Full text of Commercial and Financial Chronicle : November 22, 1956, Vol. 184, No. 5588

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UNI V tLti b! I /

OF

MICHIGAN

1839

ESTABLISHED

NOV 26 1956

BUSlNESSADM,N(STRAri0M

Reg
•'V. ,:*f

Volume 484

Number

!

'

EDITORIAL

»

and economic

turn* that

It

weeks.

garded

Marx

S.

about

have

taken

colonial

or

crisis.

What

out

semi-colonial rule which

is
>

jeopardizing growth

and (3) at

era

carry us over

of great

to manageable

pressures

seem

•-

•

in the United States today,

as

in rather

The

polls

of the

free

duction and business activity.

cause

economic
We

/

30

by

NOW

afforded

complete

undertakings in

our

predict its economic

not

exaggerate the
the
economic

to

mean

between

views of the two major

Clear¬

the

ties,
„

S.

Medical
'

Sloan

picture of

Strollers,

■'

REGISTRATION—Un ierwriters,
a

do

I

differences

pro¬

■

IN

SECURITIES

before

Colt

Mr.

1956.

securities

philosophy that guides it.

better

can

Colt

nor

results

There

on

been

has

of both

ment

a

•;

Continued

.

by

Dr.

Jacoby

the

before

State and

starting

Section,

poten¬
38.

page

on

and
Public

Municipal

STATE

MUNICIPAL

and

COPIES OF OUR

BONDS

CORN EXCHANGE

INVESTOR"

bond

department

ST.,N.Y.

ON

Request

on

THE FIRST NATIONAL CITY BANK

Burnham

and

MEMBERS NEW YORK ANO

Company

.

YORK 5, N. Y.

*

OF NEW YORK

New

Members

Dl 4-1400

Bond Dept. Teletype:

NY 1-708

To Dealers,

T. L.WATSON &CO.

Commission

-New. York Stock Exchange
American

Stock Exchange

STREET

NEW YORK 4, N. Y.

BRIDGEPORT




Columbia

BANK

Marmon-Herrington
Company, Inc.

Guaranteeing Pacific Great
Eastern
3% %

Executed On AH

Payable

DEPARTMENT

Price

in

15,

United

92%

COMMON

Debentures

Due June

At Regular Rates

Railway

to

Analysis

1981

States

Dollars

oar

upon

Unlisted

request to

Trading Dept.

(Room 707)

yield 4.25%

DIRECT

WIRES TO MONTREAL AND

TORONTO

Dominion Securities

Goodbody & Co.

©RPORATION

MEMBERS NEW YORK STOCK EXCHANGE

gcuthuxdt COMPANY
DALLAS

CANADIAN

*

Chase Manhattan

Teletype NY 1-2270

25 BROAD

FIRST

Orders

Canadian Exchanges

of British

Province

SECURITIES

Members

Exchange

YORK 5

$150,000

Banks and Brokers

CANADIAN

1832

THE

34 offices from coast to coast

Net Active Markets Maintained

District Bonds

Stock

York

120 BROADWAY, NEW

TELETYPE NY 1-2003

ESTABLISHED

REQUEST

Harris. Upham & Ce

AMERICAN STOCK EXCHANGES

CABLE: COBURNHAM

County and

AVAILABLE

ARE NOW
'

Available

15 BROAD STREET, NEW

State, Municipal,

DEPARTMENT

BOND

LETTER

BANK
30 BROAD

'

"POCKET GUIDE FOR
TODAY'S

FOREIGN

Housing Agency

Bonds and Notes

LATEST

HAnover 2-3700

CHEMICAL

26

State, Municipal

bmm

Securities
telephone:

page

of Stanford

dealers and investors in corporate

in

II. S. Government,

on

Associates
1956. '

Institute, San Francisco, November 14,

Research

.

issues now registered with the SEC and

"Securities in Registration"

Jacoby

parties toward the ideological "middle of
away from the radicalism of

addres

*An

Oct. 31,
.

Neil H.

gratifying move¬

in recent times,

road"

the

political par¬

the impact of the election
the future of the economy.

Continued on page 34

\Vv\address

Administra¬

actions under changing conditions.

end. We may derive additional satis-

an

a

Administration, be¬

We know from the record the

tion.

past decade have far surpassed what
thought possible or feasible when
to

would have had with

have had nearly four years

we

of experience with this

<

most of us would have
war came

better knowl¬

changing economic situa¬
we

Democratic

new

ly, the economic attainments of the

the

to the

act

tion than

world

high level of

a

a

how the present economic
policy-makers in Washington will re¬

.

registering

are

Nov. 6 has cleared away some of the fog in our

of

edge

country.; Abroad, the ravages, of war.

nations

•

PERTH AMBOY

115 BROADWAY
NEW

YORK

1 NORTH LA SALLE ST.

CHICAGO

:

victory of the Eisenhower Administration at the

on

crystal balls. We have

•have in large measure been repaired,
most

cob-

confidence, and fiscal-monetary policies;
and perceives for ,1957: rising government and reduced
capital expenditures,; lower inventory additions, about
the same home construction outlay, enlarged consumer
expenditures, more competition, and narrower profits.

Nor;, is .prosperity limited to this

and

cam¬

tinned business

pro¬

ployment is at a peak, Some industries
are i admittedly ^lagging,•' and
agriculture is certainly not sharing •
in the current prosperity.
And yet,
never
before Tiave so many people
enjoyed such a high standard of liv-*

ing

views held during recent
Concludes Eisenhower's re-election means

paign.

the threshold into a promising /
growth potentialities,
v

economic health

our

;,

a

and money compensatory

'

economic

Diagnosticians of

*An

tial

Mr. Colt

general agreement that the American economy is demon¬
strating- excellent, energy^and^ vitality.; The output of
goods ..and. services is breaking all previous records,
personal incomes are rising, arid em^
!

imperialists are doing all that they can to salvage
at least some part of their domains/ One impe¬
rialist, Russia, is using all her wiles to extend
her empire.The so-called backward peoples, with
assets that are widely coveted, are, first of all, an¬
tagonistic to those countries at whose hands they
think they have been exploited in the past. There
is no reason to suppose that they are any more
desirous of becoming vassals, or worse, of the
Kremlin. The Kremlin, however, is using all its

DEALERS

boom

will continue in 1957," at

slower rate than:
in 1956, and will not be succeeded by a decline. Dr.
Jacoby praises results-obtained by use of Classical
monetary theory; and finds remarkable the similar tax.

(2) tax reduction

fiscal policy need not aggravate inflation.

portions and

long established in certain: parts of the
with a long cherished ambition to ac¬
quire such interests on the one hand and on the
other native populations now fairly seething with,
a newly aroused nationalism and a deep hatred
of what is now known as colonialism. The former

are

three years

end to inflar

V ''

or

page

stability;

"over-all expansion of the U. S.: economy during past

"

an

which may contain

'

interests

on

-

Former Council of Economic Advisors' member believe* /

pictures recent uptrend in business and prices as a cycli¬
cal advance, not likely to persist indefinitely; lists factors

have here is a group of nations with

Continued

or

possible with large budget surpluses,

most

•

World

By NEIL H. JACOBY*

Dean, Graduate School of Business Administration

tion, and, provisions to stimulate savings;

No citations from Engels

or

we

Copy

University of California, Los Angeles

particularly concerned about the growth of social¬
istic or communistic ideas or systems in the Mid¬
dle East—except so far as economic loss or injury
to them might result. * No one who; has cut his
eye teeth supposes for a moment that the Kremlin
is motivated by a desire to aid the Arabs by con¬
verting them to communism,
f

a

Factors in 1957 Outlook

COLT*

relating credit policy practical limitations, budget
pressures, and persistent rapid wage increases, Bankers
Trust h6ad observes: (1) inflation bias can be met with-

.defending, the actto^ taken by
Nasser,- Neither England nor France were or are

explaining

Cents

In

in j recent

Leniri were.-needed or employed in

or

SLOAN

Chairman of the Board, Bankers Trust Co., New York

Egypt's resistance to what it re~

was

set off the Suez
or

stops to think of it,

systems are playing in the

affairs

world

as a

one

Price 40

7, N.- Y., Thursday, November 22, 1956

Some Thoughts on
Economic Trends

role philosophical tenets

a;limited

social

v

:

It is remarkable, when

what

New York

5588

U. 8. Pat. Office

IRA H4UPT & CO.
Members Xtui York

and

ot

111
40

Exchange Place, New York 5, M. T.

Teletype NY 1-702-3

WHitehall 4-8161

WOrttl

r

Stock Exchange

Principal Exchanges

Broadway, N. Y. 6
OOO

TeleFvne NY 1-2708

)T

2

The Commercial and Financial Chronicle

(2174)

The

Brokers, Dealers only

For Banks,

In Service

participate and give their

find

you

your

best

Amerada Petroleum

you're looking
service,

lor-

With population on the increase,
use of the combustion engine ex¬

call to

panding, and chemistry opening
new
fields,
oil's
future
looks
bright. Ap¬
pearing some

place a nbone or TWX
"Hanseatic."
■
-

■'

,

,

months

back

before

-New York Hanseatic

the

School

Corporation
Established.

120 Broadway, New

Private

SAN FRANCISCO

63%

■BagmmnaaiiiinitffliiiHiitHintmmiii»iil»lllIlll»llllllllllllimilllUlllliiailMilffl^
55

v

Specialists in

|

1

rights & scrip

|
-

m

IfopONNEII&fO. I
New

York

American

ISO

Stock Exchange
Stock Exchange

=

TEL.

REctor

increase

in energy con,.

2-781K

Charles. J.

.

sumption by

§
*

the

United

States

I

Trading Markets

1955

barrels

a day to 13,300,000 barrels.
making this calculation, the

In

well

of atomic

energy,

as

coal

and
hydro-electric
to the total energy demand

as

power,

A

exceeds

U. S. production. This gives added
value to companies which hold large

in

Canada

and

in

drilling activities in this
as

coun¬

intensely
the earnings outlook for
companies supplying the oil pro¬
ducers, such as Halliburton, Dres¬
new

reserves

Products, Inc.

Bank of Virginia

Supply, ^aud Lone
Steel, is also improved. This
oil
shortage -detracts, jhowever,
from the
long-range outlook of
companies that are mainly refin-

Company

Telephone Co.

Star

with relatively

e|rs

Scott, Horner &
Mason, Inc.
Lynchburg, Va..
LD 33

Tele. LY 62

small

utors of oil.
A

third

considerat'on, as re¬
spects oil shares, is their attrac¬
tiveness

as

inflationary hedge.

an

In addition to the value of current

ducers

and

pro¬

integrated comoanies

Trading Markets

(that is, refiners and distributors

Birdsboro Steel

that also have large reserves) have
oil in the ground to
supply them
over

Magna Theaters
Official Films

As inflation, cr

many years.

the rise in the general
price

progresses, these

United Artist'Theater

♦.

flected

in

Amerada
outlined

ftreenae c^aC omp arv^
17 Wall St., N. Y.

1929

Tel. HAnover 2-4850

price

This is

of

the

re¬

com¬

pany's shares entirely independent
of current earnings considerations.

Circuit

•ESTABLISHED

the

level,

become

reserves

increasingly valuable.

Sugar

all

meets

of

the

tests

above.

Being
in
the
industry, it will natu¬
rally benefit, along wjth other
companies, from the expanding
petroleum

demand

solely

for

oil

products.

producer, it is in

a

one

Having large
are

Official Films
Seaboard Drugs
Stancan Uranium

Racing

Transcontinental Oil

reserves, its
excellent inflation

an

Also,

Southland

because

of

Philippine Oil Development

to

Exchange PI., Jersey City, N. J.

HEnderson 2-8570—N.Y.:

Dlgby 9-3424

Teletype JCY 119




part, have been snuc
the

in

are

the

influence

of

unsettled

for¬

This is only a part of the story.
factor in the company's

Another

favor has been its consistent

and

outstanding

dis¬

Uhmees" 2-0700

Birmingham, Ala.
Mobile, Ala.

Direct wires

the

large

It has

traffic.

national

that

35-cent

a

STOCKS
t after

remaining at practically
stationary levels for three years
now
appear to be stirring due
to improved Japanese
economy.
For

barrel

>

its

important

North

In

ment of oil.

$11

This left $19.5 million,

million

which

of

paid

were

out in dividends.

Among the company's more re¬
important discoveries have
North

Dakota,

corporation

where

the

35% of the two

owns

main fields, and Sturgeon Lake in
Northern Alberta, Canada, which

eventually

may

prove

to

be

enumerated

considerations

including

7

unexplored

111

Its purchase

is

recom-'

long term holding at

current levels of 108 by

an

with

Ohio1 Oil,

~

—

DELHI

Common Stock

WISENER

COMPANY

and

LIMITED

those who

the

can
forego yield in the interest
of appreciation.
While Amerada
participant in; would
hardly be inpmune to gen¬
the Williston Basin, having over
eral market decline, it should hold
one million acres in the
Montana
up better than the average stock
portion of this region. In partner¬
under such conditions and, over a

also,

Broadway, N.Y. 6 COrtlandt 7-5681

PETROLEUM, LTD.

73

largest discovery to date. Amerada
was

/

Established 1897

.

CANADIAN

and (2) taking into con¬

for

„

above,

potential in large
acreage held by the

generally
since 1952, and of the oils in par¬
ticular, Amerada's stock seems out
line.

;

Maintained in

sideration the rather wide appre¬

mended

;

•

Firm Trading Market

_

ciation in prices of shares

of

write

Office Tokyo — 70 Branches
Brokers A Investment Bankers

the

company;

cent

been

action
of five
producing
companies shows an advanee of
40% or more. On the basis of (1)

or

Home

price

reinvested.

was

Call

Yamaicbi
Securities Co., Ltd.

earnings by around $1.5(1 a share.
Following

information

current

7

Amerada's

raise

would

increase

$43

million

offices

JAPANESE

been esti¬
per,

resting as production and earn¬
ings, caught up with the price.
Over the same period, the Stand-,
ard
and
Poor's aVerage
of the

To

of total cash

branch

our

from

illustrate, in 1954, out
earnings (net income
plus depreciation and depletion of
allowances, etc.) of $54.3 million,
serves.

to

Larger

the North Dakota
properties are also indicated fol-*.
lowing completion late J.ast year
of Standard
of Indiana's 30,000-

mated

NV1-1557

New Orleans, La. -

awaiting

pipe line completion.

profits

Klnf St. West

—

Toronto, Canada

early

Continental

the

Oil

and

obtained

company

Libya last

December.

several

period,

year

sell J

should

substantially above current levels.:
The stock is, listed on the New
York Stock Exchange.
;

Burns Bros. & Denton, Inc.
.37 Wall

Street, New York S, N. Y.

In

valuing Amerada, as true of ;
any
oil- producer or integrated
company,
considerable attention
must be given to its reserves. De¬

:

tion of

67 cents per

barrel

is

on

reserves.

from

an

the

fact

the

This

in

abso¬

that

99

cents,

lank

batteries,

ministration,

overhead
other

for

past

few

and

years

Consolidated

Dealers

American

Investment Securities

of Pacific

Corp.—a

1953,
Yuoa

ported

com¬

26,
that

Gold

Fie^s

May

h?d

bou2ht.

fr

$350,981, 40,000 shares of Pacific
Consolidated Corp. as an in¬
vestment (averages $8,78 a share).
Whereas formerly,

of

tion

tin

was

the

$
<2

,pr«4

o

/ 1 mi

^ Am

<0

consump¬

limited

industrialized

highly

H0\>« W/u

Moody's re¬
Consolidated

Tin

ad¬

Canadian and Domestic

whose
a

as

expenses

■i

,

common stock war¬
second look.
As recently

pany
rants

the

while,

and

the

Tin

average drilling cost per barrel of
oil in
this country during
1955

averaged

-Underwriters—Distributors

Chicago & New York

Tin,
Feldspar,
and
Diamond
Mining—here is a .combination of
economics
to
conjure
with.
It
does
measure
the rapid growth

lute standpoint when we take into

consideration

V

:

Pacific Tin Consolidated Corp.

relatively low figure as com¬
pared with a majority of the other
It is also low

Y. Stock

Stock Exchanges,

a

oils.

N.

Members

ducting all the other net assets,
including 2xk trillion cubic feet
of gas, it appears that the market
(Nov. 13) is now placing a valua¬
company's estimated

HOWARD W. SEIBERT

Spencer Trask & Co., Chicago, 111.

shares incident to the finding of
oil, the
hedge.. cost per barrel is believed to be

reserves

eign political conditions.

to

the

'^Saving**

countries of

Europe and North America, today,

currently running at

near $2
its use expands rapidly in such
Earnings in 1955 were reported 'places as Asia, South America and
at $4.02 a share, this
comparing some European countries. Russia's
with $3.13 a share in 1954. Earn¬
industrial expansion could mean a
ings are held down by the heavy
significant increase in tin con¬
development costs previously dis¬
sumption, particularly if its Fivecussed, which are conservatively Year-Plan objectives arej to be
charged against current income. realized.
We are
aware
of the
Cash
earnings ran at
$10.14 a
,expansion that has taken place in
share, this comparing with $8.64 the United States in facilities for
for the previous year.
Dividend
the making of tinplate. It is sig¬
rate is $2 a share.

N. Q. B.
OVER-THE-COUNTER

1

■

successes

covery

of

new

at

160

1937,
400

CAPPER & CO.

its

mainly in the United States and
Canada, its shares are not subject

mated

United Western Minerals

1

Pacific Coast.. The company,
approximated ?5 nil
Sturgeon Lake which, for the most

if we
add the estimated cost of acquir¬
ing the land or leases, the geologi¬
Being cal and geophysical work, field

the best segments of the industry.

Trading Markets

been

extensive concessions in

earnings and dividends, the

Punta Alegre

the

has

_

.

18 Rector St., Now York f, N. Y.

.

eries, the price of Amerada moved
up in 1952 to around $117 a share.
Since that time, the stock has been

crude ship

act purely as distrib¬

reserves, or

Members New York Stock Exchange
Members American Stock Exchange

-

per¬

has

are

National

ser,

Alabama-Tennessee Natural

Steiner, Rouse & Co.

~

centage of profits that has been
consistently plowed back into the
development
of
additional
re¬

South

Because of the stepped-

sought,

.

Co:, ' Chicago, " 111.

(Page 2).

Dakota and Sturgeon Lake discov¬

1955, out of $61 million of cash
important considera-" earnings, $44.5 million was plowed
studying the oils is that back into the finding and develop¬
now

B ought——S old—Quoted

—

Seibert, cf Spencer,

&

Trask

Amerada's

in

second

tion, in

try

factor

taken into account.

was

up

Gas

Howard E.

ability of Amerada's,
management is attested by the
company's growth record as shown
in the persistent expansion of re¬
serves,
this despite the fact of
steadily mounting production by
the company throughout the years.
Some other sidelights will be of
interest. For example, relative to
its size, Amerada drills only onehalf to two-thirds as many wells
as
the industry average; second,^
only 29% of the total wells drilled
by the company in recent years

growth

between

1975, with the use of oil in¬
creasing from the present 8,200,000

reserves

Sootheastern

Pacific Tin Consolidated Corp.

Unusual

Another

and

America.

Air Control

below, we

have used the lesser estimate.

Collin*
.

U. S. demand for oil

BROADWAY, NEW YORK S

calculations

Louisiana Securities

J.

Collins, Chairman, Invejiment
Letters, Inc., Detroit, Mich.
(Page 2).

avenue, has, time and
again, gotten the jump on its com¬
petitors in the location of new
major fields.
<

com¬

contribution

Since 1917

In

Petroleum—Charles

Amerada

nor

important

his

pany studies
i n dicated a

to Principal Cities

Wires

be,

that

ard Oil of New

CHICAGO

•

PHILADELPHIA

to

Alabama &

barrels-per-day refinery at Manwere dry as compared with a 33%' dan,
N. Dak. Additionally, there
is the possibility that crude
oil
average
for the industry; third,
the
company
has pioneeredin prices will be advanced in price at
geological study and research and, a not too remote.date if the Suez
through taking advantage of this is not quickly reopened to linterr*

dent of Stand¬

York 5

•

BOSTON

;

_

Teletype NY 1-40

WOrth 4-2300

particular security.

a

intended

not

■*

Selections

Jersey stated

1920

Exchange

Stock

of

Banking of
the South, at
Baton Rouge,
La., the Presi¬

Member

Associate
American

are

mistic.

*

The next time

for favoring

Week's

Participants and *

Their

offer to sell the securities discussed.)

Chairman, Investment Letters, Inc.
Detroit, Mich.

and dealers

try
help
markets.

as an

CHARLES J. COLLINS

wires to banks, brokers
throughout the coun¬

private

they to he regarded,

are

of

network

nationwide

reasons

(The articles contained in this forum

Try "HANSEATIC"
our

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

For the Utmost

Let

Security I Like Best

.Thursday, November 22, 1956

..

reserves

the

oil deposits.
million

Esti¬

barrels

had grown to

in

over

,

million

1948, and
informed
750

in

barrels at

the

end

of

placed by most
petroleum
analysts at

are

now

million

barrels, although one
widely recognized oil expert states
that

he

can

see

as

much

as

one

billion barrels if he becomes
opti-

Looking to 1956, further earn¬
ings improvement is anticipated.
For
one
thing,
new
earnings
should
on

come

from

Canada

based

completion of the Trans-Moun¬

tain

pipe line which will

move

oil

westward from Sturgeon Lake to

INDUSTRIAL STUCK INDEX
14-Year Performance of
35 Industrial Stocks

nificant that the Russians in their
recent trade talks with the British

listed

tinplate

as

a

China also has approached Britain
for

the

same

item.

FOLDER

From

this

it

-National Quotation Bureau
Incorporated

46 Front Street

Continued

ON REQUEST

wanted item.

on

page

16

New York 4, N.

Y.

Volume 184

Number 5588

The Commercial and Financial Chronicle

...

(2175)

Inflation

INDEX

Way of Life

as a

By ROGER M. BLOUGH*
Some Thoughts

U. S. Steel's chief executive officer calls upon Congress to
revise tax laws to offset inflation's
"devastating effects,"

Enduring and Non-Enduring Factors in 1957

and reminds newspapers of their contradictory stand
tion. In reviewing his firm's efforts to stem the

Inflation

—Neil

infla¬

H.

Jacoby

as

It

is

the

I

problem

want

to

of

respecter of persons;
favorites.

no

inflation

discuss.

It

It

is

no

and it plays

strike s—with

equally devas¬

tating effects
—the

Are Our

n ews

the

steel

maker.

Not

long

ago, one
the largest

of

and

p apers

ing

a

bor

Stock Market

Can

of

it

labor

for

'»Economists

constant

a

can

But when

books and

doing

According to this
statement,

own

its

give

facts

United

at

theoretical about

its

local

advertising rates eight times—and
its national advertising, 10 times.
And

in

spite of all this, its

earn¬

ings had shrunk.

from

States

the

Steel;

books

and,

of

for

Now that story is not unique in
the newspaper

know

you

perience.

from

1940,

we

on

a

to

U.

S.

substantially;
mounted

shipped

70%

and

our

customers

pled,

more

receipts

have

Wonderland,
and

where

we

than

from

almost

in

- our

quadru¬

profit rate has declined.

our

Like the Red

faster

steel

we

Queen in Alice in

we

have had to

faster,

just

the

of

to

run

stay

are!

for the

ings

in

account

past

And

your

been compounded

STREET, NEW

YORK

WHitehall 4-6551

APEX

MINERALS

Conflagration—
9

this

on

a

has been

in¬

bank—has

per

going

at

up

„

11

J.

BIG-HORN '
POWDER RIVER
12

for

Finance

E.

Face

the

Future

GENERAL MINERALS

14

Together

Wood

Firms'

CATARACT MINING

13

Petroleum—E. T. Knight-

HAILE MINES

18

Contribution

in

STRATEGIC

Extending Ownership

Eaton, Jr

20

MATERIALS

O.

Cartwright

22

York

City's

Future

to

Be

Analyzed

at

Pace

J.F.Reilly&Co.,Inc.

College

Members

Conference

Salt Lake City Stock Exch,
Spokane Stock Exchange

15

Marcus

Nadler

Money

Discusses

Market

Moderate

Recession

Prospects

42

and

Outlook

Broadway, New York 4

DIgby 4-4970

20

1

Jay E. Crane, Formerly with "Chronicle," Retires From Vice-

Presidency of Standard Oil Company

(N. J.)

Teletype NY 1-4643

Exchange

Jersey City

27

Wires to Salt Lake

Railroad
Ten

Place
HE 4-3634

•

City & Denver

Industry's Growth Potential Projected for Next

Years

32

Regular Features
As We
Bank

See It
and

(Editorial)

r

Aztec Oil & Gas

.'

Cover

—

Stocks

Insurance

Business Man's

Bookshelf

Air Products

29
;—

45

Coming Events in the Investment Field

Official Films

8

Dealer-Broker

8

Investment

Recommendations

Chesapeake Inds.

the

rate

therefore,

gap

rising

a

widening at

re¬

between

costs

our

and

rate

a

of

From Washington Ahead of the

about

Mutual

to

News

increase prices at

of

a

little

less

5V2% annually—and even this

37

Singer, Bean

44

Funds

&

6%

So in order to bridge that gap—
in order to pay our bills—we

rate

12

Indications of Current Business Activity

About

Banks

Observations

an

Bankers

and

40

Direct W ires

Our

Reporter

Governments

on

inc.

Exchange PI., N.Y.

Teletype NY 1-1825 & 1-4844

5

to

31

Philadelphia * Chicago * Los Angeles

than
was

Mackie,

HA 2-0270

28

A. Wilfred May

—

and

had

17

—

News—Carlisle Bargeron

cur

since 1940.

year,

Einzig: "Suez Crisis and Disinflation"

A bit of

per year.

slowly-mounting output has been

average

Maynard

annually.

arithmetic,
that

rapidly

have

10

total production per man

of less than 3%

veals

1957—Walter

Wilson

sav¬

rising at the rate of nearly 9%

simple

W.

15

But while these costs have been

each

cash.

means

above the level

before.

year

hour

And in
year

That

crease—like the interest

our

but

year,

of nearly 9%

year, our

enormously.
our prices

number of occasions.

every

has

have had to raise

spite of the fact that last
1940

Steel.

production

our

have

So

ex¬

respect

increased
costs

sure

own

your

happening

Since

I'm

as

Nor does it differ in any
from what has

essential

been

world,

Outlook

New

a

years,
our
total costs per man
hour have increased by an aver¬
age

WALL

for example,

you,

rate of 8.7% per year.

that

99

7

Telephone Utilities—John J. Scanlon

—Edwin

perfectly clear.

starter, let's look at our total
substantially. Its revenues costs per employee hour. These
had tripled in the past 20 years. total costs include
wages, materi¬
But its major costs—for
newsprint als, replacement, taxes — every¬
and payrolls had
quadrupled. So thing short of profits; and since
it had to raise the price of the 1940
they have risen at an average
boosted

that
Don't

the

Obsolete Securities Dept.

businesses,

own

grown

had

for

us

Industry Research Programs for the Investor to Watch

our

circulation and its advertising had

It

quick-

you

what inflation

see

our

is nothing

few

a

sold

*

to

me

look

in

Base—Charles F.

these

argue

we

The problem is
Let

with the union.

paper.

for

Investment

it.

6

—Dwight W. Michener
Outlook

—Harold

there

Roger M. Biough

Business'?—Robert R. Young

The Current Economic Situation and Middle East
Crisis

in¬

contract

newspaper's

The

Education and

own

la-

new

who

for Australia.

lo

scurry

'

4

fast-running,

set

Telephone:

for Aluminum—I.

1957

is

negotiat¬

was

Does it stem chiefly

Outlook

too-rapid

a

labors.

tfiis country

in

find

we

questions endlessly; and I, for one,
shall gladly leave them to their

richest

n ews

scale,

groping ropelessly in a
maze
of economic
theory.
Does '
inflation result only from profli¬
gate fiscal policies of a struggling

ity?

that

salesman

obsolete is all
worry,

Money Controls Outmoded?—S. Clark Beise

creases—wage increases too large
to be met out of rising productiv¬

«

-

4

—Roger W. Babson

succession of "unearned" wage

paper

Maybe
talking

!,

or

Market Impact of Middle East

mands

publisher and

WIN THE OLYMPICS?

3

•

rise in private
possibly be caused
by the insistent and successful de¬

the

—

nationwide

a

debt?

the large busi-

..Cover

Situation of Tight Money—William H. Neal

ourselves

from

business and

mm—m—mmmm—mmaJ

*

government?

small

n e s s

on

Outlook

I

Whose Inflation: Goverment's

The

that

AND COMPANY

WILL YOUR BROKER

Fabulous Foil—Ira U. Cobleigh

realistic treatment of depreciation under the tax
laws, Board
Chairman Blough urged further issuance of fast amortization
certificates.

■w

Cover

Way of Life—Roger M. Blough

a

inflationary

tide, Mr. Blough refers to the onerous tax on reinvested earn¬
ings, "unearned wage increase" that must come from either
profits or higher prices, misconception that rising steel price
causes
inflation, and adoption of forward looking depreciation
legislation by France, England, and Canada. Pending a more

Page

*

Economic Trends—S. Sloan Colt.

on

liCHTfnSIl

B. S.

Articles arid News

Chairman of the Board, United States Steel Corporation

on

3

Our

Reporter's Report—

*

not

Adopted

New Way of Life?

a

So I sometimes wonder whether
we,

nation,
have
uncon¬
adopted inflation as a
of life. We call it the prob¬
as

a

sciously
way

lem of creeping inflation—or the
wage-price spiral—and we recog¬

nize it

as

serious

a

all agree that

problem.

quite enough to do the job. If
our prices had been raised
enough
to compensate fully for these
sky¬

rocketing costs, during this period,
the profit we make today on each
dollar we get from our customers
would
1940.

We

But

we

don't

know who should ;do it.

quite

In

1940 that

9V2 cents

,

Now, unfortunately, whenever
probe the causes of inflation

we

—which
have

we

profit
•An

address

National
Nov.

9,

by Mr. Blough before the
Association, Chicago,

the

same

as

it

was

we

on

carry

Editorial

Prospective

many years we

Security

Salesman's
.

.

year

year

had since 1940—the

only nine cents. And if
the historical comparison

Continued

on

page

Washington

24

ST., NEW YORK 4, N. Y.

Twice

•

Nashville

Boston
•




•

•

•

a

B.

ANSCHUTZ DRILLING

5

Common Stock Around $3.50
1.

Largest oil drilling company in
Rocky Mountain area. 2. Its rotary

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

Weekly

New

2-9570

Reentered
ary

.

to

SEIBERT,

DANA

25,

second-class

as

1942,

at

the

post

Nov.

22,

rigs operating
interests

matter

office

Februat

New

proven

oil
Subscription
Subscriptions

.

President

Possessions,

in

Territories

Pan-American

Union,

Dominion

Canada,

of

Rates

United
and

$60.00

U.

S.

Members
per

$63.00

of

year;

per

in

year.

Every

Thursday

vertising

(general

and

corporation

and

city

—

and

bank

clearings,

Monday

etc.).

Chicago

Offices:

3,

111.

135

South

(Telephone

Bank

La

STate

Salle

St.,

2-0613);

and

proven

gas

exceed¬

Over

3.

and

un-

properties in 8

producing states. 4. To help
Europe's urgent need for
oil, Anschutz Drilling Co.
,

more

and other oil

companies

are

going

full tilt ahead.

Publications

Quotation

$40.00 per year.

Record

Monthly,
(Foreign postage extra.)

Kote-On account of

the

Worcester
Other

Other

ad-

market

news

news,

news

month.

of

its

states

Other Countries, $67.00 per year.

1956

(comquotation

every

issue

statistical

records,
>

state

issue)

per

oil and

Send

1-5

oil wells in 5

gross revenue

meet

States,

and

contract

on

in 97

produce
ing $500,000
125,000 acres
now

Y0rk, N. Y., under the Act of March 8, 1879.

9576

u.

Thursday,

Eng¬

York 7, N. Y.

SEIBERT, Editor & Publisher

D.

C.

Copyright 1956 by William B. Dana
Company

-

HERBERT

E.

and

COMPANY, Publishers

DANA

Park Place,

WILLIAM

Glens Falls

.1

—

recommend

2

,

48

Reg. U. 8. Patent Office

;

TELETYPE N. Y.

Chicago

Schenectady

———

CHRONICLE

FINANCIAL

plete

Albany

—

You

and

COMMERCIAL

REctor

Members New York Stock Exchange

•

For

'•"Column not available this week.

25

Spencer Trask & Co.

Drilling
Exploration
timely oil investment

and

16

Best.——n—

The State of Trade and Industry

PREFERRED STOCKS

TELEPHONE HAnover 2-4300

Domestic

33

—

You—By Wallace Streete

Security I Like

WILLIAM

BROAD

41

Corner

and

.

Offerings..

..

25

Middle East Oil Crisis

38

we

The

Published

have specialized in

32,

Registration—

Indicates Need to Increase

The

For

in

Now

The Market

was

1956.

Securities

31

----

——

profit amounted to

Last
by far the best

ever

Securities

Securities

Security

the dollar,

was

Utility

Railroad

in

But it is not.

Last Year's Profit Not High

something should be

done about it.

be

Public

rate

of

exchange,

the

—

fluctuations

remittances

for

in

made

in

New

York

funds.

FREE

Report.

General Investing Corp.
Members

American Stock

Exchange

for-

eign subscriptions and advertisements must

be

for

80 Wall St., New York 5 •

B0 9-1600

4

The Commercial and Financial Chronicle

(2176)

its major holding
being-a 47.69% of the outstand¬
ing
shares
of« Reynolds
Metal
Company. (There are also lesser

...

Thursday, November 22, 1956

company—with

Fabulous Foil
»

*

*

f

■

By IRA U. COBLEIGH
Author
"How

Gain

to

"

■

including controll ng
shareholdings in Eskimo Pie Corp.
and Reynolds Research
Corp.; and

the growth of aluminum

on

uses

*"

This

is

an

steel

of

alone has
on the

per

.•

The

of

chairs, pahs, fans, and
planes, mains and trains,-"
coils and
foils; sheds and sky¬
scrapers.
And
a
new
use
is
coming along with each passing
day.
We have all-a luminum
windows,

point

cans;

growth,

aluminum

has

outpaced them
all.
we

So

today
open with

boats; we

account

some

in.,

of this bauxite

plications

i

•

n

and
apprais¬

peace;
some

al

of

its

think
Ira

ve¬

U.

locity

of

ex¬

indus¬

into

metallic

before

scene

century, out it

around

1910

brought

to

its

up

shiny

Dec.

brisk

for

above

Aluminum

so

America

and

Company

Reynolds

could

business

estimated

an

3,000,000
For example, for
period running from
1955, through Dec. 31,

31,

1959,

of

Metal

Company are both projecting ca¬
pacity increases of about 35%,

new-style

a

meet

1960.

in

tons

experts

burgeoning

the four year

was

reason*

salesmen

of

until

price

within

door

build

the

on

torn

not

was

that

down

that door

the

further

demand

past pace

The

postwar en¬
industry,
sub¬
expansion
is

this

to

S.

conjec¬

new

planned
U.

the

Despite

can.

stantial

whether the
continue same.
and

try can
Aluminum first emerged
the

it

with

lightweight pots and Kaiser
Aluminum,/60%.
Since then the produc¬
aluminum
has
ad¬
tion pace of aluminum has"beent Pricewise,
vanced substantially since the end
simply terrific. The U. S. output
of. the war, but competitive metal
(1955) of 1,565,000 tons was 88
prices have advanced even more
times the 1910 figure, an average',
sharply; so that aluminum's rela¬
compounded growth rate of 8.7%,
tive
cost
relationship
continues
against the average annual rate
favorable.
increase, in this period, in gross 1
With this rough resume of some
national product in the order of

and pans.

3%. In the single five year period

of

1950-55, U. S. production doubled.
So
you
perceive a remarkable

affecting

histb'ry of grpwth.

stint

the

broad

economic

alt^lninumv!, let
the

to

move

forf

second

hall

today,: and

factors
us

of

now
our

consider

a

Aluminum has zoomed thus due- company that has delivered to its
fortunate long-term holders one
to an unusual combination of
qual¬
of the sweetest capital gains re¬
ities. First and

foremost, of course,
lightness — one-third the

its

'is

weight
As

of

early

neers

off

as

were

alloys

to

the

pounds
average

or

the

iron.

1916, automotive engi¬
on aluminum
of

some

and

Eldorado

the

today's

will

pack

This

45 pounds.

moves,

from

mower

1957

listed

stock

Stock

on

Exchange in
Foil, B.

$5

share

a

year

in

of 60%.

1953

to

a

One thous¬

and dollars

200

to

of

high this

Anything that

lawn

a

any

exciting equity moved from

low

a

heft

of aluminum, with
the
less elegant chariot toting

around

by

American

the past four years—U. S.

working

take

wheels;

Cadillac

zinc

copper,

corded

a.

liner, uses increasing amounts of
aluminum, with each new model.

folio

lodged at the low 1953
price in this issue, and carried to
the 1956 high, would have grown
to $12,000, not counting dividends!
(Why didn't I write this piece in
1953?)

the

Same

and

deflects
and
as

can

to

neutrons.
be

so

It

a

turn

out

cigarette

foil

which

presumably, not hard to sell,

was,

the

named

founder's

uncle

was

R. J. Reynolds. Nine yeacs

rust,; later, however, the manufacturing
alloyed end of the business was turned

material

far

over

stronger than standard structural

and.

to

U.

Reynolds Metal Company,
S.

Foil

became

a

holding

fles
if

its

field of the defense
program, currently
a

showing

sharp uptrend in earnings.

of

is

buying

by

comprehensive memorandum

Metal, for it's quite
It's

pany.

aluminum

the

ZDB

stock

SDUTH

exchange

•

LA SALLE

stock

largest
in the United

million

included, in addition to foil, alu¬
pig and pigments, sheet¬
ing, rods and extrusion. Reynolds

has




its

moved

net

majestically forward from $12,600,000 in 1950 to $34,310,000 for
1955.

hit
of

Earnings

another

expected

are

to

new

$4.50

10,055,065

selling at 60.

now

Last year there was a cash divid¬
end

of

45

cents

dividend.

and

This

5%

a

stock

year's

earnings
certainly support a similar

could

dividend
All

program.

econ¬

the

record

other

periods,

money

and

surance

for

cause

we

light

companies
cash

on

preferring^ to retain

expansion':\You

go

dividends,

earnings for

undue

there

see*why.'in

all

have

rates

credit

tive and

making

i^ difficult

million

will

ther plant
three

be

laid

out

years,

to

fur¬

so

further

some

be

may

fi¬

the

volume

in

this

U.

market.

In

such

Foil

presumably

up

take

S.

its

subscription

are

of

bank

credit

is

the

have

S. Foil B pays 40 cents.
was

the

growing

and

ago,
and

of

5%

in

each

1955.

1953,

'

1954

about

dollar question
relates to main¬

aluminum

tenance

of velocity.
Here, in re¬
months, we have seen alu4
shares slip from an 18 to

minum
20

times

down

to

where

-

price/earnings

about

13

around

chief

times.

ratio
Some¬

causes

unprecedented
economy,

risk

demand

control.

facilities

(1)

of uncontrolled

Fourth

of

1956

inflation

excellent.

running in
a

the

Product

Our

neces¬

year,

excess

Gros

of

currentl

$400 billio

mills

steel

our

is

are

oper

ating at capacity, new automobile
are
beginning to move, busines
increased sales volume;
(2) the construction is still at
high level
rapid increase of our population/ and the prospects for Christma

sity for larger inventories to meet

♦Based

on

an

address

fore

the

Honolulu

Oct.

25,

trade are, excellent. Money
probably not get easier "for
time, and interest rates will

by Mr. Neal be¬
Commerce,

1956.

Chamber of

wil
som
con

this

level, alumi¬
num
shares
are
going to look
pretty cheap historically,, and on
the simple fact that there
appears
on
the horizon, no abatement in
expanding

And

in

the

among

Appears

U.

relation

demand 'for
foreseeable

the

alu¬

future.

cheapest

Complete

issues

to

for

per

S.

Foil

B

which,

in

INVESTMENT SERVICE

Reynolds Metal indi¬
share earnings of $4.50

'

<m

'

■

year,

now

earnings.

sells

For

at

•.

nine

growth

;•

••

'

UNDERWRITERS
.

this

times

J-

BROKERS

we

prefer Foil to oil.

DEALERS

—

W.

PRIVATE LEASED WIRE SYSTEM

H.

Newbold's Son & Co., members of
the

New
other

Dean Witter

York

Stock
Exchange
leading exchanges, an¬

that

Leslie

A.

associated

with,

the

&

Bryant,

Donald C. Esty, Miss Elizabeth H.
Wilson and William E. Davies are
now

□

an

Quarter Prospects

are

National

sparked by tremendous
and

a

our

our

expansion

growth

pro

are

Despite the credit shortage, th
prospects for the fourth quarte

the

of

fro

Our

follows.

for

Scarcity
are:

boom

current

of

New York Slock
los Angeles Slock

Firm's

Exchange

Exchange
•

that

Samuel

W.

Fleming,

representing
burg, Pa.

the

firm
|

in

also

III,

is

Harris-

•

Son Francisco Stock Exchange

Midwest Stock Exchange

Honolulu Stock Exchange • Chicago

and other

made

Co.

-Member t-

4

was

o

an

the inevitable economic chaos tha

ex¬

rapidly
supply.

available

industrial

-

Now the billion

cent

The

to

•

America.

more

Causes of Credit

The

split 6-for-l just a year
there were stock, divi¬

reduced

continues

curren

period of bus
periods of boo
Certainly we shoul
be willing to have some restraint
applied now rather than run th
in

outstanding credit
loans. The volume

However,

credit

than

of

calling

or

pand.

the
out

has followed

Certainly it is

banks

rights.
U.

this

causes

scarcity of credit?

debenture,
privilege run¬
shareholders, seems not

event,

would

the

are

because

subscription

of

keep

Traditionally,

What

the

restraint

prevent inflation

sary.

new

issues.

not

convertible

float

to

running Va
capacity in most lines and wit"
wages
increasing, we could "ex
perjence a spiral of rapidly risin
prices, and some control is neces

needs.

to

is

ductive

are

ex¬

A

ning to
illogical
an

for

buildup within the next

nancing of Reynolds
pected.
with

$150

economy

balance be

a

Reserve

getting

home construction

plant

hav

can

the

of

purpose

.

Federal

up, many banks
from, the Federal
System or their corre¬

Metal spent about $250 million on

they

on

-

interest

gone

credit

effect

,

The

.

new

o

supply of money ,an
volume ■ of
goods
and
service
available.,* '

banks, credit shortages
showing up, particularly for

term

purchase

the

tween

spondent
are

strong

sibility to maintain

borrowing

Reserve

and

It is the Federal Reserve's respon

However, even this
peak lending activity is not suffi¬
cient, to meet all demands for
The-result is that

sale

fallible,, although
a

times.

credit.

trol
the
supply of money, an
Congress has delegated < thi
authority to the Federal Reserv

government securities; (3) throug
adjustment
in
the .reserves
o
banks. These; controls are not in

Today all lending institutions—
banks, insurance companies, sav¬
ings and loan' associations, sav¬
ings ; banks, .finance
companies,

of

situation.

current

ations—the

no

and longLending insti¬
becoming more selec¬
bond prices are depressed,

Another

out

The Board, in turn, keep
supply of money regulate
through (1) changes in the redis
count rate; (2) open market oper

anxiety.

tutions

expansion.

nee

Federa

the

as¬

is

the case of Reynolds.
From 4951
through March 31, 1956, Reynolds

can

the

the

Board.

of

tight

gain

can

realize

if

and

examine

we

Ardmore, Pa. office.
E-4774

our

omy,
William H. Neai

are

'

.

aluminum

rather

the

per

N. Y. S. E. and

(5)

Our Constitution gives Congres
the authority to regulate and con

numerous

high this year,
share on the mortgage lenders—are now lend¬
common
shares listed ing the largest volume of credit

about

capital;

It
is important to understan
the role of the Federal Reserve i

had

and

minum

kept pace with

the

have

we

history

$384

additions

remember

fabricating plants.
sales were $29 million, $20
of
it
in
foil;c while for
were

o

that

and

sales

•/•*.

Reserve Board is carrying
policy of credit restraint.

by

it. It is well to

reduction

exchange

STREET, C H I CAB

FINANCIAL

not
new

periods

Announcement
TELEPHONE

(4)
for

perplexed

•.%

tremendous volume

a

through deficit financing
the volume of new saving

has

.somewhat

S.

cur¬

solve

can

money

are.

of

nounce

Simmons

midwest

in

during the
we

creating -billions'-of

our

this,

in

1955

of credit scarcity,

homes

in

such

million

fourth

(3)

haw¬

States, completely integrated from
mines, via ore-transport ships, to
In 1940

excellent

to-house our people
with the Federal budget bal
anced,. our
government
is
no
new

credit,

people

With W. H. NewbolcTs Son

members

newyork

•

not

experience

second

company

causes

requiring

ing ha,d recent

com¬

a

Company,

DISTRIBUTORS

will be sent
upon request

&

*and

You should'think well of Reyn¬

and

Blunt Ellis

U.

than

more

restrictions oh

or

.;

■

PHILADELPHIA, Pa.
Our

7.

.

that

share

to

way

of

problem of abundance.

.our

.

.

