utah

Co., Western States Investment Co., Potter Investment
Co., Mid-America Securities, Inc. of Utah, and CashinEmery, Inc., all of Salt Lake City, Utah.

stock

class of stock.

Offering—Indefinitely postponed.

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.,

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

Furniture Co.,

per

—

York.

•—Western States Investment Co., same city.

filed

Co., Inc., New York.

purchase all shares not subscribed for by stockholders.

★ Diamond Portland Cement Co.

ferred

marketing of "TropicOffice — Pittsburgh, Pa.

stock

Bldg., Casper, Wyo.
Underwriter—The Western Trader & Investor, Salt Lake
City, Utah.

Oct. 31

for

shares of common
(no par) to be offered for subscription by stock¬
holders.
Price—$10 per share.
Proceeds—To reduce
unsecured bank loans and for working capital. Office—
927 Market St., Wilmington, Del.
Underwriter—None,
But C. W. Floyd Coffin and Herman F. Ball have agreed

Co., Casper, Wyo.

(letter of notification) 600,000 shares of non¬
common stock (par five
cents). Price—50 cents
per share. Proceeds—Expenses incident to mining
oper¬
ations. Office—223 City and
County

Dixie Aluminum

and

heater.

space

Franklin Railway Supply Co.
Oct. 19 (letter of notification) 20,000

assessable

North

system;

infra-red

Underwriter—Barrett Herrick &

13.

Sept. 20

Weber

International, Inc.

June 30 filed 300,000 shares of common stock (par 100),
of which 250,000 shares of for account of company and

Underwriter—To be determined by competitive bidding.
Probable bidders: Blyth &
Co., Inc. and The First Boston
Corp. (jointly); White, Weld & Co. and Shields & Co.

Hemenway

Oct. 31 (letter of notification) 30,000 shares of 5Htfa
cumulative convertible preferred stock. Price—At pair

preferred

shares of common stock. Frice—Of pre¬
share; and of common: $1 per share. Promining expenses. Address—Box 196, Yar-

stock and 7,500

ferred: $5 per

ceeds+-For

nell, Ariz.

Underwriter—None.
Continued

on

page

42

The Commercial

(2118)

42

Nov.

Co.

City Title Insurance

Kansas

19 (letter of notification) 7,500 shares of capita)
stock (par $25>> beinS offered to stockholders as of Oct
1 on the basis of one new share for each eight held;
Sept

Nov. 15. Price—$40 per

rights to expire on

share. Pro¬

Office — Title
Bldg., Kansas City, Mo. Underwriter—None.
• Kawecki Chemical Co., Boyertown, Pa. (12/6)
Nov. 10 filed 75,000 shares of capital stock (par 25 cents).
general corporate purposes.

ceeds—For

tire outstanding

by amendment. Proceeds—To re¬
mortgage indebtedness and bank loan;

for construction

program;

Price—To be supplied

and for working capital and

Underwriter—Carl M.

corporate purposes.
Loeb, Rhoades & Co., New York.
other general

& Co., New York (11/25)
(par $5)
to be offered for subscription by common stockholder
of record Nov. 25 on the basis of one new share for each
five shares held; rights to expire on Dec. 14. Price—$20
per share.
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.
•

(Julius)

Kayser

•

1$0,000 shares of common stock

24 filed

Oct.

Gas

Kearney

See Deerfield Gas

Production Co.
Production Co. above.
Inc.

Electronics Co.,

Kendon

60,000 shares of common
stock (par 10 cents). Price—40 cents per share. Proceeds
—To Nicholas J. Papadakos, the selling stockholder. Of¬
fice—129 Pierrepont St., Brooklyn, N. Y, Underwriter—
20th Century Pioneer Securities Co., New York.
Oct. 27

(letter of notification)

>Kimberly-C!ark Corp., Neenah, Wis. (11/22)
Oct. 31 filed 400,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—For ex¬
pansion program.
•

.

„

and 100,000 shares for the account of the Murchifinancial interests of Texas. Price—To

son-Richardson

supplied by amendment. Proceeds—To retire out¬
standing bank loans and for exploration of oil and gai
leases
Underwriters—Allen & Co., New York: and Rau-

be

scher, Pierce & Co., Dallas, Texas.

Statement has been

withdrawn.
Lander

(letter of notification) $125,000 of eight-year 6%
subordinated debentures (with warrants to purchase five

Nov. 4

Valley Uranium & Oil Corp.
(par two cents).
expenses

South, Salt Lake City, Utah. Underwriter—Empire Se¬
curities Corp., Las Vegas, Nev.

(12/5)
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 oil
and gas and mineral activities. Underwriters—Eastman,
Dillon & Co., New York; and First California Co., Inc.,
LeCuno Oil Corp.,

Jefferson, Texas

San Francisco, Calif.

Co., Shreveport, La.

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
share for each four shares held; rights to expire 45 days
from

the

commencement

the

of

offering, after which
Price—$8.75 per

unsold shares will be offered to public.

share to stockholders; $10 per share to public.
—For

expansion

and

None.
•

working

Proceeds
Underwriter—

capital.

'

Lincoln

Service

None.

(The)

(11/29)

Nov. 3 filed

$4,000,000 12-year sinking fund capital de¬
bentures, due Dec. 1, 1967. Price — To be supplied by
Proceeds—To reduce bank loans and other

amendment.

indebtedness

and for working capital.
UnderwritersJohnston, Lemon & Co., Washington, D. C.; and Union
Securities Corp., Nev/ York.
I

• Linde Construction Co., Washington, D. C.
100,000 shares of common
stock (par $1). Price — $2 per share. Proceeds
For
working capital. Office — Suite 944, Washington Bldg.,

Nov. 2 (letter of notification)

—

Washington, D. C.
Lithium

Oct.

Underwriter—None.

Developments,

Ohio

1956 into common stock on a share-forPrice—At par ($10 per share). Proceeds—
capital. Underwriter—Charles E. Thenebe
Associates, Hartford, Conn, v

after

Little

Mac

Uranium

Co.

Jan.

1,

Lake

City, Utah.
Denver, Colo.
Lost Canyon

Oct.

6

Underwriter—Skyline Securities, Inc

(letter of notification)

3,000,000 shares of non¬
cent). Price—10 cents
Proceeds—For expenses incident to mining

assessable capital stock
per

share.

operations.

Office

—

(par

Colo. Underwriters—General Investing Corp., New
York; and Investment Service Co., Denver, Colo.

ver,

★ Mansfield Telephone Co., Mansfield, Ohio
Nov.

Office—35 Park Avenue East, Mansfield, Ohio.

program.

Underwriter—None.

for new equipment and working
Business—Cutting tools. Office—275 Jefferson
loans,

repay

capital.

Simms Bldg., Albuquerque, N

Underwriter—Mid-America

Securities

Inc. of

M

Utah. Salt

holders of record Oct. 26 at
each

20

shares

the rate of

held; rights to
share. Proceeds—To

one

expire

new

on

share

Nov.

18.

Office—2508 Auburn Ave., Cincinnati,
—
W. E. Hutton & Co., Cincinnati,

-

.

,

.

^

*

'■...

..

Aug. 31 filed 1,000,000 shares of common stock (par $1).
Price—$2 per share, Proceeds — To make payment of

equipment, to pay for development and driving

drift and

drilling; and the remainder for working
capital, acquisition of additional properties, and unfore¬
seen
contingencies. Underwriter—Carr & Co., Detroit,

for exploratory

•

Montana-Dakota

Utilities Co.

(11/30)

cumulative preferred stock
(par $100). Price — To be supplied bv amendment.
Proceeds—To repay bank loans. Underwriters—Blyth &
Co., Inc., and Merrill Lynch, Pierce, Fenner & Beane,
Nov.

filed 50,000 shares of

1

Mercury Corp., Denver, Colo.

National

(letter of notification) 750,000 shares of common

Oct. 24

For

$2) and 50,000 shares of class B common stock:
(par $2).
Price—To be supplied by amendment. Pro¬
ceeds
To selling stockholders., Office — Little Rock,
Ark.
Underwriter—Equitable Securities Corp., Nash¬

Underwriter—Globe Securities Corp., New
'

to

mining activities.
Spokane, Wash.

Underwriter—Standard Securities Corp.,

Mortgage &

★ Mason
of

the

conversion privileges).

Price—At

par

(in denominations

$1,000, $500 and $250). Proceeds—For purchase of in¬
mortgage notes for the portfolio of the Fund.
Office
Meridian' Hill Studios, Suite 7, 2633 15th St.,

of

—

For

(letter of notification) 299,940 shares of common

(par one cent).

purchase of

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.

Oct.

19

a

to stockholders

subsidiary,

in

stock (par $5) to

of National Refractories Co.,

exchange for

.

57,776 shares

of capital

offer to remain open for

conditioned

is

outstanding
exchange.
Mid-State

upon

National

Mexico owning at least 80%
stock upon consummation of

Commercial

Corp.

(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¬
Oct. 31

duce

for other corporate purposes.
2 King St., Middletown, N. Y. Underwriter—

notes

Office

—

payable

and

share.

Underwriter—None.

purposes.
★

Miles

...

Ind, (11/30)
Nov. 9 filed 106,962 shares of common stock (par $2)
to be offered for subscription by common stockholders
for

each

Laboratories, Inc., Elkhart,

about Nov. 29
ten

on

the

basis of

one

new

share

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.

cents).

Inc. of New York.

the

it Minute
Nov.

15

Maid Corp., New York

filed

400,000 shares
market

of
at

common

—

Lindquist Securities,

Salt Lake City,

Winnemucca, Nev.
notification) 1,500,000 shares of com-

stock

(par

10

time of offering.

Pro¬

-

(par one cent). Price—20 cents per share.
Proceeds—For expenses incident to mining activities.
mon

stock

Office—Professional

Nev.
Colo.

Building, Winnemucca,

derwriter—Shelley, Roberts & Co., Denver,
New Mexico Copper

Un¬

Corp.

of 6% convertible
be convertible at
any time at rate of $100 of bonds for 220 shares of com- *•
mon stock).
*>ice—At par. Proceeds — For mining ex¬
penses.
Office—Carrizozo, N. M. Underwriter—M. J.
Sept. 8 (letter of notification) $100,000
debenture bonds due Oct. 1, 1965 (to

Washington, D. C.

Sabbath Co.,

July 27
mon

Mexico Oil & Gas Co.

(letter of notification)

2,500,000 shares of com¬

cent). Price—Three cents per share.
general corporate purposes. Office —

stock (par one

Proceeds

For

—

Bethesda, Md.

Underwriter—Lewellen-Bybee Co., Wash¬

ington, D. C.
Shore Gas Co.,

North

Salem, Mass.

(12/7)

$2,500,000 of first mortgage bonds, series B,
due 1975. Proceeds—To repay bank loans and advances
from New England Electric System. Underwriter—To be
determined by competitive bidding. Probable bidders:
Nov.

1 filed

Falsey, Stuart & Co. Inc.;
der, Peabody
Blair & Co.
up

The First Boston Corp.; Kid¬

Weld & Co. (jointly);
received
Dec. 7 at 441 Stuart St., Boston

& Co. and White,

Incorporated. Bids—Scheduled to be

to 11 a.m. (EST) on

Northrop Aircraft, Inc. (11/29)
3
filed $10,000,000
of convertible

subordinated

Price—To be supplied by
amendment. Proceeds—For working capital and general
corporate purposes, including reduction of bank loans.
Underwriters—William R. Staats & Co., and Blyth & Co.,
Inc., both of Los Angeles, Calif.
Norwood Uranium, Inc., Norwood, Colo.
Oct. 21 (letter of notification) 6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.

debentures due

Dec. 1, 1975.

Proceeds—For mining expenses.
Securities Co., Denver,

★ Nu-Petro
Nov.

14 filed

Corp.,

Underwriter—Columbia

Colo.

Dallas, Texas

4,000,000 shares of common stock

(par 25

Price—30 cents per share. Proceeds—For pur¬
of investments and property interests in both oil

cents).

Price—To be related to current market price in

over-the-counter

Provo, Utah

Nov.

of common stock (par $1).
Proceeds—For general corporate

filed 500,000 shares
per

Utah. Underwriter
Utah.

Provo,

Ave.,

•

it Mid-Union Indemnity Co., Elgin, III.
Price—$3

Uranium Corp.,

Navajo Cliffs

16, Mass.

Frazee, Olifiers & Co., New York.

10

,

(par one cent).

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

New

of National on a share-for-share basis;
60 days from date of prospectus.

$5)

(par

300,000 shares of nonPrice—$1 per
Proceeds—For expenses incident to mining ac¬
share.
tivities. UnderwTriter—Western Bond & Share Co., Tulsa,
assessable common stock

Co., Mexico, Mo.

filed 57,776 shares of common

be offered

stock

Mining Corp.,

Refractories

Mexico

America, Moab, Utah

of notification)

(letter

Nevada Mercury Corp.,

Price—$1 per share. Proceeds—
equipment, construction of plant and
exploration. Office—342 Madison Ave., New York, N. Y.
Underwriter—Golden-Dersch & Co., New York.

stock

Natural Power Corp. of

Sept.'-7

Sept. 16 (letter of

★ Mercury & Chemicals Corp., New York
Oct. 24

—

Underwriter—None.

N.W., Washington 9, D. C.

stock

Okla....

Investment Corp.

(letter of notification) $250,000 of 8% certificates
Mason Investment Fund (with redemption and

Nov. 2

common

•

ville, Tenn., and New York, N. Y.