Reynolds

b.

cated

producer in the advanced electronics

suggests

well

best

fortunes

Foil

minum

A prominent

\

discrepancy baf¬

and

think

the

outlook

20 years the American
economy is
faced
with the problem of
tight

19, Reynolds

60% and U. S. Foil B
discount. of'Toug'hly

investors,

you

Metal,

the

COOK ELECTRIC COMPANY

-

one-third.: This

was

won't

heated and

produce

original function of U. S. Foil
to

a

offers

In tracing the

For the first time in

*.

since

non-magnetic, reflects light
heat, and, in nucleonics, it

not particularly well
Organized in "1919, the

are

known.

sell,at about

money,

also

the

Reyn¬

.

But. they .don't!
Nov.

on

of

banker

Mr. Neal explains the role of Federal Reserve
rent
situation. ;ConcIudes
with
the belief

should

think,

price.

40%", '

dends

as

Carolina

activity for 1957.

at-

shares

copper

North

Metal sold at

major conductor of electricity, yet
aluminum
is
breathing
on i its
neck, and has already taken the*
lead from copper in high
voltage
transmission lines.Aluminum is.'

of

they

Trust

&

quarter, despite unsatisfied credit demand, and high business

in .port¬

share

a

So

would

one

At the close

stock

think

of

Metal.

so

Despite this spectacular market
rise, U. S.-Foil Company and its

We

vote),: there -is

93/100

olds

aluminum.

some

whether

production, and

Cobleigh

to

maintained.

trants

pansion,

leads

to

as

day be riding
and you

no.

olds

thi^

be

can

has

cars;

order colored

can

All

ture

and

may one

aluminum

all

now

beauty, its ap¬
war

'
of

list

Robertshaw-Fulton

U.

or

products is a very
long one—awnings, blinds, doors,

side,

in

and

—

aluminum.

-

flagged

demand

hence streamlined

trains,
buildings, "homes' and
factories
and ship
superstructures,;.; all of

metals; and
especially in a war jittery worici
the big ones are steel, aluminum,
copper and nickel.
Of these, cop¬
age

Vice-President, Wachovia Bank
Winston-Salem, N. C.

Today, for each share
S. Foil (there is a Class A
common, voting, elosely held; and;
Class B, actively traded, identical
in equity position, except that it
of

Metals.

v

,,

of

Senior

Controls.)

general; and in particular, the past prosperity and present
position of U. S. Foil (B), and its corporate ward, Reynolds
.

block

a

and its

in

Money

By WILLIAM H, NEAL*

investments

of

Security and Financial Independence"

Some observations

Situation of Tight

■—»

—

Private leased

SAN FRANCESCO

•

PORTLAND

.

%

Americon Stork Exchange

leading commodity exchanges

radiotelegraph circuit

LOS ANGELES
•

•

Board of Trade

HONOLULU

•

•

NEW YORK
AND

•

OTHER

to

Honolulu

CHICAGO
PACIFIC

•

BOSTON

COAST

•

CITIES

SEATTLE

Volume 184

tinue

Number 5538

high
there

Yet,

available

in

the

...

months

The Commercial and Financial Chronicle

ahead.

will: bevample* .credit

for

f*

'<

* '

n

<»

needs, and
supply to take care
additional
requirements
for

of

•

There
of

will

terms

be

and

down

Food

By A. WILFRED MAY

Index

Price

Production

Auto
'

Industry

Business Failures

MIDDLE EAST NOT THE ONLY WORRY

but there will still be

HARRIMAN, New York—The deliberations on the Far East by
the highly authoritative American Assembly gathered here this
week strikingly highlight the ominous fact that the Middle East
embodies but one of the world's troubled areas, and that the

enough credit available to sustain

high level of business construc¬

a

tion and
to

note

new

homes.

The trend

It is pertinent

industrial output, in

of over-all

the period ended

Wednesday of last week, continued to reflect a moderately
higher level than that reported in the comparable week a year ago.
on

that

although the number
of; new housing starts this year
are
down
23%, the volume of
mortgage loans made is down only

registered in the steel, electric
petroleum and automotive,industries the past week, while
output of lumber, coal and some food products* was somewhat
6%.
under that'of the previous week.
777
"77*. ^
f
;
Some
of the
current feverish ;
...
With respect-to the employment situation, 7he number of
pace of business will slacken
as
new claims of jobless .wqrkerg for unemployment insurance rose
the brakes of credit control are : 16,909 to 218,009 during the week ended Nov. 10, the Bureau of
applied. The restrictive policy of
Employment Security: of tfie United States ?Department of Labor ,
the Federal Reserve is a gradual
reported. --.7,";777'//7/" 7"' •
" »*' 7V(,7?7 .V '77 I'7
' ■
onri. The Board is anxious not to
The agency called the rise -seasonal.'. The latest weekly total
apply the brakes too quickly and ; was 30,400 above the 188,400 total for the corresponding week a
run' the
risk of
serious damage
year ago, but the Bureau-pointed out that the 1955 figure was

there con¬
of vital
problems- with which United States diplomacy
crisis

overwneiming

.<

Increases in production were

.

•

f'

Commodity Price Index

pay¬

and

•

"

Retail Trade

State of Trade

ments required on consumer pur¬
chases. Mortgage credit will con¬
tinue tight,

Production

Electric Output

Carloadings

tightening

some

larger

Steel

The

credit.

consumer

r,

seasonal

substantial

a

5

(2177)

stitutes

power,

merely

raging

now

of

one

must contend.

gets

manv

'

7

.

-

And

-

to; the
slow

Tne

economy.

down,

aim

is

"unusually low" because of holidays.

to

Despite
the
restrictions
and
despite the
increasing difficulty of* securing
loans for certain" types of proj¬
ects, most economists look to 1957
with
cautious
optimism.
Next
not

to

stop.

*77

the number

the

situation

•

have

we

'

we

want

>

:

to

adversity, for when you are* in
the whole idea is to- get

trouble*
over

Ndw

make a change.
want to have exactly the

with, to

-we

was

below 100,000 since the latter part

After

and

That

-1

The

y*

Board; summarizing Current business '.conditions,

'"Industrial

production,

...

which

at

aid

„

,

,

;

all

of

inventive

our

breakdown

in

international

relations

could

matters

worse.

is

What

:

For some it's a matter of making
good or cutting back operations, this trade" weekly declares.
;
Rolling mills turning out plate and structural products are
running at capacity. Despite this, hardship cases continue to pile
up.
These cases include schools, commercial buildings, plants,
highways and bridge projects. Some top-level projects are among
the casualties, the magazine continues.
The automotive market is strong and

point

up

data

new

"The

growth. A
.

This southwest

combines

pany

and

a

strong

intelligent

cash

most

will get stronger.

Some

As in

economic

so

vlast-named
<

ping

available
.

Mcdonald holman

is

continue

/

New York 5, N. Y.

BOwling Green 9-5160

ore

on

steel

as

Please send me your recommendation:
Name

•_

„

:
Tel.
C 11.22




the

Republic

of

■

will

:■

depend

much

more

the initiative and efforts of

on

the outside world.

Here enters the continuing and highly controversial question

of whether

our

extended

aid generally should.be via bi-lateral arrangement,

part of United Nations contribution (with UN
Lodge, among many others, favoring the latter).
This the Assembly here, after extended panel and corridor dis¬

or

as

Ambassador

ducked with the following compromise wording: "Advantage should be taken, where appropriate, of international
agencies, in solving the economic problems."
,
cussion,

'

Chinese Trade

Again in the economic area, there are the questions surround¬
the complete embargo on our commerce with Communist
China, and the liberalization of our two-way trade with Hong Kong.
Alter lengthy
deliberation here the Assembly participants ar¬

ing

rived

the

at

and

conclusion

-

that

should

measures

be

fully explored

liberalization of such trade with Communist
China as would not impair the security position of the noncommunist countries; reasoning
looking

toward

a

th^at this would not only provide

J

7

other

'

•

v

!

-

Continued

•

on

page

consumers,

relieve

some

now at recordwould be diverted
and prices would tend to level out.

Scrap

fields and

scrap

prices, which

scheduled

on

spring, when

opens,

are

^Announcing

for export

Great I Lakes

ore

stocks

are

carriers.

Losses

would

.

V

£**-

■

at low ebb before Lake ship¬

the

Defense
on

name
-

of
*

.

>

..

'

,/7"

BAXTER, WILLIAMS & CO.

Department

is

getting jittery over
oil country goods.

will be

demand for plate and

taking another look at proposals to
plate and pipe.
This would permit

week

the firm

■

be

this trade authority points out.

was

"Ward's"

•

in

be excluded, they will require, in addition to military assistance
from the United States,■economic help "for the support of theft;
own defense establishment.
Citing the generous economic support
which
the United
States has already: given, the group could
find no alternative to its continuance, with the qualification that
success

*"

Japan,

in.

conferees, found that if they shall
areas from which the Communists are to
the

January could

changed,

reopen

effective November 24, 1956, to

Baxter

industry domestic passenger car production
the strongest since mid-January, advancing to a

600,000-unit monthly rate, "Ward's Automotive Reports" stated on
Friday last.

|

particularly

countries;
important

In the automotive
last

City

automakers

in

expansion goals
for
mills to take fast tax
write-offs for new facilities, expanding capacity of these critical
products. The question may be up for decision in a few weeks,
concludes "The Iron Age."

& CO. INC.

Address

the

this tonnage

longshoremen's strike continues, it could
levels.

Meanwhile,

not
It

70 Pine St.

other parts of the world, defense needs upset

many

balance,

•

<

effect of the Suez crisis

Our report

responsibility?
Should it be without
the donee's need-—govern?

resources-^-or

*

felt next

he overlooked.

I

for

up

This, however, would not bring much cheer to the mills. A
long shipping tieup would strike another blow at their iron ore
supplies, already suffering as a result of last summer's strikes
y

in the

position

Should

crisis

make

Age" states.

to domestic consumers
,

com¬

capitalization.

Selling around 2%.

serious

the

breaking

charaeteristics and dividend pay¬
ments,

Trying to

of the pressure

growth

true

a

off.

Iron

If

interesting example: Texas Toy
Company.

pay

create

industry

toy

distribution revolution

focus of

as

not

Toys

of

our

South, Korea, and in Taiwan/ Particularly in the case of the two

Detroit purchasing agents are under pressure to hold down yearend inventories for tax reasons. This is a gamble that may or may

And

Sam's

Uncle

Should

Foreign Affairs

**

.

is going on among steel buyers.

TEXAS
...

other economic experts; by

of the Brookings Institution and

calm of the present market is misleading. Be¬
neath the surface, a quiet jockeying for position on mill order books

Hllil

Economic

in the
policy,

The apparent

genius, with

maSs
production and mass con¬
sumption, we can solve our prob¬
lems of abundance.

J

make

questions
economic aid

is currently being explored in four con¬
governmental surveys; Joy the Senate Foreign
a $300,000
appropriation enlisting the

the people concerned than on

with all of our resources and with

proner

question

special

ceiling?
:

•-

:

great land of ours are problems of
Steel demand is straining mill production facilities to the
abundance, while in most of the >»".y
other areas of the world, their
limit, and the situation has reached the point "where even minor
problems are ones of scarcity—not
^breakdowns are critical. Despite breakneck' production, incoming
orders ate exceeding output at most mills, "The Iron Age," national
enough foodj not enough clothing,,
metal working weekly, stated On Wednesday of this week..
not enough housing and, according
7 4
7
Some steel sales people are predicting capacity operations
to our. standards at least, a very
.through-the first half of "1957, "and perhaps' beyond. A serious
meager way of living. Certainly,

a

'

/products declined seasonally. Demand for--funds continued-strong, especially from business; and interest rates rose.'' -'7 V - - ~7 */ <:■

problems today in this

our

of

Question

nettlesome

and

Committee; and the Fairless Committee.

-

bulk of

determination

cosmic

Aid

Economic

crucial

most

the House Ways and Means Committee; the House

problem , next year, the year j record" levelsin October.. Construction activity declined slightly.; ••■7
after, arid as far ahead as we can
Retail sales remained .mtodetately below their-earlier highs-and- •>;
see. Tod much all at once is our •:
somewhat above a year ago.7Prices of industrial commodities con- ;
haripy problem." ,
tinued «to rise "from • mid-October to mid-November,-while' farm:

the

current

same

tt is well to remember that the

the

to content and timing, and
friends.

as

our

Relations Committee under

stated:

arid; incomes, were

employment,

of

is

area

a

.

requiring flexibility

programs

One

.

emphasized the*
th$,t area

society, or her
they encompass

requiring active cooperation with

factors

sharp cutback during the five-week steel strike in
mid-summer, industrial production has scored successive gains in
August, September ahd October. The unadjusted index rose from
July's 128% to 150% in October. The seasonally adjusted barometer advanced from 136% in Julyto 145% in both September
and October.
-7 »
y
■
v
J

professions,

by

recognition by us.
not only mainland
China and Taiwan (Formosa), but Korea and
Okinawa, and not forgetting Vietnam, Hong
A. Wilfred May
Kong and the Philippines-.
There are many specific problems in the
area, which, Bs the group has pointed out, are* partly local in
character and partly discussable solely in the context of a larger
area.
Again some susceptible of unilateral treatment, others re7 quiring the joint attention of many nations; with our own policies

the highest previous monthly level.
seasonal

and

leaders

the questions facing us in

Actually

products industries scored further increases in October.

keep. We want good times to con¬
Dealing with this problem
may be tougher than the problems

It

This

other

and

debating

included, last month's industrial pro¬
duction equaled the September level at 145%. This had been one
point above the previous record monthly high set in December
last year and two points above the October; 1955, level.
■■ •'
Non-durable goods production in October was at"the record
of late 1955. Activity in the textile, apparel, leather and rubber

tinue.

of

'

".

last year,

follows: --"Our

now

gone

States

of the country's

60

no means confined- to the seating of
Communist ' China
in
the
United
Nations
are

Industrial production reached record levels in October, despite
lag in building, the Federal Reserve Board recently reported.
The Board's industrial production index jumped to 150% of
the 1947-49 average, or a four percentage point increase over the
September level and three points above production in October of

problem is to live successfully and
permanently with prosperit y.
What

labor

fact that

a

Abundance

as

95,000 for the week ended Nov. 10.

laid off has

of March.

With

Secretary
of
the
Treasury,
George Humphrey, recently stated

was

East. by.

Far

-

7.7

\

times quite

/in government, international affairs, business,

„

drop of 8,800 below the previous week's total and the first time

a

erally speaking the outlook is for
another
year
of high
business
activity.
of

' /

the

At the

and not recalled

year's gains in the economy, com¬
pared with 1956, may not be im¬
pressive and undoubtedly there
will be some soft spots, but gen¬

Problem

,

heated
'

same time, it noted the number of auto workers laid
off since the first of the year in seven major auto producing states
"

four days of full, and at
discussion
of the
United

145,609 completions in the past week's
schedules compared with 132,087 in the week previous, putting
operations at 81% of the year-ago week.
Painfully slow production progress at some companies is being
matched by near-peak assemblies at others, with heavy emphasis
counted

Continued

on

page

33

&

Company

Member Midwest Stock

CLEVELAND
Philadelphia

NEW YORK

Chicago'

Detroit

Exchange

San

Francisco

Minneapolis

Columbus

Hartford

15

G

The Commercial and Financial

]

(2178)

defense

ish

Whose

Responsible for Inflation

—Government

in

lishment

By ROBERT R. YOUNG*

founded
taxes

Railroad

Chairman, New York Central

on

the

Young takes issues with Secretary Humphrey on

three

in

constitutes

and other destructive

must

shortages of credit which promise
to
become
the
most
important
domestic

r;

time

deposits,
continue
to
be
siphoned off to find their way

eventually
reaucrats

the

ana

of

bu¬

eimepreneuAS

casinos

gambling

cellars

foreign

through

Riviera.

the

into

and

wine

You

re¬

problems fac¬
ing this Ad¬

member that wry line that came

ministration,

out

of

1929„ "Where are the cus¬
tomers' yachts?" Now, on those

adding a
powerful new

inflationary

the

force

to

"Where

already

hard¬

an

higher
the

failure

R.

flow

from

Young

postponed
more

infla¬

tionary forces, however, which
ignored by most of our writ¬
and

ers

speakers.

to be

a

Indeed,

there

calculated effort to

facts about inflation.

suppress the

bank

as

bank

on

Mr. George Humphrey, in a re¬

capital.
managers
flatter
when
they pretend

money

,

themselves

due to:

"arbitrarily cheap and
plentiful money."
Inflationary

Forces

Unabated

llow of credit into the stock

in

ket

Those

1929.

the

were

10%

indirect

mar¬

margins
the

of

cause

business man,and not as a

experience is that

under

the

increased
tion

costly,

made

easy money

encourged
and automa¬
operations less

thus

slowing the rise in
the cost of living. The real infla¬
tionary forces, the wage spiral
and

the export
unabated.

of

check

inflation

they

Congress

upon

of

cesses

thus

to

labor

and

capital, go

on

a

"the

cruelest

theft

those least

selves."

form

the

with

enor¬

of

of

risen

an

consumer

prices has been only
100%; thus it is plain that wages
have led
and prices only
slug¬
gishly followed. The only possible
to maintain this relationship
if wages continue to be forced
up
way

is to still further increase
produc¬

tivity. Tight
And

money discourages it.
for the export of our

as

savings. Republicans

high-principled,

once were

they

said,

they opposed Democrats
millions
for

the

they

on

so

that
a

few

of

badly needed relief
unemployed*: Last summer

bemoaned

an

appropriation

of $4

billion of Foreign Relief for
Heaven-knows-whom because, as
they alleged, it was not enough.
Economists know why the "hand¬
out" overseas, because it does not
fill

a

domestic need,

flationary

than

a

is

in¬

more

"hand-out"

at

home.
cor¬

stern fathers pointing to our
piggy
banks; saying nothing about the

that
to

the

harm

a

word

stocks, life insurance and

*A
speech by Mr. Youn«r
Economic Club of New

before

York, New

19,

1956.




the

York

Concern of

reservoir—a

of

wise

down to
our
1914 entanglement amounted
to only 2% of the cost of the first
World

The

War.

of

out

on

second

which

continued med¬

much

as

our

the first. Even that little

Lest

concern

ine

xfciiunct

politicians

be

drop;

the

class

v<

all

more

our

it would have cost

out
cow

the

seat

of

and

once

than

us

infection
for

the

foreign trade
much, perhaps,

lower

no

of

one

in-

wage

than they are met by the
bludgeon of the next: "'pay-offs"
to
our
only
Congressionailylicensed mononolists, a process of
exploitation of the less favored
unctuously called "Negotiation."
ci eases

what

And

tionary,

more

destructive

of

the

joy of

plishment,
than
which requires two
is

needed?

^ax' "?e

hack in 1948. It

more

be

accom-

work
rule
men where one

a

him

elevates

animals.

the

this

Crush

entirely and

we

than

Neither would

this

Korean

created

the

course,

our

war

If

there have

if

we

been

had

not

38th parallel; and, of
partition of Palestine

urgency is registered in all the

bloody pages of history. Go back

anything

,

can

Q

be

mo

e

far beyond Suez to the legendary

i„fi~

tnfla-

days

0f

Troy

ii°tsfrp« Under the Monroe Doc- entrance
taxes. TTnHpr^th^TN^nrn^Tmp
is

trine

taxes

our

nothing.

Under

were

'

virtually

World

the

whose

dark waters

Continued

Med-

to
T

Sinclair Oil Corporation
4%% Convertible Subordinated Debentures

re¬

half

Due December 1, 1986

and

drain.

at the

Warrants

Representing Rights

expense

to

subscribe

to

the above named Debentures at

of the

100%

principal amount thereof.

cruel form of

is

theft, as cruel
strip those who retire

to

their

hard-earned pensions. It
only by such thefts that Mr.
Humphrey's boasted honest Re¬
publican dollar has been tempo¬
rarily sustained — to go a glim¬
mering wheiji these tardy segments
catch up, as they must, if their

on

We maintain active

is

worn

facilities

out

purchasing
newed.

this

power

The

and

alleged

built-in

wage

be

Prospectus

inflation

few to

wing
ness,
omy

Left
who

NEW YORK

it.

Wing

Line

believe

the

New York 5, N. Y.
REctor 2-1900

BOSTON

The

request

Blyth & Co., Inc.
14 Wall Street

protect themselves. Already, some
of our pensioners seek
Congres¬
sional relief; and, frankly, they

Those

on

in

a

are wholly immoral. And as
Humphrey says, the losers in¬
evitably are those least able to

to

inquiries.

of

Mr.

entitled

your

re¬

benefits

which most must lose for

are

Rights and invite

'•* %

denuded

to

are

trading markets at net prices in the above

Debentures and

DETROIT

left

SAN FRANCISCO

PHILADELPHIA

MINNEAPOLIS

SACRAMENTO

line, unanswered by busi¬
that our present full econ¬
is based on rising wages, lav¬
/

CHICAGO

PITTSBURGH

PASADENA

LOS ANGELES

CLEVELAND
SPOKANE
SAN

DIEGO

SEATTLE

LOUISVILLE
OAKLAND

SAN

JOSE

site,

at

the

to the Dardanelles, dom-

inated the

drained

for,

coming

can y°u forget your dependence
on cheap transportation when its

the voracious and inState, malignant or
{m(

tf

camte. away
thing to

one

f°rget inflation and taxes, how

become no more
of the cud,

easy prey to

Straw

is

fle® at decelerating rewards?
Just as the railroad man cannot

the

gift

chewers

bovine

pro.

generations aspire to promotion
with its accelerating responsibili-

quality

from

precious

golf

hy the tax guillotine, will

man's

subvert

To

aspiration,

a

work overtime in wartime, or
from force of habit, but in this
ne,w Peacetime culture of univer?a* mediocrity imposed upon us

enterprise is to corrupt his Divine
of

reward

for

.

infia-

degrading,

could

more

materiai

if we are to go on enjoying their
miracles. If they must be leveled
down, lets be selfish about it and
wait until their death, as God
does.
/
~*e
^ cuf °* any consequence
Jn fde steeply graduated income

stagger

sooner

these

benign.
The Last

agriculture, housing, transpor¬
tation, the service industries, and
the white collar class, all of whose
income lags far behind
labor's, is
it

27

were
-

from

satiable

of

as

they

today than

Our railroads
up

Mos¬

all.

of
let

1929

ago.

year

to stamp

in

are

since

fares

Treasury, and
Syndicate,

Greek

the

Why should the family doctor
respond to calls at all hours from
neighbors who practise the organized slowdown and,
consequently, yearn for Mr. Nixon's
four-day week. And speaking of
the idle rich, the big houses of the
Lords of England, who have only
time for trouble making, can be
converted into museums without
any loss to their economy/But we
must preserve the material rewards of our pioneers of business

While our
subsidy and

their

in

some

is

much ahead of that of

that

man,

I blame

can

high attainment 1 would
pauSe
before advising a young
man to put a medical career
very

>ou 01 tins:

passenger

which

cost

policy

railroad

a

to

mtle

]eft

to a puny rise of only 18%
they have encouraged rail wages
to triple. Coach fares are actually

Koreans

Form of Theft

a

To inflate labor

thence
So

discrimination have held first

tax

gift

on

to

think

you

a

ct)nduit to the a s

down

"police action" against the North
profit

of

some

inflation and foreign
no

original purchasing power
savings bonds has al¬

Labor's Inflation

a

not

Railroad Man

a

out of

family for n0f wanting to pick
KAtJ
up and "iV V t J U40U to serve as d
move just
OCI V C
do
a

j

•

is

curb entersought to pry
g00d job by a big

salary increase. Nor

business

in

man

and

never

protect them¬

can

last

ready gone down

also

we

ambition
have

a

the
constant

our

foreign polfcydonot

a

parlayed such holocausts out of
such expenditures we would face
many
moi c
proxy
iights than
some of us have recently enjoyed.

these

fact that the old-fashioned Amer¬
ican savings that once went into

City, Nov.

must

gain

Our fiscal authorities have

rectly
attributed
our
resulting
capital shortages to a deficiency
in savings, but they believe like

common

time

Washington

George

purchasing power." Per¬
haps his legal advisers helped him

while the increase in

have

the

from

trade

Treasury bond
advertisement, built around his
personal
signature
and
photo¬
graph, the Secretary characterizes
savings bonds as, "a reservoir of

the

rates

—

11

a

down

320%

theft

of

to

in

which

wage

Only
meet the

greatest

able

Yet

ceptacle

mous

trade

at the cost of
foreign

even

The net profit on our

as

the

with

adjustment to inflation,
taught to believe, but
prime cause. Since 1932

are

foreign

our

preserved

future

Wage increases have not been

its

that

one

since Columbus, as

taxes.

our

as
are

fraud is the constantly preached

ex¬

the

savings
capital needs of constantly grow¬
ing demands.
can

necessary
we

money

call

would

curb

no failure to appreciate
dangers of inflation; for, Mr.
partisan,1 Humphrey has described it as

a

as

Democrats

capacity

which

Deal, hence most of today's
If
they would
really

There is

Dissenting from this view

popular delusion our
managers should brand as

they should have used to stop the

troubles.

my

Another

dling in the still further partition
of
already hopelessly carved-up
Europe cost us seven times as

New

Real

1929, why that could no more
recur,
even
without
our
new
checks and balances, than could
Amsterdam's Tulip Craze.

grew

they check today's inflation
by the orthodox measures which

bility

speech, boasted of the sta¬
of the Republican dollar,
implying that the rise in the cost
of
living under the Democrats

The crash

otherwise.

of

that

cent

was

maths than

a

/,

there

now

does.

for

pay

prise

there

once

we

warp

p 011,

i

,

,

that

salutary in their after¬

were more

be

Our

other far

are

jeeerns

as

sup-

nation that did not admire

no

respect us

the brief
aownfcwings of all but that one
out of our many economic cycles

war.

capital projects.
are

demands

its

gross
Robert

must

There

its

was

to

in

result, when

one

ioned economy, because

reducing costs; for, I find thai our
national product since 1929
has risen nearly four times as fast

reduced

eventually

in

or

been

has

It

save.

U. N. As

The

capital as it has been efficient in

also

productivity
that

to

frugal

of credit

its abuse

of

cause

inter¬

but

est

wonder,

Americans'

the

are

I

No; business cannot be made
scapegoat for inflation be¬

in

cost

Mediterranean,

make

can

a

t5 aFS a WG 1i?W

tt

And those who think t

price

the JVIidhodgepodge of Allied

and

great depression was not,
as
many would have us believe,
a normal phase of the
old-fash¬

of the

be.

lailures in

that.

us

the

not

only the di¬
rect

I

yachts?"

ship situation.
There is

when

occasions

rare

Britain

and

aggiessor

any

of

drafted out of big business to tell

You have heard and read much

France

infla¬

recurrence

a

accept wage

tion, wartime taxes and a foreign
policy of universal meddling; but
we
hardly expected a Cabinet

policies by government and labor.

about the rising interest costs and

with

1

avoid

to

we

third

a

The Organized Slowdown

carry out our
1950 joint commitment

own

stimulants, time honored in

that

need

threatens to

very

East:

1929

ascribing it to discriminatory taxation

of the nation's railroads,

Korea

press

us

adjustment to inflation, but its main cause, and:
a
cruel form of theft. Depicts unfortunate plight

up

strong measures,

Russia

deflationary. We might- have
expected - Harry
Hopkins,
still
plagued by unemployment after
six years of the New Deal, to tell

unabated in the form of the wage spiral, taxes, and
hand-outs overseas.
Maintains wage increases are not a

we resort to
not when
Indo-China or South
are violated, but only when

these

as

on

necessary

—

they eat

national income.

Poland,

re¬

debt

government

dlers

our

policy decisions that

their integrity, now widely feared

stability of the "Republican dollar." Contends that in the
face of tightened money rates, the real inflationary forces
go

of

for¬

huge

by

brandish

to

us

As a result connuclear weapons. It is in keeping burner pricfes* are
grossly higher
witn the morality of our foreign
tnan
they would otherwise

"Twenties"
were
declining prices and

accompanied

ductions

Mr.

less than 2%

leads

now

eign relief was undreamed of. The
prosperous

r*7

our

1929

is the self-imposed last straw that

foreign
reminded that
defense estab¬

be

what we spent last year and

Business?

or

careless

and

relief, should
we
spent on

Chronicle... Thursday, Nov&mber 22, 1956

PORTLAND

INDIANAPOLIS
EUREKA

FRESNO

that flow

on page

™

46

-

Volume 184

Number 5588

...

The Commercial and Financial Chronicle

(2179)

system.

Are Our

our

This, then, brings
question.,

What

is

financial

Controls

the

structure

system

this-structure

today,

respond

as

of

our

does

readily

to

and

monetary controls?
The

President, Bank of America National Trust

&

Savings Ass'n

out that

San Francisco, Calif.

-

banking system consists of such diverse
organizations as the Federal Reserve, Home Loan, and Land
Banks on the one hand, and a
variety of private organizations
as commercial
banks, insurance and mortgage Companies on
the other, with different sets of
ground -rules/Mr.: Beise
demands

instruments of monetary

conditions.

Maintains

policy

Federal Reserve operate
cial system for
of some form

financial

-

segment of

a

variable

cash

institutions.' Calls

political commission

requirement
President

on

to review

Regional differences of thinking
are
disappearing,
more and more we are
finding

ment of

effective.

conclusion

denominators in all parts

then

of the country.

,

*

It

-

is

suV-

not

to

same

f

a'

n

t

e r e s

t,

financial

them.

The

fict that

Much-Discussed

Monetary
much

policy

discussed

-

has

to this field.

the

have avoided

topic

than

more

of

too small

a

ting factor
whole

those

meal

—

legislation enacted

or

apply

Beneath

conditions

which

however, often

the

only

to

rates

paid

on

of

of

borrowers.

that

means

banks

of interest

in¬

and

may

different kinds

on

than would be the case if
they retailed the credit. Of course,
the public interest may dictate the

savings,

commercial banks.

compelled

be

loaned
are

against real estate
favorable to

of

the

than

to

others.

find

we

financial
At

it

should

Federal

be,

can

the

extreme,
only nominal regulation,

recognized that

agencies

the

case

finance

of

Reserve

and

at

and

times

that

ion

nies.
addition

In

proliferation

the

to

and

tremendous

growth

and

of

regarding policy. The activities
these

therefore,

agencies,

Continued

pri-

on

to

or

as

an

or as a

The

volume of money ana

' / $167,247,600

,

But it is

harly

SINCLAIR OIL CORPORATION
4%% Convertible Subordinate Debentures

necessary

cial

for

were

institutions

that

are

in

many

as

ways

banks

seg-

our

*A speech by Mr. Beise before the Eco¬
nomic Club rf New
YoPk, New York City.
Nov. 19, 1956.

has

altered

previous

significantly
tion

Dated December

and

the

affected

control

,*

pattern

structure

I

of

and

the

our

(to bear interest from December 3, 1956)

of
has

Due December 1, 1986

1, 1956

competitive with commercial

Convertible into Common Stock

at $65 per share on or before December 1, 1961 and
higher prices thereafter, such prices being subject to adjustment

opera¬

at

under certain circumstances.

financial
The

r

Company is offering these

Debentures for subscription to the
whom Subscription Warrants are being
fully set forth in the Prospectus. The Warrants will
3:30 P.M. Eastern Standard Time on December 3, 1936.

holders of its Common Stock, to

Net

issued

trading markets for Banks—Brokers—Institutions

as

expire at

more

Sinclair Oil Corporation

Subscription Price 100%

Subscription Rights
•

4%%

•

and

During and after the subscription period the several Underwriters
Debentures, all as more fully set forth in the Prospectus.

Conv. Subordinated Debentures
due 1986 (W. I.)

-

.

Prospectus

on

request

"Specialists in Rights since 1917"

The First Boston

Established 1905

120

New

Exchange

—

—

Detroit




—

Asbury

Eastman Dillon, Union Securities & Co.

Glore, Forgan & Co.

Kidder, Peabody & Co.

Ripley & Co.

Stone & Webster Securities

Goldman, Sachs & Co.
Lazard Freres & Co.

Park

—

Chicago

Drexel & Co.
November 19, 1956

White, Weld & Co.

Corporation

American Stock Exchange

Broadway, New York 5, N. Y.

York

Harriman

-

r

Incorporated

Members

New York Stock

offer

Merrill Lynch, Pierce, Fenner & Beane

Corporation

Lehman Brothers

ftflC ppNNELL & Qp.

may

Copies of the Prospectus may he obtained from the undersigned only in those States
in which the undersigned may legally offer these securities in compliance
with the securities laws of the respective Stales.

Smith, Barney & Co.

Dean Witter & Co.

»

;f\

•

■

can

definitely do affect both the

be construed as an offering of these securities for sale,
solicitation of an offer to buy, any of such securities.
offer is made only by means of the Prospectus.

circumstances

there

there have-

we

no

net

been, serious differences of opin¬

compa¬

surface

offer to buy,

are

by law to coordinate
policies with those of the

their

institutions

be

Federal

of

in

as

Government's role in this process.

more

some

flowed

This is under

This

wholesale

lower rates

at

of paper

these

collateral,

deep and
powerful currents of public needs,

the

this kind of credit

But

can

action,

inter¬

standing for thcit

ultimate

the

ties of loans and the amounts that

admin¬

as

banking1
borrowers, and

the

ernment's credit

and others which limit the maturi¬

piece¬

evoked

and

Other regulations, including some
which affect the basis of taxation

istered by independent political
agencies of Federal and state gov¬
ernments.

the

agen¬

the

thus in effect substitute the Gov¬

which

limit

act

between

system

of

a

terest that may be

although not the
the

that

agencies

mediaries

place some
disadvantage. For
example, certain regulations, such
as those establishing high cash re¬
serve
requirements,
as
well
as

Ohe contribu¬

explanation—is

rules,

the obliga¬

Government

cies, these

char¬

by different sets

institutions at

bodies, and they are subjected to
widely varying degrees of inten¬
sity of regulation. This situation
has inevitably given rise to >many
inconsistencies, inequities, contra¬
dictions, and conflicts of interest.
about?

environment

de¬

these

of

which our monetary
originally devised. The
development and growth of finan¬

tools

by the Federal Reserve
on

that

as

be an appropriate time
broad look at the struc¬
our financial
system and

Board operate

tions

extent that the

buys

point cut that the financial sys¬
tem we have today is not the same

a

exercised

ground

organizations are
governed by many separate laws,
regulations
and
administrative

come

competitive

acterized

the

system

to

to

whether monetary controls

a

just

To

banking

availability and cost of credit

effective.

subject, this

see

stitutions.

Differing Sets of Ground Rules
circumstances

for
ac¬

paper

the void.

The

insurance

they provide markets for eligible
held by their member in¬

have grown, to fill

or

and

various fields of

agencies extend credit directly ta
ultimate borrowers; in other cases

been
come

scribed necessarily have produced

tially one and the same thing,
monetary policy could be applied
a
suiiiciently broad bas to be

encountering the

current interest in the

ture

being,

expanding
has

in

tivity, especially agriculture and
housing.
In
some
cases,
theses

to

Because of

to take

into

by regulating the supply of bank
Now, so long as the
country's banking system and itsfinancial
system
were
substan¬

Mone¬

once.

seems

institutions have

reserves.

tary policy has been featured so
prominently in business journals
and the press that one
scarcely
can

In what directions

(3)

control the

rising in¬
"tight money" all
together to direct

worked

attention

our

other

our

result

agencies which provide credit

guarantees

programs

fruitfully seek improvements?

a

The specter of
inflation,
terest rates and

have

or

of

through the banking system. Spe¬
cifically, they were designed to

late.

of

this

answer to our first question
easily be found. The instru-'of monetary policy, in the
United. States as in other coun¬
tries, were designed to operate

one

been'

does

The

Subject

subject

that

nients

illustration of the point.
That

however,

The

may

to the financial center of
the United States to discuss
mone¬

can come

tary policy and controls is but

finance

to

know, the Government

you

'

is-'

and

and

respond readily to mone¬
controls? and 1

tary

Westerner

a

basic charac¬

structure

to¬

system

century,

and

uation

our monetary controls?
.(2) What is the structure of our

before

sues

Questions

the

are

half

past

economy.

pension

Now, how did this complex sit¬

teristics of

theprob-

lerrs

Beise

conditions.

existing

Basic

:(1) What

and

outlook

~

national monetary

a

moded?" by asking ourselves tnree
questions:

economic

con c e r ri

ward

difficult

.

similarity

of i

under

of the

some

As

maintains certain specialized Fed¬
eral

limiting the capacity of the bank¬
ing system to mobilize savings

Reserve

These diverse

Let us approach the issue of
"Are Our Monetary Controls Out¬

should exhibit
J

examine

Three

mework,

r a

non- '

I do—that they do—

can

Federal

companies, and mortgage
companies. This is by no means a
complete list.

financial system to be

as

the

setup.

Some of the reforms of

have had the unforeseen effect

public

established and today they play a
sizable role in our financial,

very

de¬

finance

If you come to the same

implement

policy

everywhere,
operating

*

appoint

the

as

of such

institutions during
century, many public
credit institutions have also been

no

associations, credit unions, life and
property insurance companies,
pension funds, investment funds,

that

o r e

•within .the

c.

we

businessmen

"

S.

-

nonbank

problems which make it

'prising, theref

to

our

and " practices
and

common

for

hand,

one

financial

vate

the past half

possibil¬
repetition of such short¬

ity of a
comings.

we

funds; and, on the
other hand, a wide variety of pri¬
vate
entities.
Among the latter
are
"commercial
banks,
mutual
savings banks, savings and^ loan

entire financial mechanism.

our

opinion

ment

effectiveness, and recommends establishment
of

Public

Federal Land Banks, and Govern¬

finan¬

our

1956

Banks, Federal Home Loan Banks,

be adapted to present-day
controls exercised by the

too small

on

Entities

financial system consisting

a

trie

entities

can

monetary

#

Existing

.In the United States of

on

our

broader form of monetary control, so that the

some

Varied

-

have

Pointing

abuses.

manded that there be

By S. CLARK BEISE*

*

as

pediency.

/

and

well

eddies of political ex¬
Some of the legal re¬
strictions affecting banking were
originally adopted for the purpose
of
correcting
previous excesses

to

us

second

7

page

33

8

The Commercial and Financial Chronicle

(2180)

..

.Thursday, November.22,'1956

Aluminium

Limited—.Analysis—McLeod, Young, Weir & Com¬
Limited, 50 King Street, West, Toronto, Ont., Canada.

pany,

American

Dealer-Broker Investment

&

will he pleased
send interested parties the following literature:

to

Atlas

on

Kelsey

British

j

Atomic

atomic merchant ship

on

Industries

Co.,

Development

issue

Japan—Analysis—In current
Investors Beacon—Nomura Securities
in

Industry

mura's

Co.,

Id

Water

50

Chase

City

&

Telephone

Canadian

on.

York

of

Chicago

New

York

York

System

-

-

Corpora¬

letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬
View

Burnham

Monthly

—

investment

able is current Foreign Letter.
Chemical

;

120 Broadway,

•

:

-

&

special

5,

N.

winter

rates

C

at

lin

Cook

information

and

hotel—Chesapeake

resort

the

dent

Off

Shore

lock,

1

Gulf

the

able

and

Co.,

York

Personal

Building,
Pocket

Tax

Free

a

-

Pittsburgh

Guide

Leonard

19,

&

120

Paying

ham

&

Co.,

II.

Wall

14

New

with

York

N.

5,

Lovvenstein

&

Abraham &
West's Third

and

—

Hobart

Los

Boulevard,

Sud

350 First

Stevens

P.

trailer

on

&

Co.,

owners

Angeles
*

5,

and

R.

Minerals

Allen

Calif.

Oxford

P.

rities

Corporation,

Machines,

Inc.—Analysis—Aetna Secu¬
Broadway, New York 6, N. Y.

111

Lower

Meeds,
'
'

La

R.

Company Ltd.

Quality

Analysis

—

Railroad

Salle

—

White,

;

Texas

Royal

Co.,

Nov.

&

We again suggest you can

...

profitably

interest yourselves and clients in:

brochure—A.

C.

Allyn

Laboratories—Analysis—Morfeld,

York

&

Co.,

Oct.

&

&

Trucking Stocks

Moss

Although

the

multi-billion

saddling truckers

profits

—

haulers

with
are

dollar

higher

road building

taxes

—

and

at

program

i#

lower

present

mapping increased freight rates to offset

the burden.

-

.

•

Texas Toy

&

&

Convention

29-Nov.

3,

at

Z

1958

(Colorado

(Special to The Financial Chronicle)

Street,

White

New

&

McKinnon,

11

a

memorandum
'

.

Yale

on

Witter

Co.,

Patterson

McCormick Adds to Staff

Manu^

A.

Purcell

F.

Pipeline—Memorandum—Doyle,

New York

Co.,

*

.

BEACH, Calif—Richard

Renfro

has

been

added

staff of McCormick and

to

the

Company,

Security Building.

Chicago 3, 111.

135 South La Salle Street,

70 Pine Street,

&

Building.

LONG

Gas

f

(Special to The Financial Chronicle)

Corporation—Analysis—Edward

Natural

C.

&

FRESNO, C a 1 i f.—Everett W.
Hogue
is
now
connected
with

&

Dean

Towne

&

Donald

Hall

(Special to The Financial Chronicle)

"

:

—

with

now

With Dean Witter Co.

Wall

Lubetkin

is

Hall,
Bank of America Building.
He
was
previously
with
Merrill
Lynch, Pierce, Fenner & Beane.

With J. A.

Company—Report—Dept. C1122, McDonald Holman

Co., Inc.,

Union

•

is

Warner

O'Connor

Annual

Joins Hall & Hall

&

5, N: Y\

Co.

Illinois

(Hot Springs, Va.)

the Broadmoor.

Co., 50 Broadway, New York 4, N. Y.

Texas

Hilton

National Security Traders Asso¬
ciation
Annual
Convention at

Co.,

Redpath, 729 Fifteenth Street, N. W., Washington 5, D. C.

Stewart

Statler

FRESNO, Calif.

Wall

36

Corporation—Analvsis—Selieman,
Pine Street, New York 5, N. Y.

available

3-6, 1957

ciation

'

Tobacco—Report—Thomson

facturing

the

the Homestead.

Street, Chicago 3, 111.

McP»ee

Also

at

National Security Traders Asso-

Bonds.

Inc.—Analysis—Gardiner, Annett Limited, 335 Bay
1, Ont., Canada.
/<

30

:

of
Investment
Association
: annual

Hotel.

cur¬

Toronto

Street, New

(Dallas, Tex.)

Group

Bankers

Co.,

Southern Natural Gas Co.—Memorandum—Auchincloss, Parker

Dealers

April 21-23, 1957

-

Corp.—Memorandum—Oppenheimer &
Street, New York 4, N. Y.

Broad

Reynolds

Association

Springs, Colo.)

Paper—Report—Bache

M.

(Chicago, 111.) ;

Bankers

,

Y.

Research

Street,

Associ¬

Inc.—Analysis—Laird, Bissell &
5, N. Y.
\
V

Chemicals

&

Traders'

anniversary

dinner
King Edward Hotel.

American

5, N. Y.
Also available is a report on Consolidated
Cigar, Emerson Electric, Pure Oil, and National Steel.

.

(Toronto, Canada)

Bond

25th

at the

York

Americana, Inc.—Analysis—Beil & Hough, Inc.,

Business

&

Hartnett, 721 Olive Street, St. Louis 1, Mo.

♦

Inc.—Analysis—First Securities Corpora¬
Corcoran Street, Durham, N. C.

C.

Heller

New York

Martin—Analytical

25

Missouri

the

Avenue, North, St. Petersburg, Fla.

111

8, 1957

Conference. *

.r

South

Air Control Products

tion,

L.

Southern

>

•

-

Toronto

Co.

&

South

Co.,

Trailer Coach Association, 607

♦

Aerovias

J.

Largest City—Booklet

industry in general

March

Also avail¬

Resources.

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

6, N.

Glenn

to M.
Inc.—

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

Inc.

Hotel.

issue of "Gleanings" discussing the Potentialities in the

York

•

& Com¬

Marmon-IIerrington Company, Inc.—Analysis—Unlisted Trad¬
ing Dept. (Room 707), Ira Haupt & Co., Ill Broadway, New

Y.

particular reference

(Baltimore, Md.)

11th National Instalment Credit

Petroleum

and

Association

N. Y.

6,

Industries,

&

-

Baltimore Security Traders As¬
sociation. 22nd
Annual
Mid-

Co., 120 Broad- *

Inc.—Analysis—Francis I. du Pont &
Wall Street, New York 5, N. Y. Also available is the

122

Sons

Jan. 18,1957
-

„

Street,

Bulletin

—

York

Macy

Banks

Pa.

Bankers

Winter Dinner at the

Radorock

on

-

.

Broadway,

rent

Trust

for Today's

Industry

;

meeting

Stocks—

Unicn

Lynch,

New

Weld
R.

Investor—Pamphlet containing lists
■'*» of selected
securities
for
income,growth and trading—
Discusses Dow-Jones Averages 1929 vs. 1956—Harris, Up-

Textile

American

Products, Inc.—Report—Price, McNeal & Co., 165 Broad¬

International

13-year period —
Front Street, New

Long Dividend

Moore,

—

&

•

•

v

(Chicago/Ill.) V

9th National Credit Conference.

if.

Corporation—Analysis—Stanley
Street, New York 5, N. Y.

Pine

Iloudaille

1

Property

meeting at the Bar¬

Jan. 14-16, 1957

208

,

.

Also

Simmons,

&

Transistor

30

way,

Y.

edition

1956-7

performance over
Bureau, Inc., 46

Quotation

4, N.

tion annual

Mar. 18-20, 1957

Gum

of

National Quotation Bureau Averages, both as to

market

bulletin

a

—

parison between the listed industrial stocks used in 'the Dowindustrial stocks

National

10, 1957 (Philadelphia, Pa.)
Philadelphia Securities Associa¬

Co.,
is a

ation

Jones Averages and the 35 over-the-counter

yield

is

General

Over-the-Counter Index—Folder showing an up-to-date- com¬

used in the

Co.—Analysis—Blunt Ellis
Salle Street, Chicago 4, 111.
~

Crandall Building, Salt Lake City, Utah.

pany,

Mexico—Analysis—Calvin Bul¬
Wall Street, New York 5, N. Y.

in

Oil

Ltd.,

Current information

100 Broadway, New York -5,, N." Y.
bulletin on Temco Aircraft Corporation.

a

Federal Uranium Corp.^-BuJletin—Robert P. Woolley

Yamaichi Securities
Co., Ltd., Ill Broadway, New York 7, N. Y.
—

&

available

New York 5, N. Y.

way,

1166, Pitts¬

O. Box

s
Office, Gulf Oil Corporation, P.
burgh 30, Pa.

Japanese Stocks

New York annual meeting and
cocktail party at the Bankers
?Club.

Co.

Trust

&

Daystrom Inc.—Memorandum—McDonnell

Really Knows by Graig Thompsonoil industry gets its job done—Presi-

Nobody
how

on

Bank

Electric

South La

on

Railway, 3809 Terminal Tower, Cleveland 1, Ohio.

Industry

Wachovia

on

(New York City)

Jan.

Dickson

S.

Also

N., C.

2,

Organization,

available is

Co., 63

Y,

O's

&

Charlotte

Compo Shoe Machinery Corporation—Bulletin—De Witt Conk- J-

Barney

H. Lewis &

brochure

Holiday—Pictorial

and Ohio

Booklet

York

New

Street,

Greenbrier

v

memorandum

Co., 14 Wall Street, New York 5, N. Y.

Wall

Building;

1956

clay Hotel.

Fair Return for Airlines—Bulletin—John

The

Wilder

Inc.—Memorandum—R.

convention

Beach Hotel.

Security Traders Association of

>

Briefs—Bulletin—Smith,

Pharmaceutical

&

Stores,

annual

the Hollywood

Dec. 7,

Market.
Colonial

Ball¬

(Hollywood

1956

America

of

Certificates—

Revenue

Grand

'

...

Corporation,

25-30,

at

Boston

the

Beach, Fla.)
Investment Bankers Association

Co.—Analysis—J. A. Hogle &
4, N. Y. Also available is a

Hanseatic

Y.

N.

5,

Nov.

Superior Oil of California.

Waterworks

Circular—New

&

in

Hotel Commodore.

room,

Bank—Report—The First
Broadway, New York 5, N. Y.

100

(New York City)

dance

and

Corporation.

Manhattan

tion,

/

Coal

Broadway, New

bulletin

/Broadway, New York 6, N. Y. Also in the same issue is an
analysis of the Japanese Steel Industry and Japanese Stock

Field

Security Traders Association of
New York cocktail party, dinner

Ginberg & Co.,
Also available is a

New York 6, N. Y.

Horn

Packing Corporation—Analysis — Dean Witter
Montgomery Street, San Francisco 4, Calif. '

45

Co.,

of No¬
Ltd., 61

Investment

Nov. 24, 1956

Corp.—Analysis—Strauss,

Elk

on

California

Washington 7, D. C. Also available
period ending Sept. 30, showing
table on atomic aircraft program and prospect for Britisn
use of atomic power and impact on Canadian
uranium, etc.

Thirtieth Street, N. W.,
is quarterly report for

Auto

EVENTS

Corp., 80 Wall

Hayes Wheel Co.

115 Broadway,

California

particular reference to Brush Beryllium—
Mutual Fund, Inc., Dept. C,
1033

with

program

22)—Comments

(No.

York

Company—Report—H. Hentz & Co., 60 Beaver
Street, New York 4, N. Y. Also available is a memorandum

bulletin
Letter

COMING

Co.—Memorandum—Goodbody
6, N. Y.

Foundry

Powder

Inc.,
Atomic

&

Broadway, New

Drilling—Report—General Investing
Street, New York 5, N. Y.

firms mentioned

understood that the

115

Anschutz

Recommendations & Literature
It is

Machine

Co.,

5, N.

Hogle Co.

(Special to The Financial Chronicle)

Y.

LOS ANGELES, Calif.—Hyman
& Carbon Corporation—Analysis—Harris, Up•
S. Slobodkin is now with J. A.
Co., 120 Broadway, New York 5, N. Y. Also available/*/'
Hogl#
&Co., 507 West Sixth
analysis of Howe; Sound Company, and Granite fCity

Carbide

,

ham &

Moreover,
truckers

the

t

.

.

total national

mammoth
and

last

program

the

year

must;

in

time

greatly

industry hauled 20%

aid
the

of

freight.

Associated
•

Street.

Co.

;

Gardner

Broadway,

&

New

Co.

—

York

.

Study

38,

Transportation Lines

DEPENDABLE

Inc.

McLean
•

U.

S.

Trucking Co.

&

Co.,

La

160

PALO

Quincy Cass

ANGELES, Calif.—Nicho¬
is

now

ALTO, Calif.—Frederick
is

Sammis

M.

(Special to The Financial Chronicle)

with

La.

Stanford

connected

now

Co.,
Center. ;

Montagne

Shopping

&

71

connected with

Joins

Quincy Cass Associates, 523 West
Sixth

Street, members of the Los
Angeles Stock Exchange.
-

Truck Lines

Montagne Adds

(Special to The Financial Chronicle)

LOS

Cooper-Jarret, Inc.
•

Richman

las Coula's

Roadway Express, Inc.
•

Bond

Y.

MARKETS

Interstate Motor Freight System
•

—

N.

Joins

Transport

Continental
•

Steel

an

Wells

We Position and Trade:
•

is

;

Henry Hartman

(Special to The Financial Chronicle)

SHERMAN OAKS, Calif.—Jack
Hoffman

,

Three With E. T. Cronin

has

stafff

Henry

of

been

added

to

Hartman,

the

13531

Ventura Boulevard.

TROSTER, SINGER &

(Special to The Financial Chronicle)

CO.
,

Members:

74

York

Security Dealers Association

erin L. Cronin,

Trinity Place, New York 6, N. Y.

HAnover 2-2400




New

Teletypes NY 1-376-377-378

ANGELES,

LOS

Russell W. Sly and

Richard

DEMPSEY-TEGELER 8 CD.

F.

staff

Edward

pany,

of

Calif.—Cath-

Swan

have
T.

joined the

Cronin

Com¬

548 South Spring Street.

Joins Shields Staff
(Special to The Financial Chronicle)

SAN

FRANCISCO,"

Glenn E. Mayer
of Shields &

Calif.—

has joined the staff

Co., 110 Sutter Street.

Number 5538

Volume 184

The Commercial and Financial Chronicle

...

nomic and military union. :He feels

and

that

open

a

scare

might do them good,

*

the United States

the

•

and

'V

t

Don't

Forget the Arabs

become

Conflagration

during
II.

In delving
of

it occur, upon

Babson

Mr.

'

"

woriu.

water.
Arabs

real

goal of

me

Russia

Africa.

England

nor

Neither

win

can

ex¬

Two With B. C. Morton

Firm Name to be

*

Baxter &

Egypt

her

and

and
Arab

of

name

Company

Baxter,

ANGELES, Calif.—Hugh
Haggart and John S. Robin¬

M.

have

son

B.

Williams & Co.

C.

it

has
of

headquarters
New

dam
The

Arabs

time

that one
and England
say

and

that

build

to

atomic

secure

should

her

power.

know

this

by

Russian promises are no

good.

: v:

the

Midwest

York

in

and

Philadelphia,

Cleveland

branch

Francisco,

Mr.

Robinson

was

with

and

offices

With F. I. Du Pont

in

(Special to The Financial Chronicle)

111.;

Columbus,

Cal.;

1752 .West

Mr.

Haggart
previously with California In¬

FT.

San

Co.,

King Merritt & Co., Inc. and McCormick and
Company.
;

its

Chicago,

Pa.;

associated with

&

Boulevard.

vestors.

Stock

the firm maintains

Exchange,

become

and

announced.

been

become

Morton

Adams

will be changed to Baxter & Com¬

friends, through economic aid, to
strong

V.

LOS

Nov'i 24,1956, the fbfpx

Effective

Members

to win by negotiating

helping

-•

(Special to The Financial Chronicle)

pany,

by

knows, too, that the
fairly close to the Bel¬

closing, let

tne

hopes

ne

gian Congo, which is the largest
producer of uranium in the world.
In

keep
fields

oi

cept by force; but Mr. Eisenhower

He
are

will

was

desert

only water to be the
in tne

all of North

Russia

hopes to give them atomic power
irrigate and get this needed

neutral U. S. A.,
anticipates higher

especially oils.

their

to

oil

out of the picture and will

now

lose

to

should

profits, activity, and commodity
prices; and advises most stocks
should be held rather than sold,

j

that

knows

need

Arabs, having
with
them

of World War

course

most productive

into probable effects

Middle East flare-op,

a

acquainted
the

He

lands

By ROGER W. BABSON
:

is

good

cne

is

East

World, I forecast that France

Remember that Mr. Eisenhower
knows and likes the

Middle

retain

Arab

*

Of Middle East

9

(2181)

W.

LAUDERDALE, Fla.—John

Wolf

Ohio; Detroit, Mich.; Minneapolis,

with

Minn.; and Hartford, Conn.

455

has

become

Francis

I.

du

East Las Olas

associated

Pont

&

Co.,

Boulevard.

*
..

say that Russia's
to the Egyptian situa¬

First, let
•decision

as

will be

tion

U.

me

outlook for 1957.
V
;
If military

business

S.

New Issues

great factor in the

a

:*••

•

.

action had

$19,960,000

taken

never

place,

busi¬

in

ness

1957

would be fair,

*—with

a

Gky of Houston, Texas

max- <

imum average

decline of not

;
*

than 5%.

more

;

The

t

s

o c

3%, 3%% and 4% Bonds

k

market

could,
however, sell
If

Dated

January 1, 1957. Principal and semi-annual interest (January 1 and July 1) payable in New York City. Coupon Bonds
'

600.

nearer
'

R

-

u s s

i

keeps o u t of
the conflict,

Roger W. Babson
:

we

Interest

de¬

can

pend upon the above forecast.

i,

v,%

c

in denomination of $1,000. V .,./ •'Vv:

'V;-.

a

Exempt from Federal Income Taxes Under Existing Statutes and Decisions

If,

however, the Middle East should
.flare into
United

small

a

States

if the

and

war

remains

These Bonds, issued for various purposes,

neutral,

•profitable
■with

year we

all basic

higher.

Happened

has

pulled

to

by law.

out,

started

the

She

row.

if

into

real

war,

wiped out.

it

;

United

t"' '

*•

:

■

;i-

Maturities '

\

';'

to

-

V\;

;

;

Maturities

to

f

*

Prices

Yield

"

buj

to

world's

greatest

police

,

ff

*

Price*

(Maturities

Yield

\

/Price*

>

•

1964

3.40%

1970

3.60%

1959

2.80

1965

3.45

1971

3.60

1960

the

*

to Yiel 1

;

2.60%

3.00

1966

3.50

1972

3.65
3.65

1958

no

Canal,

oil

.

.V-

.

Bonds, due January 1, 1958-77

8,350,000 4%
;i *v.

police the Suez

not

Bonds, due January 1, 1958-77

Na¬

tions has agreed to

nearby.

/'..-V

8,980,000 3%% Bonds, due January 1, 1958-82

•

should develop
she could be

The

"

"

.

now

Certainly Israel is

factor.

a

.-•'V:".'*1

.

$2,630,000 3%
i

•"'

that

longer

general obligations of the City of Houston,

;

Date?

apparently *already
regretting that she

Realizes
a

are

MATURITIES, COUPONS AND YIELDS

Has

Israel

ever

had,
going

ever

"

What
;*

pres^ibed

the limits

have

commodities

in the opinion of counsel named below

payable both principal and interest from ad valorem taxes which may be levied upon all the taxable property therein, within

"1957 could be the busiest and most

reserves

1961

3.10

1967

3.50

1973

1962

3.20

1968

3.55

1974-75

3.70

1963

This may "save face" for
France; but the Canal
good to these coun¬

3.30

1969

3.55

1976-82

3.75

Britain and

is

not

much

tries

there

if

is

oil

no

J

take

to

through it.

(Accrued interest to be added)

Will

Russia

Thus
do

Neutral?

far^Russia has refused to

and

so

Remain

Egypt

threatening to help

is

the; Arab

and

World

The above Bonds

by

contributing to Egypt airplanes,
munitions,
and
"volunteers,";., as
she
helped the North Koreans

are

offered, subject to prior sale before

or

after

of this

appearance

advertisement, for delivery when, as and if issued and received by us and subject to the
approval of legality by Messrs. Reed, Hoyt, Taylor & Washburn, Attorneys,

New York City.

-

some

.

in

the

This could result

ago.

years

United

neutral

for

States

the

remaining

present

at.least,

Mr. Eisenhower does not want

The First National City

an¬

other

can

"Korean"

If

war.

we

United

States

business

in

-"".V,

First Southwest Company

1957

"

F. S. Smithers & Co.

'

'.v.-

'■ '-v

!

Shields & Company

Harris Trust and Savings Bank

Drexel & Co.

Bank of New York

,V

long remain neutral, I repeat that

Schoellkopf, Hutton & Pomeroy, Inc.
;

-

■

/■

v

.

•

A. G. Becker & Co.
Incorporated

■

should be excellent and that most
stocks should

than

now

States joining
brifigf ?fbout real

to

peace.

The Marine Trust Company

forces
world

dog."

Eisenhower

:even though
realizes the
nation

.fact,

To

as a

General

all

—

of

another

believes

why

•would

be

„

.

>

Trust Company of

in

Georgia

Andrews & Wells, Inc.

E. F. Hutton & Company

war

under¬

President Eisenhower
willing to see England

both

urged

Provident

Eddleman-Pollok Co.

Savings Bank & Trust Company
Cincinnati

Rand & Co.

Folger, Nolan, Fleming-W. B. Hibbs & Co., Inc.

Fahey, Clark & Co.

in Nashville

Wm. J. Mericka & Co.,

Inc.

Wood, Gundy & Co., Inc.

Stein Bros. & Boyce

Breed & Harrison, Inc.

The Weil, Roth & Irving Co.

Lyons & Shafto
Incorporated

4

France worry for a while.
They refused to take the advice
of our President and Mr. Dulles.
men

Rotan, Mosle & Co.

the

Third National Bank
can

Incorporated

William Blair & Company

en¬

Russia

and

These

Newark, N. J.

Braun, Bosworth & Co.

Fridley, Hess & Frederking

Republic National Bank of Dallas

he

"

On the other hand, I
stand

Incorporated

National State Bank

King, Quirk & Co.

Robert Winthrop & Co.

any

war;

nations

surely will not engage in
directly, for fear of losing
satellites.

W. H. Morton & Co.

Wood, Struthers & Co.
Incorporated

•

•_

!'

Incorporated

J. C. Bradford &Co.

agree

gaged therein would lose.

,

•

President

never

hopelessness

winning

he

this

would
—

...

.

Weeden & Co.

.

of Western New York

Russia does not want stable

world conditions unless she is the

."top

_

foresee Russia and

United

"even

Incorporated

Car] M. Loeb, Rhoades & Co.

Clark, Dodge & Co.

Dean Witter & Co.

Underwood, Neuhaus & Co.

sold; especially hold the oils.

I cannot

the

be held rather

now

Barret, Fitch, North & Co.

Arthur L. Wright & Co., Inc.

England

"

and
.

France to refrain

from

using

Byrd Brothers

force in Egypt. Furthermore, our
is disappointed in the

•President
way
:

November 19, 1956.

Western Europe has failed to

co-operate in his plans for an eco-




Stern, Lauer & Co.

<

Harrington & Co., Inc.

Dewar, Robertson & Pancoast

Seasongood & Mayer

?:

70

The Commercial and Financial Chronicle

(2182)

tempting to meet demand, as in
the past, manufacturers should at

By I. W. WILSON *

kets,

last

The Outlook for Aluminum

I

be

President, Aluminum Company of America

43% increased capacity in new and expanded
aluminum production over 1956, rising imports, and recovery
of secondary metal, Alcoa head sees manufacturers at last
able to make plans to use aluminum with confidence that the
Predicting

is

rum

high as ever.
slightest doubt

I

There is
that our

as

the

not

nation will

continue to grow, and

"

.

that

its

econ¬

will grow
accordingly.
omy

There is every

indication, and
fully be¬

C'J VI

we

lieve, that the

growth of the

aluminum in-

|W

will

dustry
continue
i

much

at

a

greater
the

than

rate

national

econ¬

omy.

In
I.

Wilson

w.

of

the

light

these

com¬

ments,

you

Y/ill want to know what

we

con¬

sider to be the factors in the pres¬
ent market situation.

First, I should like to remind

you

of the historical

pattern of the in¬
Over the years, aluminum

dustry.
lias

established

for

itself

viable reputation as a

dustry."

Domestic

oluminum

has

an

en¬

"growth in¬

production

increased

of

tenfold

•since 1939, while total U. S. indus¬
trial
production has
multiplied

only about two and one-half times.
Per

capita consumption has

from

nearly

3 pounds to

grown

roughly

is constructing a new coalpowered
smelter
in
the
Ohio
River Valley at Ravenswood, West
Virginia. The Ravenswood plant,
pany

will

which

have

hew

that

shall

I

so

time in

more

would

Continued Expansion Expected

not

spend

.

Thursday, November 22, 1956

and

discussing them. But

Pennsylvania State Univer¬
sity. Results of these tests indicate

fail

that the average modern

not

to

any

mention

the

home, if

fields that are opening
aluminum, and that re¬
main to be fully developed.
One relatively new field
that
has been growing rapidly is that

and

of

United States. When these advan¬

many new

for

up

containers

1960,

of

use

and

by

crease

packaging.

aluminum

applications

years.

point, I should like to
make perfectly clear that the pros¬
pect of a plentiful supply in the
years ahead does not indicate in
any way that the growth of the in¬
dustry has reached its peak. Ac¬
cording to our best estimates, alu¬
minum
consumption should ex¬
ceed
3
million tons by 1960 at
present rates, and is likely to go
to at least 5 million tons by 1975.

initial

an

in

this

At

mean

,

confidence

several

that the
contemplates
3 million ton consumption in • 1960 and 5 million tons in
1975.
Mr. Wilson looks forward to a period of increased
merchandising effort and cites several entirely new fields for
this versatile and favorably priced metal.
supply will be adequate. Indicates this does not
industry's growth has reached its peak, and

to

design and use
applications
the supply
will be adequate. This new sup¬
ply-demand relationship will give
the industry
the opportunity to
enter new markets that many of
us
have been talking about for
aluminum

'

with

Our faith in the future of alumi-

able

..

is

for

expected

than

By

these

We

are

also

use

optimistic about the

for

greatly

$12

such

we

to

The

as

month

known,

are

throughout

that averages
for
the
entire

cost

we expect home

and builders alike to
feel,
do, that they cannot afford

be

without

aluminum-clad in¬

sulation.

.

In

addition, we are planning a
major campaign aimed specific¬
ally at opening up new markets
for aluminum. The

increased

equipment

a

alumi¬

be heated

owners
as

building field; in telephone ex¬
change cable; in highway signs,
railings and lighting standards;
in

for

per

tages

of aluminum in the residential

and

with
can

air-conditioned

the year

tical would open up a tremendous
additional market.

prospects

insulated

num-clad materials

in¬

to

80%.

And,
as I stated in
May, successful de¬
velopment of the aluminum can
for applications where it is prac¬
more

properly

heat

program

have

nounced,

but

hear

a

near

future.

lot

details of this

not
you

In

been

yet
may

about

more

like

ways

an¬

expect to
it in the

these,

Alcoa is competing for
expanding
markets. And we are not alone.

simple economic facts are
exchangers,
condensers,
instru¬ Our
competitors
recently have
industry, in attempting to
ments, tools and fasteners.
made
a
number
of similar an¬
with rapidly increasing
The opportunities presented by
nouncements, and it is doubtless
demand, is at last succeeding, and
a plentiful
supply are expected to safe to say that they have still
is apparently going to be tempo¬
interest many
prospective users more plans of their own.
Louisiana, is also being enlarged rarily ahead in th£ race to make
in
aluminum.
But the
In
industry
by 27,500 tons per year, and a aluminum available for expanding
conclusion, however, I should
new
430,000-ton alumina plant is markets. This situation, if it de¬ will not wait for this interest to like to point out that the mainstay
under construction at Gramercy,
develop spontaneously. You can of the industry since its
velops, will have little to do with
inception
look
for it to be stimulated
Louisiana.
by has been research and develop¬
anticipated growth in demand. It
spirited competition among alu¬ ment. These twin
Several
new
names
are
also will be
simply a natural conse¬
activities,
entering
the
field.
Harvey quence of prodigious efforts to minum producers and fabricators. coupled
with
an
enthusiastic,
Aluminum Company—a subsidiary
For Alcoa's part, the
satisfy the tremendous appetite of
campaign pioneering sales group, have been
of Harvey Machine Company of a
for new markets is now
rapidly growing national econ¬
being in¬ largely responsible for the
growth
Torrance, California—is construct¬ omy for aluminum products. As in tensified.
Planned
promotional
ing a 67,000-ton smelting plant at the past, it cannot last long if pre¬ programs are carrying the advan¬ of the industry to date, and we
The Dalles,
Oregon, and is ex¬ dictions concerning our national tages of aluminum into fields that are relying heavily on them for
pecting to begin production late growth continue to prove correct. have scarcely been touched here¬ the future. With
intensified effort,
next
year.
It
ia reported
that Economic forecasts strongly sup¬ tofore. One typical effort in that
we are confident
of success.
Harvey's alumina will
be fur¬ port' the continued expansion of connection is our
promotion of
nished through a five-year con¬ markets for aluminum.
aluminum-clad
insulation
mate¬
Versatility and Price
tract with two Japanese producers.
In
keeping with these trends, rials for use in the residential
Competitiveness
This contract, which is renewable,
you can look for a period of great¬
building
field.
Keyed
to
the
Aluminum's greatest character¬
is reported to call for 105,000 tons
ly increased merchandising effort theme, "Comfort Everybody Can
istic
is
its
amazing versatility.
per year.
on
the part of the aluminum in¬
Afford," the campaign is backed
Another new producer is Olin
dustry. Markets such as building by thorough scientific studies at There is no doubt a limit to the
Revere
Metals
Corporation,
a
products, transportation, con¬ the National Bureau of Standards ways in which its unique comfirm
jointly
owned
by
Olin sumer durable
goods,
and
the
Mathieson Chemical Corporation electrical field
have • been
prin¬
and Revere Copper & Brass, Inc.
cipal consumers of aluminum for
This company is building a coal- some
time, but not in the volume
This advertisement is neither an offer to sell nor a solicitation of oVers to buy any of these securities.
powered
smelter
at
Clarington, that will be possible when an am¬
The ojjering is made only by the Prospectus.
Ohio, which will have a capacity ple sunply of metal is readily
v"
v ■■■".
'i
f
of 180,000 tons per year. Alumina
available.
* •
\>r
NFW IFSrq
November 21, 1956

125,000 tons of
is designed
lor possible expansion to 220,000
tons.
The smelter at Chalmette,
capacity
aluminum

of

per

year,

that the
catch

up

.

24 pounds.

For years, it has been

practically impossible to keep the
supply of aluminum abreast of
demand.

,

;

this

for

from

Markets hungry for alu¬
minum have eagerly accepted all
the metal

from

produce.
been

that

the

industry could
supply has
by increased con¬

Increased

absorbed

at

Orleans.
the

Billiton

When

Great

1957

Demand

Outlook

come

Bauxite

Surinam

will

mines

come

the

of

Company.

Expansion

sumption.

will

plant Olin Revere is build¬
Burnside, Louisiana, near

a

New

ing

smelter

new

and

these

of

Imports

plans
are
completed, the
total
production capacity of U. S. pro¬
ducers will reach 2,526.500 tons,

.supply

a

to

few

a

a

temporarily adequate
demand.
At present, we

was

meet

to have reached another

seem

of

periods—notably for

one

these

points in the growth of
industry. Demand for the sec¬

the

ond and third

great

it

as

quarters

not

was

during

was

as

first

our

quarter, but some recovery is an¬
ticipated in the remaining months
of the year. In 1957, we feel that
the outlook
mand

than

is

will

in

good, and that de¬

be

somewhat

greater

Confident in the future, the in¬

dustry during 1956 has continued
to announce plans for
expansion.
Earlier in the year, I told
you
Alcoa's

gram.

As

$600-million

part

of

this

pro¬

program,

have

we

increase

is

also

neqessary
to take into
both
imports and
sec¬
ondary metal, a term that includes
scrap of various types.
account

With regard to
will

take
of

place.
primary

expected to

By

be

exceed
more

will

Evansville, Indiana,
mining facilities in the

Dominican Republic.
of

a

Point
been

20,000-ton
Comfort

smelter

the

to

has

also

announced.
New

and

couraged

part,

Old

Names

Metals

has

Company, for

announced

the

ing added capacity of 100,000 tons
of primary metal
annually. Rey¬
nolds is also enlarging the
pro¬
plant

of

near

its

La

Quinta

alumina

Corpus Christi, Texas,

by 50%.
As

for

Chemical
*An
New

be

by the fact that

being

to

Aluminum

this

by M»-.
of Security

Society

New York C.«.y, ixuv. ts,

im.




&

com-

Analysts,

industry

our

aware

of

our

these established
building industry,

in

In the

example, you have watched
rapidly increasing trend to¬
ward aluminum-clad buildings of

1.25

en¬

tariffs

minum

cents

you

awnings

In the

estimated

the millions of passenger automo¬

of aluminum will increase

sharply

By

1958,
including
domestic
production,
imports and secondary recovery,
the total supply of aluminum will
be about 3,000,000 tons.
Assuring
With

this

Adequate

rapid

Price $50 per

biles

produced every year.
You
familiar with the cost differ¬

are

share

plus accrued dividends from November 28, 1956

ential that gives aluminum such a
marked advantage over copper in
the

electrical

well

and

with
characteristics

unique
num

field;

that

make

it

so

you

are

Copies of the Prospectus

the many
of alumi¬

.acquainted

desirable

writers

may

be obtained from

of the several under¬

any

only in States in which such

dealers in securities and

in

underwr ters are qualified to act as
which the Prospectus may legally be distributed.

in

appliances, furniture,, sporting
goods, and other consumer dur¬
ables.

The First Boston Corporation

1
Potential

Merrill

Markets

New

The inroads made by aluminum
these markets

are notable; but
potential lies far beyond what
has already been achieved. One of

favorite

examples is the auto¬
mobile industry, where the aver¬
age use of aluminum has tripled
in

the

stands

five

past
at

35.2

Supply

increase

supply, it is likely that aluminum
will be plentiful. Instead of
being
plagued with the problems of at¬

now

May, studies indicate an
average of 49.8 pounds by 1969.

you

If

in

trends

present

estimated
for

continue,

will- prove

estimate

conservative.

to

be

Blyth & Co., Inc.

»

this

that

use

of

1965.

I

an
am

'

Dean Witter & Co.

>

Central

Incorporated

Republic Company

Hemphill, Noyes & Co.

(Incorporated)

Coffin & Burr

the

*

,

Paine, Webber, Jackson & Curtis

Lester, Ryons & Co.

Incorporated

Schwabacher & Co.

Ball, Burge & Kraus

Hill Richards & Co.

Wagenseller & Durst, Inc.

Bateman, Eichler & Co.

Crowell, Weedon & Co.

Kenneth Ellis & Co.

Elworthy & Co.

Shuman, Agnew & Co.

Walston & Co., Inc.

-

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

A. G. Edwards & Sons

Newhard, Cook & Co.

Henry Dahlberg and Company

Estabrook & Co.

First California Company
(Incorporated)

.

Irving Lundborg & Co.

E. F. Hutton & Company

Goodbody & Co.
Laurence M. Marks & Co.

long

run,

300 pounds per

car

Pasadena Corporation

The Milwaukt

McCormick & Co.

Smith, Moore & Co.

Stroud & Company

Company

Incorporated

an

is

a

Sutro & Co.

Brush, Slocumb & Co. Inc.

The First of Arizona Company

Grimm & Co.

Hooker & Fay

unreasonable goal.
sure

experts,
possibilities
as

Stone & Webster Securities Corporation
'

,

Allyn and Company

cars

For

of

r

aluminum

will rise from
89,000 tons in 1955 to 384,000 tons

not

William R. Staats & Co.
A. C.

Refsnes, Ely, Beck & Co.

Lynch, Pierce, Fenner & Beane

most

A Kaiser official has

passenger

average

ia

and

years

pounds per car. As
I spoke to many of

I stated when

Totalling all of these sources, it
is quite apparent that the
supply
years.

•

(Convertible through December 1, 1966)

speed, lightweight trains; for
truck-trailers and busses, ard for

in

over

few

$50 Par Value

quantities for super-*
structures of oceanliners; for the
development of the
new
high¬

our

next

£2.40 Cumulative1 Preferred Stock

increasing

per

400,000 tons.
But with production and use of
aluminum
increasing, scrap re¬
covery
is also expected
to
in¬

the

•

and
Venetian
transportation field,
have seen aluminum used in

blinds.

pected

in

Company

and clapboard siding; and
mounting popularity of alu¬

prior to

1, 1958.

resulting in an
550,000 tons by 1958.

•

doors
the

the

be

Arizona Public Service

multi-story type; the growing
of
aluminum
in
windows,

use

With regard to secondary metal,
the total available in 1956 is ex¬

to

200,000 Shares

for

reduced

1.5 cents per pound

1956,

expectations

in

Kaiser

Corporation,

address

York

to

ex¬

pansion of its Listerhill, Alabama,
smelting plant, a project involv¬

duction

doubt

progressively

July,

are

1956.

expected

crease,

Reynolds
its

Construction

addition

250,000

an increase of
in two years. This

-no

pound by July

near

About

aluminum

300,000 tons,

than 20%

trend

are

increase

an

imported in

1958, the total is

smelter

new

imports, there is

indication that

every

from

and

This

of expansion in the in¬
dustry, however, does not fully
explain the increasing availabil¬
ity of aluminum. As you. know, it

already started building
plant at Point
Comfort,
Texas,
a
150,000-ton
alumina

new

a

1956.

over

picture

tons

1956.

nbout

43%

know

certainly

markets.

the

announced

brief time in 1947, 1949 and 1954—

In

who

are

the

Plans

all

You

well

that security

analysts,
familiar with the
of established mar¬

are

E.S.Hope & Co., Inc.

Jones, Kreeger& Hewitt
'

•

'

Laird & Company Facific Ncrihwest Company
Corporation

,

♦

,

Ai^

.

Volume 184

bination

Number 5588.

of

qualities

.

.

s» ;i.,

t »'

,

certain that this limit is not with¬

By WALTER MAYNARD*

in sight.

for* aluminum.

argument

of other

moderately than to-advance in next six months, and that stocks
will anticipate rising business in second half of next year.

major non-ferrous metals
frequently on an actual
weight basis, and always by vol¬
ume. It is highly important to the

Discusses

.

metal, he
larger piece of aluminum for his
dollar. This is simply one addi¬
why

In

aluminum

for

stock

market,

erable

will

number

T

I

number

a-,

these

Vf.-N. H. Banking
School Date Set -

of

Vermont-New
of

—

and

variables,

suggest
soned

Hampshire

s

1957

School

Banking

will be held from
Sept.
9, 1957 through

Monday,
Thursday,
School

Sept.:

School

1957.

The

its fourth year as
the former Vermont

in

now

to

successor

12,

of

Banking is sponsored
jointly by The Vermont- Bankers
Association

of
-

i

f

them.

The
ments

*

1

e

♦

•

market

period

ofvtime

:

I

in-

the

has been elec-

Fi-

ted

Walter Maynard

chair-

•'

'•

member

a

of its board of

directors.
tional

&

search

.

is

Na¬

Securi-

ties

Re¬

Corp.

the

under¬

writer and iri-

r

^ong-Term Buying Opportunit

vestment

Looking

tractive

have been

by that time

invest ment

rising completed, and the general trend
provide an at--of business should once again be

and, on the
yields now

contrary,

funds

to

stock

in-

with

assets

,

alternative

rising, reflecting a continuation of

about

vestment.. Here too, therefore, the' the economic development of both
market will fail to find
price--this country and the rest of the

.

Jr.,

ahead to the second manager of
added to the list of those who buy' hajf of next year, the readjust the National
equities.' No
further * important merits which tight monetary pol- Securities Se¬
additions to the ranks of equity - icies are designed to bring about
ries of mutual

bond

in¬

clude

increase.

to

super^weappns.

'a

funds, savings banks and life ins.urance
companies
have
been

year,

of

prices

a

market

benefited

continue

buyers are in sight for the coming, should

shape

course

over

e-

which

to

tend

the

•

based

upon

to

Simonson

man

naDy,.'_we seem unlikely in the
Present troubled state-of the world
to neglect to bring our armament
equipment UP
^ V*
terfs of conventional weapons

bought stocks, but pension

before

conclu-

o n

Henry J.

consequent good earnings for

'

rea¬

a

has

years

Nat'l Sees. Research

'consumers

sure

demrnd," the" stock

recent

of

of National Securities & Remerchandisers. The American ap- search
Corporation,
has
anpetite for oil also seems virtually nounced that John J. McLaughlin

respect to factors of sup-

ply and

distribution

>

with

strongly from the creation of new
:classes of,stock buyers; not only
have more individuals than -fiver

ables and then "

The

With

in

vari-

the

Effect

.

consid¬

a

New Director of

goods will remain at high levels,

Stock Demand and Election

going

a m

stock

upon

'

we

first to discuss

HANOVER, N. H."

six

boost

and life insurance

opportunities.

T

the

variables

of

will

rendering^ judgment about long term buying

must take into account

continue.

number

a

trying to appraise what 1957

holds

believe that

we

effect of

>

that, in buying
can, expeet
a
much

toward

the

market before

manufacturer

trend

next

in* the

prices

months, but be equally^ prepared
to take advantage of the longterm buying opportunities which
these lowef* prices will provide.**

that high rates of interest
the earnings of banks
companies, that
the business of utility companies
will: continue to expand and that

Mr. Maynard concludes stock prices are more apt to decline

the

11

year,

Ever

World War II, its price has
been far more favorable than that

reason

displayed by the Averages!- lower

example, it seems reasonable to expect that the automobile
companies will be more active iyi
1957
than they have
been this

"

since

tional

as

For

.

Partner, Shearson, Hammill & Company, New York City

convincing

a

trend

-

The Stock Maiket in 1957

our comfort and conven¬
But for the present, I am

Price, too, offers

(2183)

>

be ap¬

can

plied to
ience.

'

The Commercial and Financial Chronicle

of

John J. McLaughlin

$300,-

000,000.
'
'
J
*
Mr. McLaughlin has, for many
years, been a partner of Burton,

world. The stock market will undoubtedly, as usual, anticipate this Dana & Co., 120 Broadway, New
outlook, or prospects of war and sures a continuance of the favor-" development, which is an added York
City, membefrs of the New
tween
the
political
environment
of ; reason
for
expecting
that
the York
Stock
University of New peace, the profitability of business, able
Exchange,
with
the dividend paying
capabilities recent
Hampshire, University of Veryears.
However,
Demo- year's low point in stock prices branches
in
Philadelphia
arid
mont, and the Amos Tuck School of leading corporations, the gen- cratic-control of the House sug- will be reached before mid-year. Washington, D. C.
and

The New Hamp¬

shire Bankers Association.
The School which is rotated be¬

t

boosting stimuli,

ational

e r n

"

The outcome of the Election

as-

i

of Business Administration, Dartmouth

College, the cooperating
Universities, will be held this year
at the Amos Tuck School, Han-

over, N. H.

eral level of money rates, supply
and demand for stocks, the political atmosphere and its corollary
of the outlook for tax relief; and_

Those in charge will be:

ment,

Chairman and Registrar—Glenn
W.
Merrill, Vice-President and

Cashier, Dartmouth National
Bank, Hanover, N. H.
-

Director—Dean

Arthur

R.

Up-

gren of the Amos Tuck School.

Association
Harold

Director—Professor

E.

Angelo, Professor
Banking, Amos Tuck School.

■'

A program

of

committee consisting

of representatives of the two State

Associations

that constructive

which

would

finally, the psychological environ- creasing

'
.

;

gests

and

representatives
of the three cooperating Universities have charge of constructing
._■■■■

the curriculum for the 1957 School.

or

the morale of investors,

International

helpful

be

the

namely,
.

Business

and

Supporting this view is the fact
that professional investors now
play a larger part than ever be¬
in- fore in shaping the course of the

relief

tax

of the kind mat the business community has been longing for, and

Joins Leo

in- punitive

rates .'of personal income tax, is

are

well

therefore,

a

MacLaughlin
4

Calif.—Rodolphe

PASADENA,

of these trends.

aware

In conclusion,

G.

(Special to The Financial Chronicle)

capital,-market prices, and they, of course,

of

supply

reduction

a

in

•eo

MacLaughlin

cap-

G.

Com-

Securities

'

Profits

Outlook

'ttie1 market'prS,ably

ing;k

<•

Thus,
Turning first to the interna- cannot expect a stimulus from this
tional outlook, all we can say at source.
this juncture is that it is becoming
The morale of investors is rela-

progressively more uncertain. War tively high,

as attested by the fact
still that yields on stocks now bear
seems
almost
unthinkable,
but about the same relation to yields
nevertheless the general course of on bonds as a year ago.
Thereevents
does
not
suggest
that fore, here too we cannot look for
events abroad will provide much a favorable change.

the

between

stimulus

major

nnnnvrim rTltr

We must accordingly

particular influence

market

in

The

Be PrePared for somewhat, nue.

thl?

appraise this

as

flat at best.

_

?

This advertisement is neither
"*

•*

an

offer to sell

nor a

The offering is made

solicitation of offers to buy

any

of these

securities,

only by the Circular.

:

t

November 16, 1956

ISSUE

NEW

Xl

•

XL

i.

a

negative sense by
J

«

—

^4-

iA

J

saying that they do not add up to
a

.... f

foregoing factors might be

coming yeef- summarized in
onnroico

^

^

.^r^r^redfor somewhat 552*

powers

stock

the

to

coun^ry

il/rv* not

say 1S'

strong

for

case

higher

1,000,000 Shares

prices.

respect to the profitability We might then ask ourselves what
of business, a logical guess would are the prospects of a substantial
be
that
profits might diminish decline? Here, too, it is difficult
slightly rather than expand: A to adduce a convincing bearish
With

B. C. Morton

Branch in
B.

Opens
Tokyo

Morton

C.

&

Company

of

,

Boston, national mutual funds spe¬
cialists and insured savings con¬
sultants, has opened a new office
in Tokyo, Japan, Morton W. Gold¬
berg has announced.
This

,

firm

from coast to

of

office

newest

which

the

Hub

has

representatives
coast and in Europe

and Hawaii will be headed

C. Bennello.

by Leo

~

..

for

reaching this conclusion is that capital goods activity,
reason

of the total,

important sector

an

limitations

various

of

because

BEVERLY

Calif.

HILLS,

—

formed with offices at 9685 Santa

Monica Boulevard to engage in a

securities

business.

Officers

are

months has been at a low ebb, the
general level of prices has not
advanced for

over a year,

,

.

-

formerly with Shelley, Roberts &
and

Co.

Sterling Securities Co.

0j busifiess activity means inten-

competition in many areas,

Boost

,

likely to diminish. A lessened rate

in

Yields

>

dividends
likely to be well sustained
Since corporate

in

the

face

of

stability

or

mild

past year have made inroads into prices wpuld result in a generous
corporate
working" capital, and boost, in yields, which should atunder present conditions corpora- tract new buyers.
We should, of
tions seem jjkely to resort to the course, take into account one sear
capital markets to the minimum
extent
possible for the purpose
of
bolstering
current positions,

'

-

(Special to The Financial Chronicle)

Calif.—Roland

so

Hotin

has

become

associated

with Dempsey-Tegeler & Co. Mr.
Hotin waS formerly local repre-

sentatiye for Mutual

Fund Asso-

ciates.

(Special to The Financial Chronicle)

Calif.

—

Cameron

of

Powell,
He

was

Powell,
Johnson
&
Inc., Security Building.

formerly with Columbia

Securities Company.




on

|"
basis

no

are

being offered

share for the above shares

at

the

rate

Capital Stock held of record

on

Warrants will expire at 3:30 P.M., Eastern

December.5, 1956.

The several Underwriters have

'

:

.

agreed, subject to certain terms and

conditions, to purchase any unsubscribed shares and, both during
and
as

following the subscription period,

set

forth in the Circular.'

such underwriters

.

may

offer shares of Capital Stock'

may

v

/

>

.

be obtained from

any

of the several

underwriters, including the undersigned, only in States in which
and

in

which

are

the

qualified! to actCircular

may

as

u

dealers in securities

legally

be

distributed.

the

at

On leve
might well produce the
year'^ lowest prices at some time
longer between
early March and June,
growth in
Summarizing all of these con-

mosphere of credit tightness.
...

,

the

other

hand,

continuing

the

term,

population

our

for

suggests
r

in

tor

group

the

way

the

stock

of

a

rising siderations, I think we can conthis

forces

also

.

more

apt to decline somewhat benQW
and
mid_year than

tween

market.

.

tively narrow limits,
or

come,
ing

Industrial

on

Nov. 5,

the

Conference

Financial

1956.

Eastman Dillon, Union Securities & Co.

Glore, Forgan & Co.

Goldman, Sachs & Co.

Kidder, Peabody & Co.

Lazard Frcres & Cow

produce

10%

tional

Blyth & Co., Inc.

Corporation

elude that stock market prices are

much tbey are to advance, but that this
of positive stimulus decline will be kept within rela¬
to

The First Boston

w

Thus,

capital.

unlikely

seems

,

the

for

H. Duncan has been added to the
staff

Time,

1956.

Cofiies of the Circular

...

PASADENA,

Standard

15,

tends to be at its lowest point
between Jan. 15 and June 15. This

suggests, in turn, that if declining
present time; for anticipating any tendencies are to Prevail next
great easing in the- general at- year» their impact
ithe price

particular
.

November

per

12 shares bf

share for each

and, therefore, their buying power

seems

demand

Powell Johnson Adds

one

that

'

A.

of

outstanding Capital Stock

right to subscribe at $47

helpful to prices in

the dimensions

two years.

There

'

CHINA' LAKE,

of

tributions

Holders of the Bank's
the

even

The heavy capital expan¬ decline in the indices of producsion programs of business in. the tion, a moderate decline in stock

have been

Dempsey-Tegeler

($12.50 Par Value)

*

seem

profits.

the past

With

Capital Stock

and it is

sonal factor that has an effect on
the - stock market. This factor
rector: Claude E?/Schreiner. vicerector; Claude Ei' Schreiner, vice
arises from the circumstance that
president;
Michael
A.
Grande, Therefore, the market is unlikely upper bracket individuals feel the
treasurer; and Anthony S. Lazza- to benefit from a big upward heaviest weight of taxes in the
rino, secretary. Mr. Lazzarino was
surge in the rate of dividend dis- first
half of .the calendar year,
Stanley McLay, president and di-

The Chase Manhattan Bank

recent

difficult to discern from what diin fact, as a result of the tight rection really menacing liquidation
credit policies being pursued by might come,
the monetary
authorities, seems

sified

Great Western Securities has been

Speculation in

cannot increase much further, and,

and, therefore, some diminution of

Form Great Western Sees.

argument.

Board

Meet-

Outlook, St.

so.

Lehman Brothers

Merrill Lynch, Pierce, Fenner & Beane

Smith, Barney & Co.

let us say

The decline, if it is to

will be

Stone & Webster Securities

gradual.^ will be

Louis,

highly Selective—and many stocks

will be able to run counter to the

Corporation

White, Weld & Co.

12

The Commercial and Financial Chronicle,.*:.

v(2184)

the brakes.

passed

And Middle East Crisis

Angeles made this point

The American economy

productive
the

In

no\v

full decade of strong

Second

World

It

War.

and

goods

services
available
rate

at

a

never

attention.

achieved be¬
fore. A review
of

ent

has

•

differ¬

the

in

areas

might

classing

;

;

-

■

.

good"

production,

Boom,

.

.

of

All

scribed

electric power and transportation.
In
many
areas
records are now

is

than

In

before.

ever

this

personal incomes, earn¬
ings of labor, consumer expendi¬

group are

building, export trade and
loans by commercial banks.
tures,

Why

pansion
This

Capital

Heavy

•.There is

one

has
the

is

Outlays?,**.

in

area

which

ex¬

phenomenal.

been

construction

of

plant

equipment, where extraordi¬

and

records are
outlays

nary

now

Current

equipment

for

being made.
plant and

than six times

are more

those of 1939.

are

three

chief

In

reasons.

the

first place, technological de¬
velopments in recent years have

been

great stimulus to plant ex¬
pansion.
Industrial research, to
a

the extent of $5

nually, is

$6 billion

or

introducing

new

ucts,

new

ods.