-

Inc.
Aug. 1 (letter of notification) 300,000 shares of common
stock
(par 35 cents).
Price —62V2 cents per share.

incident

Underwriter—Shaiman & Co., same city.

(par

Mines,

expenses

j

cent). Price—40 cents per share. Proceeds
mining expenses. Office — 414 Colorado Bldg.,

stock, (par one
—

Price—$1 per share. Proceeds—
For mining expenses and expenses incident to selling
a
soil conditioner.
Office—681 Market St., San Fran¬
10 cents).

Proceeds —For

-

$675,000 to Four Corners Uranium Corp. under a pur¬
chase contract; to use $100,000 each to purchase mining

★ National Old Line Insurance Co.
Nov.
15 filed 50,000 shares of class A

Mascot

'

Monogram Uranium & Oil Co.

Marl-Gro, Inc., San Francisco, Calif.
Oct. 6 (letter of notification) 172,500 shares of common
(par

/

Underwriter

Ohio.

Denver, Colo.

Price—$5 per
pay interest on out¬
standing 6% debentures, and for general corporate pur¬
poses. Underwriter—The United Artist Theatre Circuit,




(letter of notification) 3,000 shares of 8% cumupreferred stock. Price — At par ($50 per share).
Proceeds—For processing plant, heavy equipment, and

lative

St., Newark, N. J. Underwriter—Paul C. Ferguson & Co.,
city.

of record

Magna Theatre Corp., New York
Sept. 29 filed 110,000 shares of common stock (par five
cents) being offered for subscription by common stock¬
for

and

same

stock

:

Cincinnati, Ohio

both of New York.

Cutter Corp.

(letter of notification) 300,000 shares of class A
common stock. Price—At par ($1 per share). Proceeds—
To

Co.,

.

Mich."

(letter of notification) 6,000 shares of 5% pre¬
ferred stock.
Price—At par ($50 per share). Proceeds
—To reduce short term indebtedness and for construction
4

one

Lake City, Utah.

Utah '

Oct. 3

Ohio.

Denver, Colo.
Oct. 26 (letter of notification) 1,500,000 shares of com¬
mon stock
(par one cent), of which 1,400,000 shares are
for account of company and 100,000 shares for certain
stockholders. Price—20 cents per share. Proceeds—For
mining expenses. Office—374 Denver Club Bldg., Den¬
Manhattan Mercury Corp.,

Nov.

Uranium & Oil Co.

Silica

&

—

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

Co., Salt Lake City,

per

working capital.

-

right, New York City.

Oil

share. Proceeds — For expenses incident to
activities. Office—605 Judge Bldg., Salt Lake
City, Utah. Underwriter—Skyline Securities, Inc., Den¬
ver, Colo.
.
cents

share basis).
For working

of

filed 600,000 shares of common stock (par 10
Price—$1 per share. Proceeds—For exploration
and development costs, etc.
Underwriter—George Sea-

&

Uranium

Mohawk

convertible

Offer

Inc., Cleveland,

17

cents).

Mobile

'

(letter of notification) 10,000 shares of cumula¬
preferred stock (convertible any time

Oct. 12
tive

Manchester Co.

Mesa-Loma

Corp.

—

Utah Uranium

mining

dividual

•Life Underwriters Insurance

incident to mining activities! Underwriter
Brokers, Salt Lake City, Utah.

expenses

wholly-owned subsidiaries to be used to increase loans
outstanding and for general corporate purposes. Office—
7833 Eastern Ave., Silver Spring, Md.
Underwriter—•

York.

•

Uranium Corp.
July 25 (letter of notification) 6,000,000 shares of com¬
mon stock.
Price—Five cents per share. Proceeds — For

Aug. 22 (letter of notification) 5,500,000 shares of non¬
assessable capital stock (par one cent).
Price — Five

Price—10 cents per share.
incident to mining activities.
Office—c/o Warren E. Morgan, President, 1705 East First
stock

Moab Treasure

principal amount of debentures). Price—
82,//2% of principal amount. Proceeds—For advances to

cisco, Calif.

Proceeds—For

of New York.

both

A common stock at $15 per share

shares of $10 par class
with each $500

Aug. 15 (letter of notification) 3,000,000 shares of com¬
mon

Silver Spring, Md.

★ Major Finance Corp.,

Thursday, November 17,1955

ceeds
To increase working capital.
Underwriters —
Paine, Webber, Jackson & Curtis and White, Weld & Co.,

Oct. 18

<

July 8 filed 200,000 shares of common stock (par $1);
of which 100,000 shares are for the account of the com¬
pany

Co., Inc., New York.

Manufacturers

Oil & Gas Co.

'Kirby

Brooks &

York.

New

and

Francisco

Underwriter—Blyth & Co., Inc., San

40,000 shares of capital stock (par $10).
Price—$25 per share. Proceeds—For general corporate
purposes.
Office — Portland, Me. Underwriter—P. W.
filed

10

...

—

★ Maine Fidelity Life Insurance Co.

41

Continued from page

and Financial Chronicle

chase

and gas

and-nuclear situations.

Underwriter—None; but
dealers.

offering will be made through licensed

-Volume

•

Old

182

Number 5482

Empire, Inc.

The Commercial and Financial Chronicle

v

(12/12-26)

Oct. 31

Office—San Juan, Puerto Rico.

(letter of notification) 300,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—To
retire $17,800 of
outstanding preferred stock; for equip¬

rie &
•

$9.50

—

stock.

($100

share).' Proeeeds—Fox
Under writer—^ Henncm &

per

South

5th St., Las
Vegas, N e w
Roberts, Las Vegas, Nev.

★ Pacific Employees Insurance Co.
Nov.

10

filed

Price—To

84,700

be

shares

supplied

by

of

(12/6)

capital

stock

amendment.

(par

$5).

Pacilic

International

Aug. 12 (letter
'stock.

mon

of

Metals & Uranium, Inc.
notification) 12,000,000 shares of com¬

Price—At

(one cent per share). Pro¬
ceeds—For expenses incident to
mining activities. Office
par

Dec.

on

Price

—

5.

14 shares of

Warrants

will

To be supplied by

property additions and im¬
provements; for further expansion and development of
the corporation's
research, manufacturing and service
facilities in electronics and related fields. Underwriters
—Lehman Brothers and Lazard Freres &

Co., both of

New York.

expenses incident
to mining operations.
Office—Bryant Bldg., Montrose, Colo. Underwriters—
General Investing Corp., New
York, N. Y., and Shaiman
& Co., Denver, Colo.

Real

Estate

14

(letter

Clearing House, Inc.
of notification) 270,000

two

shares

stock.

of

preferred

Price—$2.05

and

unit.

per

one

share

of

common

Proceeds—For

Judge Bldg., Salt Lake City, Utah.
Underwriter—
Securities Co., Salt Lake
City, Utah

working
capital, etc. Office—161 West 54th Street, New York,
N. Y.
Underwriter—Choice Securities Corp., 35 East
12th Street, New York, N. Y.

★ Pacific Investment Fund, Ltd.,
Honolulu, T. H.
14 filed
177,500 shares of capital stock. Price—At

Republic Benefit Insurance Co., Tucson, Ariz.
Sept. 30 filed 150,000 units in a dividend trust and stock

market.

procurement

—419

Guss

Nov.

Proceeds—For investment.

Pandora Uranium
Mines, Inc.
July 14 (letter of notification) 3,000,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For expenses incident to mining

operations.
Underwriter

Office—530 Main St., Groad
Junction, Colo.
—Columbia Securities
Co., Denver 2, Colo,
Lake City, Utah.
Parfa
Oct.

Uranium &

Oil

and

V

Corp.

(letter of notification) 3,000,000 shares of com¬
stcck (par five
cents). Price—10 cents per share.

Proceeds

For mining expenses.
Office
Lake City, Utah.
Underwriter
States Investment Co.,
Tulsa, Okla.
—

Newhouse

—

Bldg.,

Salt

Western

—

Fartrkee Canadian Explorations, Ltd.
Sept. 21 (Regulation "D" filing) 500,000 shares of
stcck

mon

(par

ceeds—For

$1).

Price—60

exploration

and

cents

development

com¬

share.

per

costs.

,

Office

Toronto, Ont., Canada. Underwriter
Hunter
Securities Corp. and M. J. Reiter
Co., both of New York.
—

* Penn Precision Products, Inc.,
Reading, Pa.
3

(letter

of

notification)

3,857

shares

of

stock

(no par), of which 2,000 shares are to be offered
subscription by existing stockholders at $12
per
share, and 1,857 shares to non-stockholders who
resi¬
dents of
Pennsylvania at $14 per share. Proceeds—For
purchase of mill.

Office

501

-—

Underwriter—None.

Crescent Ave., iteachng,

Penn-Utah

Uranium, Inc., Reno, Nev.
(letter of notification) 2,000,000 shares of
(par three cents). Price—15 cents

Aug. 4

share.
Proceeds—For expenses incident to
mining activities.
Office—206 N. Virginia
Street, Reno, Nev. Underwriter
—Philip Gordon & Co., Inc., New
York, N. Y.
per

Pittman

Drilling & Oil Co., Independence, Kan.
of notification)
60,000 shares of 6% non-

Sept. 6 (letter
cumulative

preferred

of common stock

stock

(par $5) and 60,000 shares
(par 10 cents) to be offered iff units 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.

writer—Dewitt Investment Co.,
Wilmington, Del.
Porto

Nov.

Rico

7 filed

to be

Telephone Co.

100,000 shares

of

offered for subscription

Nov. 29 at the rate of

one

Under¬

stock

(par $20),

held; rights to expire on Dec. 13.
The International
Telephone & Telegraph Co., the holder of
399,495 shares
(99.87%) of the outstanding stock has waived its
pre¬
emptive rights to purchase any of the new
shares. Price
—To

be

supplied

by

struction program.

amendment.

Proceeds—For

Life

Underwriter—Merrill Lynch, Pierce,

Sept. 29 filed
fered

fcr

Insurance

100.000

Co.

shares

of

new

capital

stock

of

being of¬

record

Oct. 20

shares for each share held

an

(with

oversubscription privilege); rights to expire on Nov.
21.
Of this total 45,500 shares were
on
Oct. 21 offered
publicly for the account of two selling stockholders.
Price—To

stockholders, at

par
($2 per share); to pub¬
Proceeds—For working capital and
general corporate purposes.
Underwriter
For
companv rights offering,
none; for stockholder

lic, $20

per

share.

other

—

A. C.

offering,

Allyn & Co. Inc., Chicago, 111.

Prospect Hill Golf & Country
Club, Inc.
July 8 (letter of notification) 11,900 shares of
preferred
stock.
Price—At par ($25 per
share).
Proceeds—For
swimming pool, club furnishings and equipment, golf
course and organization and
develoment expense. Office
—Bowie, Md.
Underwriter—L. L. Hubble & Co., Inc.,
Baltimore, Md.
Puerto

Nov.

3

cent).

Rican Jai

filed

1,250,000 shares of

Price—$1.50

property

A!ai, Inc.

and

for

per

share.

construction

(11/30)
common

stock

(par one
purchase
stadium, etc.

Proceeds—To
of

sports

Business—Playing of jai alai, with pari-mutuel
betting.




unit.

Proceeds—For

general

cor¬

Underwriter—None; to be offered by
Leo Rich, Robert Kissel and Sidney M.
Gilberg, as Trus¬
tees.

Proceeds—To complete payment for a plant newly
acquired from Johnson & Johnson, in Metuchen, N. J.,
and for new equipment. Business—Cosmetics and toilet¬

—

Sandia Mining &
Development Corp.
Sept 9 (letter of notification) 3,000,000 shares of capital
stock (par one
cent). Price—10 cents per share. Pro¬

Homes, Inc.,

Richmond, Ind.

ment.

Price—To be. supplied by

(Proposed maximum

amend¬
stated to

offering price is

be $5 per share.) Proceeds—To
prepay a mortgage note;
for the organization of a wholly owned
acceptance cor¬
poration to be used for financing purposes, for' plant

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 capital.
Rochester Gas
4

filed

be

on

the basis of

offered

Nov.

shares

—To

be

one

new

offered

Office

expenses.

Simms Bldg.,

—

Underwriter—Mid-America

Nov. 9 filed

1,097,529

1,428,000 shares of

shares

to

are

be

Secu¬

(12/1)

stock (of which

common

offered

for

subscription

by

stockholders at rate of 1% shares for each share held of
record

Dec.

1, 1955

to be

are

individuals

seven

(with rights to expire

Dec. 31);

on

issued in payment for claims of
firms

and

aggregating $30,471; and
300,000 shares are to be offered by George E. Mitzel,
President of company). Price—$1 per share.
Proceeds

—For construction of
for

new facilities; to pay off
notes; and
Underwriter—None.

working capital.

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 5 V?. % sinking fund bonds due
1970; balance for general corporate purposes, including
additions and improvements and working capital. Under¬

writer—^rrett Herrick & Co., Inc., New York City.
it Sears, Roebuck & Co.
Nov.

14

filed

25,000

memberships

in

the

Profit

Sharing Fund and 700,000 shares
which may be purchased thereunder.
;

Savings

and

of Sears stock

Shenandoah

share for each

Dec.

on

to

seven

shares held

12; unsubscribed
to and including

be

Rocket Mining Corp., Salt Lake City, Utah

July 15

(letter of notification) 6,000,000 shares of cap¬
ital stock (par one cent).
Price—Five cents per share.

Securities, Inc., of Utah, 26 W. Broadway, Salt Lake
City, Utah.
Rogers Corp., Rogers, Conn.

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.
Office—315 Krise Bldg., Lynchburg, Va. Underwriter—
Scott, Horner & Mason, Inc., Lynchburg, Va.
Shenandoah Gas

share for each four shares held.

replenish

Price—($29

working

sustained in recent flood.

Nov.

capital

per

due

Underwriter—None

Sheraton

Oct. 31 filed
ordinated

to

Corp. of America

$15,000,000 of 6V?% cumulative income sub¬

debentures

stock

For

share).
losses

.

Beane

(jointly); Lehman Brothers; The First Boston
Corp.; White, Weld & Co. and Shields & Co. (jointly).
Bids—Expected to be received up to 8:30 a.m. (PDT)

1200, 111 Sutter St., San Francisco,

Calif.

(par

10

mining

cents).

expenses.

—Ackerson-Hackett

Underwriter—None, sales to be made
the

company.

Statement

effective Oct. 10.
San Juan Racing
Association, Inc., Puerto Rico.
Sept. 27 filed 4,000,000 shares of common stock (par 50
cents), of which 3,800,000 will be represented by 3,000,000
voting trust certificates and 800,000 warrants. These of¬
ferings are to be made in two parts: (1) an offering, at
50 cents per

to

be

share, of 200,000 shares for subscription by
stockholders of record April 30, 1955, on a two-for-one

Price—$1

per

share.

offered

common

Proceeds—

Office—Moab, Utah. Underwriter
Co., Salt Lake City,

Investment

Siegler Corp., Chicago, III. (11/22)
31 filed 175,000 shares of common stock

Oct.

(par $1).

Manufacturing Co. Underwriters—William R. Staats &
Co., Los Angeles, Calif.; Dominick & Dominick and
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¬
of record

each

12

Nov.

1

on

the

basis of

one

new

share for

shares

held; rights to expire on Nov. 22. Price
—$17.50 per share. Proceeds—To repay bank loans and
for investment in additional stock of subsidiary com¬
panies.
Underwriter—The First Boston Corp., Ladenburg, Thalmann
and

Wertheim
on

a

Southern

Sept.
mon

14

Carl M. Loeb, Rhoades & Co.
(jointly), who were awarded the
cents per share compensation.

& Co.,
Co.

&

bid

of

13.125

Mining & Milling Co., Atlanta, Ga.
300,000 shares of

(letter of notification)

com¬

stock

(par 10 cents). Price—$1 per share. Proceeds
expenses incident to mining activities.
Offices—

Healey Building, Atlanta Ga., and 4116 No. 15th Avenue,
Phoenix, Ariz.
Underwriter — Franklin Securities Co.,
Atlanta, Ga.
Southwestern

Sept.

6

filed

Financial

770,000

Corp.

shares

of common stock (par 10
cents), being offered for subscription by stockholders of
record Nov. 2 at

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¬

of

1980

Price—To be supplied by amendment. Proceeds—To pay
remainder of purchase price for the stock of Holly

—For

officers

1,

Utah.

petitive bidding. Probable bidders: Halsev, Stuart & Co.
Inc.;; Salomon Bros. & Hutzler; Blyth & Co., Inc.; Union
Securities Corp. and Merrill Lynch, Pierce, Fenner &

privately through

Nov;

.

San Diego Gas & Electric Co. (11/29)
Nov. 1 filed $18,000,000 of first mortgage bonds, series
F,
1985. Proceeds—To repay bank loans and for new
construction. Underwriters—To be determined by com¬

porate purposes.

due

initially by the company (a) to its stockholders on the
basis of $100 principal amount of debentures for each
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/ Office—Boston, Mass.
Underwriter—None, but Sheraton Securities Corp., a
subsidiary, will handle stock sales.

issue

Nov. 29 at Room

Co., Lynchburg, Va.
(letter of notification) 1,000 shares of common
(par $1). Price—$7 per share. Proceeds—To Mrs.

3

stock

ers

Oct. 3 (letter of notification) a minimum of 5,883 shares
and a maximum of 7,453 shares
of class B common
stock to be offered to stockholders on a basis of one
Proceeds—To

Gas

ic Shumway's Broken Arrow Uranium, Inc.
(letter of notification) 300,000 shares of

Underwriters—The First Boston Corp., New York.

on

mining

rities, Inc. of Utah, Salt Lake City, Utah.
★ Sans Souci Hotel, Inc., Las Vegas, Nev.

Nov. 7

(11/28)

employees up
supplied by amendment. Proceeds
bank/loans and for construction program.

Price—To

repay

Electric Corp.

rights to expire

25;

to

Dec. 9.

&

200,000 shares of common stock (no par)
for subscription by common stockholders

to

on

For

—

Carter. Underwriter—Scott, Horner & Mason,
Inc., Lynchburg, Va.

Oct. 25 filed 140,000 shares of common stock
(par $1),
of which 80,000 shares are to be sold for the account of
the company and 60,000 shares for the account of two

•

I

Exploration, Inc.
Aug. 19 (letter of notification) 925,0Q0 shares of non¬
assessable common stock (par one cent). Price—12 cents
per share.
Proceeds—For expenses incident to mining
activities. Office
718 Kittredge Bldg., Denver, Colo.
Underwriter—Shelley-Roberts & Co., Denver, Colo.

Jewel R.

Underwriter—Reynolds & Co., New York.

Richmond

Nov.

Glickstein, of New York

San Juan Uranium

ment.

ries.

Hyman N.

City, is Vice-President.

.

^ Revlon Products Corp., New York (12/6)
Nov. 14 filed 373,900 shares of common stock
(par $1),
of which 272,067 shares are to be offered
by the com¬
pany and 101,833 shares by certain stockholders.
Of the
latter shares, 33,900 are to be first offered
directly to
certain employees.
Price — To be supplied by amend¬

due

subscription by stockholders

at the rate of two

per

porate purposes.

con¬

Fenner & Beane, New York.
Postal

mem¬

ca

bv stockholders of record
share for each four shares

new

certain

to

Proceeds—For
mining operations.
Office—530, Judge
Bldg., Salt Lake City, Utah. Underwriter—Mid Ameri¬

(11/30)

common

offered

Underwriter—Cruttenden & Co., Chicago, 111.
com¬

stock

mon

Price—$2

pany.

selling stockholders.

common

for

Pa.

be

bers of the general public who are acceptable
applicants
and who are to become active
policyholders in the com¬

Pro¬

—West

Nov.

to

Salt

17

mon

agreement

public offering of 3,000,000 shares, to be

derwriter—None.

30,471 shares

shares of 7%
cumulative preferred stock (par $1) and 135,000 shares
of common stock (par five
cents) to be offered in units
of

a

Albuquerque, N. M.

July 19 (letter of notification) 625,000 shares of common
stdc^f.(par one cent). Price—32 cents per share. Pro-

Sept.

basis; and (2)

represented by voting trust certificates, at 58.8235 cents
per share. Proceeds—For racing plant construction. Un¬

ceeds

Radium Hill Uranium, Inc.,
Montrose, Colo.
v

Proceeds—For

working capital. Office—Los Angeles, Calif. Underwriter
—Blyth & Co., Inc., San Francisco, Calif.

(11/18)

expire

—

Price—At par

-

filed

be mailed tonight (Nov.
17).
amendment. Proceeds—For

stock held.

Underwriter—Dallas Rupe & Son, Inc., Dallas, Texas.
Ottilia Villa,
Inc., Las Vegas, Nev.
Aug. 16 (letter of notification)
3,00(L: shares of capital

;

the basis of $100 of debentures for each
stock held; rights to

share. Proceeds—-For expansion pro¬
Manufactures household furniture.

per

Business

■

on

Olive-Myers-Spalti Mfg. Co., Dallas, Tex.

gram.

Corp. of America

<

ordinated

Oct. 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

28

■

$100,000,000 of 25-year convertible sub¬
debentures due Dec. 1, 1980 to be offered for
subscription by common stockholders of record Nov. 17

ment, inventory and working capital. Business—Chem¬
ical specialties. Office—865
Mt. Prospect Ave., Newark,
N. J. Underwriter—Vickers
Brothers, New Yoik.

common

Radio

Oct.

Underwriter—F. H. Cre-

Co., Inc., New York.

stock

43

(2119)

held

(with

rate of two

new

shares for each

share

oversubscription privilege); rights to ex¬
pire on Nov. 21. Price—$2.25 par share. Proceeds—For
purchase of machinery and equipment: and for the work¬
ing capital and general corporate purposes.
Office—
an

Dallas, Texas.

Underwriter — Rauscher, Pierce & Co.,
Dallas, Texas; and Russ & Co., San Antonio, Texas.,.

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.

Continued

on

page

44

The Commercial
44

★ Star Plywood
Nov 14 filed 335

Union Gulf Oil &

43

Continued from page

Cooperative, Estacada, Ore.

memberships in the Cooperative. Price

Underwriter—None.

working capital.

Uranium Corp., Rapid City, S. D.
Oct. 3 (letter of notification) 1,200,000 shares of common
gtock (par 18 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.

Uranium Corp., Salt Lake City, Utah

Sunburst

assessable
cents

Proceeds — For expenses incident to
Office—116 Atlas Building, Salt Lake

share.

per

reining activities.

America Securities, Inc.

City, Utah. Underwriter—Mid
of Utah, same City.
'

(letter of notification) 300,000 shares of non¬
Price—At par ($1 per share).

11

Aug.

Uranium Corp., Carson City, Nev.

B.

Susan

Office—Virginia Truck

Underwriter—Coombs & Co.

Bldg., Carson City, Nev.
of Las Vegas, Nev.

• Union of South Africa (11/30)
15 filed $25,000,000 of external loan

Co.
•

Nov.

—For

Lake

incident to mining activities. Office-y
Underwriter—Honnold & Co., Inc., Salt

Utah.

Co.

Uranium

Sept. 9 (letter of notification) 3,000,000 shares of capital
stock (par one cent).
Price—10 cents per share. Pro¬

operations. Office—605 Judge Bldg.,
Salt Lake City, Utah. Underwriter—Skyline Securities,
ceeds—For mining

Inc., Denver, Colo.
Target Uranium Co., Spokane, Wash.

Aug. 12 (letter of notification) 1,000,000 shares of non¬
assessable stock (par five cents).
Price—20 cents per
share.
Proceeds
For mining expenses.
Office -r- 726
—

Faulsen

Bldg., Spokane, Wash.
Underwriter — Percy
Bale Lanphere, Empire State Bldg., Spokane, Wash.
•

Texas

Nov.

3

American

(letter

stock

reon

Oil

Corp.

notification)

of

drilling

shares of com-

600,000

Price

(par 10 cents).

Proceeds—For

(11/21)
—

50 cents per share.

Office—216 Cen¬

etc.

expenses,

tral Bldg.,
&

Midland, Tex. Underwriter—Kramer, Woods
Co., Inc., Houston, Tex.
Texas Western

June 15
mon

Oil & Uranium

Co., Denver, Colo.

(letter of notification) 5,960,000 shares of com¬

stock

(par

Proceeds—For

one

Price—Five cents

cent).

mining

Bldg., Denver, Colo.
& Co., same address.

Toro

Office

expenses.

National
ter

share.

per

407

—

Underwriter—Floyd Kos-

Manufacturing Corp.

of

Nov

about

Price—To

be

14;

supplied

rights
by

to

expire

amendment.

working capital, etc. Underwriter
Hopwood, Minneapolis, Minn.

—

Nov.

on

28.

Proceeds—For

Piper, Jaffray &

vertible

debentures, series A, due Sept. 1, 1965 and 24,-

700 shares of

units

shares

of

common

consisting
common

ceeds—For

stock

of

(par 10 cents), to be offered

$1,000

stock.

of

debentures

Price—$1,010

and

unit.

per

100

Pro¬

payment of

indebtedness, expansion, estab¬
lishment of additional offices; professional and editorial
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

non¬

stock.

Price—At par ($1 per share)
Proceeds—For repayment of
loans, working capital, etc.
Office—mo Smith Tower,
Seattle, Wash. Underwriter
—National Securities

Corp., Seattle, Wash.

which

will

be

issuable

upon

common

exercise

stock
of

(par $1)

the

common

stock

purchase warrants presently outstanding. Price—
Each warrant
currently entitled the holder to purchase
121 shares at $17.76
per
share for each one share
specified in the warrant certificate.

Washington St., Tucson, Ariz.

L. Edenfield

&

Underwriter—Frank

—

Evans & Co.. Kansas City, Mo.
Oct. 13 filed 797,800 shares of common stock
(no par).
Price—Proposed maximum offering price per unit is $5

acquirh

one

life

and

one

properties. Underwriter—None.

Wyoming-Gulf Sulphur Corp.
Oct. 10 filed 971,000 shares of capital

Uranium &

stock

(par 10

cents), of which 700,000 shares are for company's ac¬
count and
271,000 shares for account of two selling
stockholders. Price—On the over-the-counter market at

prevailing price, but not less than $2 per share.
auxiliary equipment for Cody plant, for

then

Proceeds—For

ByingLaFor-

tune, Las Vegas, Nev.

Diata, Inc., Vale, Ore.

July 8 (letter of notification) 10,000,000 shares of com¬
mon stock
(par one cent). Price—Two cents per share.
Proceeds—Expenses incident to mining operations. Of¬
fice—Lytle Building, Vale, Ore. Underwriter—HanseD
Uranium Brokerage, Salt Lake City, Utah.
Valley Telephone Co., Silverton, Ore.
(letter of notification) 10,500 shares of common
($10 per share). Proceeds—To re¬
notes. Underwriter

Price—At par

activities.