In taking advantage of these

materials and

new

developments,

much

more

equip
:

it

often

plant rather than to

In

the

second

construction

a

increased
spur

to the

plant and
As the costs of labor

ment

have

become obvious.

,

v

In the third

place, building costs
have
been
moving steadily up¬
ward, and there have been, there¬
.

—

.

L.

—

1

a

A.

Jl

*

1

ment

alsoC

may
1

ar-tivitv

t'

be

thn

mn-

is

ft,

consumer

buvine The consumers' dollar mitDuying. ine consumers aoiiar out

earlier3records

smy

in

aTl

neighborhood

of

retaif establishments
ably

be

the

in

Sates
will

pro"

$193 billion, or some 4% over the
1955 record, and merchants are ex-

pecting the coming holiday trade
to be well
very

in

excess

of last year's

high records.

ener

of

8,

before

Bank

the

an

address by

Tenth

Annual

Correspondents,
"

1656. *




St.

Mr. Mich¬
Conference

Louis,

Nov.

the

fare

'

how

broad

figure

present

that

Middle

the

influence

out

period,

for

in

East, even
though localized, will not be with¬

what

to

up

de¬

-

American

on

first

The

ness.

of

area

busi¬

our

mark,

the

and

Prices

econ¬

rate

only

approximately

ready registered
fluence.

And, further, available funds for
the
expansion of capital goods,
is, savings,

are

present demands.
Thus, the economy
full

tilt,
supplier

with

is aoerating

plants

busy,

labor

absorbed, material sup¬
plies utilized, full employment for
all available savings and opportunity for using additional savings,

that

those of

For

business,

the

us

likelihood

v

Comparison

important

above

tional

tive

credit.

During the past

bank

loans

.

have

18

risen

.

^as^er than in, any similar period
in our banking history. .
view of the above conditions,
Reserve authorities have put pressure on member bank reserves by
design in order to keep the expansion of credit from proceeding too
far-. So it is that, with demand for
money much higher than it has
l~v

rv

been

+

rv v»/-»

+l«»

<■«

nrtwi

i

J

w

^

before, with savings inade¬

quate.
the

/-v

to

full

meet

credit

demand

design of

credit

our

is

money

authori¬

"tight."

Interest

rates have advanced to the

level

in

and

expansion limited by

than

more

two

highest

decades.

Rate increases have been general,

three

areas

is

the

possible

in

into

period

a

of

difference

United States is not
and

the

this

economy

is

that

influence of

the

war

rean

War

there

was

omy

gests
war

more

a

nppn

that> from
:

rrpmiPnT

on>

now

1

m h

,

.

nnt

exnnlv

time

in the Middle East has

on

possibly

our

In the third

work

f.

,

place, the

p

raw

materi-

banking

muidira
years.

uver
Also, should
u

u

fu

the

Materials

f•

foreign

Act, could

be promptly

country

is

generally

that credit authorities

commendable

job

in

in the
convinced

are

doing

putting

utilized to prevent many

of the
of

developments

early Korean War period.

fraternity

a

on

civilization

adjacent,

It

extent

and

One

of

panying

not

hesitancy, in fact, in keeping the Red Chinese

next door to the Chinese, and to a
people!
Somehow or other they
greatest industrial and military might
It just isn't true!
same

the

of

sort

second

prized possessions is

my

Associated

Press

in

1939,

broken

down

which

accom¬

and

awful time stumbling over their
Indeed, I have just read of the
comedy, Porgy and Bess, had in

musical

7

Nevertheless,
the

our

whole foreign policy, particularly

present Middle Eastern

Russians

ing

an

the march by the
destroyed that coun¬
invited -the Russians to take

an

equipment.
the

by

of

Germans had

half of it
They had

taken

the other half of it.

description

a

correspondent

Russians into Poland after the

in

.

n%ilitary threat, the possessors of the
be in the slightest alarmed.
Our

a

would

no

the

world.

the

try

between the Russians

might do.

dispute, is

Aside from that,

we

based

policy

our

upon

what

the

have spent billions build¬

and1 detonating atomic and hydrogen

bombs

based

upon

the

powers

has

alleged military might of Russia.
Neither

Britain, France

^worried about these bombs.

nor

of the Western

any

military might of Russia.
if

don't

we

do

Neither have they worried about the

We are,

just

things

right

on

the contrary,* worried that

in

Egypt,

it

On

j

will

offend

the

and only trip to this great Russian land of experi¬

my one

ment, at

a

time when the Russian Government

was our

colleague,

ally under Roosevelt, in pursuing better things for the under-

our
0

dog, I was impressed tremendously by this
the

At
were

time

in

were

we

the

still building houses here and

the erection of

a

one

depths of

two-story building

there.

a

thing:

depression,

but

we

In Russia at the time,

ance,

the present

war

There is

accomplishment.

a

crowd

international event of

was an

in Moscow, with training in

New

*

unfortunate
Asks Reserves Be Supported

are

faster than it did in 1950 and 1951.

reserve^pStttaftu?by

of banl5 liquidity
anc* a*so by *be decline in the
rabo °* capital funds to risk assets,

China

told tomorrow that the Red Chinese had become

you

become

in

when
econ¬

by the
?hedeteriorate further it is
decline in holdings of "short-torn bkely that government regulations
and controls, under the Defense
Government securities—which re- Production Act and the Defense
Quces thls

and

Soviet Russia is right

But

in 1950 and

itisripar

bank l°an

Russia

a

*nd advances in the rediscount
's
aid^d by present stockpiles accuJai(; nave Deen irequent. it is clear mulated over the Dast severai
navp

Gate

Russians.

slack in the

might

the Water

ran

on

than there is today. This sug¬
that such influence as the

economy

Angley

the United Nations.

have

place, the Ko¬

at

came

Mrs.

difference in

more

were

-

was

In the second

1951.

through her heroism <and intelligence
right here—practically right

named

Russia.

about

get

large

the

will thus be only

fraction of what it

<

his girl who

v

•

bomb,

out of

participant,

a

7.

•

.

exr

tended warfare. The first and most

important

..

was

stopped

were

woman

a

government has

domestic business should the pres¬
ent situation in the Middle East

deteriorate

In Washington they were stopped

native of Washington and Anne

industrialists

atomic

War

developments

and

The Mongolians, determined

Chinese.

the

great

only in minor degree sugges¬
of

.

published

humble opinion

If you

of

are

'.

.

duly

to this country, passed the Rockies

way

Washington.

-

degree

and

the

in

'■

was

girl named Anne.

Russia.

time

Korean

Napoleon"

"Red

got all the

Mongolians

we

the

one

1950-51

at

the

Bargeron

how ridiculous it all was, is to compare it with the propa¬

see

own

outbreak

Carlisle

of this writer, having been in Russia, and
having read about the Russians for a long time, that there is not

and

the

of

be..

My purpose now in telling you all this, when you look back

and

to the

Experience encountered

is

point

customers, unable to get
elsewhere, have been com¬
ing to commercial banks for addi¬

our

With

out .to

horrendous book.

a

was a

where

ganda

rapidly moving price increases.

banking

turned

was

the

into
a

restaurant.

al¬

of shortages

it

book,

experience
the

in

funds

.

the

down

and merchants should there be

some

had

In Floyd's book it was

world.

phasis to be given to capital goods
expenditures. A third area is that
of speculative buying which might
develop among domestic consum¬
ers

of the war and the
placing such a

time

Floyd

always waited for him while he made his excursions around the

they available.

were

that

be given

to

eye.

end

awful

It was

Floyd

;

filling of possible military needs.
These
requirements, along with
others, might cause further em¬

short of

now

attention

more

on

the

wide distribution, by virtue of the Colonel's and Mr. Hearst's

by virtue of

that of military goods, as warfare
in any part of the world causes

high

th$

But

and marched

would be

area

for

to conquer us,

of this in¬

some

second

A

have

markets

then

known

.

a

for basic commodities

these

in

From

was

as

Floyd's

to be importantly influencedsuch a development- may be

by

the market

eye.

he

days.

omy

are

unem¬

enough to cover current demands.

The
•Summary of

'

an

life

that.

cover

backing.

Repercussions

"Tribune."

lost

an

man

7 7

this warfare will be, but it is rea¬

materials, including steel, alu¬
minum, cement, mica, nickel and
others, are being produced at a

rate

•

This

superlatives.

at

Ascribed

rrn-•

East

!

yet too early to deter¬

as

mine how intense and

ous

ties,

whirh

is

the

his

comes

had

the

now

was

he

for

comparatively dull
considering what Floyd had been through. So the Colonel turned
Floyd loose on a book about the menace of the Chinese and the
Japs, something the Colonel and William Randolph Hearst were
very much interested in and professedly worried about in those

problem and demand is stimulated.

sible.

in

is

current

with

area

influencing-

total is probably close to the mini¬
mum which can be expected. Vari¬

fore, advantages in completing the
construction as promptly as pos¬

Along with the expansion of
plant and equipment is another

to

—metals, oil, sugar, etc.—as ocean
transportation becomes more of a

2-million

new

equipment.
have risen, and as labor has become increasingly scarce, the advantages of labor-saving equip-

need

coming

beyond .those

kind

but

scoop

I

hero, his
saved and
a

Well, even then the French were fighting the
Algerians, and so the Colonel sent Floyd in

can

Middle

ployed labor has fallen below the

,

place,

of

forces

Paso

War

and

had

restless

stability is to be

much

El

an

World

Destined to be

patch on his

But

economy

Europe,

to

go

of

rest

Colonel

sonably clear that extended war-"

funds

and

the

go

the

the

crisis in the Middle East.

It

have

prosperous

The

of

the Marne

to

,'/7; ^ 77,v77V;/'''7;>.;

y.

,

sideration of this

may

I

add

called

material

bor,

available.

at

our

not

to

brilliant

a

in

the night he got orders from Col.

torpedoed

was

him

with

fact,

Mexico

V

Then later he went into battle with the Marines

be analyzed by statisti¬
methods.
An important con¬

cal

using about all of the la¬

are

we

months,

labor costs have been
,

is

profitable to build and

new

a

new

present facilities.

use

Some

business

which

established.

details

far

this

In

boom.

an¬

prod¬
meth¬

the

thus

commonly

that

The question might be
asked,
why the rush to build plants and
equipment at the present time?
There

months if desired

Market

min¬

whole

the

maintained.

Banking and Money

in¬

ship

wrote

courageous re¬

course,

war

coming-out of

was

having broken out.

familiar

of

is,

heroic

a

he

in

was,

McCormick

money"

banks and in

own

when

beer saloon

to exercise restraint in the

that

usage

good

have been

all

eral production, petroleum output,

higher

indeed,

Michener

"very

as

industrial

clude

criteria, for

not
W.

D.

Those

which
be

the

at

present

time.

I

straint needs to be practiced today.
Business management, labor and,

now

and

our

1916

Chicago "Tribune" had

with Pershing's army.

year-end, and probably
ample oppor¬

Banking

it will be well

economy,

in

going

we are

"easier

only field in which

In the current dis¬

other

any

for

a problem.
It was in the form of
correspondent. As a young member
the National Guard I had met Floyd on the Mexican border

encour¬

communities.

own

keep in mind the fact that con¬
credit, in the volume now

or

and

I, the late Col. Robert R. McCormick,

of

which

job

preventing

will have

us

arises in

used in this.country, is new to this

the

economy

the

to

the

the

Floyd Gibbons,

to display good judgment
and good citizenship as the issue

sumer

no

weak

really

praise.

cussion pro and con,

that

are

credit

Consumer

At the end of World War

of

a

car,

tunity

increasing number of crit¬

an

it with

of

types

there

all of

the

by

of

namely,

cries

a

of the News

By CARLISLE BARGERON

inventory, or a
Nonetheless, such

expansion

before the

ics, along with those who shower

production reveals

hear

to

Board of
Governors, is above $40 billion.
The size of the present figure, to¬
gether with its steady expansion,
is causing it to attract more public
estimated

now

finance

aging savings.
Despite these facts,

buying, the consumers continue
use
increasing amounts of
credit. The total of such credit, as

is

part

doing,

excessive

to

a

making

now

needs

their high level

maintaining

is

action

may

of

activity since the end

rounded out

of

has

larger

a

Federal deficit.

make 1957 our
year of greatest activity, and the effect upon the banking
system. Expects bank loan expansion will be retarded by re¬
serve
position and by decline in short-term government secu¬
rity holdings, and recommends courageous restraint by busi¬
ness, labor and banking.
boom, which

Ahead

monetary authorities do
popular by making it

difficult to

home,

Michener describes the details

Mr.

1959-51.

in

was

rec¬

become

more

economy's state today with

must

we

necessary,

Our

task.
not

in terms of basic commodities, military goods and

time,

making money tight,
all
agree
that it is
is not an easy

when

absolutely

Chase Manhattan Economist traces Middle East situation upon

which add up our present

that

ognize
even

what it

*

on

rrorn

very
•

At the same

By I)WIGHT VV. MICHENER*

compares

American

recent

clear.

Economist, The Chase Manhattan Bank

specuiati/e buying, and

the

at

Bankers'Association Convention in
Los

economy

The major Resolution
"S.

The Cuirent Economic Situation

our

Thursday, November 22, 1956

the

On bal¬

in the Mid¬

York, who are masters at propaganda and

men

in

inconvenient

economy

go

in

if

we

and

were

maybe,

to have

a

for all.

considering
real

bluff.

way

the

There

are

and who would
But it would

impact

on

be
our

it might be better to

peace,

along with the Cold War.

the

this

same

call the Russians' bluff once and

like to

quite

government who feel this

our

American

it

respect,

market,

may

be

a

and

in

further

stimulant to American business.
From

the

pears now

dle East brings with it the proba¬

1956

bility of further demand for goods

the year,

will

point

situation

domestic

of view of the
alohe, it ap¬

that the last quarter of
the best quarter of

be

with the construction of

plant and

equipment

and

libera

consumer

leading

buying continuing thei
roles.
The accumulativi

strength

is

likely

into 1957, where
now

seems

1957

may

years

a

to

carry

likely. In fact, the
rank

ove

strong first hal

high

among

of greatest activity.

yea

ou

Number 5533 ,Vl The Commercial and Financial Chronicle

Volume 184

The earnings^ improvement- in the
face' of greater costs is a signifi¬

Outlook for Telephone Utilities
/

;

cant

Telephone

methods,

by improved

nological advances.

telephone industry will continue to maintain a prominent place among corporate security sellers for some time to
come is based, by Mr. Scanlon,
upon factors still influencing

j

*

particularly

needs

telephones and 85% in 1965. Author details "
to what great extent the telephone
companies rely upon exter- : nai financing, the impact of inflation upon earnings/and ^points new

feast

c

as

construction in f95$ was

$22 billion and will be at
nsudi in 1957. Summarizes such new developments

industry, I should like
toconsider brieflythe- present
status of the industry and recent
developments
"
'*
and, while dis¬
claiming a|hy
powers
of
prophecy, at¬
.

tempt

to

amine

level

ex¬

some

of

which

will total well in

.

*

Outlook

strong

a n

may

some

tions

will

•

the

as

pected continued growth in popu¬

whole, and has been nearly
twice as large as that of the elec¬
tric utilities.
r':
/
a

Construction

been

has

industry
heavily
John

a

lation

by" 25
1955,

Major

on

with

ing the Bell System postwar

which

I

naturally most
the conclusions

am

years

The 58 million telephones in the
United
States
are
operated- by
some -4,600
companies.
Of this
number, the 23 Bell System asso¬
ciated companies account for 49 V2
million telephones, or about 85%
of the total.
The remaining 8%
million telephones pertain to the

$9%

total

of

end

ex¬

of

come

this

billion

year.

billion,

this

Of

.

by

accentuate the
come

while

than

less

experienced

of

to

se¬

curities and equity

capital. Depre¬
accruals, reinvested earn¬
ings and other internal sources of
funds have
provided only oneciation

For. in¬

1940

proceeded from

and

to

a

level

of

under-employment

partial

tended

and
this
growth

resources,,

the

accentuate

in demand.

Similarly, war restric¬
tions
limited
the
expansion of
telephone service for private uses,
and concentrated a good deal of
,

of

deferred demand in

the

exceed

val

is
the

following the

creases

in

in

resulted

,

more

tools- for rendering service.

it finan¬

that

for

necessarily stem from the work of
the

is

market

of

the

expected

of

cost

now

another dou¬

won't have

under

Direct

telephones is expected by the Bell
System

during

which

and

way,

,

established

continue.

increase of 2.4 million during the

previous ten

by 1965 this proportion tnay
be as high as 85%, compared with
the present 74% level. This trend
will be reinforced by growing de¬

tension telephones

somewhat

compared

with

will be 90%

of

Assuming

tion of Bell System

should

by the U. S. Department of Com¬
merce.
The telephone
industry
raised abdut 12% of the total capi¬

looking at the telephone
one point in what

are

to be a prolonged period

appears

tal—both

of tremendous expansion. This has
been

1946

going
.

on

is

and

for

financing

to continue

expected

undiminished

ciai

considerable

a

debt

has been to mechon

page

to

equity com¬
through external

domestic

by

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

an

The

and

bined—obtained

continuously since

This announcement is rot

nonfinan-

corporations in this period. As

$10,000,000

:

equity capital alone, the tele¬
industry has probably ac¬

period in the future. The number
of telephones
in service in this

phone

country at the end of 1945

of

million—less
ber

half

than

was

the

counted

28

in

operation today. The daily
volume of telephone conversations
has doubled since 1945.
This expansion

in

to

response

demand for
Bell

a

as

example,

been

major

a

the desired standards.

necessary-

"catching-up"

of

In addition

effort^these

this

To

to

Dated November 1,

1956

Series due 19.86..

Bonds,'

....

.

Due November 1, 1906

/

earnings rates has
of the in¬

concern

costs.

It

has

.

been

t

'

*, *

4

*"

•

■■Price 101.257,% and accrued,

-

t

t,

V

,

:..v*-

"'-"r

<•

to

'

*

i

-4

of the

,

'V

Il'n

postwar period made

almost continuous process.

an

The

During the early postwar years
the

million, while the
proportion with telephone service
47%

First Mortgage

funda¬

at low levels, as a result

increased

most

country has increased from

from

.

Light Company

.V-

uing inflationary pressures during

The number of households

increased

v

apply to regulatory
authorities throughout the country
for rate increases, and the contin¬

38 million to 48

has

the

.

the de¬
telephone service has
grown at a
rate faster than the
expansion of the economy as a
in the

Texas Power &
IU,

Earnings of the telephone
during and after the

war were

for

whole.

quarter

a

companies

conditions have required,
mand

II,

War

mental factor of

en¬

dustry.

the

than

Earnings Trends

World

since

tered, the postwar period with a
backlog of 2 million orders for
telephdh^ ' s e f v*V6 e, overloaded
plant and service quality' below
to

more

During the whole of the period

record-breaking
an

for

equity

Postwar

•

has taken place

telephone service. The

System,

all

capital raised pub¬
licly by U. S. corporations in the
postwar' period./It; ^

num¬

Bell

average
have

System

earned

5.1%

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

on

invested capital. Earnings

since that time,
in 1955 and are
currently at about that level.

74%.

improved

reaching

provide for the increases in

6%%

HALSEY, STUART A

CO. INC.

*

"

telephones and the additional, fa¬
cilities and

growing

circuits

volume

calls,

the

gaged

in

handle

the ings

of long-distanee

industry
a

to

The recent improvement in earn¬

has

construction

been

This

en¬

to

$18 ^

An, address by Mr, Scanlon before the
Y-rk/Society of Scnr'ty Analysts,
City, Nov. 8, 1956.

New' York




improvement in

increases

L. F.

by most
industry.

ROTHSCHILD

STERN

the face of
in costs is

A

CO.

BROTHERS A CO.
THOMAS

solely attributable to rate in¬
however.
In fact, tele¬
phone rates have risen only about

creases,

billion at June 30,

New

been shared
telephone

the

A

BALL, BURGE A

KRAUS

FREEMAN A COMPANY

COMPANY

DALLAS

BAXTER, WILLIAMS A CO.

MULLANEY, WELLS A COMPANY

UNION

SECURITIES COMPANY

not

*
*

of

continuing

program

which has increased its gross plant
investment from $6Y2
billion in
1945

has

areas

33%,
costs
—-as

since 1940, while
risen far more rapidly

on average

have

everyone present well knows.

RAFFENSPERGER, HUGHES
INCORPORATED

.

Nnvenjbej 21, lf;56.

A CO.

local

accom¬

:"

,

Continued

telephone ad-

be

next several

the

within

The next step

similar propor¬

a

Virtually complete

1956.

plished

service—

local

years.

about one-third in the 1946-55 pe¬

riod.

of

completed by the end

mechanization

as

proportion

a

of

in 1956,
1957,

in

more

long

dialing of calls. The first step-

mechanization

comprise about

half trie expected increase
and

er

However, ex¬

years.

a

service

of

irriprovement is complete custom¬

compares with an average annual

and

objective in

program

..

industry today at

are

Dialing

Distance

The ultimate

the current year,

arid about 3.5 million in 1957. This

dustry as a whole, approximately
independent sector of the industry,
three-quarters of the funds re¬ mand for additional . telephones
numbering nearly 4,600 companies:
quired in the postwar period has/ and other
Nearly half of these telephones,
ijorms of telephone serv¬
come from internal sources.
'/ B'
are owned by five companies, the
ice on the part of present users. .
"; The magnitude of this financing
largest of which is General Tele¬
Continued
high level of em¬
program. may
also be seen by
phone Corp., which operates more
comparison with total corporate ployment with growing real in¬
than 2,2 million telephones.
external financing in the. period
Record -Postwar Growth
' v
1946-1955, based on data published ■*
We

of

likely to have a significant impact
on the industry in the not too dis-*
tant future.

of households

1960 some 80%

and

An increase of about 3.3 million

Will be equipped with telephones,

By

laboratories

working in the devel¬
opment aspects of the telephone
business.
You may be interested
in a brief outline of some of the
broad
avenues
of. development

inflation.

potential

to

the

research

the people

bling of the price level through

plans4 which makes it
possible for older people to retain
separate households longer. .//
Penetration

we

in

than

major gains in this direction

the

prices and wages have
a
greater rise in per¬

income

While

telephone people everywhere are,
I am sure, imbued with this spirit,

Lastly, in¬

war.

more efficiently, and
economically—both through

present processes and through new

telephone service. It is to be honed

possible

come.

New Developments

,

short inter¬

a

sonal

makes

pension

.

time to

of income does not appear

labor

following World War II,
likely

foregoing, I think it
is clear that the telephone ©owipanies will continue to maintain
a prominent place
among the sell¬
ers of corporate securities for some

satisfactorily,

after

the

in

in¬

A further redistri¬

C':':-V,'T

■•"/

,•

the

J? riim

The aim of the telephone indusincome groups will continue.to in-„
try jg always to do the job more
crease relative to the total. Growth

rate

number

much.-

as

likely in the degree previously ex¬
perienced. However, the middle

new

The

1965.

groups.

bution

1945 and
well add 27

the

living, which

cially

will

of funds—sale of debt

third the amount needed.

plans for 1957 anticipate at least
:

tending to

for lower

rise

of

total,

through external

-

struction in 1956, involving new
financing of $1.3billion (morethan
$100 million per fnontfo). Present

hot

are

rate of population increase. Among
the reasons is the rising standard

the

two-thirds,

or

;

:

to

System will expend
billion for new con¬

$2.2

some

which took place during the

and postwar years,

war

Another is the growing number of

have been raised
sources

number

may

in

level

the

con¬

$14y4

•

postwar telephone growth

young people
to establish homes at earlier ages.

some

/

-

Bell

The

the

in

On the other hand, several fac¬

population grew

by

more

is

expenditures, which will

struction

this growth

tors which have influenced earlier

between

and-we

nonetheless

sion.

familiar, I think
may fairly be applied to the in¬
dustry as a whole.

The

million

boom

e
manufacturing
general, must rely
external financing to

part from Bell System experiencei

-

the

in

households,

problem

This point is seen on looking
at the source of funds for financ¬

.-

and

of- increase

pro-'

1 ik

u n

lit

.

industry's 'future

million

major

a

\

households.

raise the funds needed for expan¬

Scanlon

J.

present

about twice that for the economy'

ind ustry,

be

the

about

at

years

Of fundamental Significance for

for the industry, for the telephone

drawn in large

well

rates.-

gram

illustra¬

my

sustained
growth,
continue
for

d

tion, that the rate of growth for
telephone industry has been

profolem

While

Telephone Business

for

which

of $15 bil¬

excess

Financing this construction

business in the

of its abil-

from

Requirement
Continue Large
>

Money

-

the shift in the distribution Of in¬

the

likely to have
significant

future.

tremendously to

assurance

V New

The telephone

nation's economy.

we

a

than in recent years. An increase
of about 6% is probable in 1957.

constantly improved tele¬ expected to maintain their previ¬
phone service. / //' :.v ;/./:.■. -/v* ■./*-: ous relative importance, -r One is

by the end of this year. It
"might be observed, in this connec¬

Financing

telephone

add

1956

in

.benefits

have

messages

further gain in 1957, al¬
though at a rate somewhat lower

industry ex¬
pects to obtain its full share of the

only

are

distance

increasing rapidly and

expect

ftirnish

lion

a

the

would

level.

ity to -meet future demands and to

.

on

which

the

from

been

1965, without allowing
for possible changes in the price

1936. Uto industry's expenditures / : >As noted earlier, the telephone
for new constitution since the war industry is now in a period
of

are

influence

rates

try and give
.

factors

the

billion

the financial liea 1th of th'*» indnc-

.

switching, and complete customer iKaKiig of calls within the
J-%'j
United States and Canada.'• .C!'"■ ?».

telephctoe

and

Product

Long

+

level of $411 billion to about $550

salutary effects. Much still
to be accomplished, how¬

ever,

.

In discussing the outlooik for the

National

earnings im¬

modestly higher than the present

Sell Solar Battery, integrated data processing, electronic

as

now

provement in recent years has had
most

in11960 will have

nut

phones, for greater use of tele¬
phone service, and for more of the
newly .developed forms of service.
We look for a growth in the Gross

The earnings

Even the moderate

telephone expansion, and the expectation
that, compared to the present 74% figure, 80% of households

-

im¬

that the threat
of rising costs has again, appeared.

tremendous postwar

'

per, capita an£ -the accqm- ditio'ns, to the industry's total, as
panylng rise in living standards in the recent past, the increase for
"have' their influence' in the industry should be something
Stimulating demand for more tele¬ over 4 million in 1957.
come

problem is ever-present, however,

That the

:

13

should

contribution

proved plant utilization, and tech¬

Telegraph Company

&

the

of

measure^

.

made

By J. J. SCANLON*
Treasurer, American

(2185)

30

X4-

(2186)

The Commercial and Financial Chronicle.

»

All Other Products

Heating Oils, etc.

1957 Outlook foi Petroleum

The

4.0%

a

products in 1957

increased

demand

for

and

petroleum

mand

increase

to

of

3.0%.

1957 will not

18.3%

over

1957—at

annual

an

than

normal

V has been prepared, From these
data it is indicated that demand
in the last six months of 1957
will be approximately 5% greater

be

weather

active

most

come

of

the

to

capture

As

year.

this

at

the

the

be¬ barrels

hunters,

dustry

will

further

advances

3.1%

greater

fuels

than

in

will

tinue

be

1956.

hunter tries

next

game,
the
forecaster

strives to

vide

the

which

be

what

lower

in

colder

than

normal

h i

experienced

and

the

dustry.
the

Like

Distillate
The

continu¬

ally tries

new

finds it
Knignt

his

and

No

to

the

indicated

demand

1957

to

pected

categories

they

an

The

we

diesel

expect

fuels

in

In

the

this

forecast,

than

current

that

there

change
1957

in

be

that

it

reasonably well
the expectation

partment

of

our

Index

Petroleum

Gas

for

liquefied
expected to

is

8.7%

to

Domestic Demand—

in¬

segments

of

consumption
to

higher

the

and

in

Motor Fuel

Kerosene

is

than

1956

Other

__

__

_

_

our

That
be

level

ex-

of

371,000

4.0%,

and

is

450

-0.7

4.3
4.3

2,210
1,705

6.3

60

6.4
1 5
9.8

1,290
1,425

542

8.8

407

908

9.4

1,153

6.3

1,321

7.4

1,066

8.8

9,825

Exports—

185

4.5
0.2

3.8

8,626

2.9

8,671

4.8

9,941

4.9

30

6.2

30

6.2
L0

200

..

1,210
1,340

-0.8
-0.1.
10.0

y

420

i

28

—3.8

30

277

3.0

317

..

315

-2.8

303

..

which

increase

Total

about

Exports
Demand

305

2.3

347

10,130

3.8

8,973

Supply

."345

0.6

333

1.5

9,016

..

4.7

10,274

4.8

2.8
VI

and Demand for Petroleum
1950

-1!).")"

—

%

1957

% Increase
Over 1955

1,000 B/D

9,227

5.1

9,598

-fl26

—

+35

9,353

6.5

Quantity

Increase

3,967

4.3

325

—1.7

Stock Change

1,734

8.9

1,803

3.9

1.8

1,575

1.3

482

8.7

% Increase
Over 1956

Quantity

1,001) B/D

Quantity

443

1.000 B/D

13.3

/

.

Over 1956
—

—

Requir. Supply, All Oils
Sources

%"

7.0

f

/

8.8

1,113

5.8

8,899

Supplies—'

of

Nat. Gaso.,

4.0

9,633

*

3.0

v+v
'

>

29

in

that

1957

_

__

—9.2

30

303

0.8

domestic

9,increase

a day, an
366,000 barrels

day,

a

4.1%.

333

of

crude

expected

barrels

latter

to

day

a

mately the

Suez

1957,
in

as

333,000

approxi¬

1956.

This

could

changed

the

products

average

in

same

forecast

cantly

and

Canal

Domestic

shown

was

domestic

demand

expected
barrels

in

9,598

to

for

1957.

That

consumption would be

barrels
than

a

the

day,
1956

163,010

4.3%

or

level

tion

by

shown
The

in

Demand

for

of

buses

pectation
average

that

trucks

other

crease

by

from

—!ucr*oce Over 1956—

Quantity
1

Passenger Cars
Trucks
Buses

_

_

_

of

trucks

our

ex¬

and

these

—

—

—

Total Automotive

113
23

136
11

mand

for

a

14

Petroleum

Oils...

9,725

1.7

9,473

2.4

of

de¬

325,000

Chicago,

Nov.

Over'56

10,2^5
—510

..

9,567

845

5.1

810

2.8
18.0
1.0
3.1

8,223
1,018
7,205
8,063

6.0
—6 2
2.6
11.4
1.4
3.1

8P0
3°0
8,377
l,n18
7,359
8,359

4.8

9,765

3.2

.

560

440

8,320
1,013
7,302
8,245

of

Crude

to

Stills

Run

Oil......

4.5

8.3
510
8,3°0

..

3.3
2.9
3.9
3.9

..

3.3

£"!£

.

—

5.2
3.7

7,372
8,320

'

TABLE

163

4.3

Long

Term Forecast

VIII

(000's Barrels Daily)

III

196'J

Motor Fuel

Railroads

4,687

18.0

330

1.5

2,225
1,625

23.4
3.2

700

—

Distillate Fuels

1,000 B/D

%

Residual Fuels

238

7

3.0

Liquefied

80

7

8.8

Otner

8

513

22

4.5

1,075

33

215

14

1,290

47

1,803

69

Miscellaneous

195

,:

____

45.0
25.0

11,100

20.0

30

2d

—16.6

225

—26.0

333

250

—-25.0

9,598

Domestic

1,533

303

,

—-

482
1,113
9,265

Petroleum Gas

11,350

18.3

„

Cructe Oil

Heating Oils

,

—

3.1

'

Products

„

7.0

Total Exports

Distillates

,

3 8

—

.

Total Demand

3.9
TABLE

TABLE

IV

Domestic Demand

Domestic Demand for All Other Products
by Categories
19.1C

%

Quantity

121

'

Quantity
1,000 B/D

_

Oil

Still Gas, Misc. & Losses

Term

3.8

122

IX

for All

Forecast

((KH)'s

Other Products
Barrels Daily)

Forecast

0.8

4.0

218

17.0

242

4.5

271

11.7

Lubricants

12

20.8

——

Asphalt

Quantity

143

122

%

Increase

Over 1957

17.2

12

6.1

26

8.0

Road Oil

4.4

464

3.8

Still Gas,

1,032

7.0

1,113

8.8

-

-

Misc. and Losses—

14.2

450

106.4

271

—

24

447

14

218

Wax
Jet Fuel
•

Forecast

Quantity

Increase

Over 1956

1962

1962

1957

%

186

Fuel

Long

1957
Increase

Over 1955

12

__

„

"

Total Other

Asphalt

Increase

Exports—

Other Distillates—

Jet

*

%

4.1

Trucks and Buses.

Total

Over 1957

Kerosene

Ouantitv

1,000 B/D

Forecast

3,967

»'

Quantity

1,303
1,575

•

Quantity

325

Domestic Demand—

—Increase Over 1956-

DicscI Fuels—•

1962

'

Forecast

Quantity

1,000 B/I)

of

..

1957

in¬

by Mr. Knight before the
Meeting of the American

Institute,

Production

Crude

Domestic Demand for Distillate Fuels

Road
address

Annual

3.4

..

% Incr.

"

4.7

3.3

—

*An

9,017
+ 550

3.0

4.4
-

3,987
TABLE

Wax

level

kerosene

2.8

Over'56 Quan'ity

Demand for Petroleum Products

Lubricants

forecasting

8,973
+ 500

Supplie5—
Gasoline, LPG Benzol
Impor's of Products....
Required Supply of Crude Oil
Imports of Crude Oil....

5.4

2

433|

__

approximately 10%.
Kerosene

in

3.8

Natural

69

consum¬

will

% Incr.

Quanti'y

Sources of

3.0

3,253

F.)

Fourth Quarter

Third Q'^er

% Incr.

10,130
—405

Required Supply All

4.8

,

212

Total

3.0%

fuels

motor

Daily)

Second Quarter
'

%

31

_

Industrial Naphtha
Other (Inc. Gov't M.

Forecast.

Over'56

Stock Change

1,000 B/I)

2,443

—

__

units

buses

Quarterly

Quantity

the

increase

will

Quantity

'I'M) » o>

779

—

_

VII

Over'56

Demand

Total

con¬

1957

during

number

operation

while

gasoline

in

1,018

Quantity

Miscellaneous

trend

results

Gasoline

Total

II.

indicated

sumption
and

Table

8,221

First Quarter

1957

Total Diesel

gasoline consump¬
categories of consumers

6.5

7.965

(000's Barrels

greater

consumption.

The expected

7,309

Supply and Demand for Petroleum

II

1957

3,967,000

average

daily in

Crude Oil Runs to Stills

4.0

Table

I, the
gasoline is

8,327

22.4
4.6

% Incr.

Domestic Demands
As

6.5

957
7,127

1957

TABLE

be
signifi¬
developments
dispute.

by

8,084

Oil__

1.3

5.1

Aviation

Exports

3.0
6.4
2.6
3.2

Crude

TABLE

—10.0
v

esti¬

average

5.6

—1.8

Production

3.5

—10.8

299

_

months

the

will

830

475

'

'

Products

Class of Consumer—

forecast

8.5

+6

*

the

months

786

483

Imports Crude Oil

Oil

barrels

(Seven

LPG, Benzol

Req'd Supply Crude Oil

4.1

9,265

Exports—

de¬

than

more

five

1956 of

over

36th

4.5

-3.6

-2.3

2,510
1,835

Products

3.3

328

265,000 barrels

■

3,950

TABLE

% Increase

9,227

demand.

demand

ing

4.5

I

1,032

__

Total Domestic

Cruae

recorded

is

and

daily.

actual

in

4,181

Crude Oil

3,804

__

Liquefied Petroleum Gas

in

mated.)

is

4.0

Total Demand

Total Exports

or

of

4,166

....

5.0

Total Demand

daily,

in

Domestic

Over 1955

products in
approximate 9,598,000

total

would

are

4.0

v

Total

1,555

_

requirements

mand

or

Quantity

Other

331

_

Residual Fuels

demand

products

that

will

barrels

in

periods,, it

petroleum

1957

It

Over'56

Fuels

1,000 B/D

_

Distillate Fuels

Re¬

average

1957

trends

petroleum
recent

pectation

-

% Incr.

Over'56

Quan'ity

......

Total

expected

are

Fourth Quarter

Third Quarter
% Incr.

% Incr.

Over'56

466

Distillate Fuels

product as motor fuel would
relatively greater than other

be

Second Quarter

Quantity

3,564

Residual

this

Products

Forecast

0ver'56

Kerosene

of 482,000 barrels in 1S57.

195C

the future of the general econ¬

for

Quarterly

Quantity

Motor Fuel

daily

a

supples of petroleum and
the^answer to a number

V

% Incr.

pe¬

Liquefied Petroleum Gas

Quantity

Considering current predictions *
omy

in

months

(000's Barrels Daily)

1956.

for

,,o

first six

result of unusually

Imports of Products___._

,slightly

on

as

products,

Petroleum

for

1957

7.0%.

Domestic Demand—

de¬

own

will

a

TABLE

projecting the level of demand
1957, it was considered that
the requirements of the chemical
industry and the direct use of

TABLE

It

Federal

..

the

pected

Demand

Demand for Petroleum Products

compare

1956.

.

of 1956

interested in

are

higher in 1957;
be somewhat less,

In

opinion

will

the

10%.

,

350

29.2

26

35

34.6

464

541

16.6

1,533

37.7

14

1956.




for

relatively

was

on

spectacular
in
business

with

that

Board

serve

no

general

and

of'

consensus

will

of

economy

,.

demand

that

fact

products

higher in

is
the

consumption.

For those who

any

gas

average

in¬

average

in

have used

we

domestic

for

what
method
consumption of diesel
forecasting is employed, ihe fuels b\ trucks and buses results
starting point is the out- from
th(| previously predicted in¬
jjcok for general business. This crease in
is
average number in use
true,
although many factors

will not have parallel effects
petroleum industry demand.

be

even

about

crease

4.5%.

or

higher

new

that

for

B/D,

crease

general

switch¬

consumers

demand

troleum

basic

the

to

may

The

513,000 barrels
increase over 1956 of

daily,

matter

effect

some

assuming normal weather.

is

of

that

fuels

'

ing to the use of competing fuels.
Heating requirements are not ex¬

average

22,000

t

of

develop

result in

12

Fuels

by

Specjfic

.

jet

First Quarter

is

It

neces¬

methods

forecasting
ones.

was

last

oils.
for

the

from

domestic

Liquefied

the

r r e n

since

Diesel Fuels

to modify
c u

the

in-

make

efficient

shown in Table III.

forecaster

sary

fuels

tech¬

niques,

some¬

forecasted demand for dis¬

tillate

equipment
and

be

and

weather

forecast

to

-

the

in

residual

months.

in¬

hunter,

who

The

cate¬

1956

during

company

this

Fuel

lower seasonal trend in increased
requirements during the first six
months of 1957 results in part

con-

that

and

continue

industrial

of

use

decrease

will

based upon our appraisal of
cold weather
requirements for significance of government
refuel
are
expected
to quests for bids on these products.
Controversial Problems and the
average
1,575,000 barrels a day
The
impetus of
the
Federal
<
Outlook
during 1957, an increase of 1.3%.
highway program is expected to
So much for expected demand,
Although
industrial' production
complete
this forecast and
may
increase two or three per .result in a demand for asphalt *To
cent over 1956, competition may
11.7%
above the indicated
1956 provide a look ahead on the ex-

be

normal

would

than

forecasts for
s

would

portion of

of demand

gory

pro¬

better

would

year

heating

to

The

1.7% below the 1956 consumption,
it was considered that the weather

season

prize

:

daily,

Consumption

gasoline

of

distillate

than estimated for the closing six
months of 1956.
The relatively

ratio of motor oil consumption to

tion

Residual

like

demand

domestic

total

1,113,000 barrels daily for 1957,
increase
of
81,000 barrels a

an

pattern of crude and petroleum products
Forecasters,

The

ing the coming year will be 5%
greater than in 1956 and consump¬

average

requirements of the

all other products is forecasted to

our
expectation that the average
number of units in operation dur¬

Assumes extension of Suez crisis into early
witness any marked change in world movement

seasonal

foregoing over-alDforecast, Table

,

distillate

' of

use

the
for

in¬

modest

a

during 1956 resulted in average day, or 8.8%, over 1956.
The forecast of
a
modest inheating oil requirements per unit
somewhat higher than can be ex¬ crease in demand for lubricants
reflects
our:
pected in 1957.
thinking
that
the
However, it is

ever, that crude oil production might increase 2.6% over 1956.
Looking ahead five years, writer expects combined total de¬

rate

the

colder

the

against 1956, Mr. Knight indicates, how¬

as

of

heating oils reflects the fact that

Atlantic Refining Co., Philadelphia

The

in

crease

By E. T. KNIGHT*

Forecasting

forecast

Thursday, November 22, 1956

.

1,113

.

J

r-

Volume 184

;of

controversial

be

problems

would

problems

Chief

required.

probably

these

among

are:

decline

about

The

25%,

forecasts

for

presented

1962

dropping'to about 250,000 barrels mayi also be .too ppnservative. I
a
day.
suggest that the indicated trends
,

••

(1)- The

the

operations

future

The

of

.

(2) The trend of stocks of crude
oil

and

combined

1962

of

is

increase

Suez Canal.

petroleum

products.

an

The
for

total

level

both

of

the

No

forecast

been

for

but,

demand

lowing

to

the

to

these

purpose

assumptions

.made:

have

long-term
by the results

of previous forecasts.
The 1956
experience indicates that conservativeness was an important factor

in forecasting and the forecasts
should have been more optimistic.

considered

than

the

levels

that

In

■

have

closing let

it

saying
total

been

me

volumetric

presented.

in

1957

should

the
and

be

marked

no

Continued,

in

annual average rate of 3.0%.

an

from

oil

barrels

grades

and

the

and

petro-*

in

day

a

need for

in

the

will

these trends
erate

in

continue to

current

of

i

emphasize that these
assumptions are not my forecasts
to

recommendations.

They .are

working hypotheses nec¬
essary to show a complete supplydemand picture.
merely

and
demand, crude oil

these assumptions

the forecast of

production would average 7,309,-"
.000 barrels daily, an increase of
1956.

'

stills

to

* '

•

There

do

not

problems before the
that cannot be solved
readily. Any marked deviation of
the proportions of products con¬
sumed from the- pattern foreca»t
met

in

supplies

products
presented in Table VII.
and

petroleum

is

we

based

the efforts of

for

Other

forecast

<

time

of

growth in

number of

the switch to

as

continues.
Improvement in- highways
distant

between

will

which
more
on

at

of

also

is

There

be

points.
one

major factor

in the
effects
appraised
new types

operative

distant future, but its

demand

cannot

time.

this

That

be

is

engines, gas turbines and free

piston engines, which are now in
the development siage.
It is our estimate that by 1982
domestic

demand

will

apnroxi-

11,110,000 barrels a day, an
increase of 20.0% over the fore¬

mate

cast
for

Domestic demand
motor fuel should be at least
of

1957.

18.0%

higher

23.4%

above

in

extraordinary ex¬
particular export

and
1957

ports of crude

Pressing Issues

-

the

American Home Products

"

•

Corporation

Analyzed

Metropolitan

>' "The
Future of
New York" will be

analyzed

of Gov¬
City q2

Presi¬
Construction
CO,,
to the Private

Tomorrow"; Erwin Wolf son,
dent,

Diesel

"The

cials, business and civic leaders at
a
Conference to be held at Pace

Challenge

Builder";

27.

College on Tuesday, Nov.

Building the

in

ernment

by

offi¬

experts and 250 public

"The Role

Commission,

It

will

focus

also

on

the Col¬

lege's
50th
anniversary
theme,
"Responsible Participation In An
Economy of Free Men," and will
be the first of three major con¬
ferences to be held in the interest

Raymond Vernon, Director,
University's New York

Dr.

Harvard

Metropolitan Region Study, "Cart
the Metropolitan Region's Devel-

and GI-.
Con¬
of
the
community during Pace sultant to Sears, Roebuck & Co.,
College's Semicentennial anniver¬ "Industry's Stake in Urban Re¬
•

opment

newal."

sary year.

James O. Boisi,

Chairman

Department of Real Estate
at Pace College,

of the

speakers and topics will in,'clude: James Felt, Chairman of
'the
New
York
City
Planning
The

Forecast?";

Be

Cook, Urban Renewal

Yates

Insurance

and

will preside.

■

'■»

on

China
ones"

as

Communist

of

and her

As

admittance

China's

United

the

to

Nations,

recognition.

This is not

forcefully pointed out here by Lester B. Pearson,
Canadian Secretary for External Affairs, China pdlicy constitutes
was

focal point requiring closer cooperation between

a

Allies.

Western
These

items

address

session

"overhanging

clearly

were

any

of such shares. The offering is

here

analyzed

in

a

''

'

."'sit'

•**'

:'

"

'

"-'3- '

;

V

200,000 Shares

major plenary

of

armistice" in Korea, largely
which may well become

the uneasy

subversion and indirect aggression,

that

the

Pacific

Lighting Corporation

exit from the presidency.