Wyton Oil & Gas Co., Newcastle, Wyo.
Sept. 29 filed 254,000 shares of common stock (par $1).
Price—At the market. Proceeds—To August Buschmann,
of

Seattle, Wash., and members of

his family. Under¬

writer—None.

Yellowknife

Corp.

Uranium

Aug. 19 filed 1,000,000 shares of common stock (par one
cent), of which 700,000 shares are to be sold for account
of company and 300,000 shares for account of Stancan
Uranium Corp.
Price—$1.50 per share.
Proceeds—For
payments under purchase and option agreements for
claims; for working capital and reserve funds; and for
other general
corporate purposes.
Office — Toronto,
Canada. Underwriters—Gearhart & Otis, Inc. and F. H.

Offering—

Crerie & Co., Inc., both of New York City.
Indefinitely postponed.

Zenith-Utah Uranium Corp.

Sept. 14 (letter of notification) 6,000,000 shares
A common stock.
Price—At par (five cents).

off class

Proceeds
—For mining expenses. Office—45 East Broadway, Salt
Lake City, Utah. Underwriter—Bel-Air Securities Corp.,
same

city.

tire outstanding debts and short term

Underwriter

gram.

To be determined by competitive

—

Probable bidders: Stone & Webster Securities

bidding.

Corp.; Merrill Lynch, Pierce, Fenner & Beane.
Expected to be received up to 11 a.m.
at Room

Bids—

(EST) on Dec. 6

1703, 15 Broad St., New York, N. Y.

Warrior

Mining Co.,

Prospective Offerings

(12/6)

Virginia Electric & Pawer Co.

Nov. 4 filed 125,000 shares of cumulative preferred stock,
1955 series (par $100). Proceedls—For construction pro¬

Atlantic

City Electric Co.
England, President, announced that tho
now considering the sale to the public of a
small amount of common stock (not more than 75,000
Aug.

1, B* L.

directors

are

Underwriters—Probably Union

shares) early next year.
Securities Corp. and

Smith, Barney & Co., both of New

York.

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

Oct. 12 it

Office — 718 Title Guarantee Bldg.,
Birmingham, Ala. Underwriter—Graham & Co., Pitts¬
burgh, Pa. and Birmingham, Ala.

—To increase inventory and to

mining activities.

•

Western Carolina Telephone

Co.

notification) 18,500 shares of com¬
mon
stock
(par $10), being offered to stockholders
through subscription rights on the basis of one share
for each five held as of Oct. 25; rights to expire on Nov.
10

(letter

of

Atlas

&

was

announced company plans to

issue and sell

$3,000,000
Proceeds

edness.

retire subsidiary indebt¬
Meeting—The stockholders on Nov. 2 voted to

approve

a

proposal to increase the authorized common
shares to 2,400,000 shares to provide

stock from 1,400,000

—

EXPERIENCE

Co., Charlotte, N. C.

(11/30)

• Western Natural Gas Co.
10

filed

183,003

shares

of

convertible preferred

stock, 1955 series (par $30), to be offered for subscrip¬
tion by common stockholders on the basis of one pre¬
ferred share for each 20 shares of common stock held
about

Nov.

be

29;

13. PriceProceeds—For explora¬

rights to expire about Dec.

supplied by amendment.

and

development programs. Office—Houston, Tex.
Underwriter—White, Weld & Co., New York.
•

Plywood Corp.

$3,000,000 of 5% sinking fund debentures and
of 5V2% convertible subordinated debentures.

Price
$12 per share. Proceeds — For expansion.
Office—Weaverville, N. C. Underwriter—R. S. Dickson

25.

due
mon

3%% convertible debentures
Nov. 15, 1975, being offered for subscription by com¬
stockholders of record Nov. 16

on

writer—Kuhn,

Loeb

Whitaker Cable

30

i

.

reputation of
years

direct

its

Pandick Press, Inc. is backed by more than

of experience. The founders of the firm still actively
daily operations and

and

improvements.

& Co., New

are

available to discuss your

printing requirements at all times.

guarantees the

one

of the

reasons

.... ....

"Printed by Pandick

»

»

finest and most complete printing service available.

the basis of $100

principal amount of debentures for each 10
stock held; rights to expire Nov. 30. Price—At
additions

..

The

EXPERIENCE is

Wheeling Steel Corp.

Oct. 28 filed $19,097,800 of

fire

insurance company, and one
mortgage loan firm. Under¬
writer
None; shares to be sold through directors and
officers.




incident to mining activities.
Office—312
Bldg., Reno, Nev.
Underwriter—Lester L.

Proceeds—For

Corp. of America

Proceeds—To

ceeds—To acquire

Utah

Inc., Salt Lake City,

penses

tion

n°tificati°n) $295,000 principal amount
of 6% 12-year registered subordinated
sinking fund de¬
bentures, dated Sept. 1, 1955 (with stock purchase warrants). Price—At par (in denominations of $100 each
or multiples thereof).
Proceeds—To refinance and dis¬
charge secured obligation. Underwriter
McDonald

share.

working interests and properties. Price—Shares
an arbitrary price of $4 per share. Pro¬

valued at

to be

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¬

To

Co., Miami, Fla.

Tunacraft, Inc., Kansas City, Mo.

Union

for such

(par 16% cents). Price—50 cents per share. Proc
incident to mining activities. Office
—Greyhound Terminal Building, West Temple & South
Temple Streets, Salt Lake City, Utah. Underwriter—
Trans-Western Brokerage Co., New Orleans, La.

Nov.

™-S*a*e Natura! pas Co., Tucson, Ariz.

July 6 (letter ot notification) 200,000 shares of common
slock (par 10 cents). Price-$1.50
per share. Proceeds—
For expenses incident to oil and
gas activities. Office—

per

cent) to be offered only to the owners of percentages of
working interests in certain oil and gas leases and to the
owners of certain uranium properties, and in exchange

stock

Oct.

Tri-Continental Corp., New York
Oct. 27 filed 2,573,508 shares of

'i

★ Wycotah Oil & Uranium, Inc., Denver, Colo.
1,500,125 shares of common stock (par one

ceeds—For expenses

3

Offering—To

Nov. 10 filed

Aug. 1 (letter of notification) 600,000 shares of common

stock.

McDowell, Chicago, 111.

acquisition of additional site, and related

Utah-Arizona Uranium,

Nov.

New Orleans, La.

—Daugherty, Butchart & Cole, Inc., Portland, Ore.

Publishing Co., Inc., Philadelphia, Pa.
(letter of notification) $247,000 of 5%% con¬

Sept. 29

r

shares of class A
Price—$1 per share. Pro¬

corporate purposes.

Postponed.

Traveler

in

(par 10 cents).
general

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
corporate purposes.
Underwriter — None.
Offering —

Utore

Gas Co.,

Straus, Blosser &

Universal Service

ton

expenses

be withdrawn.

(letter of notification) 250,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For gen¬
eral corporate purposes. Underwriter—Doxey-Merkley &
Co., Salt Lake City, Utah.

Denver

Oct. 25 filed 42,099 shares of common stock (par $1) to
be offered for subscription by common stockholders on
the basis of one new share for each four shares held
as

Machinery & Chemical

July 21

City, Utah.

Sweetwater

O o

Inc., Denver, Colo.

Denver Nat'l

Oil &

Woods

States Thorium Corp.

United

Farrell, Inc.,

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 —

expenses

Moab,

For

—

Office—414

Office—8620
Montgomery Ave., Philadelphia, Pa. Underwriter—Co¬
lumbia Securities Corp., 135 Broadway, New York.
For

235 Broad St., Lake Geneva, Wis.
Milwaukee, Wis.;

incident to mining activities.
Bldg., Denver, Colo. . Under¬
writer—Floyd Koster & Co., Denver, Colo.

Proceeds

(11/22)

stock

—

—

The Milwaukee Co.,

Aug. 12 (letter of notification) 2,380,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.

(11/23)

(letter of notification) 300,000

4

—

Wonder Mountain Uranium,

shares of common stock (par

Automatic

S.

Corp.

stock (par $10),

subscription by stockholders on the
share for each four shares held as of

Haydon & Co., Inc. and Bell &
both of Madison, Wis.

Inc., Chicago, 111.

U.

Inc.

and Harley,

$2.50),
of which 50,000 shares are to be sold for account of com¬
pany and 150,000 shares for selling stockholders. Price—
To be supplied by amendment. Proceeds—For expansion
and working capital. Office—Chicago, 111. Underwriters—
R. S. Dickson & Co., Charlotte, N. C., and A. C. Allyn &
Oct. 28 filed 200,000

ceeds

Aug. 17 (letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds

Underwriters

York.

Underwriter—Dillon, Read & Co., Inc., New

Office

property.

(World Bank), to be used to carry out a
transportation development program, including improve¬
ments to the Union's railroads and certain other facil¬
velopment

United Insurance Co. of America

capital and general
Fitch, North &

Nov. 3; rights to expire on Nov. 29.
Pric? — $16.50 to
stockholders; and $17.50 to public. Proceeds—To repay
bank loans and
for extensions and improvements to

—

•

for

offered

be

basis of one new

bonds to be

consist of three, four, five and 10year bonds).
Price — To be supplied by amendment.
Proceeds
Together with £9,000,000 to be borrowed
from the International Bank for Reconstruction and De¬

dated Dec. 1, 1955 (to

common

Swank Uranium Drilling & Exploration Co.

.

Thursday, November 17,1955

filed 20,818 shares of common

20

Oct.
to

assessable common stock.

Proceeds—For mining expenses.

.

.

Southern Gas Co.,

Wisconsin

Office—510 Colorado Bldg.,
Underwriter—Honnold & Co., same city.

Denver, Colo.

ities.

(letter of notification) 2,750,000 shares of non¬
common
stock (par two cents). Pri«e—10

Sept. 6

r

.

corporate purposes. Underwriter—Barret,
Co., Kansas City, Mo.

ceeds—For mining expenses.

Nov.

Summit Springs

..

.

equipment and for working

tional

Mining Corp.

Sept. 9 (letter of notification) 600,000 shares of common
stock (par 10 cents).
Price—50 cents per share. Pro¬

—$6,500 per membership. Proceeds—To purchase a mill,
the price of which is estimated at $1,347,565; and for

•

and Financial Chronicle

(2120)

shares
par

of

(flat).

undlc/rpress, Inc.

Under¬

York.

Established 192)

Corp., North Kansas City, Mo.

(11/23)

77 THAMES ST., NEW YORK 6
WOrth 4-2900

NY 1-3167

71 CLINTON ST., NEWARK, N.J.
MArket 3-4994

Nov, 3 filed $500,000 of convertible sinking fund deben¬
tures due Nov.

ment.

1, 1970. Price—To be supplied by amend¬

Proceeds—To

retire

bank loans,

to acquire addi¬

!

W

Volume

Number 5482

182

.

.

The Commercial and Financial Chronicle

.

exchange of stock for minority shares to

for

Plywood,
and for

Inc., for conversion of proposed new debentures

possible future acquisitions of property. Underwriter—
For convertible debentures, may be Van Alstyne, Noel
&

Co.,

'1955^

j,

of

Offering—Expected before end

York.

New

, j

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

Not in excess of $28,874,564 of bonds

(par $100).

would be issued.
Citizens
Nov.

the

on

basis

of

one

(subject to approval of stockholders in Jan¬

shares held

Price

uary).

recommended

shares of common

additional
holders

Bank, Atlanta, Ga.
the sale of 100,000
stock (par $10) to stock¬
new share for
each nine

Southern National

&

directors

8! the

$30 per share/ Proceeds

—

—

To increase

capital and surplus.

Craig Systems, Inc.
Sept. 26 it was reported company plans early registra¬
175,000 shares of common stock, of which 50,000
to be sold for the account of the company and

tion of
shares

are

account of certain selling stock¬
Underwriter
Hemphill, Noyes & Co., New

125,000

for

shares

holders.

sell

$50).
and

it

14

announced

was

plans to issue and

company

120,000 shares of convertible preferred stock (par
Price—To be named later. Proceeds—For research

development program and working capital.

week of Jan.

RR.

Oct. -20 stockholders approved a plan to

stock

(1/9-13)

if Magnavox Co.
Nov.

Under¬

writer—Reynolds & Co., New York. Offering—Expected

Maine

&

Boston

(2121)

Dec.

Registration

9, 1956.

—

Planned for about

15.

Bids

are

Dec.

1

expected

to

be

received

the

by

8 for the purchase from

Dec.

or

company

on

ler; Kidder, Peabody & Co.

New York.

•

National

Nov.

Propane Corp.

(12/8-14)

H. N. Forman, President, announced that the
company plans an initial public offering of equity secu¬
rities (probably 140,000 shares of convertible preferred
8,

$5,000,000 ot' 4%.%
bottled gas business
Office—New

Hyde

Park, N. Y.

Registration

—

Bell Telephone Co.

Underwriter—To be
bidding. Probable bidders:
W.
C.
Langley
& Co. and Union Securities
Corp.
(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Carl M. Loeb, Rhoades
& Co.; Blyth & Co. Inc. and The First Boston Corp.
(jointly); White, Weld & Co. and Shields & Co.(jointly);
construction

program.

competitive

by

Lehman Brothers.

★ Dolly Madison International Foods Ltd.
Nov. 15 it was announced that Foremost Dairies,
intends at

a

purchase

Allen &

future date to give its

Dolly

its

Madison

Inc.
stockholders the right
Underwriter—

stock.

Co., New York.

Mont

Aug. 10 it

•

Broadcasting Corp.
announced that corporation, following is¬

was

Laboratories, Inc. of 944,422 shares of common stock as

dividend, contemplates that additional shares will be
offered to its stockholders.
This offering will be un¬
derwritten.
Co.

nancing
on

Kuhn, Loeb & Co. and Van Alstyne, Noel

handled Du
some

Mont Laboratories

years

ago.

class A stock fi¬

Stockholders of Laboratories
Broadcasting firm.

Oct. 10 approved formation of

Nov.

it

15

issue

of

chase

debentures, together
M.

derwriters—H.

•

&

Ford

Nov.

considering

&

reduce

Co.

bank

(Inc.)

loans.

an

pur¬

Un¬

and Hayden,

Co.. New York.
Motor

it

6

Byllesby

are

with common stock

Proceeds—To

warrants.

Stone

directors

announced

was

was

Co., Detroit, Mich. (1/18)
announced a public offering of class A
is

stock

common

expected

shortly

after

Jan. 1, 1956.
(or 15% of

The stock to be sold will be 6,952,293 shares

the 46,348,620 shares to

be owned by the Ford Founda¬
reclassification of the stock). Price—It
reported that the offering price was expected to be

tion

following

was

around $60 to $70 per share.

Underwriters—Blyth & Co.,

The First Boston Corp.; Goldman, Sachs
Kuhn, Loeb & Co.; Lehman Brothers; Merrill

Co.;
Lynch,

&

Inc.;

Pierce, Fenner & Beane; and White, Weld & Co.
tration—Expected the latter part of December.

Regis¬

on

was

announced stockholders will vote Nov. 22

increasing authorized

shares

common

stock

from

1,050,000

to

2,100,000 shares to provide for new possible
financing in connection with proposed acquisition of
mining properties in Mexico.
Houston

Lighting & Power Co.

pet. 31 it was reported company may sell early next
about $30,000,000 of bonds.- Underwriter—To be

year
.

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 (jointly); Kidder, Peabody & Co.; Equitable
Securities Corp.
Offering — Expected in February or
Inland Steel Co.

Joseph L. Block, President, announced that a
substantial portion of the required funds for the com¬
3,

pany's expansion program (estimated to cost approxi¬
mately $260,000,000 for three-year period 1956-1958)
will be derived from retained earnings and depreciation
reserves.
However, he stated, it will also be necessary
to secure a large portion through public financing. It is
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

Loeb &

or methods of financ¬
Underwriter — Kuhn,

Co., New York.

14

it

Nov. 21 on

was

announced

that stockholders

will

one

new

stock (par $10) to stockholders on the basis of
share for each 10 shares now held; rights to ex¬

pire on Dec. 7. Price—$40 per share. Proceeds—To in¬
crease capital and surplus.
Underwriter—Cyrus J. Law¬
rence Securities Corp., New York.




stock

dollars."

Stockholders

Oct.

on

20

additional

an

(12/5-9)

reported company plans to issue and sell

was

(par $20).

Price—To be named later. Proceeds—
outstanding funded debt. Underwriter—Eman¬

To retire

uel, Deetjen & Co., New York.
Riddle

Nov. 2 it

New York Central RR.

Airlines, Inc.
announced company

was

Nov.

it

8

announced

was

tional shares of
company

plans to

issue and

plans

soon

to offer to

Peabody & Co.

stockholders

common

common

Salem, Mass.

(par $10)

stock

additional

an

for each five shares held.

39,795

shares

to the

of

the basis of one new share
New England Electric System,

on

on

$50,000,000.

New

Pacific Ry.

it

ments

for

was

1955

Oct.

contemplate these funds will be obtained tem¬
porarily from short-term bank Joans to be repaid from
proceeds of the sale of additional bonds late in 1955 or
early 1956. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.

it

was

announced

the

is

for

and

Pennsylvania Electric Co.

Oct. 28 it

was

Riter

•

•

of

Price—To be

debt of Keleket

Under¬

Maryland Ry.

an

(11/23)

approved

plan

a

authorizing

tha

additional 128,597 shares of common stock

the par value of the common shares from
share to no par value. The plan calls for the
offering to each stockholder of record Nov. 22 of the

reported company plans to

issue and sell

to

Halsey, Stuart & Co. Inc.; The First

expire

on

Dec. 7.

Underwriters

—

Morgan Stanley &

Co., New York, and Alex. Brown & Sons, Baltimore, Md.

Kuhn, Loeb & Co.; Kidder, Peabody &

Westpan Hydrocarbon Co.
was announced Sinclair Oil Corp. has agreed

Harriman Ripley & Co.,

$8,000,000 of preferred stock
construction program.

per

right to purchase one new common share for each six
shares of stock owned, regardless of class (Baltimore
& Ohio RR. would subscribe for 55,000 shares); rights

March 2 it

with the SEC to divest itself of its investment of 384,380
shares

Pennsylvania Electric Co. (1/17)
7 it was reported company proposes issuance and

early next year.

Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Kuhn, Loeb & Co.; W. C. Langley & Co. and
Proceeds—For

30,000

and changing

(1/17)

Nov.

sale

of

j

stockholders

10

issuance of

Co., Inc.,

$20,700,000 of first mprtgage bonds.
Proceeds
To repay
bank loan? and
for new construction.
Underwriter—To be determined by competitive Bidding.
Corff.;

issue

new

par

Norman Co.

Western

Oct.

about

bidders:

a

(no

it was announced stockholders on Nov. 30 will
vote on approving a change in name of company to Van
Norman Industries, Inc. and on creating an authorized
issue of 400,000 shares of $2.28 convertible preferred
stock
(cumulative to the extent earned). Proceeds—>
For acquisitions. Underwriter—Paine, Webber, Jackson
& Curtis, Boston, Mass.

—

Probable

stock

Proceeds—To retire bank

later.

Van

$100

•

Inc.
authorized

common

Oct. 25,

before Nov.

Underwriter—Blyth &

new

X-Ray Corp. and for general corporate purposes.
writer—Lee Higginson Corp., New York.

100,000

surplus.
Spokane, Wash.
capital

of

$1,500,000 convertible debentures due 1970.

additional shares of capital stock (par
$10) on the basis of one new share for each 2% shares
held.
Price—$31.50 per share.
Proceeds—To increase

21

Industries,

stockholders

11

named

offering to its
or

plans to sell in 1956
securities (probably

new

if Tracerlab, Inc. ,.
'
was reported early registration is expected of

Wash.

company

right to subscribe on

$10,000,000. of

Nov. 4 it

Inc.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Equit¬
able Securities Corp. and Union Securities Corp. (joint¬

15

Co.

company

value), of which
it is planned to initially issue 10,000 shares bearing a $5
dividend and having a redemption value of $105 per
share.
Proceeds—For expansion program.
Underwriter
—Rauscher, Pierce & Co., Inc., Dallas, Tex.

plans

if Old National Bank, Spokane,

Power

announced

Underwriters—For stocks: Hornblower & Weeks,
York; Wiliam R. Staats & Co., Los Angeles, Calif.;
California Co., San Francisco, Calif.
Bonds
be placed privately.

shares

(Minn.)
announced that new capital require¬
will approximate $31,000,000.
Present

ly); Smith, Barney & Co.; Lehman Brothers and
& Co. (jointly); Glore, Forgan & Co.

Nevada

was

Texas

trust certificates.

29

10,000,000 shares
$150,000,000 from

to

First

may

was

issue and sale late in

March

indebtedness

gram.

and

reported that the company plans the
November of $1,755,000 equipment
Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Kidder, Peabody & Co.
it

30

date of financing. Stock¬
increase the authorized

$7,000,000 first mortgage bonds and $3,000,000 preferred
and common stocks).
Proceeds—For construction pro¬

the basis of $16.50 per share.

per

Northern

it

7

to

Proceeds—For expansion program.

approximately

share for new stock. Proceeds—To repay
advances from parent company. Underwriter—None.

Sept.

authorized

if Southern
Nov.

or

proposals

stock to 40,000,000 shares from

the

and

the
for
38,489 shares and proposes to purchase, during the 21day subscription period, the 6,529 shares held by minor¬
ity stockholders; together with their rights to subscribe
additional shares,

approved

common

parent, now owns 192,446 shares (96.719%) of
outstanding stock and proposes to exercise its rights

Price—$14

Paper Co.

precise type, amount

holders

the

for

Co., New York.
Scott

announced company plans to offer to its

was

common

Sept. 20, Thomas B. McCabe, President, announced a
major financing program will probably be undertaken
by next spring. No decision has yet been reached aa

/

if North Shore Gas Co.,
it

&

1,200,000 addi¬
oversubscription

stock

(with an
Underwriter—Eisele & King, Libaire, Stout

privilege).

equipment trust certificates to mature
annually Dec. 15, 1956-1970. Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler; Kidder,

sell $6,600,000 of

vote

of capital

Straus, Blosser & Mc¬

its stockholders the right to subscribe for

Co.; Equitable Securities Corp.;
Inc. Bids—Expected Jan. 17.

approving the sale of 10,000 additional shares

of pre¬

Price—

120,000 shares of $1.25 cumulative convertible preferred

White,

Kidder,

Co.;

million

Reading Tube Corp.
Nov. 7 it

Peabody 8c 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 on Jan. 11.
&

Weld

—

shares
stock.

two

bonds.

of 60,000

Brothers; Merrill Lynch, Pierce, Fenner & Beane;

Boston

if Long Island Trust Co., Garden City, N. Y.
(11/21)
Nov.

sale

of

common

$25,000,000 first
and refunding mortgage bonds, but company announced
it has no present plans to issue or sell any bonds under
this mortgage.
The company has scheduled a largescale expansion program, involving $80,000,000 in order
to keep abreast of estimated load growth over the next
five years. Underwriters — Probably Stone & Webster
Securities Corp;, The First Boston Corp. and Smith,
Barney & Co. Halsey, Stuart & Co. Inc., is reported to
head a group to bid for approximately $25,000,000 of

(1/11)

plans

several

authorized the issuance of

cumulative

stockholders

ing been definitely determined.

of

preferred
stock
(par
$100).
Underwriter—To be determined by competitive bidding.
Probable
bidders:
W.
C.
Langley
&
Co.; Lehman

Nov.

March.

Nov.

company

of

Underwriter

unit.

per

in units

share

one

Puget Sound Power & Light Co.
April 5, Frank McLaughlin, President, said that "it will
be necessary in 1955 to obtain funds for construction
purposes from outside
sources—at least to thq extent

Ex¬

Northern States Power Co.

Fresnillo Co.

Oct. 27 it

reported

was

of

Nov. 9

if Federal Pacific Electric Co.

it

24

and

Dowell, Chicago, 111.

(12/14)

New Orleans Public Service Inc.

stock

common

stock

$13.50

Registration—Planned for Nov. 18.

Oct.

formerly known a3
Credit, Inc., plans to issue and sell 111,000
prior preferred stock and 55,500

cumulative

shares of

by competitive bidding.

shares

of

ferred

Underwriter — To be deter¬
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.

14 to stockholders of Allen B. Du Mont

Nov.

on

a

&

shares

expansion program.

mined

common

Glen Roger

M.

Underwriter—Carl

New York.

reported company plans to sell about
stock. Underwriter—Bache & Co.,

was

;
Prudential Loan Corp.
Oct. 31 it was reported company,

15-year notes, to be used to acquire
of Shell Oil Co. in the Middle West.

Co.,

Loeb, Rhoades &
pected this week.

it

17

$600,000 of

stock
[par $25] and 100,000 shares of common stock).
Proceeds—Together with funds from private sale of

For

determined

County Natural Gas Co.

Oct.

probably first to stockholders (this is in addition to bond
stock financing planned for Dec. 13). Pro¬

suance

Pike

equipment trust certificates due to 1970. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutz¬

New Jersey

ceeds—For

pay for expansion pro¬
Underwriters—Porter, Stacy & Co., Houston, Tex.;
Corp., San Antonio, Tex.

and Muir Investment

it of $2,625,000

Sept. 30 it was announced company has petitioned the
New Jersey P. U. Commission for authority to issue and
sell $25,000,000 of new debentures due 1995. Proceeds—

and preferred

$2,000,000, will be used to

gram.

(12/1-8)

if Delaware Power & Light Co.
Sept. 28 it was announced that the company expects to.
undertake some common stock financing early in 1956,

Du

Pigeon Hole Parking of Texas, Inc.
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
Oct.

—

York.

to

Glore, Forgan & Co. (jointly); Kidder, Peabody & Co.;
Corp.; Smith, Barney & Co,; Harriman
Ripley & Co. Inc. Bids—Expected Jan. 17.
The First Boston

about

Pacific RR.

Missouri

45

.

of

Westpan

stock

(52.8%).

The

time

in which

Sinclair

may

sell their holdings has been extended by

SEC

Dec.

21, 1955.

to

Underwriters—Union Securities

Corp., New York, underwrote recent sale of Sinclair's
holdings of Colorado Interstate Gas Co. White, Weld &

Co., New York, may be included among the bidders.

Chronicle

The Commercial and Financial
46

..

Thursday, November 17,1955

.

(2122)

Continued from page

13

^

Continued

Kuhn, Loeb Group

.

Underwrite

Wheeling
Steel Offering

Will Consumer Debts

Limit the 1956 Market?