$4.75 Dividend Preferred Stock

quarterbacking taxi-driver fraternity

comprises the only individuals available to run our State

Depart¬

(Cumulative, Without Par

satisfactorily!

ment

offer to buy, or a solicitation of a:*
made only by the Prospectus, ^

the States and

Gross, former United States Am¬
Nations; including his warning of the

United

threat

wonder

offering of these shares for sale, or an

Ernest A.

climactic with Rhee's ultimate
Small

an

offer to buy,

/

;

,.

by

the

to

bassador

*

*

,

-

*

(Convertible into 2.6 shares of common

Assembly, an adjunct of Columbia University established
by General Eisenhower in 1950 when he was President - of the
University, meets on the mountain top "Harriman Campus."
It is housed in Arden House, an 80-roOm labyrinthine mansion built

stock

Value)

on or

before October 31, 196%

The

in

1908

his

by Col. E. H.
Averell.
The

son

Harriman,

and

conclusions -of

Price $99 per

donated to Columbia by
the previous gatherings
the determination of Gov¬

policy, domestic and international.

share

(Plus accrued dividends from

date of issuance)

This meeting was

presided over by Courtney C. Brown, Dean of Columbia's Grad¬
of Business.

School

uate

distillate fuels
forecasts. Ex¬

and products will




-

Copies of the Prospectus may

•

be- obtained from any of the several under,

only in states in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.
writers

READER OBSERVATIONS
For—Stock

we

suburban living

(3)

any

States

flow of information,- including Stafe Depart¬
permitting our- journalists to visit Communist
do those of other countries; and of course "those hot

interchange;

ment-policy

as

factors

leisure

families

two-car

United

pressing Far East questions highlighted here include
security for ourselves and friendly nations; military bases in
Okinawa and charges of colonialism; Korean unification
(with
possible UN guarantees), a possible plebescite in Taiwan; cultural

As

MR.
an

MAY:

Blyth & Co., Inc.

Splits;
always in¬

columns and they are always most helpful.

How¬

talk to Women at the Hotel Roosevelt on
your objection to same, published in the Nov. 15
issue, I wish to make the following comments^

regarding
Stock Splits ancl
ever,

\»At

your

present. I own 630 shares of General Motors now about

share.

a

In 1935 I bought my

$45

first small lot at 42% a share (about

Since then it has been split twice, now worth six
times the full let purchase price or $270 a share.
Would I pay
$270 a share for it today, or in 1935, with the limited amount of
$600

Eastman Dillon, Union

what others starting out now
have for stock
Agreed that G.M. is well worth $270
(without split), but I would -not have bought this stock today
feeling a price of 270 sounds too high, and that a place of diversif.cation would give me only two or three shares for the money
I had
buying?

power

then, or

lot of General
split three-forone and now about $60 a share or
$180 a share if not split. The
same
observations could apply to my General Foods, National
Dairy, Santa Fe, Texaco, Halliburton and others that doubled and
,

Also

during

1935

I.bought

another

small

(or about $600 worth), since then

Incorporated

Lehman Brothers

tripled in value.

Stone & Webster Securities Corporation

Per

my

been

W. C. Langley & Co.

White, Weld & Co.

Central Republic Company

A. G. Becker & Co.

A. C. Allvn and Company

(Incorporated)

Incorporated

Incorporated

William R. Staats & Ce,

Laurence M. Marks & Co.

Elworthy & Co.

Brush, Slocumb & Co.

Bateman, Eichler & Co,

J. Barth & Co.

Spencer Trask & Co.

Ilill Richards & Ce,

Davis, Skaggs & Co.

Inc.

Shuman, Agnew & Ce,

Schwabacher & Co.

& Co.

Irving Lundborg & Co.

Mitchum, Jones & Templeton

Walston & Co., Inc.

Weeden & Co.

Crowell, Weedon & Ce,

Incorporated

Sutro & Co.
First California

Company

Stern, Frank, Meyer & Fox

Wagenseller & Durst, Inc,

Incorporated

in my 54
the goods
in getting
$100 suits.
stock buyers and those interested in

merchandising and food chains
working years, I have found out that lower prices sell
even
if sliced up, and the average buyer is interested
more and not less whether it's buying a $200 suit or two
Having

Merrill Lynch, Pierce, Fenner & Beano

|

Smith, Barney & Co.

Lester, Ryons

Kidder, Peahody & Co,

Harriman Ripley & Co.

available.

Electric at 31%

Glore, Forgan & Co.

Securities & Co.

Goldman, Sachs & Co.

worth).

purchasing

The First Boston Corporation

Dean Witter & Co.

-

investor-subscriber to the "Chronicle," I am

terested in your

owners.

car

The

(2)

trends

They are:

Increased

passenger

the

>

Assistant Vice-President

New York's Future To Be

four

they recognize that

in

Japan to be self-supporting.

we

which
favorably the demand

petroleum.

(1)

continent.

-Other

DEAR

this

some

affect

will

reason,

the

on

preparing

considered

markets

forecast of 1962.

a

them today.

see

In

that

For

prepared

demand

SHERWOOD WALDRON,

-

when

desirable,

future.

tant

have

American

North

have exerted considerable influence on

planning
for the future, to have some in¬
dication of the demand likely to
be experienced in the more dis¬
is

It

of

ernmental

Demand

1962

in

crude

from

trend

seasonal

The

adjustments

by

products

yields of
processed.

the

try to strike a proper balance between local domestic strains and

from

to be any.

appear

industry

be

the Assembly conferees point out,

as

industries; that Japanese trade with the United States can
best be developed on the basis of diversification and gradual ex¬
pansion; and that American trade policy, on the other hand,should recognize the vital importance of her trade to Japan, and

immediate

can

But,

products during short periods might put serious strains on Ameri¬

required to sup¬

stills.

to

runs

China.

this connection

pansion

its

ply the projected demand will
approximate
8,221,000
B/D,
or
3.2%
more
than
the
estimated
1956

"

can

1956.

Runs

with

In

of crude oil
employed in this presentation are
the average rates for-November
and December, 1956, and January,
1957, of crude oil imports shown ■
in the schedule of the Texas Rail¬
road Commission release of Sept.

over

.

hear in favor of split-ups.

Problem

op¬

Third: The imports

2.6%

for the Economic

•

exports—a question intimately bound up with recognition

Communist

deficit

months.

on

Economic

Japan's major trade problem will for some time to coKne lie in its

during

not to the extent recorded

Based

a

change from those we usually

Again in the economic area, there is the problem of the future
Japanese trade, with her need for imports, necessitating con¬

of

relatively

to increase the level of stocks but

want

available, we should be very much interested in
transcript of your recent talk before the PublicEducation of Women in which you'
on stock split-ups.
Your views are a refreshing

If conveniently

Foundation

November 16, 1956

Japanese

\

,

world.
The

during the near-term future

recent

free

1956.,

We expect that

high stock levels.

-

"

,

>

y

strengthen the relations of the United States with other countries

efficient opera¬

resulted

have

of

-

17, 1956

commented

increased number in
of products marketed

the

the

or

Hills, New York

November

receiving
•

•

remove

competitive nature of the in¬

I

Forest

Against—Splits

day in 1957 as compared

a

dustry,

24,

V.

GEORGE J. MEYER

-

Yellowstone Boulevard

6911

5

page

marginal economic benefits to Japan and other nations, but would
an important
element in anti-American propaganda and

increase

combined

crude

of

126,000

tion

with nev/,

holders!

.*

products will average 35,000-

barrels

The

Communism

combat

and

they

methods, let's all pull together for more stock¬

and better

.

that, in the five years from 1957
to 1962, demand will increase at

Observations.

petroleum products.

stocks

to

enterprise

free

sell

To

ideas

DEAR MR. MAY:

change in the pat¬

Second: The

leum

*

-

fancy

no one
as

been

tern of world movements of crude
and

buy good stocks.

money!

at

least 4% greater than in 1956; arid

controversy may extend into the
early months of 1957, there will
be

a

owner¬

ship, limited buying power or

summarize by

expected
that
for petroleum

is

demand

products

important

more

as

absolute

Call it pride in quantity,"
just wishing a lot for their
Any way one sells it, put the sugar on the cake and in
box, the customer likes it that way. No one is the loser,
is hurt. Everyone for their money what they like as long
investing, this also applies there.

m

First: Although the Suez Canal

.

estimated

and

near

future is influenced

story, the fol¬

completing the

-

made

solution

tke

problems
of

has

attempt

in ;be

day,

a

1957 of 18.3%.

over

-

(3) The expected volume of im¬
ports.
V

demand

11,350,000 barrels

15

(2187)

Number 5588. :. The Commercial and Financial Chronicle

in

contacts with

new

Bingham, Walter & Hurry,

Inc.

Hooker & Fay
d

November 16, 1956.

Wulff, Hansen & Co.

!

16

The Commercial and Financial Chronicle

(2188)

i

profits markedly; for the first
nine months alone they are
greater than for any full year

THE MARKET... AND YOU
By WALLACE

in

Thanksgiving

sagged rather omi¬
nously this week from the bur¬
den of many

well

as

disappointments

the

as

international

situation. The 476

had

support
for

the

gave

expected

industrial

way

penetration,

where

area

been

easily and the
in itself, helped

a

the

list.

There

on
little of

was

#

ff

Aluminum

individual

some

tions

higher

or

general

the

despite

market

of

even

the

steel

itself.

#

were

prominent

group on
tent easiness but had

a

persis¬

plenty

of company.

Among the blu¬
chips du Pont was
the weakling,
running a
string of new lows together to
lop around 25% off the price
est of blue

sales

provide
of the profit.

Interesting Capital Goods

r

In

the

National
an

field

capital goods
Acme

is

with

one

unclouded horizon to most

analysts,

barring a drastic
change in the world situation.

Granite

City Steel, which
by most in¬ Its machine tools are in grow¬
formed investors as recently ing demand abroad and the
as at the end of World War II,
$9 earnings estimated for this

busily and its

year

is

being- projected to
$10 next year despite
earnings reports in

last year was around
industry. A spotty
new
record
in earnings
is other lines. It is, moreover,
virtually
assured
for
this one of those situations where
year. Despite a fat 830% ex¬ there is no debt or preferred
pansion in the postwar dec¬ stock and any earnings lift
ade, the company is still ex¬ could be translated directly
panding with a $20,000,000 into the price of the common
growth in sales being pro¬ stock.
jected to| 1958 and net profit
Superior Rail Performance
best

in

the

The

is expected to come
$1,700,000

close to double the

this

from

earned

I Like Best

last

source

revenues
are
this normally

passenger

that

so

and

tin

than

more

the line's fixed

its

tural

iron

dollar to

was

trimmed

a

future.

Gyrating Wonder
War stocks

were the
bright
including selected
steels and shipbuilding issues.
Lukens Steel was a gyrating
wonder
after
having fared

last week.

It reached

a

$172

of

early in the
week to show a gain of $130
over
its price last January,
the specific reason
being esti¬
mated earnings
of $20 this
year which is some fourfold
last

year's results.

market

and

accelerated the
❖

-1

A

locked-in

❖

of

the

ultra-cyclical

^ompaniec of th° nast fVlat has

spots,

peak

few years,

~'t

years by
industrialization

its

the

in

has reduced
debt and improved property
while building up a solid fi¬
nancial position. Both Great
Northern

Northern

and

Pa¬

able to resist the

into

"thin"
shorts

moves.
*

shares

were

luck
been
making diversification than the traditional
"growth"
progress in recent years, and
issues. And the superior ac¬
is still in the process of diver¬
tion inevitably turned a
sifying further, is American measure of attention their
Steel
other

Foundries.

railroad

Like

suppliers,

downpull with far

the

its

replete with violent
and downs of familiar

way.

ups

one-indufctry
moreover,

it

pattern.
was

And,

subjected to

One of the
situations

is

Pacific-Great

the

Northern

Northern

one

rather

year,

however, the company's

generally whether

or

not

a

fortunes

how

-f

have not yet

worked to where

ries

has

been

able

to

boost

tive both because its

own

ac¬

year

a

—

The
NEW

an

offer to sell

nor

a

solicitation to buy any

of these securities.

offering is made only by the Prospectus.

ISSUE

bought
and

have

estimates

in¬

dicated that economies of the

might add $25,000,000
per
year
to the

more

income of the combined

com¬

panies, adding to the picture
an attractive speculation.

they

"about

25%

of

The Deflated
C i g a r e

have had their
ket

own

bear mar-*
able

been

have

and

Tobaccos

companies, too,

t

to

pretty much ignore the latest
general
market
uneasiness.
Both Reynolds and American
Tobacco, the top two in the

been suffi¬
that yields
better are available.

industry, have
ciently deflated
of

6%-

or

so

powerful swing to filter
cigarets has brought projec¬
tions of higher earnings
ahead
in
a
comforting re¬
bound from the interruption

26,

1956

of the

cancer

in recent

scares

years.
:Js

s'f

Sales of

ij!

if

are

being

close to the bil¬

lion dollar level in

a

year

or

the

uptrend continues.
American, which had billion

so

Common Stock
(Par Value £0.10 per Share)

sales

dollar

both

Price $1.25 Per Share

the

on

sales

in

with

and

At

covered.

is also
uptrend
earnings
well

dividend

its

recent

American'

32%

\The




article

be obtained from the undersigned only in States
may

of

plant

the

total.

located

at

One

feldspar

Monticello,

Ga.,

by reason of its proximity, should
in

be

excellent

an

position

feldspar

some

secure

to

and

sand

Owen

Illi¬

business from the

new

nois Glass

building out¬
Second only to

side

plant

now

Atlanta, Ga.

International Minerals and Chem¬

ical Corp. which probably accounts

roughly for 48% of total produc¬
tion, the future of this division of
Tin
and

secure

would

to

appear

diamonds
deposits

of

luvial

be

bright.

The company's decision to

for

the

from

apply

recov¬

deeper al¬
from

came

the

knowledge that the dredging tech¬
niques they had developed would
be
reasonally successful.
Based
lease and royalty arrange¬

upon a

ment with

a

French diamond min¬

company

with

it

soon

will proceed

exploration in French Equa¬

torial

Africa.

similar

A

arrange¬

being sought in Venezuela.
The possibilities inherent in this
type of operation are quite ap¬
parent.
of

Earnings
share
for

the

for

Revenues
months

1956

380

were

after

first

totaled

six

$2,755,000.

a

common

allowing 240 a share
and
depletion;

depreciation

the

thus,
share.

flow

cash

With tin

620

was

a

prices firming and

feldspar prices adequate, the out¬
look for the remainder of the year
is

promising.

Dividends

quarterly look
1,086,737
traded

shares
York

at

conservative.
outstanding

currently

the New

about

at

Stock

$7

100

The
are
on

Exchange.

Phillips Joins Staff
Of Scharff & Jones
Scharff &
Orleans an¬
nounce the appointment of Logan
Burch Phillips as an association of
George E. Donavan in the Jackson
Jones,

prices

yield has

s

time

lawfully offtr the securities.

expressed

views
do

"Chronicle."

They

are

—

New

Bank

Building.

Rodney K. Merrick
Rodney K. Merrick, president of
Swain &
away

Co., Philadelphia, passed

November 13th at the age of

70.

Joins

Sterling Sees.

(Special to The Financial Chronicle)

in

this

with

those of the

as

of

Mississippi office, in the First Na¬

ap¬

necessarily at any
those of the

not

coincide

Inc.

tional

proached the 7% level.

undersigned

for
pro¬

duced in the United States."
By
July, 1956 it is reported the com¬
pany
was
accounting for about

last year,

considered

the

feldspar

JACKSON, Miss.

Reynolds

estimated at

United Cuban Oil Inc.

in which

accounted

the

ment is

1,000,000 Shares

vtay

of feldspar mining
it
was

operations

that

ing

of

buf¬

a

April, 1955, Pacific Tin

a group

milling

ery

unofficial

that

so

dredging methods

Some

emerge.

and

accumulated.;

billion

would

avail

to

ahead,

>

November

Copies of lite Prospectus

be

may

000 miles and assets of three

The

7his advertisement is neither

into the agreement

Pacific

next

where

changed drastically. merger does take place even¬
:J:
long the steels could
tually.
*
❖
On only slightly expanded
keep up this contrary strength
Northern Pacific is attrac¬
although statistically they sales, American Steel Found¬
The big question obviously

was

well

until

major
transportation system of 30,-

intriguing

more

finished

be

merger

long-range studies are
sharp trim in sales under
way to figure out bene¬
in 1954 and 1955 when rail¬
fits of a merger. Unlike most
road orders lagged, and be¬
merger situations, either car¬
fore the benefits of its diver¬
rier is held in good regard
sification could be felt. This
a

won't

or

is

past

more

studies

management

wisely

months

stated

cific

that

Council

shortage becomes a real¬
ity, to raise the price limit written

-

,

prices.

tin

Tin

a

When in

company

tin

than

suggested

acting
the

fer stock

Moreover, internally;

area.

be

before

in¬

or

shortage could de¬

been

International
in

of

more

no

advancing

even

itself

addition

agricul-,
hauling, has been bene¬

creased

and

to

with

has

the

fiting in recent

have had less ex¬
remedy, the carrier

cesses

One

well

❖

❖

$2.

a

It

and

ore

production

well be

and

would

to

mine

1956

velop

pay

coun¬

steel

both.

or

World

charges.

Great Northern, in

either

of

in

are

would

which

short

in 1957 may

expected to
generate $11,500,000 this year
operations

perhaps other satellite

tries—are

earnings are understated
to a degree by excluding un¬
distributed
tag from its peak of this year.
earnings of the
Dividend disappointment was estimated at some three times
Since the railroads, by not Chicago, Burlington & Quincy
its present dividend. Tlrs, ob¬
which they control jointly.
only partly responsible since
having participated in the
the slide had been well un¬ viously, makes it a candidate
*
*
*
enthusiasm that engulfed the
for higher payments in the
derway even before the yearindustrial shares in the past
In the event of a merger—
end payment

likely that both countries—

seems

its

Security

In the rail operations,

year.

shunned

was

the

and oil lands. The oil income

this year

unprofitable load is at a min¬
imum. In all, its non-railroad

Issue

profit margin

shares

total

of

Thursday, November 22,;1956

Continued from page 2

humming and also
its large timber

are

because

small

appeared able to move

group

Railroad

lines

than half

more

situa¬

And

has modernized

Thanksgiving in the market.

non-rail

ried

average

little extra weight

put

they ^are palpably being car¬
by excessive speculation.

half of

around

to

No

decade.

equipment currently is down

STREETE

and

Stocks

last

the

tivities

...

presented

LOS ANGELES,

Calif.—Richard
Sterling Se¬

L. Jetter is now with

curities

Co.,

714

South

Spring

Street.

author only.]

With F. I. du Pontx

S. D. Fuller & Co.

.

Three With E. F. Hutton

(Special to The Financial Chronicle)

SAN

(Special to The Financial Chronicle)
,

39 Broadway, New York 6, A\ Y.
Teletype: AT 1-4777

LOS
D.

FRANCISCO,

Calif.—

ANGELES, Calif.—Donald

John B.

and

sociated

Knox, Jr. has become as¬
with Francis I. du Pont

&

317

Dore,

P.

George

Jules S.

Seretan

filiated

with

Dotzler

have become af¬

E.

F.

Hutton

&

-Company, 623 South Spring Street.

Co.,

Mr.
F.

Knox

Hutton

Montgomery Street.
previously with E.

was

&

Co.

Volume 184

Number 5588

The Commercial and Financial Chronicle

...

(2189)

without

running the risk of
centuating inflation. Indeed, a

Suez Crisis and Disinflation

disinflationary policy
might become imperative in order

So long as the Middle East tension remains and does not be¬

aggravated, the oil shortage

Einzig believes,

slowing down of

a

may

consumer

mnlmpr nLaL T
decline
til SSnf if 1
cfimi S proportions
/
such
to

purchases, larger

sume

as

cessitate

spending

balance of payments and discusses other
possible remedies to prevent gold loss.

by

the

beginning of November,.1' it
to

be

came

widely believed that Chan-

realization

mipan

this

of

vor

fa-

m

accen-

.u .a L1 n. ®

j

based

ernment

would

of

be

course

luctant to yesort to exchange

re-

con-

r°l' Neyertheless, Mr. Macmillan.

the

of the
«ie
oecona
Second .World
woria
war
ne
War
he
sharply criticized the Chamberlain

that

mill-

SSESEf M6 Government's
inadequacy of the

on

the

exnerH'
expedi

tarv
lary. ;

tion

and

its

consequences

bound to

were

.

.

initial
inmai

of
or

measures
measures

strictions.

So

exohanep
excnange

the

on

-

rp

re

whole

it

seems probable that in case of an

aggravation

of

the

situation

Mr.

decided

teracting

such

to

against
by

effect

autumn

an

obvious

amid

counteract

it

dose

flation.

only

to

of yet

means

monetary

disin-

This appeared to be nec-

essary also from the point of view
of

trying

the

to

tire

British

balance

One of the

effect of

especially

payments,

for

the weak-

Stock

Exchange and
Government Loans,

of

the

widespread
higher Bank rate

was

Although
tion

to

on

of

reasons

the

of

ness

of

the

correct

blocking of the Suez Canal

the

anticipation

military

Egypt

resulted

expedi¬
in some

increase in public expenditure, its
extent to date is estimated to be

only

between

million

£ 35

Considering that the
Budgetary situation is fundamentally sound, such
not

need

slight increase

a

produce

noteworthy

any

inflationary effect.
hand, it would be

On

the

other

mistake

a

to

try to minimize the effect of the
Suez crisis
ments.

too,

the balance of pay-

on

that

From

however,

balance

of

point of view
fact that the

the

payment

not be

at

was

an

equilibrium before the crisis will

situation

such

it

as

be¬

on

the

regarding

the

normal

the crisis

oil

overcome,

been rejected out of hand. It was
emphatically repudiated by Government spokesmen on the occasion of the recent Debate on the
economic situation.
Devaluation

of oil

purchases.

In

all

probability the solution the Government will choose will be that
of the realization of some of the
Treasury's dollar securities. While
it

would

point

be

deplorable from
view of weakening

of

and

reserve

the

the

deferring further the

convertibility, it would be
smallest of the evils.
It seems to be unlikely that the
Government would seek to correct
the situation by a new disinflationary drive. Apart from other
considerations an accentuation of
the credit squeeze is not necessary
in existing conditions. There are
indications that the uncertainty
created by the crisis has caused
a decline of consumer demand at

V;

is

so

economic
and

prospects

cline

industrial

induced
Loss

sterling had to be
supported ever since the beginning of the Suez dispute, and considerable losses of gold have been

incurred, his has been due to the
of
foreign
balances
London.
At present foreign
holdings are so low that further

withdrawal
from

withdrawals

the

profits

investor

classes

Wage and Capital Postponement
In view of the uncertainty of
the oil supplies managements and

this decline is liable to continue,

the

of

balance

of

Above all, there is in addition at
iea6t a possibility of an enforced
likely to be very large, the curtailment of production through
balance of payments is bound to oil shortage. This would act as a
be affected considerably through powerful
deflationary force.
In
the
diversion
of
oil
imports, such circumstances, it seems probSterling oil from the Middle East able that most trade unions will
decline

the

of

payments.

exports

is

in

Morgan

the

Morgan

&

in

Texas

municipal

be

to

replaced

dollar

by

necessarily

causes

oil

loss of

gold.

resident

in

(Special to The Financial Chronicle)

New

ST.

-Iu

has

*u

with

been

the

assoc.-

V

•

investment

firm

,104^

the

law ana nets spt^iaiizea in

ilrtc

an.-i

c.wvMnlirpd

and Leon J. Polette

.with

c

in

White

of natural

gas

trans¬

local

rick

&

Polette

•

One

rected

of

the

in

ways

wrong reason.

which the

would

be

an

accentuation

of

the credit squeeze.
By reducing domestic consumption it would
tend to

cause

would

increase

surplus
■.

tive

the

the

as

a

exportable
total

result

of

methods

stances

further

monetary

measures

should

office

of

the fears

of

of

a

decline

of

'hrough a Prolonged decline
demand

materialize,

the Government could well afford

was

also associated.

1

Morgan joined
the
firm
in 1955, having previously
been president of Langevin Man¬
ufacturing Corporation and exec¬
utive
vice
president
of
Univis
Lens Company. His activities with

(Special

to

The

Scharff

has

&•

South

La

financial

early

chronicle)

111. —Richard
joined the staff

Co.

Incorporated,

Salle

Street.

B.
of

105

He

was

Stone

formerly with Reynolds & Co.

Leftwich
nessee,

57

Exchange.

Lyster C. Reighley
Reighley,

a

Stock
Nov.
age

member

of

the

Exchanged,
10 of

a

passed

he

Ross

be

in

Boettcher Co. Adds
DENVER,
Colo. — Neil
J.
Sharkey has been added to the
of Boettcher and Company,
828 17th Street, members of the
New York Stock Exchange.

staff

With Allied Inv. Co.
in

partner

Memphis, Ten¬

Ross,

formed

Leftwich

senior

New

to

Cor¬

passed away at the age of

in

had

heart

a

attack.

Leftwich

with

partnership

partner of De Coppet & D-oremus,
and

continue

C.
&

following

Ross

C.

<•

(Special to The Financial Chronicle)

Howard C. Ross
Howard

Salle Street, members of the Mid-

Lyster

Securities

the industrial field.

(Special to The Financial Chronicle)

Stock

will

poration

With Central Republic

west

Webster

&

&

Prior

with

Mr.

Ross

William

1936.

been

(Special to The Financial Chronicle)

ATLANTA, Ga.—Leon G. McNeely, Jr. has been added to the
staff

in

thereto

the

National

Planters

Bank

Allied

Investment

old Bank of

the

of 65.

the

Commerce and Trust

Company.

COLUMBUS, Ga. —Guy Smith
is now connected with Luna, Mat¬
thews & Waites of Birmingham.

619,776 Shares

Watson Bros. Transportation

Co., Inc.

Class A Common Stock
(Par Value $1.00)

Price $7.50 per

Share

The

Company ranks as one of the seven largest common carrier truck lines
in the United States. Its Certificates of Public Convenience and Necessity

cover more

St. Louis

than 53,000 miles of routes running in general from Chicago and
the West Coast and from Minneapolis-St. Paul in a south¬

to

westerly direction to the West Coast, including service through the Nogales
gateway into Mexico.
The

Company is authorized to

'Gross

revenues are at

the

rate

serve over

3,000 municipalities in 12

states.

of $30,000,000 annually.

Copies of the Offering Circular
as

,

may

may

be obtained from such of the undersigned

lawfully offer the securities in this State.

Cruttenden, Podesta & Co.

Tlie First Trust Company
of Lincoln,

Wachob-Bender Corporation

Nebraska

Hooker & Fay

Reynolds & Co., Inc.

would

exchange control, devaluation,




the

George D. B. Bonbright & Co.

Dempsey-Tegeler & Co.

Bache & Co.

to

relax

be

ures.

It

or

sible

to

its disinflationary meas-

might then become
lower

the

bank

pos-

Lester, Ryons & Co.

Smith, Hague, Noble & Co.

First Securities Corporation
Durham, N. C.

rate

November 20, 1956

Com¬

Walton Building.

With Luna, Matthews

Union
and

away

heart ailment at

of

pany,

Groom

(Special to The Financial Chronicle)

York

1

correcting

payments

Her-

Barrett

Co., Inc., with which Mr.

production through oil shortages,

tem-

Alterna-

disinflationary
are, therefore,

not considered necessary. Indeed,
it
is
considered
possible
that,

of consumer

shortages of oil.

of

output

.

,

balance

-

if

even

should suffer
porary

fall of prices and

a

Having regard to these circum-

now

are

&

Company, Missis¬
sippi Valley Bank Building. Mr.
McKee was formerly in charge of

financing of electric and gas., the

utilities and

■

LOUIS, Mo.—Logan A. Mc¬

Mr.

abstain from pressing unduly their
inflationary wages demand. If so,
the right thing will happen for

"balance of payments could be cor-

issues

With White & Co. Staff

Business

New

mission companies.

-

has

will

Co.

Logan McKee, Polette

vicft

as

9jnrfl

Joins Blair Staff
CHICAGO,

&

distributors and

not

and this

in¬

years

genral market issues, special¬

Kee

7

spendings^ A decline
in their demand tends to result
in a curtailment of production
and this may lead of unemployment or short-time working,

partly a§ a result of the deteriora-

Nevertheless, the outflow
of gold is likely to continue partly

tion

as

to

owing to seasonal influences and

un-

likely.

While

S.

Blcdgett

Mr.
.

have

workers have become increasingly
reluctant to work overtime. As a
result there is a decline in the
amount paid out in wages and

are

Masterson

curtail their

Although

substantial

Donald

Department,,

highly uncertain.

ary

of

the

White

*

S.

York.

ob-

are

Blodgett Donald

presidents

are

necessities. The fall of Stock
Exchange quotations and the de-

Gold

and

The P°Utical
and

uncertain

in

thirty

any rate for luxuries and second-

effect of the crisis.

Possible

Enimons W.

CHICAGO, 111.—Robert B. Huwould certainly not help toward lick"is~now~with the" Centra1 Re¬
counteracting the effects of the public
Company, 209 South La

diversion

been

Chas. B.

and over-the-counter securities.

the other

on

Blair

make it easier to face the adverse

Traces

and

prospects of an early reopenjng Qf the Canal
For these reascure

has

organized

izing

""UOOK is uncertain, ana so are, atecj
the
sons,

White

White,

hand, might
■
...
lead. to more extensive military
preparations leading to strong inoutlook

Masterson, Jr.

continue to act

An aggravation of

course.

Co. Part¬

dealers in government, municipal

shortages and if accompanied
by a relaxation of the tension, consumer demand would resume its

is,

As for devaluation, the idea has

and

£50 million.

the

the fundamental Conservative reluctance to introduce controls will

seek

was

by

of

counmeans

the

Budget,

alternative

another

since Mr.

not

supply. An early reopening of the

Macmillan would not hesitate to
restore
exchange
control.
But

produce inflaEinzig

Macmillan
of

tionary effects.
And

Paul

Dr.

will

Co.,

Co. in 1937. Mr. Masterson joined
the firm in 1946.
'

The present Conservative Gov- Suez'canai im'tramcw^dwert

•

view was

situation

&

Chas. B. White and Neill

are

and

that the Mid¬

supposes

to. difficulties

disinflationary is less.dogmatic about this than
credit squeeze, his predecessor. At the beginning
This
inis

Uncertain Outlook

hand, it will lead to1 pro¬
international tension and

longed

N

con¬

The firm

—

White

White, Masterson &

T.

Mr.

aggravated and that,

come

other,

.

would";

decide

the

of

some

Discounts Disinflationary
/
Measures

:

-

cellor Mac,

of

-

Treasury's foreign securities,
' '
.; • .. -

and

B.

Building, has been changed

ners

encourage

producers

and

dle Eastern

LONDON, Eng.—When the Suez
became aggravated at the

crisis

Rusk
to

Chas.

of

vestment business for

Obscure

All

ne-

HOUSTON, Texas
name

alike.

sumers

effect of crisis upon

to

measures

White, Masterson

Stone &
Webster
Securities
Corporation, 90 Broad Street. New
York city> has announced. the
election of Emmons W. Blodgett

nf

export surpluses, wage drive to be held in abeyance, and cap¬
ital investment to be postponed; and, in turn, may make fur¬
ther disinflationary measures unnecessary. Author measures

,

Of Stone & Webster

a

r

in Britain, Dr.

cause

Blodgeft, Morgan V.Ps Firm Name Now

re¬

versal of the

By PAUL EINZIG

come

ac¬

.

17

.

The Commercial and Financial

13

which is, of course,
significance. Young men
buyers of

of great

By HAROLD E. WOOD*

education

'and

in

Wood

Mr.

future.

,

economics class tour
We

concerned with finance,

are

impact now and in the years
come,, and
how best we can

Us
i,o

ourselves

discipline

and

educate

and those who

after

come

us

achieve

to

those

and I are

dedicated.

I

consider these

aims

be

to

at

the individual

level, but true
also at the inu

t ional

level:

First,

t i t

s

the investment
of
£. Wood

Harold

nnd

growth

with

the

savings for

income,

rela¬
tive
security,
varying in degree

—

individual

desire

and

of the

need

buyer, and, secondly,
behind this the underwriting on
a long-range basis of the expan¬
sion

of

needs

but

that

sible
ten

if

American

underwriting
the

only

securities

be sold.

can

speculation

as

I

industry,
pos¬

underwrit¬
not talking

am

opposed to venrajre

has a
definite and
proper place in our economy, but
it is not for the average man with

capital.

whom

It

we

concerned

are

tonight.

It is for the few.
Tell

What

Youth

America

will

Has

better

Done

in the past ten years

accept

the

cmd

infinite present; if we bring
a
list
of
American
achievement
first investment,

to

mind

—

then

production

one

the

—

the other

upon

interplay
steadily

—

building to the unparalleled pros¬
perity and achievement of today.
You

know

Dickinson
that

in

grains

those

words

of

Emily

years

ago,—

imagination

three

100

over

the

of

sand

be

can

a

desert,
prairie, and

three blades of grass a
three drops of water an

ocean.

Give to your student a
picture of
what America has
done, and you

him

create for

a

more

vivid pic¬

ture of the world in which he has
the opportunity

actively to par¬
any recital of dry

ticipate thap by
statistics.

Have him think of the
McCormick Reaper, the develop¬
ment of the telegraph in the
1850's,
the

first

Titus,

,

commercial

weir at

Pennsylvania, in 1859, the

development
the

oil

middle

of

the

decades

railroads
of

the

in

nine¬

teenth

century, Pullmans, diners,
refrigerator cars, George Westing-

house and the automatic

overwhelming realization of
the opportunities open to him, not
only for a life work, but for the
investment of his dollars.

the

Rockefeller, Executive

Vice-President of the Chase Man¬
hattan

Bank, speaking before the
Club of Detroit

Economic

Feb.

on

27, 1956, stated that in the past
fifty years one trillion 750 billion
dollars

had

invested

been

in

in¬

the United

States, and
that, after allowance for depreci¬
ation
and
obsolescence,
and
in
dustry in

terms of

investment

had

hundred

lars.

one

value

a

of

one

billion

dol¬

It represents the homes we
in; the property of Govern¬
ment, roads, schools, and parks;
automobiles and appliances,
in¬
ventories, and capital goods,—the
basic facilities for production and
distribution of the things we buy.
.

live

From

whence

these

billions

from

did

Two-thirds

come?

the

re-investment

rect

profits,

of

half

of

di¬

corporate

pfrbwing j back

the

business

of

the

into

money

earned, and one-third from indi¬
investors, life insurance

vidual

companies, and the like, largely
through investment bankers, who
produced a large part of this out¬
side

What

money.

magnificent

a

steel

and

open

hearth, Edison and, , the electric
light
bulb, and the telephone.
Later, aluminum on a commercial
basis. In the early 1900's the mov¬
ing picture, x-ray, wireless, aiesel
engine, in the same decade the
first automobile

lion

motor

today.

'

as

against 55 mil¬

vehicles

Later

the

on

the

road

airplane,

the

radio, television, radar, electron-?

ics, creative chemistry, and auto¬
mation with

its

requirements for

replacement and
.

*An

address

American
Industrial

by

equipment, and

Mr. Wood

Securities

before

the

Business-Rennselaer

Conference,




Troy,

New

York.

their

companies,

individual
companies. In 1901 U. S. Steel had
14,000 stockholders, 244,347 at the
end of 1955. American Telephone

and constructive achievement!

8,000

only

had

Telegraph

stockholders in 1901, and 1,408,851
the

at

year

of

New

Oil

Standard

1955.

end

Jersey,

relatively

a

publicly-owned company,
had
8,300 stockholders in 1920,
only 36 years ago, and now has
324,220.
You have these invest¬
new

ment

"clubs"

groups

call

they

10,000 strong and boasting
100,000 members.
You have the
phenomenal growth of the in¬
vestment trusts, —$10 billion in
assets
at
last year's close,
and
them,

1,500,000 shareholders.

..

Owners

It is of that individual investor

.

.

the

buyer of tomorrow.
To
from the Editors of "For¬

tune"

magazine,

with

"The

we

dealing
American

are

Changing

Market—The

Economic

cial forces that

are

and

So¬

re-shaping the

face of America", "the revolution
in income which is re-shaping the

market," "the dynamism that
gives the American dream its eco¬
nomic substance."
to say

on

The editors go

that "the most important,

change the past few years, by all
odds, is the rise of the great mass
into

a

the

American
on

monied middle class."

new

"Over

half

past

consumers

of

century,

have

spent,

the

come

average, 93% of their .in¬
.and put the other 7 % into

savings—which include cash, bank
deposits, accumulations .of cash
value on insurance policies, and
equity payments on houses." "The
tendency", says "Fortune," "is for
a higher percentage of
saving, as
income rises."
The Individual's Investment Role
Let's refer to the individual who

buys the Common Stock

and

in¬

creasingly, through the years, will
be financing our industrial growth.
Now, no estimate or study had
been made of the number of
mon

stockholders

in

the

com--

democracy,
in which
of
middle-income
and

economic
millions

working
people
hold,
through
ownership, the real balance of
economic power."
But

must

we

until

United

people

to

buy,

to

more

the

meet

"This is

of the future.

one

will need

says we

business

of

billion
over

in

the

an

1965

need

of

$65

alone,

55%

a

rise

of today.

billion were
industry

$240

annual rate

investment

poured

into

American

from
1945
1954. T* is estimated t^at

$375 billion will be needed in the
period 1955 to 1965 to reach that

$65

billion

need

of

1965

capital
itself.

expenditure
It

will

come

years.

It

also

revealed

the

A

is

increase

33%

by

expected

1959. Time does not permit me to

developments in

detail specialized

industries

extractive

the

oil,

—

steel, uranium, titanium, lithium,
even
to suggest the signifi¬
cance of steel consumption going

nor

the

from

1975.

this

tons

million

200

of

tons

.

transportation, the
that by 1965 it will

air

for

As

CAA

says

from

rise

million

115

the

to

year

a

current

20%

of

the

transportation carrier mar¬
over 50%, and if you take
indications

immediate

more

You

have

the

seen

recent

ad¬

vertisement in many of the papers

throughout this country—"Every¬
where
you
look,
America
is

What

that

lenge

thrilling chal¬

a

is

all

to

of

us

is

growing!" As I think of
"America growing," and what the
youth with whom you and we are
concerned

that

to contribute to

do

can

America,

think

I

of

what

Clemenceau said at the end of the

first World War,
what the
and

our

men

"France will be

of France deserve,"

America will be what the

yoq.th of America deserve. Ob¬
viously these demands will re¬
quire the investment of greater
savings by a greater number of
people, that we may meet these
challenges. Professor Griswold of
the Amos Tuck School of Business

Administration at Dartmouth s^id

needed capital
is to be obtained by broadening
the base
of stock ownership,
a

recently-—"If

the

actually thought dbout in¬
Industry Breakdown of Capital
vesting in stocks within the past
Needs
year, and, about 20 million adults
What are some of the specific indicated they would be interested
in a plan for buying regularly a
developments envisioned in these
fantastic totals. They are develop¬ small amount of stock in one or
ments certain to stir the imagina¬ more leading corporations."
tion of the

youth of our country.
needing
$73 billion in the next 10 years,
of which they will require $10 V2

We have the oil industry

billion from the public. It is said
that the number of motor vehicles
,

that

totaled $5 billion.

fields last year

have

the

33^% increase in four

last

the

aware

so

days on the Rensselaer Poly¬
technic campus? Research in all

partly through the purchase of
corporate bonds, partly
of com¬
mon stocks.
In addition, we can¬ well-directed
educational
cam¬
not forget the astronomical total paign is necessary."
of municipal bonds to be issued—
Increasing Response
$25 billion for water and sewer
A recent
survey of
the New
needs, $16 billion for schools, and
$100 billion for roads, and there York Stock Exchange indicates
are other public works to be con¬
that "Approximately four million
noh-share-owning households
sidered.-, '

-

a

which

de¬ —"Everywhere ydu look, America

great ideas," said Funston,
"one of the great
opportunities,
and one of the great responsibili¬

three

resented

been

have

we

re¬

on

two

growing."
encourage

on
the
road
will
go
from
55
Brookings Insti¬
tution in 1952 came up with a million to 85 million between now
and 1975. The Department of Ecofigure of 6,490,000 people, and the
New
York
Stock
Exchange in -nbmicS) McGraW Hill Publishing
1955, in its study, "Who Owns Company, estimate that in 1970
American
Business"
placed the we will use five times as much
electricity as we do today, and
figure at 8,630,000 people. It rep¬

States

of the emphasis

speak

.

would speak, your concern and ties" which
you and I face today.
mine,—the buyer of today, and
The Joint Congressional Com¬
your student of today who will mittee
on
the Economic Report
be

I

search and development, of

the

I

quote

in new products, not
11%; Chemicals 15%; and Elec¬
trical
Machinery
18%.
As
the
20%

pates

All of these investments, repre¬ of which you and I are
aware
senting the purchase of ownership today, consider the $575 million
in American enterprise, "will just borrowed by the American
prove", as Keith Funston, Presi¬ Telephone
and
Telegraph
Co.;
dent of the New York Stock Ex¬ Chrysler projecting a billion-dol¬
change recently said, "one o: the lar program over the next five
healthiest
and
most remarkable years; Ford $3 billion in the next
events of our time
historians three years; and Standard Oil of
of the future will look back on New
Jersey
$1.2
billion
for
the decade following World War world-wide
expansion, "reflect¬
II as the period when the United
ing," in the words of its Chair¬
States
fihally
began
achieving man,
"our
confidence
in
the
a
man-in-the-streets
kind 'of economic outlook."

mands

America

of

Aviation antici¬

not made in 1955.

ket to

of the

The

from now will be in products

entire

Growing Need for Investors

today's prices, that same

trillion

through

years

funds, and the like.,; As
you consider these facts, you can¬
not fail to recognize the under¬
prophets
discuss
United States
lying strength of the American population
growth, they talk
economy, due to this broad own¬ about
500,000
new
homes
as
ership, and you and I must rec¬ needed each year for the next 20
ognize it as we approach the prob¬ years,
and
500,000
additional
lems and ideals of American life
homes
annually
remodeled
or
today. '
:
altered in substantial degree. Need

and

airbrake,

Bessemer

their expan¬

an

David

Manufacturing companies antic¬
ipate that 11% of their sales four

cor¬

from considering a few

Certainly out of these can come

financial

challenge of the future
if its imagination is fired
by re¬
calling for him our romantic past

senior

sion and refinement.

objec¬

tives to which
you

of

outcome

income

above the 1950 level.

million

enjoy

More dramatic indications come

high school
of St. Paul's finance and industry centers.

successful

recounts

;

capita

time, per

by' that

will be 40%

corpora¬

hundred

one

indirectly

pension

economic
democracy as strong and as potent as political democracy,
and the challenge in meeting future growing capital require¬
ments.
Stresses, in a list of underlying principles, how the
dangers of inflation are met through the purchase of equities.
Writer

and
who

stake in life insurance

equity ownership, the need to make

of broadened

1,400,000

porate' ownership,

task of finance

and to accept the financial challenge of the
describes the expansion and importance

investment process

are
an
additional
individuals owning

There

today.

more

country's youth to understand

educating

and women are the new

tions,

St. Paul, Minnesota

St. Paul investment firm head discusses jnint

spending that you and I do day
by day. The production of oetrochemicals will triple by 1970, and

shares in privately-held

Securities

Harold E. Wood & Company, Investment

$265 billion in 195,6 to $420 billion
in 1970—consumer spending—the

35 years,

was

Face the Future Together

new share1952 and -1&55

the

age of
between

average
holders

Education and Finance

of

Chronicle

...

(2190)

power
sumer

times

as

much

electric

will be consumed. Con¬
spending will increase from

To

quote

again

from
David
a great job

.

>1" shall, only recite in passing; the
media, not necessarily in order
of importance, through which the
American

.

.

be tackled
.

The

men

in the years ahead.
of finance also have

Securities

Business

is

becoming known to the American
public; the increasing financial
coverage by the average news¬
paper,
making
young
and
old
more

of

aware

ticker

markets;

our

news

services; bank letters such

the First National Citv and the

as

Guaranty,
and
the * Cleveland
Trust, available to all of you upon
request; short popular texts on
,

securities and the market in gen¬

eral,

particularly

of- the
by
Merrill
Lynch, Pierce, Fenner and Beane,
such as, "How to Analyze a Bal-?
ance
Sheet" (Merrill Lynch has
spent $15 million in the past 15
literature

some

out

put

developing their educational
program); special studies made
possible by Foundation Grants;
employee stock ownership plans,
and the monthly investment plan
of the New York Stock Exchange,
College catalogues reveal an ever
larger number of courses dealing
years

with

the

securities

There

markets.

letters—"Kiplinger," "Whaley-Eaton," and fi¬
nancial
magazines, such as
"Business
Week" and
"Forbes;"
others with wide circulation, such
as
"Time" and "Newsweek;" and
"Federal
Reserve
Bulletin;" the
"Survey of Current Business" by
the

are

United

news

States

Department of
corporation
reports,
annual and interim, readable and
Commerce;
attractive.
of

tion

The

National

Investment

Associa¬

Companies,

and most of its

members, put out
excellent material pointed to the
investor.

modest

Other

associa-

tions^
such
as
the
Investment
Bankers, and the National Asso¬
ciation of Securities Dealers, Inc.
also publish informative material.
There are advisory, statistical and
forecasting services. The invest¬
themselves

ment

houses

many

programs.