Observations...
partial payouts should be spaced over long periods, without too
many—say not more than four—individual payments.)
T
Perhaps the public's acceptance of this wortny policy has been

Wheeling Steel Corp. is offering
to holders of its common stock the

The be

reasons.

data

outstanding

credit

stalment

was

.

if

it is doubtful

Moreover,

from the depression.
this tendency for con-

resulting
Clearly

debts to expand more rap-

sumer

idly than incomes is not a sudden

phenomenon of . 1955. It is a development which has been going
on
for at least the quarter of a
century for which data are available.
Indeed
if
the
1929-1940
credit

consumer

(1) There is little evidence that
the present volume and structure
of debts will trigger another de-

.

ratios.

the

in

showing the longrelative to in-

These figures

market

1956

it

that

extent

debts

in

rise

run

record

on

stock

common

;

Nov, 30,

on

the

to

for

was

same

Re¬

1955.

payments will
rise faster than
new
credit extended; terms are

facilities

tion

iron
iron

number of

are

good

The

ing

how

lend

to

to

consumers,
loans which good, solid

Consumer

of

volume

The

(3)

consumer

respectable ban
.
consider
commonplace t°day
would have been considered di -

credit outstanding is not

gracefully unsound three deca
.
ago. It is a good thing these
ssons were learned because for 11
auto industry a mass market wa

expecf consumer debt outstanding

conservative,

19543

relative

willing^to venture into this
unsound

and

gerous

lending.

consumer

dan0

area

iy>.

As has

incomes.

to

sjnce

jeag£

grow m0re

There

essential, and this would h v
impossible unless some we e

been

^

^rue

excessive

1929

been

must

we

rapidly than income,

solid, logical reasons for

are

international

Consistent

the next
additional

over
an

payable by surrender of $50 prin¬
cipal amount of debentures and

shall continue to learn

about

more

to

"that

be

may

end

an

tinues,

there

expect

that

in

which

with

make loans

ye
n in
of consumer

ino?y
5a+r.S w0,
1925 And the volume
a

to

credit outstanding will continue
rise

in

response

to this accumulat-

ing know-how.

One

reason

for

the

rise

rapid

come

is

the greatly increased im-

portance of consumers' hard
goods, whose purchase gives rise
to credit. Since it is quite improbable that this

reversed,
that

rise

it

is

will

there

in

basic trend will be

debts

just

probable

as

continue

relative

to

*

a

of

debentures

will

15,

of

their

modernJ

made in the

that

debtg

rapjdiy.

cannot

expand

Qr

and

states,

as

not to put the present
in perspective, viewing

conditions

dynamics

of

in

terms

of

the

expanding, free-

an

enterprise economy.

-

Q«aLaii«

UlllC3g0 OlOCK DrOKSfS
■

.

the

ASS0CI3l6S klSCt

is

the

will

—at

and less uncertain and

even

than jn

the

first

rh'°

half

of

this century. Much has been done
to tame the business cycle in the

James

in March, 1950, when New York
stock states in

common

Man

T

£*'

of

F

F

*r*fald*nt

f'

Huttnn

*

?'

'

^-Doherty

so-called Modi¬

a

Law,

trust may be put into ineligible

a

In some

stocks.

preferred shares and listed common

Pennsylvania, mutual funds may be included.

liberalization—puts

a

35%

al¬

the definition of the term "prudence" is vague
least legally.
In its present concept, it can be said that the
for prudence just means diligent effort and thoughtful, ex¬
century,

a

consideration of values, risks, and possibilities. Re¬
this vagueness of the legal, and moral exigencies
further stimulant to the rampant Blue Chipism.
from

a

"What About Life

Insurance?"

good principle for the ordinary investor, is that life insur¬
should be bought, for its vitally needed protection features

A
ance

Simply analyzed, assuming invest¬

—not for investment purposes.

benefits for

quality to be equal, the comparative investment

ment

beneficial interest of Hugoton Gas

policy-holder are emasculated by the selling and administra¬
tive expenses. Insurance holding might well be confined to term

Trust which is being made to com¬

insurance.

stockholders

mon

Natural

the

of

Gas

of

one

t'e

Kansas-Ne¬

Co.,

10, 1955, at $4

basis

Kansas-Nebraska

Doherfv

P

to and if prudent

on

sulting

of underwriters headed

record Nov.

r»rnkprc'

having

perienced

Chicago, 111., have underwritten
an
offering of 935,999 units of

on

be

of

Reformulated, if not manhandled, through the courts for
most

1959.

by The First Trust Co. of Lincoln,
Neb., and Cruttenden & Co. of

braska

-

if they wish

stocks

common

this legislation

to

Units at $4 Each
A group

risk

uninstructed trustees, it is clearly of vital importance
for a testator specifically and affirmatively to permit, although
not instruct, his trustees to consider themselves not so bound. With
all the unforeseeables of the future, no rigid legal prohibitions can
serve as a substitute for judgment and ability.

is

't0Q

a reason¬

the

"legal" trusts

under

Since the statute—despite its recent

Kugoton Gas Trust

equally unrealistic,

jf

situation
1955

WQrld

trustees

the

specific permission, 35% of

bonds

rule

be

funds in

Prudent

ceiling

*

that a bad loan just cannot

enlarging

unduly

fiduciaries in the absence of specific
permission by a testator, could not invest in anything other than
certain fixed-interest bonds, mortgages, and shares of Savings and
Loan Associations. Now, under Prudent Man-ism, in the absence

woul(J> of courge> be giUy tQ

assume

permits

now

Previous

benefit of $750,000 annual sinking

beginning Nov.

without

permission affirmatively expressed, to place as much as 35%

fied

in¬

have

income

joined 20 other so-called

On Nov.

conversion will
by $5 per share. on

of trustees in order to make possible

in

increase

is to enlarge the! in-

legislation

of tne

purpose

judgment is exercised.

16, 1959 and Nov. 16, 1983, the cash

The

overall

And insurance affords little

tor—with less than 2% of the

of
unit

Inc.
per

unit for

inflation protection to the inves¬

companies' assets invested in equities.

"

„

held.

subscription

warrants

will

(CST)

Nov. 25, 1955.

on

Diners' Club Stock

share

common

Transferable

expire

at

2

tv-"

.

.

each
,

consideration

Another

volatile

'
It

incomes.

to

probability that incomes
more

be

payment of $7.50 in cash.

crease

in

opposition to prohibitions prescribed

investment judgment by the

This
no

1967.
The conversion
price per share of common stock
through Nov. 15, 1959 is $57.50,

payment

the

principal.

15,

fund

however,

in consumers' debts relative to in-

be more
before the

war

eyebrows as

arched

as

likely ^to

are

stable and regular than

regarded

be

would

today

just

to pi0ymenf

reason

every

is

three decades hence

will know how to

we

able

prior to

or

on

sbare 0f consumer spending. We

<

phe¬
and
past

basic and seemingly necessary

the most

even

with

vestment powers

convertible

are

stock

Nov.

Durables

lending to consumers, with a corprogress has; .'responding change in what is conthe lending gjcjergcj a
credit-worthy loan and
business, but I doubt it. If it con- borrower. And incomes and emIt

come

debentures

(whose
pUrchase gives rise to credit) will
cordinue f0 account for a growing
this.

eXpecting

taxation

and

of

Thg

expend,

common

inflation

unprecedented

of

investing restrictions.

and

The
into

mid-Century economic and politi¬

our

the New Looks on the scene of domestic
politics have over the comparatively recent

and

rendered outmoded

facilities.
The com¬
pany also contemplates increasing
its ingot capacity by at least 270,000 net tons and replacing all its
present Bessemer converters with
new steel-making facilities.
plants

active 1955 market.

impact

nomena,

to

reasons

imponderables in

increase

to

three years,

to

two

investment prohibi¬

abandon

to

world.

cal

what there
at ' approxi¬
expect. Tne n0£ likely, to ease much further; amount estimated
$65,000,000
for
further
last quarter of a century is the an(i
particularly credit-sensi- mately
modernization and
expansion of
period when we have been learn- fjve buyers were a part of the
simply portray

come

gradually

you

have prescribed for the protection cf your heirs.

nrodur:^-:^^eedm& administrators of one's portfolio. This is necessary
its -t!de5Pite the recent relaxation under the "Prudent Man" laws of New
reserves
It now
now
York and other states of the prohibitions against common stocks,
reserves.
11

and

coal
coai

anrt
anq

ore

intends to

lead

may

modernf^^

for

ivnansion

arid

731ion

Flexibility Desirable

<

is our. advice to the testator to prescribe affirmatively at
appro^^^^<W-major- permission, tu-aUs,- for the inclusion of common

Wheeling expended

1955

mately $167,000,000

Mr.

tnat

news

change of policy does not result from doubts about the
desirability of following investing principles; the disillusionment
ensues
from the constant revelation of the many and growing

1955. A
group
of
investment
bankers
headed by Kuhn, Loeb & Co. is
underwriting the offering.
(EST)

dramatic

Such

scription offer will expire at 3:30
p.m.

likely

very

tions you

The sub¬

Nov. 16, 1955.

Proceeds from the sale of the
If, however, a serious
depression should occur, a sub- debentures, together with other
stantial ,liquidation of consumer funds of the company, will be
debts would make the resulting used in meeting cash requirements
business decline more disorderly, for proposed additions and im¬
(Only irresponsible public policy provements to plants and facilir'
CFromaearlV Tqifi
would, however, let such condi-

to

the

of

of

'

1
s

the

considering the investing provisions usable by ycu as a
testator, bear in mind that life-long experience in investing will

pression.

tions develop.)
1955, it
(2) The consumer credit situaactual 1955 fi0n will not be a plus influence

extended

above

be

would

of

10

held

shares

William

by

In

.

instalment credit to in-

or

were

come

ratio

the

in

trend

amount of debentures for each

-

L/Onciusions
any significant part of this expanThis analysis leads me- to cersion from 1929 to 1940 was to be tain conclusions about the present
explained by distress borrowing consumer debt situation:
70%.

-

socialite, used this instalment met-iod in
providing for the transfer of his property to his children, in stages
beginning at the age of 25.

given a useful fillip
Woodward, the slain

somewhat more even and right to subscribe for $19,097,800
of -3%% debentures due Nov. 15,
(Table IV) themselves sug- stable than in the prewar decades,
1975 -and convertible into shares
gest it. By 1940 disposable per- And this means a corresponding
of common stock through Nov. 15,
sonal income was still well below increase in consumers' debt-carry1967.
The debentures are being
1929, but consumer creuit out- ing capacity, which depends on
offered to stockholders at 100%
standing was 30% higher in tne the regularity of incomes as well
at
the
rate
of
$100
principal
latter year.
And the rise in in- as their average size,
logical

solid

some

from page 5

its

Since

inception

time

which

its

in

Offered at $8 a Share
The first

After the expiration date, eligi-

its

credit

restaurant

field,

of

opment
the'

1950,

activities

concerned chiefly with

p.m.

•

at

were

the devel¬

system
the

in

com-

public sale of common

rnu
t^\*
,
,t
-i
pany has expanded its operations
stock of The, Diners Club,
nc., ^
include various other services
credit card orgam- and establishments. At present,
doubtedly have our ups and downs
scnption
warrants,
transferable zation was made yesterday (Nov
the
company
provides a credit
in the future, it would be quite
piprtpH
ar! atl0n* other officers only to other employees, evidenc- 16) with the offering .of 150,000
t
offering individuals and
surprising if the fundamental
^
ing the right to subscribe at the
shares of the companys common bJusiness enterprises through
measures
taken to
stabilize
cyv 1 c e"p resident: Lawrence same price for units not sub- stock ($1 par value) at a price sjngje all-purpose credit cards,
clical
swings were to exert no Wagner, F. I. du Pont. & Corn- scribed for by stockholders.
of $8 per.share. Lee Higginson +ba convenience cf charging pur—
effect.
And
through unemploy- Pay¬
The offer is subject to the limiCorp and C. E. Unterberg Tow- cbases and services in many Tes¬

last 20

vears

While

we

shall

un-

sume,

Secretary:

Robert

Hornblower &

M.

Albert,

are

-

certainly entitled to

The

as-

therefore, that incomes will

*ear

%

IV

(Dollar amounts in billions)
Consumer Credit

-s

Disposable
Personal

Income

1940__
1.950

U.

Outstanding:

>

Instalment Credit

Outstanding

Income

net

fin ~°. are making

securities laws.

State

proceeds from the sale

of the units

to be

are

used

indebtedness secured

tire

to

re-

by first

mortgages on the properties of the
Deerfield

Gas Production Co.

and

the

Kearney Gas Production Co.
amounting to approximately S2,-

will be
available for the payment of the
obligations and expenses of the

% Dispos,

i,

Amount

The

900,000;

Consumer Credit and Incomes

1929

SOURCE:

association

plans to have
leaders of industry talk to their
group at bi-monthly meetings.

TABLE

tations of

Weeks,

the unemployed worker's v Treasurer:' Vincent
Dimicelli,
from
the full effect
of
Jr., Hornblower & Weeks,

being out of work.
We

«

international

receive sub-

„

compensation
(public and
private) much has been done to
income

xi

ble employees of Kansas-Nebraska

Natural Gas Co. will

o^the0associafinnUtofhe°mff,ittee

ment

cushion

m

x

-;

,

j

Harris, Upham & Co., who will

% jjispos.
Amount

Income

and

the

an

stockholders

aggregate

50 000

canv

^
to

on

liquidation

amount not

in

of
ex-

finance

the

of its present

the

pand

use

the nroceeds

increasing

scope

credit services.

and type o
is
The remainder of

riprE^Schnefde'r ^ar/cha^
to
•

j

officers and founders of the

^Tnirs"

each'Twned

76.1

8.3

10.8

5.5

7.2

206.1

20.8

10.2

14.5

7.0

common

250.4

29.5

11.8

22.2

8.9

stock sale, the company

254.8

30.1

11.8

22.5

8.8

272.0

33.6

12.3

26.2

9.6

S.