Then

there

number

of

sponsor

increasing

an

written

books

:

/

,

are

on

phase of the industry, un¬
fortunately too technical in many
every

cases; correspondence courses, such
as the Investment Bankers Asso¬

ciation

gives at the University of

Chicago,

and there are courses
by the New York Stock
Exchange; refresher courses, such
sent

out

the

as

Bankers

Investment

ciation

Asso¬

spring at the
Finance; In¬
vestment in America Week,
particularly successful in Phila¬
delphia and San Francisco; the
Seattle experiment at the highschool
level; and the Joint
gives

Wharton

each

School

Committee

of

Education

on

men¬

tioned last night with its scholar¬

ships in the summer for college
teachers, Spending several summer
vacation

weeks on
Wall Street;
radio, television, and movies; the
public addresses of men like Keith

Funston

the

of

New

York

Stock

Exchange, Edward T. McCormick
of the

American Stock

Exchange,
W. Davis of the In¬
Association;
educational advertising programs
of the New York Stock Exchange;
and finally the forum series of
banks, investment bankers, and
the exchanges.
Typical of -their
success
is the report
I got the
and

George

Bankers

vestment

other day

from the Midwest Stock
in
Chicago.
It
an¬
six lectures. The capacity

Exchange
nounced

lecture

the

of

demand

series

were

hall

was

300.

The

that three
given instead of One,

was

so

great

and the

exchange still has a wait¬
ing list of over two thousand ap¬
plicants for the course.

Rockefeller: "There is
to

Thursday, November 22, 1956

Broadened Program Proposals
■

In all of these activities

we

have

two

purposes in
mind. We not
we live in.
I have the faith that only ask why people do not buy.
We ask them—can they afford not
they will not let it slip by—that
to buy? To achieve our goals, we
they will leave their mark on thd
need your
help. We cannot, do
growth of America and the free
the job alone, particularly when
world, even more in the future
we
think
of
the
investor
of
than in the past. I am confident
tomorrow.
the
generations
of
tomorrow,
In
the
first
report
of
the
looking back on these days, will
a

unique opDortunity in this era

observe
finance
an

that
was

the
both

essential one."

contribution
a

of

positive and

Research Committee of the Dart¬
mouth Economic

cil

—

Research

"Broadening

the

Coun¬

Base

of

Number 5588

Volume 184

Stock

...

The Commercial and Financial Chronicle:

Fourth, we would again stress
that the nAvrNAvnii
purchase of common
/ilr
+ Vi
ftAArl
stocks of corporations with good
management, and growth potential, which means increased earnings and consequent increased
dividends and appreciation, is a
hedge against inflation. May I
put the subject to you again in
simple language? Your 1940 dol-».
lar is only worth 58c today in purchasing power. However, if you
had been able to invest that 1940
dollar in a common that today
gives you twice the income of
1940, and was worth twice as
much marketwise as it was in

the. Council

Ownership,"

.

"We conclude that programs

says:

n+n

v*

to

actively promote share ownership
must
be
accompanied
by
educational
efforts
designed
to

prospective owner
nature of his ownership,

acquaint

the

with the

the potential rewards, the

risks,

probwide-spread evi-

is

There

dence

the

benefit from

to

investment. This is
lem.

of

kinds

the

and

lance needed

possible
surveil-

no

easy

ignorance
among
all
groups about the subject of stock
of

it

needs

We

see

attacked."

be

to

tin

fitted into the scheme of things,
Then_ the studentsAv\lr iv\ T\/TNinth
at the •!
T?0/4
1
"D
O
Federal Reserve Bank in Minneapelis saw how "the Fed" operated and got
functions.
After

-

tta

v\v« a

an

one

went

37 years in the investment bank-

States

in§ business. I know that every
dealer in this country feels as I
do- He rises each morning to the
excitement of a new day.

the

class

bury Flour Mills, saw food processing and milling, with concurdiscussions

rent

r*

o

of the plants of Pills-

that

through

19

communication of the Harris Trust was a skyline, and underneath it
and Savings Bank ofViC hi c a g o,.< the caption, "In Lincoln, Nebraska.
*Q
th.Q " ttlCl*C
^
g
y J |
0 GVGfy
called, "Creative Banking
vision to see, the background to morning." There is a new skyline
explanation of its understand, and the will to act." every morning, not only in Ne¬
I speak from the experience of braska, but all over these United

ftcovira

r

that
this
problem exists, and we find that
ownership.

nn ey

r*

(2191)

the

to

as

future

I

they

If in the preparatory schools and
the colleges he has been given the
ground work in history, in political science, and the fundamentals
have varied the afternoon sched- of economic thinking, and in the
uies,—one year to Minnesota Min- physical sciences, and continues

pilisbury, its expectations for
next year, and its corporate setup,
Up to this point, the program
has been the same each year. We

of

Holmes:

sion.

I

think

man

that

tion

this

and

business the

Oliver

Justice
"Life

world.

two boys when

my

into

came

words

0f

the entire

and

quoted to

Wendell

action

is
it

is

and

required

pas¬

of

share the

he should

a

ac¬

the

passion of his time
judged not
In our industry
share the action and the pas-

at

the

to

have

you

peril of being
lived."

1940, then in the $2.00 of today ing and Manufacturing, another to through the years a disciplined sion of our time, and you live in
with Funston as he says, referring y°a have preserved
that dollar Minneapolis Honeywell, another self-education of the inter-rela- the finest, fullest sense of the
to the broadest possible participa- value of 16 years ago. .
- r
to Ford, or to American Hoist and tionships of economic and political word.
tion
of
the
public
in our
I have a customer who will not Derrick. As they have gone forces in the United States and • The Earl of Halifax once said
securities
markets:
"Within
the buy a security until I give him a through these plants, an attempt throughout the world, he can ap- ^at "Service is the rent we pay
framework of our economic sys-' chart which shows that the stock-was made to-picture problems of praise — imperfectly
to be sure, for our room 0n earth." Teachers
tern
with freedom
and with which he is considering buying growth, earnings plowed back into but with far more than average pay that rent every day you live
competition
we are extending is earning twice what it did
in the business at the expense of intelligence the happenings of because they are dedicated to pub¬
■ the advantages of ownership with 1940,
and because it is earning larger dividends, and the demands each day. I like to think that the lic service, and we too subscribe
its great benefits to more of our twice what it did then, it is paying for research and new products.
average man' in the investment to the same ideal.
people. Through broader owner- twice what it did in 1940. He also
It has been most interesting to business is able to appraise the
We trust that teachers will send
We

bankers

investment

agree

—

—

—

,

-

■

-

the way towards wants to know that the share is
making our economic democracy selling at twice what it did in
1940. In other words, that is how
as
strong and as potent as our
the dangers of inflation are met
political democracy. Broader
share
ownership is, in fact, so through the purchase of equities.
I have in mind two stocks. First,
integral
a
part
of
democratic
processes, that
we
must accom- General Mills earned $2.08 in 1940
plish it, however painstakingly, if and $5.02 in 1955. It paid $1.33 in
we are going to keep our essential
1940; it paid $2.75 in 1955. It sold
as high as 33%
character as a nation."
in 1940. It closed
Securities at 77% at the 1955 year-end. It is
To
my
mind,
the

ship,

we

on

are

"

-*

-

*

u

Business

fession.

is fundamentally

is

It

In

working with us, we do not ask
or
expect that you teach tech-

niques,

or

What

you

nnnnpratinn

nnH

sympathetic cooperation and
support in a few broad underhung
tirinrinlps

A«

E li
J ; we
First,

T

'

.

trust

here

them

<!pp

you

share

our

income and principal in conservainupctmont

thai-

anH

vnn

*1 rA '

investment, and that you are
income

fe<^ed

Spilt

for

and

1955

It

WOnder that we believe
common stock buying as a pro-

£)0 y0U

tection

task.

•

/m

_

Third,

legitimate, amazing and
appreciation of principal over a period of years can
be
realized
in
the
purchase of
publicly-owned growth industries,
I would tell you of one of our
own
Twin Cities companies. Had
you
bought, in 1928, 100 shares
Minnesota Mining and Manufac'-turing
Company
common
for
$1,075.00 (when the sales of that
worthwhile

•

I

some

if she

bring her class to St. Paul,
morning in May. We ar-

ranged
the

asking

telephoned,

years,

could

their
teacher
tneir
teacner,
known
for
some

ago,

a

class.

program for
Estherville is approxi-

full-day's

mately

two

of

hundred

Twin

the

Cities.

miles south
On

the

ap-

morning,
some
twenty
boys and girls left Estherville at
five in the morning, arriving in
pointed

around $5 million a

U

St.

Paul

arranged
iailgV/U

(fl

around

eight-thirty.

I

for

To be sure, Mining

outstanding example of sueinvestment, but there are
many
quality blue chip growth
an

cessful

stocks

which

fantastically
.

of time
come

.

us

with

wishing to buy

Over
a

a

little

period
money,

two, or three
try to put
them
in
the
type
of
common
which will perform well through
the years, and whet their investment appetite for more, as they

shares
*

well.

performed

have many teen-agers

we

to

have

are

of

able

one,

stock.

to

We

buy.




spent an hour in our office, a microcosm

have

in

domi-

Whpn

profession

as

a

of the investment bank-

share
of

+

These

phrase

the

on

the Young Man

Who Is Interested in Everything."
I liked the following advertise¬
"Wall

in

ment

1955"—an

Street

-

r

.f

.

ambitious; volume put out by the

edltors of tbe Yale

a

"in whatever career you

choose

to

follow,
you'll invest almost
twenty years of education, ac¬
quired at a cost of thousands of
dollars.

But that's

only the begin¬

ning.
or

more

even

productive

sP°nsible- That makes it quite an
investment_

And

suggest giving
Wall Street
"To

the

the

as

that<s

career.

business

worthwhile return,
for

we

intangibles.

offers

a

both in tangi¬
In challenge,

example—a constant, continu¬

challenge that must keep pace
every change in a dynamic
economy. In understanding of hu¬
ing

with

man

values—for

represent

the

dollars

invested

aims of

hopes and
i

i

l

j

men ana women, enirustea to your
g.uarcllanship. in lmerest and acuon and a d v e n t u r e and, yes,

,or'ff

HVf

n

man'

Wall otr££t Oilers tnem all.--.
Not everyone is suited to the
Not everyone
the combination of talents it

securities
has

which

who sense our
that they may
satisfactions

same

as

and we have known.

you

After

these

many

in the
Business, I

years

American

Securities

still

to

thrill

Eliot

words

the

of

T.

S.

they apply, not only in
personal, but also in our pro-

our

as

"Where

hrieks

the

"Atlantic

the

stone: Where the beams are

will

we

Where

will

build

the

build

future of

with

new

is

rotten,

timber:

new

unspoken, we

new

speech."

finance face the

and

greater America. Let
new stone, with

a

build

with

word

Education

us

I read a display
Monthly," a mu¬
nicipal advertisement of the City
of
Lincoln, Nebraska.
Fictured

in

with

it

timber, and new speech. We
you will work with us,

trust that
in

words of

the

the

poet, "Down
together!"

that wondrous road

$23,100,000 Chelan County Public Utility
District No. 1 Bonds Offered to Investors
Halsey, Stuart & Co., Inc.; John
Co., Incorporated; B. J.
& Co., Inc.; Smith Bar¬

Van Ingen
ney

& Co.; and Blyth & Co., Inc.,

are

joint

business.

departments, and young woman who follow through
explained to them the difference on that and go into the investment
between commercial and invest- business will come to know the
ment banking, between short- and meaning of the words of a recent
long-term credits, and how each

1948,

of

the

electric "sub-

transmission and distribution sys¬

Sound Power &
Light Company in Chelan County.
of

Puget

Properties of the District used in

which is offering $23,100,000

Chelan
uneian County, Washington, ruocounty, wasnington, Pub-

operated and accounted for sepoperated and accounted 101 sep—

cate

investment

utility District No. 1, 4%% arately from all other properties
R0cky Reach Hydro-Electric Sys- and operations of the District. The

uc

Series

Bonds,

Revenue

tern

of

1, 1992. The bonds
are priced at 9.9% and accrued in¬
terest, to yield about 4.81%.
Net proceeds from the sale of
the bonds will be used to initiate
1956, due July

generating station

miles

474

first

the

mouth.

in

The

construction
will include the building
the

of

the

abutment,

east

approximately

and

cut-oif,

its

from

stage

program

project

Reach

Rocky

the

of

and

dam

the

of

hydro-electric

earth

75%

spillway section. Located
about nine miles upstream from
the

of

site is about 95
air miles east of Seattle, 130 air
miles west of Spokane, and 180
air miles northeast of Portland.
Interest on the bonds, is exempt,
the

Wenatchee,

counsel, from
all present Federal income Taxes
dll Jk_/ JL COC11 t i VUV1 Ml
under existing laws, regulations
opinion

the

in

of

rulings,
The

the

at

whole

will

option
at

any

be

redeemable

the District, in
time on or after

of

redemption prices

ranging from 104% to par; in part
lot

date

on

on
or

any interest payment
after July 1, 1963 at

100% from certain
and

under

certain

specified funds,
special condi¬

tions, as a whole on or

after Jan.

at prices receding from
104% to par, plus accrued interest
1,

of the District used
in the production and
transmission of electric power and

properties

generally

have

energy

of

a

peaking capability

around 306,000 kilowatts. The
and

dam

hydro-electric generat¬

ing station of the projected Rocky
will have an aggre¬

Reach project

gate overload capability of 710,000

$250,000,000,
The

dam

or

will

about $353 per kw.
be approximately

4,900 feet in length, and the spill¬

section will be about 750
The power-house will
seven
turbo-generating

way

feet

long.

contain

units, each having a rated ca¬
pacity of 90,000 kw and overload

capability of 101,500 kw. It is esti¬
mated that the job can be com¬
pleted during the summer of 1962.
members

Other
group

of

the offering

include: Kuhn, Loeb & Co.;
Brothers; Merrill Lynch,

Lehman

Pierce,
Weld

bonds

July 1, 1967, at

by

field
couples

of a nation¬
banking syndi¬

managers

July,
tem

distributing electric energy at re¬
tail to about 16,000 customers are

wide

of

right man, a career in

securities

bles and

why

serious thought to
a

questions

/Iny

construction

"You'll" also- invest the thirty or

forty

econ¬

? 7r
Sometime ago

Nuveen &

exhibits—"To

the

know

men

dream,

achievement,-

to

f<>lder you may have seen among
;u;
"tv.
+u^
our

the

are
pnpK

~

the

know

You

tnlrpn

mean

finest ideals of public

service.

•

of our country and to the
political equilibrium of the world?

challenge to knowledge, to

understanding,

npilvpr

,

omy

advice as to their
future. Our industry, we feel, ofa

young

for

career

ing world, because in our little calls t°r- Hjn the man who has—
shop we do underwriting, retail-.
P sees the securities
in
ing, and trading. I talked to them Jts true creative light, who
integrity with imagination, ability
as best I could about these funcand application with energy and
tions. Then the class went to the
enthusiasm—will look far without
First National Bank of St. Paul,
finding a more rewarding career."
a $400 million institution, where,
Certainly the young man and
for an hour, a vice-president took
them through all

u

young men and women when they

^

in

Q

S?
Denver is taken
to t e hosPltal> desperately ill
what does than
to the
*

special

future

us

common

c

a gen-

you

to

^-aW^I fn6S ^Istmlnts? "J buiMwithTew

There is

the

1V1

p

is

would

T

them to spend the
VllVlll
VV/
HIV
year), your 100 shares would now first hour in the local office 0f
be 1,600 shares, with a value on Merrill Lynch, Pierce, Fenner and
yesterday's market
of $109,200
Beane. The manager explained to
and you would have had better them the Board, the problems and
than
than $Q 000 in inrnmp ITV/Toanurhi 1
$9,000 in income. (Meanwhile torhnianpc nf the aiiftinn market,
techniques of Ihp auction msrlfHt..
sales
have
increased to
around and how it operates.
They then
$320 million.)

We

enthusiasm

fers

nf?rv

had

d°es ^ do *? Middle

J^acts»

come to you for

have of inflation.

-

lliij.ll \J A A

other

more

a

our

-

j.?

years

is

It

grows

VUUU

some

our

against this terror people
n

i

Suez—h°w does

.

of finance would ask of

we

education.

a^ ag;ainst $4.26 m 1955. It paid

whom

•

with

or

which

naid

58c in 1939 as against $2.17 in 19o5.
It sold at 9% high in 1939; 54 in
1955, and on Oct. 12 it sold at 48.

five

U1

two in each of the

or

One final appeal.

^ ;°~VaVa

in

*4 or

—

v.

a+nclu

tbat affect the sanctity of con-

me

eral knowledge of the market

1955. It earned 68C in 1939

in

-rainst

,

company were

share

something far gicaici than
o
greater
Cl

3-for-l

.

'

a

come,

vparc

.

sent

Eastern Oil and the world market,
three or four companies. I see to and, even more fundamental is the
it that in each "portfolio" there is Ques"On
Does Nasser mean war.
a stock for growth, another for inPeron flees to a Paraguayan

how

of

aware

re-invested

summer's

a

have

Finance Profession for a Career

appreciably
Go to a reliable source for adin the
vice—as you would go to a lawyer
building of an estate. A recent
or a doctor—to investment
bank¬
pampniet shows that anyone able
ers, experienced officers of finanto save $500 a year for a period
j institutions ' investment coun#if
40
stnrtincr
in
of
40
years,
starting in when
when
selors, or use an investment serv¬
young—at 2% that $500 per year
ice.
is $30,000 at retirement age, and
Finally, in buying, you and I
at 8%, were that high rate pos¬
must do evervthins in our power
sible,
it
would
be
$130,000.
to make the unsophisticated
inThrough income, and its re-in¬
vestor
particularly the youngster
vestment whenever possible, the
investor
realizes
an
increasing with whom you and I are concerned—realize that in his pur¬
economic security.
chase he participates actively in
Secondly, you must know,
as
the development of his country,
we
do, that any amount can be
politically, as well as economic¬
purchased — one share or one
ally.
He is becoming a part of
hundred
shares
and
that
it
what has been called "the miracle
simply is not true that "only the
1
rich can buy." The George Putnam
fully

class

the

$200, asking that I buy for;

or

them

Or, General Motors, adjusted to
II
2-for-l common blULlV b£JixLj efstock split, vl"

a

conviction that there is security of
"ti\70
tive

of

.

.

of

ask

and

need

we

cvmn.thpfin

$100

Auction, installment buying, and
Pi,
c°ustruction. If he lead

in their pockets, six or

earnings
seven

varying trends in automobile pro-

to

gone back

Iowa, each fall with

the years.

give investment advice,

Underlying Principles

ic
is

-x-

gMsVve

the<?P

after

vpar

Pvprv

boys and

worth 67 A today (Oct. 13.) You nant characteristic. The Esthercan see that the dollar put in ville experience has been both an
General Mills has not lost its prin- amazing and a very satisfying one.
cipal or its income value through

pro-

a

highly technical.

that

'

Fenner
&

Co.;

& Beane; White,
Salomon Bros. &

Hutzler; Stone & Webster Securi¬
ties Corporation; A. C. Allyn and
Company Incorporated; Equitable
Securities Corporation; Dean Wit¬
&

ter

R.

W.

Co.,
Noyes

Co.; Bear, Stearns & Co.;
Pressprich & Co.; Blair &

Incorporated;
Hemphill,
&
Co.;
Hornblower
&
Pacific Northwest Com¬
Bacon, Stevenson & Co.
.

Weeks;
pany;

1965,

in each case.

District No. 1
of
Chelan
County,
Washington,
was
voted into existence in 1936
and commenced its electric utility
The Public Utility

operations through acquisition in

Frederick M. Thayer
Frederick M. Thayer,
ident

of

Incorporated,

delphia,

vice pres¬
& Co.,

Harriman Ripley

resident

passed

away

Phila¬
suddenly

in

November 16th at the age

of 60.

20

The Commercial and Financial Chronicle

(2192)

nomic

Investment Firms' Contribution
In

lected

Howard, Boston

&

National

Association

Boston investment firm

by

Committee,

Investment

of

Companies

head, in referring to 155 investment

growth, in managing investments,

belonging to

years

accommodate

to

facilities,
all-around
its

components

its

own.

with school consolidation.

hundreds

and to the

economy

newer,

directing and carefully supervising savings-flow.

Maintains true,

ture,
the

thoughtful investing

subject of

exist when
think

wkis

I

that

did

economics

school

in

the

nation

meaning of investment

opposed
to gambling and speculation.

not

and

I

The

that

suffered

under

tlu reby. i sug¬

investor

true

there

as

is

our

economic

who

provide

system

those

in

might be

different

bet.».r
if

1 i

genera¬

and

e r

and

a

ear-

genera¬

tions had been

taught

that

from

nizes

that

our

ma¬

industrial

iong-term

opportunity for
in

value

risk

as

which

ating

factor

a

an

growth

investment

in

forces

which

inherently

Association

in¬

panies.

The true investor takes
term

point of view.

servative

long-

a

society and every

will

tomorrow

be

a

bet¬

of

His is

a

con¬

manage

his

investments

among

It

It

one

cation

as

is

result of the role edu¬

a

playing in creating

now

of

group
make

more

money

The

concept

which

lies

ment

not

It

new.

almost

centralization
the

develop¬
companies is
applications jn

has

field

every

deavor,

of

behind

investment

of

including

of human

education.

en¬

The

idea

appears, for example, in the
trend toward consolidated
schools and centralized school dis¬

quate by itself, into
'.with

all

needs,

the

and

facilities

at

a

cost

each

financial

builds

up: personal

business
He

is

business

a

can

be

in

which

badly harmed.

amateurs

It

assumes

that sound investing, which is cer¬

tainly

of

more

than

art

an

a

science, requires at least four in¬
gredients: (1) the time to do a
thorough job,
and facilities

the

(2)
for

contacts

industrial

innumerable

they

He

,

ent

basis

of

schedules

ments,

Now
have
to

it

must
not

are

enough

be

obyious

that

people

who

many

time, to

invest without

learn

qualified

how

assist¬

enough

good judgment to
wisely all alone, or enough
money
to
diversify
adequately
ance,

invest

their

investments.

Investment Firm Fills the Vacuum
There

ple

are

of

fewer and fewer peo¬

great

wealth

today—the

who

ones

traditionally have pro¬
vided risk or equity capital in the

for reaching valid investment

development of America.
Yet capital must come from some¬

conclusions, and (4) the tempera¬
ment
to
apply those investment
■

conclusions
emotional
events.

with

The

idea involves

-too—an

minimum

a

reaction

to

investment
another

appreciation

of

critical

company

assumption,
of

the

true

earlier

want,
sume

address

by

Mr.

Eaton

Industrial Council Session
lcan

Securities

Polytechnic

on

Business,"
Troy,

Institute,




before the
"The AmerRennselaer
N
Y

of

and

are

more

moderate
can

and

more

means

afford,

if

we

who
as¬

proper education and assist¬

ance,
to set aside a portion of
their incomes and savings in order
to

buy

share in the progressive
growth and prosperity of business
and

'An

There

one.

people

a

industry.

The

medium

which

vacuum

in

Company

helps

terms

of

fill

both

is

a

this
eco¬

the

at

have

nominator.

will

prised to hear that I
the

to

tell

and

except
the

that

say

role

Ihe

of

That

easy.-

not

was

nothing about

to

vest in

ties

the

I

deT

of

Hanover's

the

The

the

outcome

of

I

can

is

standing
pected
be

of

our

great

a

expected
a

as

we

oping

in

about

30

business,
of

others.

or

call it, has been devel¬
this country for only

our

And

trying

Clearly

business,
the

while

so

tell

to
we

the

in¬

we

people

have

about

terms.

needed

al¬

Companies

with

respect to
companies.
Beyond
that, you need never hesitate > to
inquire from any of the invest¬
ment
companies
themselves
or
from

members of the invest¬

any

ment business in your

community.

Investment Industry's

:

Importance
We

in the

investment

business believe

company

it

that

important, indeed

an

a

performs

vital,

eco¬

nomic and social function in help¬

bring together

to

and

who
of

the

the

needs

are

capitalists,
essentially people

now

moderate
to

capi¬

nation's

There-

means.

is

be

gained by extending
and
more
people
the
ownership of securities, with the
more

risks and

benefits which such

in¬

involves.
If our. nation
continue to develop new and

vesting
is to

better

fits

products, and if the bene¬

gained

broadly

be

be
spread
citizens, there

our

and

new

The

vestors.

to

are

among

also

must

of

base

in¬

better

ownership

of the nation's business should be

broadened
and

to include

many

One

more

of ac¬
complishing that result is through

men

women.

way

the investment company

industry,

which is conscious of its

responsi¬

bility
with

proud

and
a

its business,

of

deep faith in its future.

upon the
according to

have often fallen

S.

U.

the

.;

opposite effect of accentuat¬

ing inflationary forces—via "scare
buying" and higher prices of in¬
the Suez and ternationally-traded
commodities
Central Euro- —money rates will remain high
pean1 crises, and "could go higher," Dr. Nadler
for

a

Marc

u s

to

The

says.

\

"The^

not

ment

the keynote of Govern¬

18

been

economic policy

points out.

Money

been

If the crises

settled

and

Nadler

considerably aggravated," he

The

bank.

are

hostilities

do not

spread,

the

Reserve

aimed

was

at

authorities' policy
clamping down on

inflationary forces which ap¬
on the economic horizon,

peared

Dn Nadler declares.

present tight money situation,
coupled with increased productive

included -.rising

capacity

wages,

The

on

in

Nadler

rising competition,
a "moderate reces¬

business

by

credit

be

a

decreased

capital,

"easier"

Federal

Reserve

creased

will

and

toward

credit,

activity,

Dr.

says.

slow-down

panied
for

and

bring

sion"

in the pa$t

months, the boom and the in¬
evitable recession "w o.uld have

Today,"
pub¬
lished by the

-f

will

•
as

Market

:%tii

Marcus

defended

the

policy of credit re¬
straint pursued by the
Reserve
authorities.
If tight money had

Bank, asserts
a report on

v

economist

"sound"

demand
a

money

change
by

the

authorities,

availability

lower

accom¬

money

of
rates

the

and

he

spiral
adds.

of prices

legitimate
in

some

credit needs, although

instances the total amount

desired could

Nadler

not be

granted, Dr.

says.

And, while some sectors of the
economy

fected

higher bond prices, the economist

tion,

states.

sound,

However, should the crises have

and

and

Despite the "rationing" of bank
credit, borrowers on the whole
have
been
able to satisfy their

in¬

bank

upward

These forces

inventories

by

have been adversely af¬

the tight

money

of

confusing them,
partly because they do not under¬
stand
the
true
meaning of our
error

will

Associa¬

investment

in

misunder¬

dustry has made great progress.
We
have,
however,
our
own
jargon which, like that of most
professions
or
trades,
mystifies
been

You

.

ready and glad to furbish any in¬
formation

"The

of

all concerned.

years.

.

National

European crises,

Hanover

wrong

The investment company indus¬

try,

and

the

omist

investment

it,

done to

.

the

Investment

be in the offing, depending

Nadler, Con¬
sulting Econ¬

not

to what can be ex¬
real damage could

as

of

area

in

Dr.

job,:

that,

common,-

should create

impression
leave

himself.

find
of

slow-down,, depending

sur-;

your

in

the

be

can

com¬

Suez

headed

be

may

moderate

of educating the public
understanding of what such
companies are, how they operate,
we

vestor

tion

occur, Dr. Nadler predicts, money
higher." Economist defends Reserve's credit
restraint policy.

boom

current

an

what

the part of both

on

Consulting Economist, and should result in easier

"could go

economy
-

business

and

anal¬

Should the opposite

money.

manager is not easy, either. I was.
referring particularly to the neces¬
sity in the investment company

to

by

'areas

Prospects and Money Market Outlook

on

be

educator

of

these

challenge for

Nadler Discusses Moderate Recession

referring

realize

have

we

role

only in

particular types of securi¬
industry groups.
Some

or

•

for

bonds,
common

stocks, while still others in¬

mon

abatement

mine

of teaching,

process

you

manage¬

Moderate recession may

beginning'
and

common

a

You

the

differ¬

holding

stocks

Others invest

Within

•

Public

business'

to

seemed

into

Investment

said

I

are

different

program,

rates

the

make

must

operating,

preferred
stocks.

potential rewards of

your

them. If

quate information, (3) the knowl¬
edge, skills and experience neces¬
sary

Now
that

do

can

it mildly,
a "rare bird."
True investing is a
full-time professional job.
there

ment

They must know above
fluctuating securities

Educates

experience.

investment

however,
within
the basic concept of the
investment corripany. Some com¬
panies provide a balanced invest¬

fluctuate.

put

,

all

be ascertained

may

real

ways

tal,

spite of similarities

and

and

objec¬

of the nation's businesses for

155

with

of

investment

I

its

security salesman and the in¬

ing
Differ

Do

types of organization, differ¬
objectives, different fee

ent

else that

leaders.

can't

you

different, very different
the other, both in con¬

are

from

one

investing in fluctuat¬
so
that they may

the

investing.
all

necessary

The amateur investor who
these things is, to

equipment

assembling ade¬

the

years

Investment Firm's Ingredients

of investing is not child's play, but

statements.

for

in

the

to

securities

share

knowledge and
facts,
carefully
analyzed,
com¬
pared- and evaluated, and on the
basisof
judgment fortified
by

"

„

and

keeps

on

presumably less, than the cost
of the separate, inadequate units.

The basic idea of the investment

ing

records. He makes his investments

one

company is the same. It starts off
.vfrith the premise that the business

fidence

and devel¬

is

much

in gaining the necessary con¬

ance

reviews;*'he

news

their

and

;

in¬

of

studies

opments
regularly;
he
studies
companies' histories and analyzes

greater,

no

and

He

economic

follows financial

larger unit

a

research

companies.

countless

^recent

tricts. Such integrations, as you
well know, combine a number of
small units, none of which is ade¬

industrial

that

said

impossible, in the

differences of

point that in

c

dividual

be

companies—but

$10

of

of

much about it."

would

many

however,

Prospectus

leaflets,

ysis and choice

me, even to
attempt to explain the similarities

protect

to

or

printed

far

a

—

without."
Firms

its

income.

in

vary

tives

and

today are not a
people trying to

rich

business

short time alloted to

-

..

heard

something
or

Investment

important to keep in mind

investors

That

"income."

say

I

cept and in fact. There

that

a

Uncorrie

our wares,

we

is

r

is

with

or

better job

a

recently

"Income

what they have. There are a few
different enterprises, thus resuch, but very few.
There are
ucing the possible impact on his
rather, hundreds of thousands of
an understanding by today's youthcapital if one of his investment^ small
investors, many of the#>
of this vital, all-encompassing role does
poorly, and. also /improving new investors who have never
of economics.
his chances of having some invest¬
•'-[ ■
.">$/
before bougnt securities. They are
I am here to speak briefly about ments
which
will
show
betterboth
savers
and
estate builders,
investment companies. It must be than-average growth and profits.
and
they
need,
whether
they
brief but I dare say you will settle
know it or not,: a type of profes¬
Full Time Professional Job
for that.
You may have heard of
sional job done for them, a sound
The
the child who, when he asked his
thoughtful investor relies and constructive service
which is
mother a
question, was told to heavily on analytical study and within their means. Most people
research.
"ask Dad when he comes home,"
He
acquires a broad know
very litle about investing—•*
at which the youngster said, "Oh
knowledge of economics, of in¬ some are too bold and some too
no,
I don't want to know that dustries, of corporate management, timid. Both need
qualified assist¬
ter

do

live within

Com¬

over

reassuring

promise "redemption."
"repurchase."

when

Only

National

-

the

and investment
policies, to¬
gether with, other pertinent infor¬
mation, so that -its characteristics

job — of teaching. Many
people don't know what we

mean

number

a

must

they

in

better

approximately
million inves¬

one-half

tors.

approach which attempts

the

It

its

we

com¬

Investment

of

They

and

one

shape the des- to reduce the risk as much as
t;ny of eyery possible consistent with his ob¬
age. Surely the jectives. He expands or diversifies

Jr.

members

investment

155

billion belonging to

fundamental

have helped to

securities

are

panies

fluctu¬

volves.

are

of

forth

other

and

current

Each company,

reader.

money.

science

for

again

respects.

there

us

scribing and explaining

terms

Thelre

offsetting the

income/ buf

value"

than

aims

applies only when

or

in

rather

the

terms—one

to

his

growth
Here

and

peculiar terms. You may
gather that we are no exception.
On
this
particular score of de¬

then, invest¬
ment
companies provide to the
general public, on a convenient
and economical basis, an invest¬
ment program suitable for longterm
holding and supervised by
professional investment managers.

expanding,

an

simple

the

to us

Every art

Public

General

Provides

current;

Bible.

most

look

—

we

means

has

members of the group.

as

In

He also recog¬

is

ours

raw

each

to

faith

good

money

dynamic economy which offers

finance

world of

which

production stems.

economics and

Eaton,

the

by the tools and the

terials

and

world

my

tion

Chas. F.

them

which is used to build the factories

live

we

available

made

—are

for

gest that the

It

full-

case

stress

the -King

the

our

be

who

to

up

or

write descript¬
Perhaps the most

all

withdraws

is when

inves¬

of

it

we

work.

must

those

blind

achieve

not

this

of

anything

one

that benefits

so

could

hardly

our

which

is
of

under¬

call sales

we

Milton

version

intriguing

professional management and

reward

world

of

is

of

means

to

term

What

ive of

wide diversification of investment

recognizes

potential

a

fund

one

investors

James

struc¬

capital

the

of

"literature"

of

A

thing to

"equalization"—yet

used.

standards

on

company

thousands

or

individuals—in

time

Present-day concepts of teaching
the

combining

the
as

basic

to

investment

tors into

full time professional job, and welcomes education
providing youth with increased economic understanding.

demands
now

Reduced

an

any

provide

could

people.

dustry / is

better
better

than

education

smaller investor,
Mr. Eaton
describes the ingredients of sound investing, distinguishes this
from gambling and speculation, and compares centralization
importance to the

in

different

a

only by the elite of the in¬

must be

of

students

the

providing
better
faculty,

Ex¬

sets

means

different

attferrfpts

schools,

many

and one-half million investors, and growing

one

school

Securities and

degree of emphasis varies
greatly;
others
invest
for long-term

stood

their full

consolidated

the

word

se¬

constantly supervised
and women who are de¬

men

The

of
$10 billion,

over

now

carefully

are

and

change Commission have invented
such
terms
as
"open-en d,"
"closed-end," and "leverage" com¬
panies.
We
speak,-of
"fixed,"
"group,"
"balanced,"
"periodic"
and "cumulative" investing. Each

time to profes¬
sional investment management.
So you can see the reason for
my
comparison
of
investment
companies to consolidated schools.

member firms of the National Association of Investment Com¬

its

We

The

the

and

voting

panies, stresses functions performed, for the past 30

of

concept

securities which

By CHARLES F. EATON, JR.*

Member, Executive

need.

investment
company is that it provides the
investor, whatever his means, with
a
way of acquiring ownership of
broadly
diversified
holdings of

Extending Ownership Base
President, Eaton

individual

and

basic

Thursday, November 22, 1956

...

of

the economy

the

and

the

credit

as

a

ultimate

curb

situa¬

whole is

will

results
benefit

.•

Volume 184

the entire

Number 5588

country, the

opines.

economist

Hanover Bank's

economist

makes

conclusions:

(1)

will

slow

,

the:

ultimately

rates

f

boo.pi.

pressures

bring them to

a

and, money and capital markets and
and in the policies of the respective
halt, central banks. There is nothing
mod--mysterious or unusual about these

sharp rise in the

restraint

by

pursued

authorities.

the

Reserve,

"(7) Tight money
and
higher

Since the increase in

the volume of bank loans

ditions

|

__

_

#

■

tj1v+u

rates

^

,

st

fe'Thfra.W
assets.
with

^

Ttere

the

months

hank

iii

decline

the

t™

in the volume of

credit <the

to

population

a

a

major portion

California,

preferred stock will be used
the

of

cost

construction

nia

The

new

listed

programs, of the sub¬
and to repay short-term

Gas

Gras Co.

^

T

\

;

on

and

m -the- closed.: r

Los

Antonio Lazo

Go.,'Southern
of California

Antonio
the age

Counties

and Pacific

ness..

-

in

Lazo

creased

•

sharply
and " that r
large - amount', of*

Ibss;

is

effort

conclusive- proof ' of
the

on

part of

York,

having

;been

merits

ot

industry,

served. -Asof

in

crease

money

flects that the
demand

*

the-;,

is

other

agri¬

in¬

The

rates merely re¬

law

of

supply and

effective

as

market

money

trade,

in

the

it

is

in

any

of

credit

as

market.

"(3)

policy

The

straint

followed

authorities

by

was

the

Many sectors of the

re¬

Reserve

is

3

an

sojnd.
are

economy

operating at capacity. The coun¬
try is enjoying lull employment,
wages are high and rising, and.
commodity prices, botn on tne
wholesale
and
consumer
levels,
are
increasing. Under such :circumsi-ances

in

the

intensify

supply can
inflationary

the

and

sures

later

•

only
pres¬

serious difficulties

cause

on.

"(4) So long
credit

-

strong

as

the

increase

excessive

an

money

and

the demand for

as

capital

remains

at present/and

inflationary

pressures

-

as

long

so

as

persi:t,l

ihoney rates will remain high and
could

higher.

go

This

will

in

Middle

the

will

East

;

de¬

pend partly on whetner the ehxsis

--

accent

the

tuate

inflationary forces. Po¬
military, developmen.s
that transpired aur-;
ing the past few-weeks usually
lead to soere buying and to higuer.
prices of jinternationally-traded-f

litical
of

and

kind

the

in

commodities.

"(5)

The

straint,

the.

.

Dank

ot

impact

an

reduced

on

had

money

v

v"

re¬

availabilitythe

higher

bound to have
sectors.

some

of

The

mortgage

impact

an

r

credit'

rand

were

supply

,

■»'

•

of

reduced,

credit

rates

money

-

policy

home

on

starts. The higher yields on bonds
increased the cost to municipali¬
ties

of

,

financing the construction

of much-needed schools and other

public

Some

works.

grams

as

well

such

those

as

pro¬

of

some

corporations had to be postponed.
Such,

serve

times

at

occurrences

resentment.

If. however,

the Re-

authorities.<phad

not t followed a policy of credit restraint
during the past 18 months,- the
t

inflationary
been

pressures

these

of

industrial

and

>

public

been
i

no

several

below

industries

capacity

weak

increasing.

If

the

that the large
pus

that

have

Central

European crises

settled

and

hostilities

and

plus

is

are

soon

do

not

increased productive
and

rising

dreds of

ca¬

competition—




more

people to collect facts, "The Industry

Nobody Really Knows" presents

a

fascinating

feeding

oil

on

company

are

histories!

privilege known

as

percentage

that the" oil

industry is dominated and

trolled

few big companies.

a

con¬

For your

free

Gulf Oil

tax

by

of the oil industry—documented

case

created by a so-

depletion;
•

and true story
with actual

the little fellows;

oil millionaires

called

is sort of an octu-.

Corporation,

copy,

just write to: President,

Gulf Building, Pitts¬

burgh 30, Pa. We suggest
stocks

are

you

write

limited..

-

the

spread, the tight money situation

pacity

mag¬

and* Interviewed literally hun-:

number-

economy

Suez

,<

than ,8,-000 miles

author, who traveled

operating

the

the

as:

oil well automatically makes <■*

millionaire;

a

•

exception.*

are

and

spots in

an

i

Despite the high level of business
activity ; and
full
employment,

—

oWh

•

"(6) No boom lasls forever and
boom is

by Craig Thompson, well-known

azine writer and

con¬

works,

would

r§futes-4r&t>i$ facts—such, misconceptions

considerably aggravated,

the current

of

It

one

commercial build¬

recession

Written

profusely-illustrated book¬

explodes myths about the oil industry.

^ "that to

ings and homes, would have been
higher.
Both t£ie boom and the
ultimate

<-}

would have

greater and the cost of

struction

HERE'S A NEW,

cause

let that

GULF OIL CORPORATION

Gulf Building

•

at J

ill¬

P-lfaic:*
;

Jan:

commercial:

individuals.

and

with

1,- l^ttbin^kegg
1956, this system supplied natural Beane, and other companies.

customers

banks to meet the credit require-,

culture

a .long

Mr. Lazo had formerly been

often-at

government" securities^

,

away

the investment business in New

in-;
the

banks ..sold

passed

of 09 following

4>

loans

that

,

and

,

and

York, San Fran¬

\

changes.

deposit

banks to ration loans.

**'(2)" ' The fact

in

Angeles Stock Ex¬

expansion)," reduced Y the avail-""
ability of bank credit and forced"'
many

Southern

preferred stock will be

the New

reserve

base' of

of

:

Lighting-; Gas Supply \ Go * own
operate the largest gas, system
in the United States in terms of

Pacific Lig ting

at"

Angeles;

and

ing company. Its three public util¬
ity subsidiaries; Southern Califor¬

^

estimated

principally

about Los

Pacific Lighting Corp. is a hold¬

««

Jwok*

✓

out

proceeds from the sale

bank loans.

A

-#«"«*»»

,bound ;to' be- -reflected

-i2

past

net

sidiaries

■

a.

SiSSSIISMSSS^SiX
-"«"«•

gas

expansion

'

...

prevail" not'only in the United.;f
companied by the liquidation-: of States but practically throughout :
n
large volume of government the entire-Tree world. They are
securities The result was a eon- the result of Ibehigh.level ^
siderablelncrease in the ratio Of .-business activity caused by

preferred

cisco

the

ac-

was

new

by the company to finance in part

ylilO flCfGITCu OlOCK

market conmoney

of the

|4mL||MAi

ClCIIlv LIKHIIIIk

^ -

of

stock of the company,

common

The

BJVJIII UlUUp OCflld
I

share

t?onverttble*intm*2.15 shares * 7,lt)0,000: peT^chlg'Tdcated
through^

subject to adjustments in certain
events, on or before Oct. 31, 1966.

D|||l|| f*y<A||M Qa||»

Oie

demand for

of

■

Reserve authorities, an inloans, the excess demand for cap- crease in the availability of-bank
ital over
the
supply of current credit, lower
money rates and
savings, and the policy of credit higher bond prices.
the

Each

stock*is

developments."

demand for credit and capital, a
of-change in the credit policies of

result

the

are

d,Q,wn

21

(2193)

ity. accompanied by a decreased

tight money market
and
the; increase in

conditions

,

This will be followed by a
erate recession in business activ-

,

"The

interest

consulting
following

the

the

inflationary

<

The

■

The Commercial and Financial Chronicle

...

Pittsburgh 30, Pa.

now as

>

»

/

22

The Commercial and Financial Chronicle

(2194)

to the extent that the

Industiy Research Programs

some

were

of

direct*

are

securities

in

manufacture

another
100,000,000 are indirect
shareowners through their savings

struments.

It

search

enabled

in

transistor

corporations.

General Partner, Merrill Lynch, Pierce, Fenner & Beane,
;;7
Dallas, Texas

life

of

Moreover,

manufacture

to

insurance

that

wartime

was

the

thousand

funds,

ties.

re¬

aircraft, chemical, electrical equipment, petroleum,
and radio-television lead in research. Mr. Cartwright notes the

vealed that

auto

industry plans the greatest

in this from 1955 to

increase

firm's research

of individual

results

McGraw-Hill,

Armour

research

increased
It is

research

isted from

the

ex¬

beginning of time.
Otherwise, all
of us might be

the

living in
primitive
dition
p r e

con¬

of

our

historic

forebears. The

reasoning
of

power

man¬

kind, impelled
by the force
of

necessity,
by ambition

and sometimes

by

discov-

ages

Cartwright

e

r

d

e

and

Collaterally, the spreading
these discoveries

velopment

of

dictated

better

and

of

use

the

de¬

quicker

methods of making them.

art,

science

and

manufacture.

time, there

the

prosperity

1920's, too
became

economic

cul¬

and

the

late

investors

our

speculators, i.e., they

were

immediate

profits from the purchase and sale
of

securities

than

in

the

mental progress of the

in which

funda¬

enterprises

they owned equities. The
excesses

of that

the., depression of
1930's, which brought about a
era

structive

United

by

the

was

revision

a

of

of

many

of

interested in the

products and

evidences

better

day.

products

most

con¬

investment

overhauling of the
machinery
of
the

an

States.

no

of

The

speculator

extinct;

means

in

fact,

magical
to

cue

£ram8

enjoy to-

we

of

World

War

15,854% since 1900.

is

he

performs

Hopkins
in

II

„

.

successful

al-

of

President

"Our

du

H

Pont

completed

the

of

result

m

General

credited

through

of almost $2

additions

the

line

some

in

the

as

with the

research

,

-

.

Government-sponsored

long-standing policy,
corporations would not sup-

able

to

do

-

even

on

Others

un-

of

the

because

so

con-";

a

were

gle product developed

in the relaboratory is furnished by
Schering Corp. In February 1955
Schering - introduced
the
anti-

as

a

first

In

to

1915,

it

Meti-

however, the response was most
gratifying and the results, I believe, most interesting. Obviously*

than

the question of semantics becomes

drug named
because

given

corten; Schering's sales

activity

in

doubled

and

en-

more

earnings in-

five-fold.

creased

estimated

1955

the

Another

only

/

100

troduced

The

renowned

prosperous

of 1929 saw only $160,000,000
spent on research. Preparation for
year

in addition to gradual growth,
expenditures in 1940 up to

case

in

1948.

V This

camera

produced finished pictures within
a

minute

or

So great has been

so.

success! that

its

Polaroid's

converted

into

as

no

two

corporations

are

likely to define research and de-

velopment in the same terms or
to report

To

figures

on

the

same

basis,

compensate for the variations

and to protect the

sales

have increased 15 times and losses
were

$345,000,000.

A few told

involved in the compilation of re-?
suits

-

.

in

point is the
industrial research' Polaroid
Corp.'s Land Camera,Jnlaboratories existed in the United
.

of their

some

us
they had no idea what was
spent for research.5 On the whole,

Meticorten.

of

thusiastic7* reception

organize

is

Government contracts.

Primarily

is

laboratory

a

classified nature of

arthritic

to

Company

separate

a

founding of

1900.

ran

i

ply these figures

sin-

a

asked:

was

,

fidential. basis.

-

spectacular effect of

Each

<■': Because of

billion resulted from
Pont

.

(2) "What percentage of sales
did each of these figures represent?"

research."

du

firm has recently
of about 400
f.

including

of du Pont's 1955 sales

to

cur-

contracts?

About 27%

The

the

of Ameri-.

f year, now
y0U sPend °r research,

,

mliC^

de-

the postwar period.

*u

on

and development excluding Government-sponsored contracts and

Green-

velopment

use.

the first

was

Electric

as

research

war,

ap-

survey

..

^7

noted that:

internal

my

a

corporations.

growth has been overwhelm-

ingly

industry,

can

pro-

Mining

than 1,000 products,

Crawford
I.

E.

v„u*

rent research activities

growth

research

.

To cast some light

.

Minnesota

more

wait of

major function. Among industries,

States.

cannot

Survey of 490 Firms

,

exampie

corporate

*s

ducer of

University,

1876,

recognize graduate

that

of

Sears,
gain of

search

founded

in

a

Less progres-

Dallas,

Manufacturing Co. In a few
the
3-M
Company
has
grown from a producer of a single
product-sandpaper-to the pro-

Research

the

enabled

—

re-

area—that

Roebuck & Co. to show

years,

Influence

another

in

merchandising

and

' v^

.

Johns
In

policies and

sciences,

and

general

investment

arts,

on

shows

since the

It may appear unusual that

search

^

and

stock

of the century.

turn
-

Examples
.

,

Another superb

foundations, or by
industry, which has led to the
development
of
numerous
new

Ago

industry,

near

„

Other

uni¬

'

with

culture that amazed

by

Kodak's

Eastman

capital gains of 8,973%

sive
merchandisers
addition has plants in Hous- proach this fugre.

con¬

government,

plant

new

on

ton and California.

refer

were

force.

flourished

foreigners who first beheld them.
Today, the world preserves as
priceless treasures those surviving

I

whether

giant

a

and in

the

to

precious few
The tortoise-slow pace of re¬
the inves¬ search in our
early history was
fewer re¬ not calculated to
inspire in inves¬
search budgets in financial reports
tors an appreciation of its
poten-;
published by corporations which tialities. For
example, it is said
were actually conducting research.
that when Benjamin Franklin and
Although always keenly aware of his son conducted their famous
the profit-power of new and use¬
electrical experiments with kites,
ful products, neither industry nor
the study of electricity was al¬
investors had become attuned to
ready 150 years old; yet,' it was
the
concept
that
technological another 150
years before electric
progress
is
a
potent
economic power came into

influences,

early

v

investment.

Research

at

ing

research programs, and
tor could identify even

civilization

an

by

electronics

oppor-

their original cost,

Now the company is erect-

again.

development

laence,

research,

versities

Development Budgets" would
meaningless. At

that

Mexico, far removed from outside
I

his

of

the

ducted

speech

a

Looks

reaction from the

History records the early Greek,
35gyptian and Roman contributions
*

to

value
to

and,

have been almost

new

peoples.

many

Years

ago,

years

Investor

more

products useful to

30

product

corporation

regarding

data

Research

Thirty
"The

acci¬

pure

dent has in all
E. O.

Little

de¬

and

velopment in some degree has

other

and

the

of

of

$31,000.

tunity to gain values of 8,830%

our

make to the well-being of the

can

budget expectations.

prcbably possible to prove

industrial

that

-

expenditures, and cites

and

Research

new

importance to

more

search

products; and
expects those spending more research dollars will have greatest
sales increase. Offers investors a guide to appraise possible
1959; that 11% of all 1959 sales will be

ment

Of

GM

profit

a

search, since 1900 had the

Bell

sub¬ Together with other semi-conductors and instruments, sales have
ject, however, is the security own-'
mounted
so
rapidly that plants
er's growing
recognition of the'
been
expanded ; time and
immense contribution which re¬ have

of industry research budgets, which

survey

One

in

Investors in General Electric, a
recognized leader in electrical re-

company

of his firm's

upon

invested

under

early

mutual

Commenting

world's \

centers.

show

would

1923

about

re-

the paucity of research programs 30 years
ago, Texas
investment underwriter explains importance of
research, the relationship of research to profits, and the result

j

in

companies, pen¬
profit-sharing plans, Laboratory patents. Subsequently,
savings banks and other the company was the first to deinstitutions
that
invest
and
produce
the
silicon
part of velop
their funds in corporation securi¬ transistor, somewhat to the amazesion

dollars

recently

the

research

germanium

the

quite

of

one

greatest

certain

has

Motors,

established

sequestered for the duration

highly technical war-required in-

business

our

General

.

the

in

own¬

estimated

By EDWIN O. CARTWRIGHT*

[
,

ices.

the

of

10,000,000 people
ers

engaged in geophysical servIts engineers and scientists

was

York

Exchange shows that

Stock

For the Investor to Watch

1956 ShareNew

Census

owners

Thursday, November 22, 1956

...

identity of those
which did provide
data on a confidential basis,
results are presented by in-

corporations
the

profits.

the

*In all of these companies, in- dustry groups,
a traditionally vital eco¬
While the investor's initial grasp
vestors have been generously re-.
service, both in the day- of the
The figures in this table are
possibilities of research was
warded
to-day dealings in securities and evidenced
by
increased, values in grouped in fi|ve columns.The col-,
by an early concen¬
in providing capital for new and
their securities.
Each is an
in- umn to the far left indicates the
trated interest in the radio, chem¬
untried businesses.
He is, how¬
stance of recent development due number of companies in each in¬
ical, electrical and aircraft indus¬
to research.
ever, greatly outnumbered by the.,
Looking back over dustry which replied to our surtries, the new frontier of research
the 20th century, even greater reinvestor, both individual and in¬ first broke fullblown
vey.
The next
column,
which
upon
him'
wards are found among companies shows the
stitutional, who
seeks
growing,
aggregate sales of these
during World War II. He learned'
power, higher dividends and mod¬
partial to research. / companies, will give1 you some
that by the end of the war $1,300,-

nomic

.

.

.

tural progress in bygone eras that
heedless destruction and the ero-

L-ion of time have left to
The

Roman

described

poet,

the

credo

us.

Ovid,
of

aptly

industrial

research

he

and
development when
"Nothing remains fixed;
things are in constant flux and

said,

all

shadows

even

are

Change is the

tor of all progress

for the world

we

to

seen

common

move."

denomina¬

and, fortunately

erate

his

vancing science
a

better and

of

life.

In

jjrofits

and

ad¬

make
way

greater

process,

to

accrue

to

art

abundant

more

the

to

those

peoples

whose forms of government foster
and encourage

prise.

free private enter¬

It is not enough that gov¬

ernments

and

those

who

happen

be
in
power
prosper
alone;
prosperity must belong also to the
individual citizen. Among the nu¬
merous
spectacular governmental

to

ideologies

few

of which

were

intended to truly benefit the

ever

common

the

—

man—none

opportunities

.has

offered

inherent

in

people

and

for

the

people."

that atmosphere, free private en¬
terprise makes available the prod¬
ucts of men's

factories and

abundance

while

the

of

the

soil,
providing
gainful employment whereby all
its people may enjoy rising stand¬
ards of living. It is
elementary, of
at

course,

investor

that

time

same

there

class

,

never

until

was

individuals

prospered enough to produce
than
*An

the

an

more

they consumed.
address

Institute*

Tecnologico

de

Monterrey,

Monterrey, N. L. Mexico, Oct. 26,




before

1956.

idea

the

of

size

of

the

corpora-

erto

be worth about

(1)

of

of

the investor:

The Federal

1933

Securities

Act

He

learned that teamwork among
scientists compelled by the neces¬

nation's survival, con¬

our

considered

almost

Within the

war

of research

securities, • and
the
Securities Exchange Act of 1934
regulating the operation of stock
exchanges. Both Acts are admin¬

pace

istered

that of nuclear

.

bv the Securities

change

Commission

which have

and

under

Ex¬

rules

substantially increased

investor confidence.

(2)

The-'tax

Federal

Government

of

the

penalizes

short-term profits, i.e., profits real¬
ized in six months or less, at rates

to

up

profits,
at

91%,,
i.e.,

than

whereas
profits

six

months,

maximum

a

rate

of

taxed

are

25%.

Ob¬

investments for long-term profits.

The securities

educational
to

place

its

proper

investors

programs

securities

calculated

investment

in

perspective and to help
understand

the

nature

and power of our economic system.

These
most
our

factors

constructive

investors

with

We

are

have

slow

have

produced

results; in fact,
more

econom¬

ever

discovered

be¬
that

knowledge of business comes
understanding and participation

literally jet-

speed.

atomic

1942,

reactor

built

was

many-models

so

before

Compare the
electricity with
physics! Since the

in

progress

first

in
de¬

were

became obsolete

some

long record of research and

a

The

$275,000 today.

E. I. <du Pont stock in
have

a

of

value

$50,000

.

.

Chemical

Monsanto

research

.would,

$30,000
The

as

of

old

^than

more

laboratories

3,500

banker, I

am

familiar with

this

*

in

the

.

.

.

_

,

•

*A few comments on some of
investment
favorite, these statistics are perhaps in orTABLE

and

the development

of

"transistor."

It

has

drama

tiny instrument start
the

electronics

improving old products
abling creation of new
for both civilian

Imagine if

industry
dollars

you

and

will,

requiring

in

plants

been

to-watch
a

revo¬

field

and

en¬

products

defense
a

by

great

millions

use.

new

of

and

equipment
employing thousands of peo¬

ple for the sole
facturing

a

purpose of manu¬

single, tiny electronic

device.

Prior to World War II, Texas
Instruments, Inc., in Dallas, Tvexas,

.

.,5 ;

.

Research

Reporting

investment

somewhat intimately

industrial
in

I

Corporate Expenditures for* Research and Development

Development

prodpet of electronic research
the

lution

and

.

_

Research Leaders

•

/"p

investor

an

pure

nearest-5%.

about

\

research

operated

are

Transistor's

—

^Sure has been rounded to

a

success

No. Companies

one

centage of research and development financed by the Government.

now.

United States.

As

tures are expressed as a per cent
And, finally, the column
to the far right indicates the per-

of sales.

its stock in

worth

be

on
...

has been

leader with such

that $1,000 invested in
1930

in

1925 would

about

today's market.

-

invested

amount

same

they could be constructed.

Today,

in

viously, investors prefer to retain
(3)

supersonic

long-term

realized

the snail-

years,

was

has

-

propelled into what amounted to

signed that

structure

insolvable

except by years of effort. '

regulating the issuance of

corporation

ically mature today than

Mr. Cartwright

International Business Machines

being spent.

quered in months problems hith¬

fore.
by

was

year

sity of

industry in¬
minds and hands, of augurated in the late 1930's, and
machines and of the has since maintained, nationwide

fruitful

per

character

a

In

000,000

Three major factors contributed
substantially to this change in the

more

government "of the people, by the

longer

a

period of time.

know, its peoples

themselves

over

tions reporting. The middle column
its products command world-wide lists the research and development
usage.
One thousand dollars in- expenditures of the corporations:
vested in IBM stock in 1921 would .In the next column these expendi-:

..

accommodate

appreciation in the value of

investments

Drugs—Proprietary

185.7

-

5.3%

75%

•

2,585

1.1%
1.0%

10%
5%

;

3.1%
4.6%
3.2%
7.0%

1,663

,.27.416.8

14

5,934

185.7

624
363
2,402

28.9
11.7
168.5

4

__

13

Equip

Office Equipment

_!

Negligible
30%
Negligible

137.9

19,148

2.2%
2.5%
2.7%
0.7%
6.4%

Negligible

45%
Negligible
Negligible
Negligible

5

921

58.8

—

7

975

24.7
3.1

2.5%
0.2%

31

1,760
7,448

4.3
90.4

0.2%
1.2%

181

$59,385

$1,084.0

1.8%

Tobacco

5

Transportation

8

Other Manufacturing

■'

1,735

5%

0.5%

5.6
26.5
28.4

,

.

i

Raaio-Television

Equip

252
940
1,060

Negligible
Negligible
Negligible
40%

30.3

6,289

5

1

5
7
14

Equip

Machinery

Total

•

14

Food

Petroleum

2.8%, Negligible

$49.3

3,522

9
'

Household

1955

% Research

$1,764

8

____

Chemical

Railroad

(Millions of Dollars)

—

.Government
Financed i

15

Parts

Drugs—Ethical
Electrical

%
of Sales
as a

3

"

Automobile Accessories

Building Supplies

.Research

Expenditures

14

Agricultural Mach
Aircraft &

Sales

*

55%

25%

Volume 184

der.
erf

Number 5588

The Commercial and Financial Chronicle

...

Our survey, as did the survey lead
National Science Fourida-t only

tjie way in science; it Js the~;

the

tion,

indicated

that

(2195>-

•.-n: Other Manufacturers

-

.

,

road to continuous progress?' investors note that the
largest
. The
establishment 1955 expenditures were in chemi-

imitation designed to enable it to
keep pace with its cpmpetitors?

I

only predict the achievement

can

tomorrow

^of

the v aircraft,- in all history.

new "' standards

^

/
(4) Will the * products'' or proc- prosperity for both,
of the Institute of Industrial Re-,cais; aircraft
manufacturing and .esses under development offer a
petroleum and radio-television in- search, in which the Southwest the
machinery group, the-oil in- high profit margin-or find a mass
dustries are the
leaders
m
re--Research Institute of San Antonio,*
dustry; fabricated metal products market?
"
search.
All of the companies in Texas — headed by our mutual
and
.the'
instrument
companies." ' (5) Is research' whether it is
these industries which reported to- friend Dr. Harold
Vagtborg-—col-However one mav do well to in•
+■
Jesearca>
r J1 *s
us
spent something on research, laborated with the Monterrey In-1 vestigate the
±_..
prospects of those aimed at developing new products
or
improving old ones,1 conducted
Except for the petroleum com- stitute, forecasts In Mexico a fine companies
classified
as
"Other in a field in which the corr
ich
comDanv:
panies, all of these industries also independent
research institution Manufacturing", This ernun
inu
2 *■ w lcn me comPany

chemical,

electrical'

-

23

ex

nations.

our

*

equipment,

Crutfenden, Podesta

■

Group Offers Watson
Bros. Glass A Stock

snent
spent

larnor
larger nart of thair salos
part of their sales

a

a

dollar
dollar

rp.Aarrh than did
research than did

on
on

nthnr
other

of

valnp

araat

of great value,

MnrPOvnr

it

is

held

research contracts. In

number of

a

so-

ico's

through

tax

fr0m

ditures; in others they amounted

tary

to

some

a

small part of the total,

very

The figures for tne drug industry
do not bulk large in our totals but

they

do

which

indicate

this

research.

Two

that

research

the

industry

reported

importance

attributes

to

ethical

drug firms
company-financed

amounted

to

than

more

6% of sales.

credit policies and in
cases subsidies in extremely

and

railroads

As

hand, the research

°f a11 classes

airlines.

and

for

the

total

figures,

swering
1.8%

+i—

of all
cur

—

the

companies

This

that

note

about

expenditures

is

75%

to

close

very

You

will

also

research

of

financed by the
companies themselves, and 25%
by the Government. The survey of
were

TVTo+irxnoi

the

Cninnon

National

Science .Foundation

concluded that about one-third of
industrial

research

ment-financed.

Govern-

was

Finally, I think it

interesting to nuie that while
iu note u.cfi wiuxtf

very

fufcicbuiis

the number of companies included
in
our
survey
is
quite
small,
u
I Rot
i
Dmmmtino
rx^ixr
Kot.
"

,

%w l

StalreseeaercCh expenditures
to
to

amount
amount

than
than

more
more

20%

of
of

the
the

national total. This suggests that a
—
reiatively few large corporations,
i

such

4-

those which replied to our

as

the

survey,

conduct

rilKitnal
ausiriai

rpcpamh
researcn.

Mexican

I

.

bulk

of

*'

"

•

-

in-

Research

It

try.
I

Government

is

efforts

increasing

understand

Industrial

that

and

as

the

Research

indus-

of

ours,

are

Office

the

of

Banco

de Mexico has since its creation in

important

1941 made

contributions

to the solution of industrial
lems.

The

Mexican

prob-

Institute

of

Technological

Research, e s t a blished by the Banco de Mexico, is
devoted primarily to the development

sources

over,

the

of

nation's

natural

re-

Mexico's
more

strides

in

mining techniques

have been made.

few

Within

the past

months, I have noted reports
Compania Impulsara" de

that both

and

that

_

j

n

.

mafe that

new

play

It

seems

source

of

certain" that
energy

-will

an

ican economy.

that

was

the

much

impressed to learn
Monterrey Institute of

Technology is financed by Mexican

industry

Private

24%

in

all

11%

of

1959

sales will

new products.
Again, the inVestor notes that the greatest in-

in sales is expected in those

industries

spending

most

on

re-

search and development—machinelectrical vmachinery,

trans-?
equipment
(including
aircraft) and chemicals. ;

ery>

Portation

Before industry can produce to-

morrow's products, it must build

and

enterprise

businessmen,
must

always




f„eat.?at ,connt"btU

to tb« cor"

Obviously, the answers to all
these questions are not readily
available. It is for this reason that
leading investment houses maintain their own research departments whose function it is to investigate every facet of a corporalion's activities which bear upon
its investment merits.
■

analysts

discuss

which includes alb

Ts

„g

&

being

™7♦

preSv
mlde
will

behalf

and

Bros
1arff

_pvpn

lines

covering

in

ranks

'

t

^

present

over

t

milei

general from?

Watson

Brorj.f

3,000 municipalities
This

states.

States

53 000

LoSiftS ufe WeS

Chicago and St
At

" rripi

United

than

more

,

c?

one

as

Pnmmnn

the

of routes running in

Coast.

of

t? th?

^

Watso?
iruck

of

none

accrue

comnanv

thp

*•'

i

outsUnd-

on

stockholders

the-proceeds

serves

.

What - Investment Firm Can Do
security

common stock at

v,

TteolferinE

the

Portion s long-term growth?

Our

stock*^

Si

company

corporate successor

of

in'-

tlyj-

is

business

a

research with management. They started in 1926. It has grown from
even go directly to the cor- a one truck operation in Nebraska
poration's laboratory to talk with to an enterprise with over 2,500
the scientists themselves. Our ana- employees, 2,500 pieces of rolling
lysts examine stacks of scientific equipment, and gross revenues at
may

literature and attend a variety of the rate of $30,000,000 annually,
technical meetings. Our firm also • in 1954, Watson Bros, organenlists outside 'experts.
At
the ized Imperial Casualty & Indem-

moment, for example, we have the nity Co.,

wholly owned subas a
line underwriter char-.

as a

services of two ranking authorities sidiary. Imperial operates

between:

on atomic energy. In addition our multiple
firm !s a member of the Industrial tered to write all forms of insur--

for

Liaison Pr°g.ram at the Massa-

There has been
traditional

make

may

Public 619,776 shares of Wateon-

correlation

expenditures

new

coverage

ance

except

life

and

our

cov-

numerous

Tho

tn nnilP

manv

pnmnanihe

essence,

whnsp':be taultiplied to arrive at capital

then,

we

ritl^s 1^

TvpS h?t
bet-

well and in some cases, even

ter"with lUtlTorTa

research

Consolidated earnings of Watand its subsidiary were

acting
~

are

expenditures, sales and profits in as a liaison between the corpora-

securities

...

son Bros,

m the eight monte
.stockhol.ders*. We seek to ^nded Adg. 31, 1956, equal to $1.43

Other attempts tion and dts stockholders or po- $886,921

some future year.

"it have als0 been made to do just

Tis" Minnesota Mining "and

channel our clients' funds into per share on thd 619,776 shares M
that those enterprises which are alert class A common stock outstand-'
every
dollar sPent on research to and caPable of capitalizing on ing.
quale
aoes
quate successtui
successful researcn
research
does eventuany yields $25 in sales. Put the promises of the future. At the
Associated in the underwriting;
exert unfavorable consequences, another way, Monsanto Chemical same time, we attempt to enable are:'The First Trust Co., of Linsome years ago, the president of
has found that for every dollar our clients to avoid
the losses coin, Neb.; Wachob-Bender Corp.,£r
T-nr>
Hnnkpr
Xr
'

Si

^

t'

ufacturing

has

Man-

calculated

...

.

,

.

•

j

i

oil

^

_

•

j..

Tn!S8?Sl2* spent'"on"'^eseaTch'it must'evrata- which'must accrue f'rom'failure to Reynolds & Co., Incd Hooker &
f®®d^b 'Aanfmv aI1y spend $6 for plants to make recognize that nothing is so con- Fay; George D. B._Bonbriglit &
Co.; Bache & Co.; Dempsey-TegM the products discovered or im- stant as change.
F—
competitors because of lack
eler & Co.; Lester, Ryons & Co.;

^a" 1 A
as

his

of

research

the

cre(jj^

and

thic

Unumupr

development. To

0f

proved by research

administration,
nnmmnv

Should

How

©noma

^hamlv in.

^result of product "eveloprrient -

K2 ln

w

.

.

Research

,

v At

Science

Investor

Judge

investor

Outlays?

JUust,

best, however, the statistical

militate against a simple statisti-

exPlored regions in every area of
science and reseaich, that research

quantity but not the quality of
work. Surveying the fact that a
great majority of research proj-

immense

thing

thaL-as

few

words

about

the

First Securities Corp.,

to
fu-

cal
on

appr0ach.

figures

Moreover,

research spending measure the

asking

corporations

about their

but be knows that research,budg-

research

...

.

a

as
—

-

of

guarantee

its

naY?

r0^..s.

Products

and

tomorrow s statistical correlation.

Pr°frts.

if

After World War II, U. S. industry more than offset the decline
of $220,000,000 in governmental

left

this

Foundation

survey

shows that In-

is

the

to

-

* '

to

help

him

determine the prospective success
of

TVs 'To^rpTariTTTeVearch^acThere are, I believe, sev-

questions, which if answered
affirmative, may lead him

in

the

to

an'intelligent appraisal of the

corporation's prospects.
■ * f

,

corporation

tradi-

dustry's research and development tiq?a\lv.been a leader in research
expenditures in 1953 were $3,700,d hy
u
ff
-n th
t
000,000. A • survey by the Mc- ®
p
Graw-Hill Department of Eco- been successtui.
nomics calculates 1955 expendi(2) Do the company's current
tures at $4,800,000,000, an increase research
of 29%,

for

1956

to

1959,

expenditures

compare

an

estimate

favorably with those of others in

billion.

Looking

the industry?

McGraw-Hill

expects

and projects
of $5.5

these costs to be $6.3 billion.

(3)

Is

the

Noble &;

Joins Anderson Cook
(special to the financial chronicle)

BEACH, Fla. —Vincent
cioffi has become associated with

(Special to The Financial Chronicle)

Fla.—Jamei
to tho
st-aff of Bieder & Co., 3006 CenST. PETERSBURG,

creative minds, seems to be a lim-

x.

factor.
The growing economies of both the United States

^raj

,

iting

and

Mexico

call

for

far

Grace

has

been

added

Avenue,

more

and engineers than are
—3
Joins R. F. Campeau
graduating. President Eisen<8r»eciai to The Financial Chronicle)
hower has already appointed a
ST. PETERSBURG, Fla.—RobNational Committee for the Development of Scientists and En- ert J. Loebl is with R. F. Camgineers to "foster the development peau & Co., liu becond Avenue. of more qualified technological
Now With Curtis Merkel
manpower." Industry must also
(Special to The Financial Chronicle)
give serious attention to this problem. Increasing industrial grants
ST.
PETERSBURG, Fla.—Bir*
to universities are an encouraging ney*A.* West"" Jr.7 has joined ti i

now

trend* The loaninS of industrial
talent to high schools where scien-

original or is it simply a form of

staff

event, this shortage of scientific

{^T can"be solve^and
which

we

of

Gurtis

Merkel Co., Inc.,

6Q1 First Avenue> North.

tific interest must first be born
would be even more reassuring
were it more common.
In any

Flirlr

I nwltv

i-.iic.tv t-vtw u

Ehck Lo5Jtz' hfrad pf+vE^

theTx- a?ay

at the age of 90. Mr. Lowof
living itz had been the oldest active
enjoy today is the fruit member of the New York Stoc_i

traordinary

company's research

'

PALM

scientists

*

true, what guides are
investor

Durham, N.«

Hague,

research programs, are almost invariably told that budgets are Anderson Cook Co., Inc., 30B
being increased. Dr. Harold A. South County Road. He was forLeedy of the Armour Research merly with Frank D. Newman
Institute has predicted that annual Co. and Gordon Graves & Co.,
expenditures by Government and inc> in the past he was an officer
Industry for research and devel- 0f G. F. Rothschild Co., Inc. c1
opment can be expected to in- New York City,
crease by at least 50% in the next
Bieder Adds to Staff
ten years,
-j

ects never pay for themselves, the
acute
investor cannot regard the mere
shortage
of
Only
the
facf -*-that a corporation pursues scientific minds, particularly really

course

,

Smith,

Co.

The trend in corporate re-

ture.

unable to say
wbere ^be greatest success lies,
1S'

and

C.;

upward. Our own analysts, when

itabIe to security owners in the
w°nderful World of Tomorrow.
*s aware
limitless un-

"aP

a

like

budgets and capital expenditures,

.

changing the face of the earth,

state

Shortage

Manpower

concluding, I should

search expenditures is continuing

between

^

J®

In

research

c0^reiatiOn

SfO-Wing^^nemicai inausiry. sales and profits is most tenuous
In ever7 industry, however, the ^ individual companies The host
investor is constantly looking for 0f economic and political factors
new products that will prove prof- whlch affect sales and earnings

a subsidiary
Foreign Power,

important role in satisfying the surging electrical requirements of the expanding MexI

^

sales

of

be

crease

eral

Mexico.

for

program

tackle those problems of basic

of

volume

manufacturing by 1959. Of substantial importance was the esti-

tivities?

&

enable it to pursue its

£r?^A°,?£Dti^i1and bAan.d

pjants and its reasearch budgets,
tfie former exceeding the latter by

0

research by increasing its budgets
by $410,000,000. Since then, both
and the Mexican Light & Power governmental and industrial reCo. are studying the feasibility. of search budgets have progressively
constructing atomic power plants increased. The National Science
this

plans

increase

an

Empresas Electricas,

in

increasing

industry's

Profits

jts ear"ing power stable enough

McGraw-Hill

is

:

headed-

group

,
by Cruttenden, Podesta & Co.j
^ Is the financial position of yesterday (Nov. 21) offered to th i

which

of

American

research

underwriting

v,„

More-

means.

by other organizations and important

1959

to

in

rapidly increased -ana growth or survival. I am not aware
natural resources
evidence is that yesterday s of any successful attempt, includfully investigated expenditures will produce tomor- ing our own, to establish a helpful

by scientific

being

are

;th

on

familiar

as

evident, however, that

are

Research

v

VAn

chusetts Institute of Technology, title lines. Now owned 80% by
services enable
analysts
L
Th,ese services enable our analysts Watson, Imperial is ana fire
Watson, Imperial i qualified try
>-,odevelopment^ In^
fields a factor of about ten in any given to keep a little ahead of important write both casualty
...
^
year.
My firm has attempted to developments and to place them erage in Nebraska, Iowa, Minne^
establish a" constant "factor by in a Pr°Per Perspective once they sota, South Dakota, and Montana,
)r,L0tnr
which research expenditures could are known.
and casualty coverage in Illinois.
'rofits
proms, "The^investor Tan moint
ine• investor can
point,
In
F

a

with the research programs-of the

Mexican

Relates

however, tnis company snarply in-

Programs

Tncrease

that until

Cated

rapid capital formation.

more

Creasedits research.budget and as

not, of course,,

am

by

lies

an¬

amounted

survey

of sales.

other estimates.

not among the

general'implication

"The

£ound

be gathered into

can

Sa^LaggT^Sfi!!0n^??M^n

you

will note that the research expen-

ditures

were

recently did very
littie of it—means a - continuing
low prices for petroleum products., fioodr of , new product developThe Banco de Comercio reported ments and high capital expendia dramatic rise in manufacturing
tures to take advantage of these
production volume from an index developments."
of 43.7-in 1918 to 341 in 1955, and ;vj\few products represent a key
an increase of 10.8% in 1955 over factor
in< increasing
sales
and
1954. Generation of electricity was
profits. The McGraw-Hill survey

;j j jup 11.5% in 1955 over 1954, The
Mexican gross national product in
expenditures of some of the less real value increased 7.7%_ in 1954
dynamic industries, such as food, and a healthy 9.9% in 1955.
beverage, tobacco, textile and moCapital formation m an agncultion picture were small in absolute tural economy is usually somewhat
amount and as a per cent of rev- slow.
The ^ encouragement being
enues.
So were the expenditures given
to industry and its reof
the
transportation
industry, sultant profits creates wealtn and
whose research is conducted large- employment. With these comes an
ly by the equipment manufac- increasing investor class, not just;
turers.
Our transportation statis- among the
rich, but among all:
tics,
incidentally,
include
both groups. In their .turn, the savings

ttin

the

tries

,

:

On the other

to

1955

notes

exemptions

for new or necessary industries, that*
bulk of research expen-' tariff protection, favorable mone- '

the great

:

gr<latest

these contracts accounted for

cases

•

p

bile industry
the

encouragement of industrial

growth

and

the corporation strong enough and

It is interesting to observe Mex-

companies

Government-financed

some

i,. _A?'LP0""','" ^as production
metals °non-elec<piuuuuuyn. experience
.f .l' " .? marketing facilities?
trical machinery and the autonio- IIiaiKt:Lmg -tacmuesr
cludine drimarv

illnatratinn of how oor nations nan •
illustration of how our nations can

manufacturing industries.- AH of join hands in furthering both
the aircraft, electrical equipment, cleties.^ ; -- ^
and- radio-television

ah

Moreover, it is ah

if

standard

of research conducted yesterday,

Exchange.

24

The Commercial and Financial Chronicle

(2196)

Continued

of

from page 3

inflation,

dustry,
cerned

Inflation
back

not

had to

third,

the fourth—but merely

nor

the 26th best in
So there is

we

this

inflation has done—and is doing—

Government

million

$112y2

is profit—and

as a
profit.
But it
It has not only they tax it
isn't a profit at all.
It is our seed
benefits of all of
the technological progress which corn. It does not go to our stock¬
has occurred in our plants and our holders, or to our workers, or to
mills, but it has cut our profit expanded production for our cus¬
margins
far
below
the
levels tomers, or to make new jobs. It
which
prevailed
in
the earlier does not change a thing. It does
not finance progress. It is merely
years of our corporate life.

to

business.

our

the

wiped out

But

that,

of

is

course,

only

the? cost of standing still.

It goes
into the fight to keep from slip¬
ping back.
It is what I call a
"phantom profit" and it is equiva¬

a

part of the story; for while infla¬
tion has been

shrinking our profit
one
hand, it has
been generating
the need for a
substantial increase in profits on
margin

other.

the

J

the

on

And

this

fully

on

two-dollar
of

lot

that

frightens

it

all

readers; but
"How do

your

really means is

a

ago,

their seed

exactly how it is in

any

seed,

enterprise today.
steel business,

industrial

Our

in

consists of

of

the

machines—and

and

other

the

plants and furnaces

our

mills

and

when

beat-up
only

things

that

all

call

we

In

all

of

machines

out

a

day

in other words,
And unless we

—or

ate.

enough

of these facilities
when

they

they depreci¬
put aside

can

during the lifetime

money

are

to

replace them

longer

no

usable,

business, and

So the

Federal

tax

laws

years

or

and

much

And

machine that will last,

a

is

25

been

life of

long — 25
and where the

very

—

between

greater than

facilities

our

ten

say,

So

the
of

one

original

cost

World

shorter

a

life

so.

or

steel

industry has been
principal victims of

since

the beginning
of
II; and I must tell
that we could never

War

frankly

you

it would be if

had

years

the

inflation

have met this serious depreciation

problem and

still kept

their

down

at

been

present

for two

is the

First

the

buy

infla¬

have

replacement cost is therefore

new

we

Amer¬

of

years

in certain other in¬

more

difference

recog¬

get his seed back.

is

industry.

degree, this
profits has

effects

facilities

be able to

if

these

industry and

theory at least—that the
businessman, like the farmer, must

for

lesser

Two

nize—in

the

especially devastating in the steel

What Tax Laws Provide

I

steel

phantom

its

But

it not

out of

too, are
out of luck.
we,

of course,

have described

the

or

of,

during

our

to

our prices
levels had

things:

Assists

T

happy fact that the
which

facilities

are-usually
old

install

we

productive than

more

they replace, and so
extent, at least,' this, au¬

ones

some

years, and if that machine
costs' us $25* million, the tak laws

tomatic

increase

helps

to compensate for

that the machine "depreciates"
at the rate of a million dollars a

of

.

say

and

year;

elude

we

this

",

^Thus

at

•

when the

have

25

the

—

25

end/of

machine"

theoretically
that

years,

out,

.wears

we

recovered

it.

for

paid

we

the

And theoretically that will pay for
new machine to replace the old

But will it, really?
long shot!

a

Well,'not
l,

*

Actually the cost of the equip-,
ment

buy

we

has befen
most

past 10

each

entire

life

than 158

of

the

over

machine

I

million—but

give

which

you

I

a

concrete

described

earlier

Twenty-five

years

to

this

ago

000

we

spent for it.

open

of

would

cost

where

do

But to replace

hearth
us
we

plant

today

$64,000,000.
get

the

other

Now

$54

million?
1

The

of
it

—

course,
out

our




of

is
our

But

25.

"Rapid

instead

years

the

—

a

pe¬

of

effect

Amortization"

part

a

over

the

of
as

this

it

is

called—is only

temporary and will
almost
completely
in

disappear
our

by the end of 1958.

case

when

And

that

happens our present
profits levels would not enable us
everr

to^ get

place

our

let

back—to

our seed

re¬

worn-out

alone

to

equipment—
to finance the

help

expansion of

our steelmaking ca¬
pacity in accordance with national

needs.
"

So

here,

clear

the

on

and

pressure

and

books,

we

understandable

find
case

that
so-

profits after

that inflation has exerted

will

steel

continue

to

seem

prices

tantly

They

to

do

people
rising steel

march

to

of

which
or

of the

nothing

one

of

impor¬
inflation.

entertain

Procrustean
our

shortened

steelmakers.

else

tcday,

the

the

bed

prices

like to dispel that notion
for all!
As

on

—

many

that

seem
a

lengthened
whim

exert

contributed

the

of
on

hand,

believe

have

also

notion

steel

to

prices.

On the other

I

answer,

must
get
called profits

we

five

of

usual

built

$10,000,000; and during those years
we
recovered—through this proc¬
ess
of depreciation—the
$10,000,that

riod

of

cost

facilities

new

some

history of the irresistible upward
ex¬
our

cost

a

of

a

year.

we

hearth plant at

able to recover the

more

million to replace it.

me

open

continue

talking about, it would

stockholders

an

the

if that rate of

to

cost us—not 25

Let

mills

year'during

were

have been

ample

steel

our

and

years;

inflation
the

for

rising at the rate of al¬

8%

And ' second, is- the. fact that
the' wartime,
emergency

to -in-; under

dollars; in

a

one,

product!

a part
inflated replacement costs!.

our

^

the

million

by

in

legislation enacted by Congress,,
doing business in that- we—like many other companies
in other industries
-• //■ ■/
have been
' - >;'V
• «'•

total cost of
year.

entitled

are

million

•

us

the

record

and

And

way.

who

we

price ceiling

I

restrictions

of

1945

of

released

were

jacket,
up,

we

ended,

war

from

had

pricewise;

to

that

but

we

we

Under the terms of

with the
seek

knew

that

a

union,

our

not

they

the end of every war in America's

cover

history,

determined that

and

always
hoped

we

pected that it would
But

it

kept

didn't.

of
we

cerned

us;

do

Wages

spiralling

1948

abated

and
so

and

upward

ing

prices

duce the

strike

often

so

but

obtain
a

of

$1.25

this,

however,
if

the

they

it.

raise

living,

So

to
we

instead of grant¬

per
we

cost

front

a

our

fairness to
Now let

our
me

at

already

other

prices

generally. From 1940 to May 1948,
they had
advanced
only
40%;
while the price index of all com¬
modities had
half times
three

as

and

a

gone

two

up

and

a

>

much, food products
half

times

much

as

and farm products more than four
times

as

much.

So what

happened? Other unions

demanded

another

increases.

wage

big

round

of

Other companies,

in other

industries, granted them.,
Then
they boosted their prices
further in order to pay for them.'
,

And

there

we

stood,

Canute, commanding

re¬

turn

notice

getting.

how

wet

our

So eventually

doing

it

plain

rescind

our

living

kept

pay

of

our

wages

our

prices

j]

like King,
the tide to

back, and pretending

In

made

wage increase in
employees.

behind

far

have

remind you that

this time steel prices were

lagging

board

a

would

price cut and grant

of living

cost

av¬

an

on

elsewhere—we

to rescind

by

ton.

of

kept moving forward

would

we

price of steel

that

con¬

to

contract

workers could

demanded

their demands

erage

by the spring of

and

it.

all

our

the rising cost of

again.

began to be deeply

about

ex¬

on

it

increase,

wage

could
when

had

read

we

began

at

inflation

raised the price

we

to think there
might be something to it. So we
decided to do something about it;
and in that particular year we had
a unique opportunity that we have
never had again.

catch

to

telling
who set

ones

for all industry,

up

And

we

strait

our

start

went

flation."

By

and

the

price of everything
automatically. "As
steel goes," they said, "so goes in¬

prices had risen only 3%
since 1949; yet wholesale prices,
generally, had gone up 35% and
employment costs had risen 46%.
the

the

were

for

the

steel,

else

our

When

\ Pattern

kept

newspapers,
we

and.that when

walls

controls.

and

that

us

heads

with

the

editorials

the

the wage pattern

our our

boxed in

were

write

nation's

it.

proves

Sets

not to-

feet
we

were

had to;,

price cut, increase the

,

,

going

up

—

if prices

and

employees,

and

enough

keep

to

raise
our,

facilities
in the

plagued every industry in

and

little each

these

wear

I

to

greater

ica

of it,

Steel

Our good and thoughtful friends

was

replace

again,

unique

tion.

'

Now

shop

Denies

in¬

Thursday, November 22, 1956

year.

that

problem

this

many

must

a

here

And

of,

capital equipment.
facilities

among

we

of

that

hearth

open

one

which

not

remember

you

course

a

sides

dustries where the average

corn.

that's

And

our

made last

we

a
high price to pay for
going anywhere — especially

situation

forefathers
learned that the first thing they
had to do to keep their farms run¬
ning was to get back the seed for
their next year's crop.
And no
matter how
hungry they might
get, they were out of business—
and out of luck—if they ate up
Long

of

That's

.

not

get

we

back?

seed

the

one-seventh

year.

our

word

profits that

inflationary

profit needs, you
have only to look at the perplex¬
ing problem of depreciation.
Depreciation,
of
course,
i s a
pressure

more

all

understand

to

upward

than

lent to

t

con¬

During World War II, we were
practically a captive industry in
solitary confinement.
We had a
rising wage floor under our feet
and

that

says

steel

deeply

causes

step of

our

and

the

Now

quick look at what

a

$54

get
taxes

million before

$1121/2

earn

to

after

Taxing "Phantom Profits"

history.

our

order

profits

about the

every

think

taxes.

best, nor the

second

the

in

in

million

Steel's existence we find

that this nine-cent profit last year
was

But

taxes.

the entire 54 years

through

of U. S.

at

the

been

have tried to resist its advance

we

Way of Life

as a

in

we

have

...

at

of
are

the

And

if

I would
once and

principal victims

WHAT

MAKES

J

Volume 184

Number 5588... The Commercial and Financial Chronicle

(2197)
head

above

the

swelling

tide

heavily on the steel indus¬
try than on many others, it was
only last year that the index of

Rising Prices Are Result
But from this
truths

that

is that

stop

no

the

march

no

industry

of

ever

nor

sets

America.
ment

We

new

higher

its

wage.

we

for

-v

'

p

<•;

the

to

limits

of

our

the

cover

costs these past

had

8%,

had

increased

productivity

from

75

to

of

the

article

has

We

80%

risen

from

96

of

Reviews

increased

in

strike,

rate

average

proposed

a

contract

union's

five-year,

only 2%

in

riot

we

properly must—the cost of im¬

instead

proved machines and materials.

in

So

15 years. And

had

while the weight of inflation falls

here

to

be

was

a

spanned

higher prices

of 6%

gap

each

payroll

by
by reduced prof¬

or

year

For

in

tried to oblige.
limits

of

the

treat

there

we

Within

'

that

Almost at

purpose of these

in

"It

cannot

is

our

luxury

a

afford."

hundred

But

that

one

terms

which

on

chance

to

be

I

strike

[s been known
one

ie

1

last

of the world's fin est vacation
spots. To

'

settled.

whether

offered
had

With

the

a

*

,,,

"

r>

'

T

'

*

r

•

*

'

* '

•

"

-

...

both

teitoow.._

'

,+ /

.

-

■

over

during the

too

little,

sides

and

the

began to

We
tion

di¬

pressure

mount

alone the moderniza¬

includes $100 million for

y:

new

us

guests can see the endless parade of 160-car

cost

the

News where the coal will'take

of

been

and nearly half of the

vast* cargo

Three

way

out

-

life..

V

;>/

.

of C&O and Newport News./

of every ten cars

for export.

*/

loaded by C&O

% So

automo¬

well

>

Greenbrier has every
W.

facility for meetings up to
Special combination winter rates for groups $19

person per day, double, $21 per day, single, include

\n, meals, golf, swimming and most tips.

.

.

!

Mr-

.

.1

this rich
territory
so

fast.

tr.

it is the better to service
*

and information

on

special winter

rates.

as

that C&O has

grown so

big,

•

„

Rai I way
3839 TERMINAL TOWER, CLEVELAND




member

that

of

financial

business

of

also

here

Isn't

.

thc

as!

well

as

do.

But

one

us

has

free

problem

great

the

free

advan¬

today.

our

life worth

(\

.

common

story

consequences of inflation

of

telling?

of

as

a

...

,

the
way

*

.

.

.1

hope thai you think so. And.
I hope you will tell it. For
where,
inflation/is a way- of life, it's a,
short

j

"f

;

Down

Costs

'have

it.

And

we

even

get

creditable

a

it

Why,

life

and

a

<"

:

none

V/'

-

•

to

-

merry,

■

,

Donald Woodward

on

someone

job

the,

on

think

grant
Yet

the

fact

wage

can
.

wage

we

are

the

past 11

pri-r.

years,

attempt to hold down

have

had

to

settle

those

strikes because, as you realize, our
national welfare will not permit
steel strike to go on

me,

seems

remotely

moreover,

great financial

indefinitely.
possible

to

that in view of the
resources

modern labor union

there

may

be

some

O

that

the

commands

in

advantage

in

Pro¬

j
-Wood¬

ward,
on

who

is

leave

,

n

Mutual

Mr.

afford to pay.

remains-that *we

of
production, and tb
price rises. And in the

we

and

Citizen

Advisers
The

Security

an

costs

dent's

gram.

a

marily in
minimize

Executive, Director

willing

have taken five, nation-wi'de
in

Deputy

than

we are

higher

a

that

the

that because

large corporation

to

Woodward, a Direclor
Group Securities, Inc., leadings
fund, has been appointed

mutual

negotiations/

somehow- establish

and

Donald B.
of

But. Staff Director
share of criticism of The Presi¬

labor'

pattern,

Eisenhower Staff

word

a

absence

of

from

his position as

Chairman'

the

of

Finance

Committee
The

of

Vick
Donald

Chemical

Company, has
previously served
the

State

B. Woodward

consultant to.

as

Department,

the Treas¬

Department,
the
Federal
Board, the National Re¬

ury,

Reserve

Administration

covery

International

the

and

Development

Ad¬

visory Board.

having

a
big
business or two
handy to help do the negotiating—

and

to

help

suffer

the

And

so

Ralph G. Hubhell

conse¬

quences.

1, OHIO

/ :
that

of

support of any stiike that it calls,

esapeake and Ohio

/ *•

view! is

the

own

rest

press

it

the

«*■ "

•

.

also get our

It

Write for pictorial brochure "Greenbrier Holiday",

the

progress

disheartening.

then

of

end
•

his

in

be¬

as. a. way'

appreciation for what

strikes

freight traffic. And

well

some

from/those who still

a

..

all

thinks is

industrial develop-

has added diversification to C&O's

ment

we

smaller business

coal. This great

as

has

press

four years,

;.?<•;
HoW

there
and

now

a

tive, glass, metal, paper and other industries

Each

press.

have

'

•.

we

spectacular expansion of chemical,

of

the

of attack¬

means

*

we

as

and

we

as

past

£X

task

note the

of

attack lies with the American fret

we

But ifbe held in

can

years

.