Department




of Commerce

and

Federal Reserve.

3.9%

cess

of

$560,000.

shares,

Harry L. Wallace
Harry

L.

Wallace, partner in
Co., Buffalo, passed

Doolittle

&

away

Nov.

on

2.

(

cated throughout the United States
and many foreig" countries. Net
charges from which the club de_
riyed revenue rQge lrom $U09>_
qqq

^or

March

tbe

31

£jscaj

iq^i

t0

year

enqej[

$20 106 000

for

the
ended March 31, 1955,
and $14'334'000 £or the six months

£ o{ the
and Alfred
BioomjngHaikpresident Prior ended SePt- 30' 1S55- Al1 of the
the current sale the two nrin- comPany's Past
net income has
company

s

$6.4

$3.2

volume

business and to ex-

$83.1

7.7%

taurants, hotels, automobile rental

com-

are

whlch wfll

balance

Deerfield and Kearney companies
in liquidation and for distribution*
to

-

the ottering

to^J; ^shares bein"1 offered aSencies' - li(^uor .stores florists,
b^ns sold bv the
g°urmet and dellcacy shops lo-

450,000
which
own

Club
or

50% of the outstanding
stock.
Following
the

shares
the

200 000

two

33V3%.

of

will have

common,

officers

each

of
will

been reinvested in the expansion

and growth of the business

^^tfend 'To Ton^f' the

reciors
iniena to cons.a-r xne
payment of dividends on the com¬
mon

stock

amourit to
financial

in

the

future,

the

depend upon earnings>
position and other re-

lated factors.

Volume

Number 5482

182

..

.

The Commercial and Financial Chronicle

As

Our

probably be ascribed to

toward

the

to

again

shoulder

by the reports of those
who keep a close eye on the sit¬
uation.

just

In the

circumstances it is

well that the ensuing week

as

shapes

up

dullest

periods

as

of

one

in

the

the

Chester C. Minier and J. Kendall

year's

corporate

field.

bonds

to

California

com¬

offered

be

arcund

3.20%

finding few if
Down

Next

and

Boulevard.

in

the

With

on

issue

debt
in

the

of

single

of

outlets

appeared
their

the

have

buying

the

on

lost

displayed

fortnight
the

for

reasons

bit

a

to

preceding

The

so.

were

for

securities

new

definitely

zest

over

for

change

shadowy

side

although

there

that

of these institutions

some

tually

or

indications

were

ac¬

looking around to sell

were

of their holdings.

some

The

major

refunding

new

Whether

be

it

will

this

at

money

operation.

seek

point

the

equity
to

any

new

remains

to

of

say

cti

„

;

*

DIVIDEND

the Common

on

time

same

there

is

less

disposition momentarily to antici¬
pate any material change in the
Federal

Reserve's

icy of firmer
there

rates. Rather

money

Wis., November 14, 1955
$1.75 per share upon the out¬
standing Preferred Stock of this Company has
b:en
declared
payable
January
3,
1956,
to
Racine,

A

potential

thin

holders

of

cember

12,

on

Bankers

dividend

of

record

No

1955.
Common

the

are

WM.

at

the

close

dividend

of

business

Meantime,^ Rochester
Electric
tion

Co.

books

cents per

9,

1955,

action

was

B.

of

of

f common
Nov.

record

to

in

the

28

share for

!new

one

stock

shares held.

pires

Dec.

The

12

and

shares, will

^*8

De¬

E. F.

Checks will be

I

GENERAL OFFICES

bour

&

and
The

Vice Pre a. & Treasurer

Board

central

share has been declared

DIVIDEND NOTICES

stockholders

ing.

The

effect

at

2V^%

across

the

board

Governors of the New York Re¬
Bank

serve

but

it

that

is

charge

not

afternoon,

generally

would

believed

advance

be

in

Manufacturing company, inc.

in

"

f Cto

»

BeSthot
M. B.

on

of

1955.

1955.

PECK,
Secretary

*:

A. E. WEIDMAN

Treasurer

mmmmi

October 27, 1955

the

Public Service Electric

J. OSBORN

Sec'y.

and Gas

Company

NEWARK, N. J.

payable

Common and

stockholders

ATLANTIC CITY

Preferred Stock Dividends

15, 1955

LOEB,

President

ELECTRIC COMPANY

The Board of Directors of Safe¬
way

QUARTERLY

DIVIDENDS

the

the last

touched

one

of

the

other

The

ter

a

than on the buying
side, is the
report that some institutional in¬

vestors

shopping

are

around

The

quarter

25 cents

a

stock

mon

share

on

a

outstanding

payable

their

let go of

some

1 955, to stockholders of record at the

of

close of business December 1,
R.

1955.

per

dividend

and

of

share, for the
on

outstanding Common

Company, has been de¬

the books of the Company at the

close of business December
A. C.

Secretary-Treasurer
EARNINGS

quarterly

to the holders of such stock of record

YODER

A.

per quar¬

Company, payable January 16, 1956

15,

in

holdings.

for the quarter

ending December

$1.00

31, 1955:

per share on the
4% Preferred Stock.

Dividend

Class of

Per Share

Stock

4.08% Cumulative Preferred

.

4.18% Cumulative Preferred
4.30% Cumulative Preferred

$1.071/2

.

.

.

.

1.045

.

.

.

1075

$1.40 Dividend Preference

All dividends

are

Stock and 4.30% Convertible

payable

before December

20,

on or

Preferred Stock are payable
Jan. 1,1956 to Stockholders of
record at the close of business

1955 to

stockholders of record Novem¬

Dec. 1, 1955.

15, 1955.

VENCE, Secretary.

ber 28, 1955.

November 16, 1955.

on

payable Dec. 15,195 5 to Stock¬
holders of record at the close
of business Dec. 1, 1955. Div¬
idends on the 4% Preferred

.45

.

share

TheCommonStockdividend is

35

Common

per

the 4.30% Convert¬
ible Preferred Stock.

$1.02

.

clared out of the earned surplus of the

com¬

December

a

Stock of the

cash dividend of

share

ending December 31, 1955,

the issued

Board 'of* Directors, on October

25,1 955, declared

per

Thirty cents (30c)

DIVIDEND NOTICE

on

to

attempt

on

60^ per share on the
$5.00 par value Com¬
mon Stock.

dividends

on

by order of the Board of Directors.

Thereupon,

CORPORATION

A development which

dividend

quarterly

Thirty cents (30c)

STEEL
naturally
slight tendency to
put emphasis on the selling side
of the secondary market rather

regular

Common Stock has been increased to

DETROIT

Shopping for Buyers
have

clared the following

Common Slock Dividend

probably
in the Mid¬
west, Chicago, or St. Louis.

would

The Board of Directors has de¬

Increased

expectation is that,
occasion, it would be
in

off

Stores. Incorporated,

Nov. 8,1955, declared the fol¬

lowing quarterly dividends:

districts

an

3,
bus¬

ROBERT N.

.VI.VI.'.l.'.I.m.M.M.M.'.l.m.M.'.l.M.M.'.I.m.m.'.I.'.I.M.'.l.'.U

%■

Brooklyn, N.

regu¬

Common

tareA

stock

of

15,

Treasurer and

■?Tvo"°o"oiForty

™
($.40).,

Dividend

Cents

January

shareholders
the close

a

$1.18% on
the $4.75 Sinking Fund Preferred
Stock, payable January 10, 1956 to
stockholders of record December 22,

December

on

Exec. Vice Pres. &

the

originated

at

The directors also declared
lar quarterly dividend of

company

December

the

PREFERRED STOCK DIVIDEND

&

I

area.

Rather
as

this

meet

further

any

this

on

to
at

iness

the

on

1956,
record

10<

common

The stock transfer
the Company will not

HERVEY

A

of

of

the

closed.

be in the off¬

may

change, going into
September,
put
the
borrowings by member

cn

banks

books of
be

record

of

business

of

1955.

1,

last

in

charge

Rate

of Federal Reserve

banks

dividend
on

December 22, 1955.

ijij
jij:

divi-

share and

per

DRUMMOND WILDE, Sec.
November 8,1955

F. Milton Ludlow

Secretary

STATEMENT

LILY-TULIP CUP CORPORATION

PUBLIC SERVICE

Earnings Statement for the Twelve
Months Ended June 30,
Notice

LILY-TULIP
has

1955

AMERICAN

mads

cordance

CUP

with

Securities

CORPORATION

generally available, in
Section

11

(a)

ac¬

of the

Act of

1933, as amended, a
earnings statement of the
Company and its subsidiaries for the

consolidated

12 months ended June 30, 1955.

earnings statement

period
date

covers a

beginning after

Such

12 months'

the

effective

Board

of

Common

Stock, which

amended, with the Securities

Cyanamid Company today declared
of eighty-seven and one-half cents (87V2(i) per
share bh-^the outstanding shares of the Company's 3
V£% Cumulative
Preferred__S.tock, Series B," a quarterly dividend of ninety-three and

earnings statement will be mailed

Board

of Directors of American Cyanamid

was

v

A

quarterly

per

share

Company,
stock

on

payable
at

December
the

on
...

2.

A
per

Lily-Tulip Cup Corporation

special
share

dividend
on

Snd

and

one-half cents

(37V£G

the outstanding shares of the Common Stock of the

payable December 23, 1955, to the holders of
of record at the close of business December
5, 1955.

3

Common Stock
The Board of Directors has today

forty cents ($.40)

Preferred

Stock

($.35)

share

per

and
on

share

per

the

declared the regular quarterly dividend
on

the $1.60

Cumulative Convertible
thirty-five cents

regular quarterly dividend of

the Capital Stock of the company.

such
Both

dividends

record

are

payable

December 31, 1955

York, November 15, 1955.

to stockholders

of

December 15, 1955.

R. S. KYLE, Secretary.
New




23, 1955, to the holders of such
of business December 5, 1955;

of thirty-seven

New York 17, New York
1°55

close

Company,
stock

122 East 42nd Street

14,

Preferred Stock

of

security holders of the Com¬
and to other interested parties.

-

DIVIDEND NOTICE

Company today declared

dividend of sixty-two and one-half cents (621/2«*)
the outstanding shares of the Common Stock of the

of record

/■O N-

1

,

1.

and

C 0 Ft P O #A Z

Common Dividends

;

The

request to

Dated:

Penn-Texas

three-quarter cents (93%#') per share on the outstanding shares of the
Company's 3%% Cumulative Preferred Stock, Series C, and a quarterly
dividend,.eighty-seven and one-half cents (87J/2C) per share on the
outstanding shares of the Company's 31/2% Cumulative Preferred! Stock,
Series D, payable January 3,
1956, to the holders of such stock of
record at the close of business December
5, 1955.

Exchange Commission. Copies of such

Nri^em^pr

EAST

THE

of Directors of American

(June 15, 1955) of the Company's
Statement for 88,000

pany

OF

quarterly> dividend

filed under the Securities Act of
1933,
as

CROSSROADS

Preferred Dividends

\
The

a

Registration
shares

COMPANY

Security Holders:

to

November 2, 1955

>

terly dividend of 45 cents a share on
Common Stock payable
January 10,
1956 to stockholders of record

j:|
§)

at

declared

Quarterly Payment

quar¬

iijij

Nov-

on

quarterly

share

shores

Directors,

held

1955,

regular

special

a

A dividend of TWO DOLLARS

another

discount rates

of

16,

payable

a

COMPANY

The Board of Directors of Seaboard
Finance Co. declared a regular

Special

a

dend of 20tf

166

NO.

DIVIDEND

0 E

83rd Consecutive

|

53rd Consecutive Dividend

MOSKOW1TZ

company

Co., Citizens Bank Bldg.

■

Dividend Notice

InternationalSalt

(Special to The Financial Chkonicle)

NAN

COMMON STOCK DIVIDEND

g

ROCHESTER, N. Y.

a

PASADENA, Calif. —Alfred T.
Murray is now with John M. Bar¬

I

PACKING CO. INC.

ember

Barbour

I

§

meeting

feeling in some quar¬
markup in re¬

a

November 10, 1955

F

December 6, 1955.

on

maiW.cHA|!LEsc

,

close

that

divi¬

Secretary.

to

;

Joins John M.

28,

Wm. M. Hickey,

VANDERSTUCKEN, JR.,

The offering is being

underwritten.

November

25, 1955.

iTSTiTi

employees.

business

of record at the close of business November

payable on
stockholders of .record

December 23, 1955, to
at the close of business

ex¬

offered

of 10

the COM¬

President
a

Stock of the Company,

unsub¬

any

be

on

standing and entitled to receive dividends,
payable December 15, 1955, to stockholders

25c per
Common

_

'

scribed

share

share,

1955.

November 16, 1955
has declared

quarterly dividend of
J share on the outstanding
a

each

offer

per

STOCK, both payable
December 15, 1955 to stock¬
holders of record at the close

HACKNEY, Treasurer

of

The Board of Directors

payable December 21, 1955, to

There is

record

cents

extra dividend

Secretary-Treasurer

PETERS,

rs.

subscrip¬

open

seven

ture.

ters

of

an

semi-annual divi¬

MON

ROGER

taken

firming in the basic pic¬
Rediscount

holders

to

LOEW'S INCORPORATED

&

200,000 shares ad¬

on

of

holders
ratio

will

Gas

10

of

5ERBORRD

Tuesday.

on

a

dend

December

slated to bring out 400,000 shares
of
additional common stock for

Kimberly-Clark Corp.

declared

plus

Stock.

capital stock of this Company,

some

Stock, and,

dend of 50 cents per share on the 10,020,000
shares of the Company's capital stock out¬

Company

rumblings of still

are

further

prevailing pol¬

The Board of Directors has

<i
dividend

a

In addition thereto, a
year-end dividend of
$1.25 on the Common
Stock, both payable

per

the

The UNITED Corporation

I

pr.00u

TEXAS GULF SULPHUR COMPANY

(Incorporated)

up

seen.

At

iT

The Board of Directors has declared

J. I. Case

new

likewise
*

Goodbody & Co.

DIVIDEND NOTICES

prospective

roster

offerings is
the- least.

ditional

drawback, it ap¬
peared, is the expectation that tne
Treasury
will
announce
next
month plans for a rather substan¬
tial

And

TI

1

~~

offerings.
Big

T

pjjr.
Johns-Manville
k A
Corporation

Goodbody & Co., Mott Foundation
Building.

size shows

any

schedule

i

FLINT, Mich. — George D.
Sharpe has become affiliated with

evidently

gives all the ear¬
marks of being the year's, slowest
five-day period for new corporate
a

DIVIDEND NOTICES

November 28, 1955.

Trough

Not

NOTICES

The Board of Directors declared

(Special to The Financial Chronicle)

week

undertakings.

JOHN3-MANVH.lt

of 75c per share

takers.

any

joined the s1,aff of
Investors, 3924 Wilshire

Evinger have

yield basis ranging from 3.15%

market

judging

of

ANGELES, Calif.—Daniel
Reid, Jr., Erwin Van Allen,

G.

it that certain

savings banks and insurance

blocks

issue

new

units
year-

on

DIVIDEND

'

LOS

panies have been approaching the
market,
through
dealers,
with

investors
cold

start

But reports have

a

a

such

among

early

an

,

(Special to The Financial -Chronicle)

end adjustment of their portfolios.

Report
turned

disposition
make

not

are

Calif. Investors Add

large

and could

the

Reporter's
Institutional

could be learned, the

as

offerings

to

have

near

potential

47

(2123)

L D. SILBERSTEIN,

President

r

Financial Chronicle

The Commercial and
48

Thursday, November 17,1955

...

(2124)
tions in

BUSINESS BUZZ

regime of tight money

a

;

trivial, Federal officials are

are

obliqueness

great

trying' with

pacify the building industry
and hint that everything will

to

on.

•

•

hunky-dory next year, with¬

be

out

A

Behind-the-Scene Interpretation*
from the Nation's

Capital

tions

l/U/ "A. U

jTJL m

f

limes

big

a

to occupy it¬
superficially
to be sheer nonsense,
because the customers
understand
the
tech¬

has

government
appears

simply
cannot

government

of

nicalities

Currently

neighborhood

ation

the

as

Veterans Administration

anteed

around about what the govern¬

is

ment

a

made

loans

pri¬

by

lenders, on an amortized,
long-term basis. The late Presi¬
dent's object, like the objective
of so many other things he had
mary

.

is
percentagewise.
government

VA

'

are

No

is

bricklayer

labor

ployed during the building sea¬
son
at almost constantly-rising

the
inflationary steam was really
poured through the pipes to
help stave off the postwar depression
which
every
one
dreaded, and which failed to

terialmen

schedule

arrive

on

by

many

so

the

house

has

swear

housing

of

volume

a

con¬

less

not

at

year

per

than 1.1 million units and pref¬

erably
become

considerably more, has
a
national objective as

politically sacred almost as the
prevention of a depression or
the keeping of farmers happy.
People who are all set in their
ways

of doing

want

to

other

for

like

to

$1.75

doing

busi¬

farmers

than

more

around

from $2.50 wheat to

go

wheat,

government

or

want

workers

look

of

ways

any

ness,

plans he
will
to

forego

to

leisurely,

comparatively
the

say,

believe

gents
should

making

get
or

dead

a

Uncle

for

their
non¬

some

doctrinaire

the

government

out
the

the

of

bakery

the

to

of his
that there

approve

be

can

sure

lender

a

will lend

who

comparatively
Moreover,
labor

with

buyer

down.

lessly.
people have to go really

In

such

a

that

*

it

is

builders

of

situation

the

howl
to
beat all when the government
most
moderately tightens the
terms

the

on

a

housing

beating

a

the

bush—if

phone he

just

plus

water,

and

potatoes

not

government-sponsored
credit. If the government frowns
about mortgage inflation, they

Their at¬

develop the shakes.

is reminiscent of

cupants of

a

the

oc¬

Russian concentra¬

last July

of

As

ficials

were

of¬

31, when

afraid that without

rate

a

even

"put

as

was

future

then

required that

time

(probably not yet)

when pending
all

should

whereby

a

two

over

of

lower-priced
of

25

lative

of

30

that

day

bad

they

Colorado Oil & Gas

Eagle Oil

Olin Oil & Gas

whole

business,

But where

is

tight

except

old customers, is going to make

loan

fork

the

to

it

when

no

5%

get

bigger

much

a

or

downpayment.

a

of

conditions the no-downpayment,

housing)
within

Reserve) will be
several

to

cause

many

is NOT going
of such loans to

be made.

investment and

main

(2)

The effect of this

is

"tightening"

privately belittled by

in the government who

builder,

any one

"credit restrictions" has become

is talk¬

be-all

ing elsewhere but for the rec¬
ord.
For one thing, little 1955

the

business

lower

would

be

influence

in

mort¬

credit has been Federal
policy, fully supported
by the Administration, of limit¬
ing the creation of bank credit.
This has forced banks to pick
and
choose
not
only
among
gage

Reserve

among

but

could

not

freely

of

gov¬

speculative
building, which they warn must
be planned several
months in
advance, will go to hades in a
bucket.
Do you want a slump
in building in 1956?
Well, if
you don't, Mr. Republican Uncle
term,

or

Sammy, cut out those mortgage
restrictions pronto, says the

expansion.

the

If

of

pace

boom

the

monetary

the

on

re¬

policy

in

will lighten its hold

creation

of

bank

re¬

serves.

(3)

If business boils, the Ad¬

ministration
nerve

mise

and

with

might

lose

consciously
inflation

its

compro¬

because

of

political considerations, for fear

psychology of recession
political criticism.

a

and
Will
Of

"Take

Care"

Housing

But

housing volume of l1/i
will be provided,
can
control it.
They

a

million

units

they
still

keep banks

whilst

setting

eral National

tion

with

on

a

tight

the Fed¬

up

Mortgage Associa¬
to
"buy"

funds

government-sponsored liens
liberally.
In other
words,
a
tight control on credit general¬
ly,

a

with

planned liberalizing of it
Treasury

Poor

money.

Al, he just can't

say

that.

[This column is intended to

re¬

flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's"

own

views.]

in¬

dustry.

classes of borrowers.

Banks

end-all

policy. Restore those
downpayments and the

30-year

more

borrowers,

and

ernment

affected.

thing, the far

the speculative
elimination
of these

1953, to

the rate of busi¬

on

same.

proportion

rein

to

the

lightens,

can

However,

in

ness

rein

Thus, monetary policy will

if

"Tightness" Is Issue

Effect Belittled

for the last

as

and

a

30-year VA loan

pre¬

months

hold

of

Conversely, officials will
point out privately, restoring
under
present
tight
money

to be the rate

expansion. The al¬
roughly, are three:

(1) Assuming business is
boiling *as at present, the dis¬
position of the Eisenhower Ad¬
ministration (and the Federal

accommodate

can

with

better

case

years

a

government-sponsored

414%

a

allowed for VA specu¬

individual

Anheuser Busch

of

bank,

building.

restrictive

a

amount

basis

instead

years,

maximum

viously

VA
loan

his

repay

period
the

in

credit,

busi¬

(from

downpayment

of

as

percentage

more

amplitude,

bank

in

or

officials will admit.

house

a

in

restrictions

credit

actually

to

downpayment

zero

a

on

of

buyer

have

would

done

time.

would have

certain

a

applications were

be

automo¬

eliminated
the segment where there is

in

some

of the way, future

out

ness

were

flexibility

that is what the howlers howled.
It

or

same

moderate

31

July

the screws," or at least

on

the

credit

If

these

1.5 million or
1.6 million units, officials

high

automobiles

and

one

construction might ascend to as

the guards shows up

with

business

of

business paper, make
loans,
governmentsponsored or on their own ac¬
count, and extend liberal credit
to mortgage companies, all
at

restraints the volume of housing

For another

Maybe

what is expected

mortgage

vegetable.

tion camp when the sergeant of

temper.

thinks I talk
tell me!"

bile paper,

even

of

titude

he

should

nance

sliver of meat and some other

of

speculative

the

White

get

and

natural

guess.

ternatives,
will

Howl

Builders

Entrapped

loud

too

points

Few

competitive.

ropeor

of

inspection

employed, and a lender can
make
a
4V2%
return
effort¬

competitive society, just

because,

not

or

is

competitive life for the horrors
of

a

be

little

business do not
to

have

the

government

by all the holies that these are-'
The maintenance

of

sure

around

beats

"Always

advances

good

subsidies,

farm

as

not subsidies.

struction

-to

housing is taken care of by
old Uncle.
So, once the
speculative
builder
gets
the

interest

vested

a

builders will

the

if

it

creditwise,

Even

process,

almost

even

have

Sammy takes care of any losses.

become

for

is for

funds

governmentsponsored housing construction
the

In

products. And
financing

whom

to

beat

,

other

doesn't

policy

depend

boom

a

monetary

is
First, it will
upon the view several
weeks from now as to precisely
one's

any

whether the buyer of the

worry

distinguished eco¬

of

assure

or

institution

brains.

nomic

bank

em-

the

What

to year. Ma¬

year

are

market for their

predicted

as

from

wages

postwar era

steadily

almost

is

is

will be, come next February,

Union

worker.

it

upon,

jective.

to

fellow

his

Administration, one
will guarantee
within its power, the

count

achievement of the Sacred Ob¬

demonstrate that
lay more bricks better

can

than

or

the

if

ever

lengthened
1he repayment terms of these
housing mortgages, or all three.

he

the

But
can

restrictive

on

plication of the act, or lowered

with

guarantee
this now sacred
home-building objective of the

out-of-line restrictive prac¬

tices.

one

as

nicest of guys.

The Ad¬
ministration is NOT going to
liberalize
credit
generally
to

and

compelled

And

.

FHA

Congress and/or the Administration of the time has
successively, broadened the ap¬
downpayments

•

not frown

do

if he is rated

even

1956 campaign.

deal.

nice

the view is that
talking through his

just

of the

concerned, it appears

a

is

hat,

practices of unions, unless they

year,

'

be

to

done, was to revive prosperity.
Almost with each succeeding

*.

all

For

.

sundry other

government,
Al

the

greater

even

and

parts of this big and wonderful

equation, the dependence of the
speculative
builder upon the

ipersuaded the Congress
up the Federal Housing
Administration
to
"insure"

started in 1956.

are

various

In

ment-sponsored or often higher
cost house is taken out of the

set

mortgage

housing

non-govern¬

or

fi¬

that

Knowing

these

restric-

TRADING MARKETS

Delhi-Taylor
Fashion Park

Texas Eastern Transmission
Bank of America

Indian Head Mills
-

W. L. Maxson Co.

Pacific Northwest Pipeline Common
Pan American

Morgan Engineering

Sulphur

National

Co.

Wagner Electric
Riverside

Bought—Sold—Quoted

Carl Marks
FOREIGN

SCHERCK, RICHTER COMPANY
v.

Member Midwest Stock Exchange

.

Bell

Teletype

SI 456




320 N. 4th St.
St.

Louis

2, IV3o.

"

(i e., ease money) the application of its flexible
credit policy in order to make
sure
that' 1 Va million units of

but

When

Administra-

Eisenhower

tion will alter

scheme

"FHA"

veterans.

conventional

year.

Back in 1934 President Roose¬

•

especial

an

liberal
the

for

velt
to

loan,

more

•

construction'

housing

of

ume

next

going to do
certain vol-

isn't

or

maintaining

about

entire

guar¬

-

Administrator,

Finance

instance, even got himself
indicating that if need be the

government-sponsored credit,
the FHA insured loan, or the

fussing

current

and

Housing

the

Cole,

for

financed with

is

States

Promises Volume

Cole

Home

the
the
the

in
of
in

something
of 60%

construction

housing
United

mon-

key business. Nothing so aptly
illustrates this underlying situ¬

,

—

Depends On Government

what

with

self

take

wonderful

and

what kind of a lullaby

or

A1

and thereby
their jobs from them.

laundry business

restric¬

credit

these

they will sing.
AI

WASHINGTON, D. C.—Many

they will

promising when

eliminate

V#1II

gJ

SECURITIES

50 BROAD STREET

TEL:

HANOVER 2-0050

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•

&

Co. Inc.

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

LERNER I 00.
Investment Securities

10 Post Office Square,
Telephone

I

Cement

HUbbard 2-1990

Boston 9, Mass.
Teletype
BS 69