Along C&O lines the traveler will

one

nature

hope of achieving that under¬
standing and of organizing thx

which

inflation front, or in the thankless

r\

personal

and

infla¬

our

each

as

.:

; My

abating the inflationary
^nu our. prices. For we

Efforts to

of

are

only

the end.

of

out
the

ing it.

past.

prospect of inflation

is ' not

by

goes

get

difficulty only

not/esigned ourselves to the oner,

have

ship. Europe's VVX

American coal grows greater?

living

shall have made

pressure

Newport /

the

in, the

at least in

.

every year

above

increase
in

next three

we

crest of the Alle-

8%

meet

has

on

terms

terms

on

level

a

the
to

the

to

shall

in

one

understands

are

grounds of The Greenbrier these

dependence

to

end

ghenies for the long coast down

'j"';,

of

of 6%,,each year during
tage. It reaches into the highways
three-year life of the contract;*
and byways of America as does
although the cost-of-living clause
nothing else.' And that goes es¬
could, of course, boost the total in*
pecially for you gentlemen who
the
had

climbing the

no

on

enor¬

And settle

the

on

sought—but

yond

trains of coal

many,

further

the

'

Ghessie's rail-

in

the

important

problem and the

average

yards, signals, docks and other

cars,

by

best

it," they said.

did—not

we

most

benefit

can

much.

they

alleviated

earned" wage increases serve
fan the flames of inflation

the

or

too

impartiality

be

industries

to

nevertheless, provide new ground
for hope. Under this contract, our
employment costs will rise by an

/ '

*' ?;

ich year some 40*000 of The Greenbrier's

trip there

it

improvements.
From the

[ests enjoy the

year

-

>

.

realization of the fact that what I
have referred
to
here
as
"un¬

few

a

companies

demanded

fine

houses,

our

the results of C&O's billion

This

years.

program

diesels,

business, government

|d professional conferences.

ten

tion

Greenbrier each year come thousands of
nation's leaders for

e
■

to generations of Americans

*

all, T
think, is the task of bringing into
every
American
home, a true

the

had

will

But

-

vided the blame in equal portions,
and called forth a plague on both

dollar investment—half of it made

legislation

field.

law.,

I

cannot

suggested
the

of

that

exceptions, none of our friends
dug down into the issues to de¬

had

Sulphur Springs, West Virginia,

already
England, and

this

heavy

the

out

editorials

during this period,

"Settle

see

depreciation pro~t
prompted,
Canada to

has

Pending Congressional action on,
this point, inflationary price
pres¬

mously.

They

and

issuance of certificates of
necessity
under the Rapid Amortization

nation

neces-

of a series telling what Chesapeake and Ohio
doing to make this a bigger} better railroad.

road.

de¬

intent

commanded.

Chessie's show window
resort

utterly

sures

With

White

has

original

kindly editorial advisers changed
radically. "Settle this strike" they

unions

at

the

.

the mood of

once

can

those

inflation

France,

;

;

under

that business

so

costs

stroyed

the

called

were.

realistitr

more

are

*

had

Greenbrier, Chesapeake and Ohio's

tbe

a

things whiicfr
costs; while Government treats
as
profits those things were arc
profits.
Realisation
of
the
fact

end

still miles apart. So
the strike and

we were

union

termine

)tel

that

depreciation

laws,

as

Do

time

adopt forward-looking

the

re¬

recognize

for

of

is

visions

recall

pe

Should

it

should

need

the tax

our

in

around

thing

treatmemt

original
switching various

tried

Congress

one

urgent

with

This has to

it?

things

help enormously to
on prices.

Congress

can-

firm

Be

several

rived

One
is

We

one.

enemy

do about

we

are

l^ope of
reaching an agreement with the
union, but when the'deadflne ar¬

read

GROW?

editorial

twist

spiral.

we

we

several

IL R OA D

another

broad

benefits

productivity, it

have minimized the

would

in

Well,
offer

our

costs and

What

hearten¬

our

little

or a

common

lieve this pressure

opinion, as re¬
their
writings, said:

steelworkers.

the

ing substantially the gap between

that

received

from

can

there

that would

in¬

was

what

Well,

of

somewhere."

the

employment cost,
of eight, and by narrow¬

Now

their

terms

same

—inflation.

living

to

the

a

Public

bear

the

major demands

about 4% in

costs

big community

a

We face the

offer.

we

wage-price

no

which

that

of

cost

our

"Stand against inflation.

employment cost—not by
the usual 8%—but by
nearly 25%.
We

here

support

flected

hourly

annually,
Meanwhile,
in our plants

an

Newspaper

manded increased wages and ben¬
efits that would have boosted our

1940.

at

and

the

in

contract

course,

under

the

friends.

ing began last May, the union de¬

compounded

productivity

Aims

in

And

And again, we tried tp do some¬
thing about it. When the bargain¬

rate

a

em¬

Stands

our

cents

in 1955—or at

our

ing

average

also knew that

to

in

boost
level

cluded

ployees.

represents
paid to or

been

went

rise

not

of

increases

the

of

the escalator clause which

if

even

would be
annually." And when
spread out over the entire fiveI speak of
productivity, I am not
year period.! This would have rep¬
referring to output per man hour,
resented
an
annual
increase
of
alone; but am also including—as
of

our

increase

in¬

our

course—as

cost

that

money

in

of

ultimate

actual

As I have already shown
you, we have not raised our prices

to

of

made

knew

do—that

of

ability.

enough

inflation

We

each year since

Yet
despite
this.* discouraging
lesson, we have continued stead¬
fastly to resist the pressures of

inflation

have

we

productivity

of

rate

1940 to $3.03

■

.

year,

the entire benefit of that increased

Steel

learned that

'• /

this

the

price

life

provided,

.

former

with

up

hourly employment costs at U. S.

rising steel prices do not cause in¬
flation—they are the result of in¬
flation.

.

did

for labor.

still

a

.

sharp

manufactured

any

demands

And

pres¬

that it could not be met out

caught

further

the

sense

the

major
industry immediately becomes the
floor upon which the next union
pyramids

under

for

during

over
the
past
15
had been "unearned" in the

you

wage agree-'

signed in

voluntarily—or

sity

sure—granted

dustry.

single industry,
wage
pattern in

Every

that is

three-quar¬
increase we

the

can

any

the

wage

years

And

also learned that neither the steel

industry,

words,

every

another concerted effort to retard

one com¬

inflation.

one

prices

other

of

have

prices.

editorial

our

union,

no

steel

In

ters

front-running index of wholesale

few

a

to overlook. One

seem

one

and

pany,

of

some

friends still

learned

we

its.

more

we

had tried to resist.

25

Ralph
we

come

back

to

the

He

ginning.

We both have the same
problems, you and I.
It doesn't
matter whether we are a large or

son

small

Russia.

company—whether

we

live

G.

November

point I sought to make in the be¬

was

&

World

a

Hubbell
18

Curtis
War

American

passed

the

at

age

aw$y

of

71..

former partner of Jack¬
and
II

Red

as

served

chief

Cross

during
of

mission

the

in

The Commercial and Financial Chronicle

26

Thursday, November 22, 1956

Fifth, the world-wide drive to the expenditures- of the * states
industrialization is creating larger and local governments on roads,
Today, half of all American fami- foreign markets for U. S. business, schools, and community facilities.,
lies
have
incomes of
$4,000 or In the 1920's and 1930's, our coun~ Nineteen hundred and fifty-seven
more, whereas only one-fifth had try tried to make headway in a will be the first full year mat will
incomes of this amount in 1940, world in which economic growth feel- the impact, of the National
measured
in
dollars- of today's was sluggish or stagnant, and our Highway legislation enacted ear-'
purchasing power. Differences be- own development/was held back, lier/this year. Higher pay and:
tween family disposable incomes Now,
the situation has made a more generous retirement provihave narrowed. strikingly, while 180-degree turn.
As a result of sions for civilians and military;
the average has risen. Most Amer- political, social, and technological employees,
along with a rising
ican families have a margin
of forces unloosed by?World War II, burden of interest payments on:
income over that needed to pur- there is a
powerful will to in- the national debt, .will also swell:
chase the conventional "necessi- crease the production and the liv- government
expenditures.
Afters
ties."
Hence,
their horizons of ing standards of the average man tailing off below the peak of 1953,'wants are wider and more urgent and his family. The annual rate the cost of government is again on:
than at an earlier time.
of increase in the~~gross national the rise, government bodies will
gregate consumer spending poten-

Continued jrom first page

tially more stable than in the past,

Enduring and Non-Enduing
Factors in 1957 Outlook
as

In seeking to answer

and, I believe, to the

avoid¬

during
First, there are
basic long-term forces which have
come
into
existence during the
of the American

overwhelm¬

The election was an

ing personal victory for

this ques¬

tion, I suggest that we try to assess
the strength of two sets of forces
which will shape the performance

of price inflation.

ance

in general busi¬

decline

activity?

ness

employment, and purchasing
power

of

even

well as of the Left.
of 1946
both are committed to the main¬
tenance of maximum production,

the Right

Under the Employment Act

President

economy

coming year:

the

definitely contribute to an expan-:
sion of total demand in tne year
ahead.
(2) Business Spending - Busi- i

production of several Western
European and Latin American
countries has exceeded that of the
United States during recent years,
b®"1® 5 2,i?
a year,against %
at home. These forces of economic
expansion abroad—which promise
to remain powerful for years to
come if not interrupted by a general war—create large investment
—appropriated through taxation opportunities for American busionly about 5% of the national nesses. One of the most remarkproduct in 1929, it appropriates able economic fact^yjf 1956 is that
about 25% today. While big gov- the net foreign investment <>f the
ernment
and
high
taxes
are U. S., which nasjbeen negligible
sources of concern to many of us,
or negative since ,1948, rose prethe other side of the coin is that cipitantly to an annual rate of $1.7
big
government
has
far more biHion
during the , second and
Third, the Federal Government

has more power, more knowledge,
leader in
a
troubled world, rather than a past 15 years of wartime and post¬ and more experience in smoothing
war change and
out the growth of the U. S. econclear popular endorsement of Re¬
which will have
publican economic policies. "Mod¬ persistent and enduring effects omy than in the past. Moreover,
ern
Republicanism" —to use the upon the performance of our econ¬ government's
efforts
are
supSecondly, there will be in ported by an American^ public
President's phrase — continues to omy.
face plenty of opposition in Con¬ operation during 1957 a number of which is steadily growing in its
short-term forces of a transient economic literacy.
Whereas govgress.
Nevertheless, I am sure that a character which will influence the ernment—Federal, State, and local

Eisenhower as a national

dispassionate observer of our na¬
tion's recent history would con¬
clude that the return of the Eisen¬
howerAd ministration to power for

expenditures of consumers, busi¬
enterprises, and governmental
bodies.
Let us evaluate each of
these sets of forces in turn, and

ness

observations
calculation of the

summate

then

another four years makes two con¬

our

probable: First, it is into a reasoned
probable that the strong un¬ economic prospect for 1957.
derlying current of business confi¬
Fundamental Forces Favoring
dence in the future, which has kept
Continued Economic Growth
the U. S. Economy on a fairly even
course of growth and development
There is no doubt that the U. S.
since
1952, will be maintained.
economy
is now influenced by
Secondly, the likelihood is greater fundamental forces of an enduring
that strong efforts will be contin¬
character which strongly favor a
ued through fiscal and monetary sustained
high rate of economic
management and other means to growth. These forces, which I have
prevent price inflation from re¬ described in a book published this
curring as well as to forestall seri¬
year under the title "Can Pros*ditions more
more

Yet, no po¬

business setbacks.

ous

party, no administration,
guarantee the course of a free

litical
can

There
left in my crystal

in the short run.

economy

is plenty of smog
ball!

shall say regarding

What I
economic

the

for 1957
is
the assumption

prospect

predicated

upon

volved
this

in

While

war.

believe

I

term economic

wisely ignore
forces

outlook,

we

cluding unemployment insurance,
social security, farm
price sup-

cannot

the fact that basic
to operate in the

direction of rising money

expendi¬

Europe and the Middle East can¬

or

It should remind
highly flexible

ignored.
maintain

to

of

attitude

toward

all

eco¬

nomic forecasts.
It

is

helpful

assessing

in

moment, and to get
the

recent

a

the

perspective

performance

and

for

periods

of

few

a

or a year.

First, there is the factor of ris¬

ing

on scientific re¬
development, which
markedly accelerated the

expenditure

search

prospects for 1957 to step back for
on

partly

months

a

mind

has
pace

of

and

so

of technological development
society.

our

Such expenditures

by government, business and uni¬
to less than $1

current status of the United States

versities amounted

economy.

billion

in

rate

Assuming that rate of gross na¬
tional production continues to ex¬

pand in the final quarter of 1956
by the same amount—about $6 bil¬

of

1940.

Today, they are
at an annual
$5.5 billion. A more than

probably

Economy's Recent Performance

running

five-fold increase

development
past 15

years

in research and

activity during the
is the source of the

bewildering variety of new prod¬
during each ucts which
are constantly tugging
quarters, the cur¬ at the
purse strings of consumers,
rent year as a whole will mark up
and promoting a sustained high
a
GNP figure of about $410 bil¬
level of consumer demand.
It is
lion. This would mean a gain of
also the basis for the new proc¬
nearly $20 billion, or more than
esses, the new materials, and the
5%, over the $391 billion of GNP
new
machines
which businesses
realized during 1955. However, the
are
obliged to purchase in order
index of consumers' prices will
to maintain their competitive posi¬
also have risen at least
lion—as

it

has

risen

of the first three

lJ/2% dur¬

ing 1956. Hence, the real or physi¬
cal gain in the total outout of
goods and services in the United
States

will

probably turn out to
be around 3V2% during the cur¬
rent

year—a

ance

indeed.

gratifying

perform¬

At least

menced

an

with

expansion that
the

upturn

in

in

tions

markets.

Research

development creates
on

vast

a

values

obsolescence

It

scale.

and

destroys

the

of

existing
plant
and
equipment just as surely as "they
would
be
destroyed
by
enemy
bombs

or

natural

catastrophes.

It

limited

The salient

question

now

1954

is: Will

economy have a fourth straight

year

of strong economic

growth?

Or will the familiar business cycle
of the past reappear, and cause
1957 to be

a

year

of leveling off




oi

considerable

measure

from

a

remarkable rise in the capital expenditures of American businesses,<
and

the scrambie for construction

materials and

new

the time this

year

machinery.

By

is finished, in-

to

comparatively

a

few

under the record year 1955.
ent

indications

investment will
sales

are

Pres¬

that this

pay

huge
off in larger

tax

"mass

the

dimensions

$>f the
market," and is making ag¬

of recert performance of other in-

outstrip the Soviets in
discoveries, technological knowledge, production, and
capacity to raise mass living
standards. Thus, we shall demonstrate to the world the superiority

surplus in the Federal budget in and will
times of full employment is now scientific

promise to create large demands
for new plant and equipment in
accepted by thoughtful citizens of
the future, •? Yet, an increase of
both major political parties. In the
one-quarter within one year is too
same
way, people now recognize
steep an,up-grade to maintain for
the desirability of tax reduction
long. There is evidence thattightand conscious development of a of the "open society" of free men ening monetary and credit condideficit'in the Federal budget in and free institutions.
To achieve tions during 1956 have already
times
of
business recession.
In these results means that our gov- caused businesses to abandon capthe thirties many people doubted ernment will be obliged-to pay ital projects which were ctes* to
the power of monetary and credit close attention to ways and means the margin of prospective profitapolicies to help stabilize the eco- of fostering national progress, in- bility. If, as I believe to be the
nomic situation. It is new^gener^ eluding more solicitude for a high case. monetary stringency will
ally accepted that, so long-a6 pdp«s~r6teof.paving and investment than continue, in some degree during
pie have underlying confwfehdei* government has? displayed in 1957 and there will not be a debusiness

tne

policy
lant

past. ',*.

situation,

../•"••

*

•

:*v ;

>

-

be a powerful^Vv •
.1
production as well'as*V*Factors Affecting Money

can

to

.

potent deterrent to price inflation.
it not remarkable that, in the

Is

.

The

cline in the structure of interest
-\rates, then monetary policy will

Demand continue to restrain capital spendDuring 1957'-■*
ing by business in the com'"g year.
strength of all of these un- Moreover, tightening profit mar-

?*ns

probably make it harder
biisinoc,ses to finance exoansion through retention of earnings.
^he year 1957 w\-1' 1 su<m°ct. witjess little expansion of the current
blgb level of capital expenditure
by business./ ,

recent

political campaign, neither derlying. currents, - including the
Presidential candidate advocated factor of population growth which
lower
taxes
and
easy
money? has not been specifically menBoth realized that the American tioned, should nqFbe underestipeople accept high taxes and tight mated. Economic- performance in
credit in times of high prosperity 1957 will be the product of these
order

in

inflation

avoid

to

step forward, and
augury for the future.

great

Fourth,
are

who

our

being
are

and

This is

depression.

subsequent

a

good

a
,

...

business enterprises

operated

by

managers

better educated for their

factors, plus other factors of a less
enduring nature whic.i will bear

categories
of
monetary expenditure by governthe

upon

..

major

who

-

Total inventories of manufacthring and trading businesses stood
at $86 billion un Sept.. 1, having

business^ and by con- risen by $3.8 billion or about 4.5%
Let us—focus attention since the opening of this year. This
each type of expenditure rise followed a rwe of more than

ment,* by
sumers.
upon

their decisions in turn.
•
upon more scientific analyses of
(1)
Governmental
Spendingfacts, and who take a longer view There is -every indication
that
tasks,

base

Jta

governmental expenditures during
1957 wni eceed those made during'

J™

1956

.„

a

levels

all

at

f/

r

w.

purposes
u

k

.

of

government

wxiexedi uie ijuia f

phase?-of .goods

and

services,

ill

"1f®n'or, the rnoc'eratf' h£t 'n the
WIlul^Si"e ring the past v< has ocprice level that
£
during the past year, it is
hard tO aVOld the COndUSM
xiara 10 avold the conclus'ovl thqt»
WnOlCSale

_

" taken in the aggregate, business
buiirnn| mvento-tes at a
oeen Duueing mve xo.i s at a

r

military and civilian
Whereas the total pur-

and for both

rent year,
more

by

.

,

somewhat faster rate than is JUSfifi

d

,

th

nificant
mticant

declines

in
in

sales

receivers,

of

home

appliances.

basic

factor

the growth

and

ity

to

of the U. S.

The maJ°r

J?llllon dming 1957.

auto
auto-

^ct,ors rise th|
1.n of
first, a

many

expenditures

of

of

a«le JTv

rise

of

of

will be

fcneral prosper-

a

positive factor

Qf smaller proportions during 1957

-G' than durinS the current year in

about $2 billion m the growth of demand for goods
the Federal De- and services.

of

Defense,

stabilize aircraft and missiles;
economy,

growth

In a]1 probability, inventory-

betwefn $84 billion and $85

This is another partment

tending

0ver-all

federalState,vand~local -govern-q^7 I
ments will
probably amount to the econo
v During 19o7.1. hould

such spending has risen

than 20% in the face of sig-

during

°,r. 6.5%

tP

iiS/ring the' cur-, ~
spend-.^ this total will move up toare air conditions
year- 1956, the.prospects at
that

mobiles, TV

panding

war"

"cold

the

the

T6day,

during 1957.

Secondly, the wider diffusion of
higher consumer incomes is ex¬

in

dustry,

a decade or so ago. economic competition that has dedustrialized nations or by our own
need for' postponing veloped and which promises to past history. Continuing large outreductions and building up/a continue for long;' the U. S. must lays on research and develonment

"egg heads"

sales in 1956 have been down 20%

com¬

from the short setback of late 1953.

our

cropped out during 1956 emanated

stant 'spur to improvement of the
performance of U.;* S. economy,

reading, un¬
creates strong demands for new
employment stood at a remark-,
plant and equipment, which is rsf Una flT+HT-Q
Tlno
ably low 2.9% of the civilian labor
of the future.
The r-ooulf is +V>.v4
result io that
likely
to
be
maintained
even
force, denoting a very tight labor
more and more business plans for
through periods of temporary de¬ nlont nnH
market.
nvnon^itumc
plant and equipment expenditures
cline in consumer spending.- We
are
hased
upon
lone term
™ar
It is now certain that, taken as
are
based
upon long-term
marhave recently witnessed a striking
a whole, 1956 will produce another
ket
considerations, and are not
example of this. The automobile trimmpH to tpmnnrarv cUiffc
set of new high records of employ¬
trimmed
to
temporary shifts im
industry has spent $1 billion in
the winds of consumer demand*
ment, production, real personal in¬ the
new mechanical developments
We have evidence of teis during
come, and living standards for the
and
new
styling
f^r the
1957
American people.
the short
downturn
of
It will be the
1953-54,.
models—more than it ever ^pent
third
successive
when pian
year
of strong
and eqmpmen
before—despite the fact that auto
over-all expansion of the U. S.
ing fell only 6%. During the cureconomy,

plant and equipment and to aug-;
ment inventories of goods.
The
inflationary
tendencies
which,

Vto stabilize the rate of third quarters of Jhis year. There vestment in new plant and equipgrowth of the economy than little is an upward surge of investments ment will have risen by 25% over
government.
Our
society
has by American business in foreign j-be preceding year to the astonishwithin the past generation built plants and subsidiaries.
The ing total of more than $35 telbon.
into the economy many more or chances are the rise, will continue. This expenditure reflects high conless "automatic" stabilizers of priSixth, economie competition fidence in the future of the U. S.
vate income and expenditures, in- with the U.S.S.R.-provides a con- economy, the acceleration of tech-

ture, even though short-term de¬
pressants may offset them wholly

i§

not be

expenditures which have usu-;

gUy had the mogt influence upon
short_term economic performanceare
thoge ma(Je tQ acquire new

power

continue

a plausible as^umptiop, the
omihoiis tfend of evdhts in Central

us

ness

nological progress, and the tendency of businessmen—noted preports, and high personal and cor- This is a new impetus to Ameri- viously—to make and to impleperity be Sustained," (Henry Holt porate income taxes.
can economic growth, not appar- ment long-range plans. Will camand Company, New York), also
Most important, there is a wid- ent before World War IL, Soviet tal seem ing continue to expand
make probable a more even rate of
ening public understanding of the economic progress in recent years during 1957?
growth than Americans of middle need for monetary and fiscal poli- has been distorted in the direction
j tbink not. The ratio of investage have been accustomed to ex¬ cies which
help smooth out eco- of heavy industry and military ment in plant and equipment to
periencing during their lifetimes. nomic curves. The advocates of production; but it is, nevertneless, u. S. gross national production is
In any assessment of the short"compensatory fiscal policy" were impressive in manufacturing in- not now hieh, when judged by the

tha^he U. S. will not become in¬

a

...

(2198)

about

equal

mainly

secondly,
amount

on
a

in

Consumer
sumer

Spendirg-Con-

expenditures,

which form

the largest segment of aggregate

Volume 184

Number 5588

The Commercial and:Financial Chronicle

...

(2199)
demand

for

the

output

of

for

our

satisfactory increase
expenditures of American
households up* on non - durable
a

very

economy, are usefully considered
in the three
categories of housing,
durable goods,
and non-durable

in

goods and services.

coming

the

goods

It is probable that
expenditures
on
residential non-farm

and -services

during

the

The national economic prospect

blilion, an amount 9% less than
the $16.6 billion
spent for this pur-

for

1957

which

one

derives

from

analysis of probable expendi-

an

Former Member of "Chronicle" Retires from

Vice-Presidency of Standard Oil

them too late!

year.

Aggregate Demand During 1957

housing
during 1956 will total about $15.1
J

private demand as they were during 1954. The danger that we shall
taice these steps too soon seems
greater than that we shall take
This fortifies my belief that the
over-all
expansion of the U. S.

economy
during the past three
years will continue in 1957, and

will not,

has

as

27

Jay E. Crane listed

r.j

other erstwhile members of this

among

publication who attained

,

Co. of N. J.

prominent positions

in

banking,

finance and industry.

often been true

so

rising

higher home prices, combined with
reversal

a

of

the

stimulated

market ever

at

slower

a

rate

than

good

member

As

1956 draws

of

measure

confidence.

in the price level.

ar-

to

II.

a close, there are stronger eyidences that the monetary and fis-

family formaretarding factor,

cal restraints imposed upon aggregate demand by the Federal Gov-

housing
War

new

also

was

the

since World

slow-up in

tions

but

Yet

that

optimism
free

a

a

Some students of the construction

ernment

industry look for a pronounced
upswing in the number and value

bo the first
when

II

taking hold.; 1956 will

are

since World War

year

the

andard Oil Company of

and

do well to

we

in

will

once

there

to

director of the

is no substitute for flexible
intelligent management of
economic- affairs by priyate citi-,

the

on

ho^e

zens as well as by governfhent.;
Confidence in the future snould
be tempered by day-to-day watch^
fulness. In sustaining prosperity,,

obliged, in
itself to

opinion,<\to adjust- greater increases in monetary demand, because savings have fallen

my

on

at higher rates

which

even

market for which credit

a

is available only
and

and

it

short of the
investment.

stricter terms
than

has become

those

to

desired

amount
-

:

V;

of
.

effi-

cieoey, and offer nrospective home
buyers better values, instead of

ture o.f .interest rates has moved
upward. Personal savings have in-

will
to

ures

r°auire

meeting in
May, 1957. Mr.

reduce

costs,

meas-

raise

merelv easier credit t°rms. W»
are
creased
at the
w^en millions of World-inGomes
War

IT babies

riag^ble

not

ar«

yet of

While

a*w

rUrr>Kpr of fsm'lv

nonulation

^rosoect"

amount

in 1957

as

vears.

about

average unit value

:

•

-

spec.t. will be

•••

-,

.

-

Consumer Durable Goods
;

a

,

In regard to consumers' expendi-^
on
durable goo-rs,.a large
mark

tpmobPe

sales

is

attached to

to have marked

seen

change in the national economic

shortages will have been replaced

au-

during 1957, bethey account for about half

cause

current

the classical

upon

by

more ample supnlies. of goods
and services. An inmpmnt general
Ph^e inflation
will
have
been

of all consumer durable foods outlavs.
Hpre the nrosp^cts are dis-

in

■

-

-

mee^anical

jnnov-+ions.

fleet

the

models

out lavs

entu"sias+'^

re-

bv, auto

maker? for these purooses

?rd

tiTiefi

uj„

consumers has

motion.

their action.•?. Domestic sales
reach

vMc^

7

million

would reoresent

1957

a

1.1

tW

.J

the

5.9

in
in

into

1957.

—1

The

First

Boston

-

Blytn & Co., Inc.

to

argue

t^at

expancion bas

million

poes it impiv

national
come

to

(Nov.
of

21)

Corp.

en^. Nor

early reversal of

an

represent

the present F-.d«rpi Reserve
Policy

increase in consumex* expendituthe
Of

credit restraint nor an abouti*™ of the p^nt Treasury mTlpv

195".

Jf

so,

this

would

an

-*

-

-*•

? to ?> bdiion.

If

as pooears

$2.40

200,000

Public

cumulative

($50

par

ana

likely,

a*so Qt°p up tueir puref television
receivers, re-

fr^era^ors. washing machines, and
ot.he** durables during 19.57—comothe*during 1957—com
moditi-c :whosa
t^-e

of

doi-'rums
ron^u^er

markets

this

on

in

TVNie

lcss

exuberant,

to be

promises

than

during

the

stock through Dec.

mon

ward

con-

relaxation-

of

credit

com-

1, 1966 at

price of $23 per
share, SUUJCUl to adjustments.
die, subject
LV
aUJU&LIilCIlia.
Net

the

proceeds

from

the

sale

that-

credit ter^s probably will
r0nti™,* to be

are

will continue to require attention,
and that, interest rates will gen-

ro+

re-

for

construction

poses.'/ During

the*:

pur-

last

of

1958

it

is expected that the com-

pany

will have available for

for

and

1957

rigorous, they

likdv

stmint

to

imnnse

sale*, in

on

a

a

severe

p°nod when

incomes -onHnu" to rise.
Ce"=!imer cp-n-'ine^ upon nonirrb D g^ods ana
dvrcb10 goods arri upon services

.

cRn

he cvncctea

to inc-ase

duciev m^7. gRv,OUcrv, bv less than
t*ie
biPion ir.erea«0 t^pt took

plcpo

1955 end
of

oans°

p^a'-is
g^ods.

1956, be-

shift in con«nimers'

o

r>°xt

ye?r

up^n

em-

durable

Nevertheless, t^e marked

nee

in

year

(nersonal savings will prob¬

con^umem

ably

form

able

income

about
in

savmfS

7.5%
1956

of

this

dispos¬

versus

6.1%

in 1955), the healthier condition of
consumer

instalment indebtedness,

and the continued rise in consumer

income, combine to

form




a

basis

—,

~--

such that

c0-c,^»r

mav

The economic prosnect for

once

—-

1957
—•

inflation ;s not

banking
group
which offered
yesterday (Nov. 21)
$10,000,000 of Texas Power &
Light Co. first mortgage
bonds,
4%% series due Nov. 1,
1986, at
101.257% and accrued interest, to
yield
4.30%.
The
underwriters
award of the issue at
competon Nov. 20 on a
bid of

won

jtive sale

j\jet proceeds from the sale of
thf bonds' and from the Proposed
°f 10()'000 shares of

.-1
.•

r>

?
n? foreign penditures for

„i
„uOT,OQ

.

H,?ci™o ivrf f

:

unemplovment

upnec^SFarv

rot recur »t

Korirvmlnrf

Ji,nn*n.

r.

before

•

1 CIA A

for

etary
tion,
ance.

relaxation and tax reducso far wi=elv held in abey¬
couM

and

brought into

would

use-

A

m 1944 and purposes
Executive Com-• The new
„

ed™

if

bonds

in the supply of money and broad-

ly distributed tax cuts would
to

be

as

powerful

prove

stimulants

of

will

be

re-

a
Vice-President deemable at general redemption
/
e present time, Mr. prices ranging from 106.26% to
f* "ff,irnia"ot tbe fedeJal Par, and at special redemption

incn

n

a+

+v>

p,

trustee

of

the

°t,N^ /?rk afd a
bank's Committee

Prices - receding from 101.26%: to
par,

000

.Texas Power & Light Co. with
its principal executive
qffices in

bers of the Chronicle s «
editorial
GC"?*°h who have attained execu-T Dallas, Texas, is a public utility
tlve1^?ositl?ni "1
company engaged in the genera-

from ooerations and after the
operations
tfie

agreement

be

required

tion,

repay

B°wles, Andrews & Towne,

is estimated
additional

irom

jnfJ

2957

1953

and

borrowings

to

ana

-

fi-

-

under

the

agreement.

$5J

...411

19*61 **$52 per share
thronoh

Nnv

r

^i"

_ftnr

at

eacii

case!

the

'r

A-Soni

and

share

there-

than

Service
277 000

which
custom-

sauare

area

gengen

Uie

Q^

nnrehase and sale of elec-

'a^d JhfpurcLse

naturai

gas.

jn the

25% from gas sales

romainHpr
remainder

the

operating

derived 74.9% from

were

e^ectric saies,
and

and sale

12 months'
months

ended Sept. 30, 1956, its
gept;

0arrj^o.gs

from
from

sources.

The

10 of Arizona's

ties,

company's

other
other

territory
14

coun-

mainindustries

whose

in¬

clude

mining, diversified indus¬
cattle, agriculture and the

try,

tourist
or

tne

lz

at

Richmond,

New York.

actu-

diaries
pany.

the

pany

Philadelphia banking

institution,

and James H. Ward became
President of The Bethlehem

ViceSteel

Some years ag°> Mr. Ward
honored by the Pope with the

0rder of St. Gregory.
also

was

ciose

a

is

tern

and

Department, became Vice-President of a

Mr.

friend

Ward
of

the

of

Texas.

whose systems the company's

Ed-

of

transmission

State

and

The

trie Service Company and Dallas
Power & Light Company, with

Samuel

former
Editor
"Chronicle's" Municipal

the

company, along with Texas Elec-

Atlanta,

The late

monds,

Co-

purchase,

within

interconnected,
Texas

of

sys-

are

subsi-

Utilities

Corn-

Texas Power & Light Comrenders electric service in

52 counties in

an

47,200

miles

square

area

comprising

in

the

north

central part of Texas, having an
estimated population of
1,302,000.
For the 12 months ended
Aug.
31, 1956, the company had total
operating revenues of $49,840,000

and net income of $11,292,000.
Other members of the offering

Iate Alfred E. Smith, ex-Governor group include: L. F. Rothschild &
of New York State; John J. Raskob Co.; Ball, Burge & Kraus; Baxter,
ty

®f

x

j

Pont

/-.

and

i

General

Motors

wniiamo

xr
c+om
Williams & Co., Stern rmthorc &r
Brothers &

Corp., Judge Joseph M. Proskauer, Co.;
and

Charles

Schwab.

'-iwss, lunuu
gross^ former

Milton

C.

the
tne

Director

of

&

Co.; Mullaney,
Thomas
&
Co.;

Co.;

is

Techni<
Technical

velopment, Washington, D. C.
late

&

vice-jrxesiaeiu

Operations of the International
Bank for Reconstruction and De¬
The

Wells

Vice-Preside^of D^sGru^^cmji^^ and

Harriman, Ripley & Co., was ori
inally a "Chronicle" editor, and
now
now

-

Freeman

Stuart

M.

Long Beach Bealers
Elect New Officers

th
montns

ended
enaea

30, 1956, total operating
lon nftft

Sept
oept.

revenues

j

;nPOmP

the "Chronicle's" business
depart-

LONG BEACH, Calif. — The
Long Beach Security Dealers As-

ment,

trade

*
r

j

t

was

in
0000
4T
mile^
fs engagea .principally 1" the
enmLd nriMiS in

3

to

date

Public

prs

in

olus

is

f4rat<nn

1,

dividends

accrued

more

+

at

thereafter and

1Q66-

reHpmniinn

cerJec

^

stockholders, will be
share through Nov.

per

u

aries

Redemption of the stock, subjecj
appr0val by the company's
fcommon

plus accrued interest in e&ch

case.

distribution of electricity wholly

minimum of $27,400,000 will

a

,

Pfr.tr?er!,ln Hallgarten & Co.; Karl
Weisheit, partner in Smith, Barney
+an Hollister V. Schenck,
aS ^lce~Dr6sident of
ybe .L.lfe insurance Company of
Xirg|ma and is now a partner in

that

Co>

.

n

world include Frederick M. Peyspr

National

&

Trusc

f

credit

Mellon

with

bank

sociation has elected the

"Oral

became

Stanley of

Vice-President

of

Hygiene," the leading magaauthority in the United

zine dental
States.
oiaics.

Another
Anvma

"Chronicle"

edicue

following

slate of officers for the forthcoming year of 1957.
President:
Howard
T.
Booth,
—>
pain6i Webberj jackson and Cur"u"oiu

were $44 420 OUU ana net income

^ the ^ James £

organized the "Financial Press" ot

F. Hutton and

-•

tis.

of the "In"Investors Pocket Manual" which became the widest circulated

$

•

„-7 (1(,n

of
»

ri

ana

>

underwriting

are:

.

m
.

Merrill

in

the

Lynch,

Co.;
William
R.
Staats & Co.; Stone
& Webster
Securities Corp.; and Dean Witter
Ely,

Beck

&

& Co.

yan

Dykg>

New
New York, publishers

pocket

reference book of listed securities
^be country. Mr. Van
Dyke also

pubiished several Bond Value and
interest

tables

which

sldered standard"
standard
sjdered

were

con-

publications

One

of

the

H.

Bachman

and

respected

best

advertising

Alverton

He

cently

a

special partner in Par-

& Co., Philadelphia.

Samuel

S. Walker and
,

a

National

the

Insurance

and

Aseltine,

Isenberg,
Company;

Wood^NL

Company; and Bill
„

WQQ.nn

Q_A

rn

,

With Hamilton
(Special to The Financial Chronicle)

Bank.

Mutual
Co.

H.

„

Schoof, C

Vice-Presidency in the

Chase

was

Directors:

Dempsey-Tegeler

wUbur

"Chronicle's"

solicitors,

Frank H. Bachman passed away
November 13th at the age of 88.

rish

Company.

Secretary-Treasurer:
M o 11 e 1
Peak, Dean Witter and Company.

in
in

attained

Frank

Vicg-President: Keith Davis, E.

financial circles

known

swiftly be

Sharp increases

pur-

,®eis*dlotbermem-

/"ill Pierce, Fenner & Beane; Refsnes,

some time during 1957.
Fhoold tbis condition tbreeten to
emerge, the powerful tools of mon-

construction

for the "
balance of 1956 and
1957, and for other corporate

poses

^

structionT approximately $18,500,-

con-

st,riJ

^ can anvonp b» sure y ar
•
oposite problem of stimu-Among those associated
or^er to nrevcot

com-

program, to
cover the company's estimated ex«*—*

eU
s COr™
ior*™*°™c Development.

.^t. no one can he sure/CO
in

Pre~

pany'S construction

mentsP$7,76ROOO ''TOmpared** with

lahn5 demand

new

S !err? S
u' toSether with other
iHpn+ifiAH
funds\wl11 be used to repay loans
made ln

If

n.,.„rnnr

and

-

tn, r»oerai (.overnment to tne »'"=_
*
e*tent that it has during the pres-r;revenues

^
\ a^

Co. Inc. headed

investment

connection with the

tnree

months

1956

Halsey, Stuart &
an

trf

hprrtmA

of

preferred stock will be
for partial payment of loans

incurred

erally hold to their present Ievr.i«j

Fl'^^r

?Q14

in

New

new

used

Light Co. 43/8% Bonds

S3

r™YalG

■

may

to be advisable, the chances
inflationary ^tendencies

prove
a™

business

stock

conversion

a

Mr" ^r?i?e

Co.,

preferred

Halsey Stuart Group
Offers Texas Power &

100.39%.

share). The stock

per

contains

current year, and some moves to¬

du-

all

ccnld read-

vear

jjv be 5;i to ^5 hill*on.

maintaining high taxes. While
the economic curves arc changing
s«one dhey ^re not reversmg
their dmention. Even though demand during 1957

Executive

Committee.

shares

Service

is VuUVCiUuic mw »ueuc& gg.
convertible into shares of

nru:i~

rise

vear—the

soendmg

rH° f~ods nevt

were

tne
the

Development

and

1S

*

consumers

Execu¬

Commit¬

ana
and

Compensation

Jay E. Crane

joint'man-

are

offered

Arizona

at

economic

an

his

of the group that yesterday

agers

—u

inflationarv boom is not, of course,

probably will be sold during

over

spa
see

ucceeded
?r,(I fiscal pol'ciot; have ^ucc^^
-r°r
present in warding off an

mil¬

increase

now
now

To argue tKot Federal monetary

vehicles,

lion

wp
we

They m*v be expected to

co^inue

far jus-

so

thp
the tpfiflpnoios
t^ndepcies

arp
are

in his¬

reception

cf automobiles and trucks in
mav

—u,~1-

half -of 1955; and early 1956,
wih have become narrower. The*e

aeco^d^d the 1957 models bv deal¬
ers

--—:—

expenditures;; Corporate mofit margins,- which
and stvling
rose
TeroH levels during the

The 19^7

latest

tory^

^

-•

manufactures?

irajnr

on

"

■

the

tive
tee
tee

halted in its tracks/- Business com—
nancing
to
complete
the
comtmctlv favorable.
Annual,auto Petition for tbe consumers? dollar
pany's construction program dursales have been closelv corrected wil1 bave become more
vigorous.
with

also

continues

Boston-Blyth
Group Offers Arizona

situatmn. Fxcept for steel and a saie of the
new-preferred stock,
few basic commodities, pervasivd about $11,500,000 from its credit

tures

ouestion

sup-,

(pre-KeynesianL monetary theorv;;
It seems likely that the last half
of 1956v when Viewed in-retro1956.. when Viewed

-

higher
continuing.

aggregate

demand —at

^ Policy based

expensive

more

brake

A

price,-levels.r A successful demonstration is being given of mone-

the

1956. with the.trend

toward larger and
-

consumers.

prograW; The

aggregate

American

snend

of

ply of goods 2nd services is being
brought into better balance with

borne construction

o«

in

fmv

a

th*t

are

consumers-will
same

sion

formations will

c,nntinu° to decline f<w

in ratio to the disposable

has been put on investment in
housing and
Ugm business expan-

mar-

cpntimies to in"rP?s». twann,.M

Tbe

Crane

First

accustomed. "

vigorous

a

,

A restrictive monetary and fiscal policy is now producing the
intended results. The whole struc-

This

as

membership

P. S. Co. Preferred Stk.

at 320 Fulton Street,
Hempstead,
L. I.

stockholders

customary

building-industry will be: in physical production

-

serve

company until
the
annual

be

mo^e

readily avail- creased.: The money supply has
terms.
I been held virtually constant, in
question this optimistic view. The:the face of substantial increases
able

but

continue

and

supply of money—
of homes constructed in
1957, on total bank deposits plus currency as in winning a war, eternal vigith* ground that
mortgage'*-fundscirculation—will not have in- lance is the price of victory;;-.
will

New

Jersey,

re-

economy

.

tificially
The

sion,

during 1956, and with little change

progressively

easier credit terms which have

More

Benefit

announced

the

re¬

Life
ap-

OMAHA, Neb.—Roy Brewer has
become

affiliated

with

Hamilton

Management Corp., of Denver.

23

The Commercial and Financial Chronicle

(2200)

Frederick

and

K.' Hart,

R. Hall and. James

bf the

Investment Regroup.
Mr.
Brock
began his career with the company
in 1933; Mr. Schubert also joined
the
company
that
year.
Both
search

News About Banks
CONSOLIDATIONS
NEW

BRANCHES

NEW

OFFICERS,

Bankers

and

ETC.

REVISED

in

Assistant

elected

were

Secretarys

1948.

Mr.

capitalizations

member of the

a

Research

joining the bank in 1945,
addition

nn(

in

nf

.

Federal

Board

Reserve

for

holding
company
to-acquire
the
stock
ownership of the First National
City Bank of New York, its trust
to organize

of

Board

the

Nov.

System,

•

"Recent

^- v

reports have reapplication made to

an

--

press

-

Federal
the

°.f

©f

Board

Governors

Reserve

(Company

l9, ^iTvV°RVI«k
City Bank

f
of

tional

has

Board

the

of New York
enlarged branch bank-

boroughs

five

the

City

m an

ing area."

nnvv
v
newly

that would

ThP

.

National

First

City

Bank

of

.Brokers,

At

:

meeting

a

offe.red meeting

special

a

in

crease

from

the

Company,

our

Company

the County
White Plains,

of New York to sub-

State

Frank

.Dealers

and
^

^

New

of

This'

Nov.

13

Nov.

on

in-

an

capital stock

13,000,000

to

indicated'

was

and

David

L.

Operations
Unger, of

shares

Nov.

The

15.

tional stock is

offering of addibeing underwritten

ing with the need for room for
expansion of New York banks in
areas
adjoining-New YorK City
Boroughs, citing both Westchester

and

Counties.

Nassau

We

quote

iTrrinvtCh.,1rnfan nfthe'/f-S
J. McCloy, Chan man- ot the Cha^e
Manhattan

Bank

made

at

a

spe-

eial meeting of stockholders of the
bank

Nov." 13:

on

!' "For

expanding

the

time

some

the Metropolitan

economy of

area
area

and

need

to

New

consider

'

this

meet

to

other

York City
seriously the
for extending their facilities

banks

expansion, particularly in areas immediately adjoining the New York City Boroughs,
Population

prises
Ihp

have

increased

snhnrhs

maior
their
their

business

and
arvH

enter-

greatly

in

nnmW, .*t

companies

^noved

have

headnnarier,

(ho

rif„

headquarters from the City
to

nroner

countfes
counties

sau

thit

as

TnrippH

arpn

Westchester
Westchester

locations

are

and

to

«i.»h

Nas
Nas-

which

a

growing company might naturallv
lonk
jook

fnr
ior

rnnni
room

fnr
xor

PYnonoinn

expansion.

am

All

•old, the entire Metropolitan

area

constitutes

one

eco-

nomic -and

trade

integrated

center,; with

a

population

stretching unbrokenly
Manhattan into Westchester

from

Nassau

and

"There
nounced

Citv
i

bank

oru

o

bank

a

pointed

and

a

Maars,

and

Jr.

Newton have been ap-

chase

Manhattan

York,

J.

Bank

Stewart

dent, announced

on

the

of

New

Baker, PresiNov. 20. Both

^ "l'0,6 .^8 New York City
branch system, Mr. Mears. at the
34th
ton

Street

and

branch and

Rockefeller

at

Center

Also

AdolDh"

E

were

Mr. NewSack'

to Assistant Ancker Fdward Vice-President'
Ronald
G
-

" J "
1J
^ Ronald ^ Igcter
C, * 1
.'

t

oiirio

t

'

™1

/i0

nH

and

n:

*

.

.

,

.

The First National City Bank of
New York on Nov. 20 appointed
three
Assistant
Vice-Presidents

'

ity

1954.

in

joined

the

101953

The.
Co.

.

Hurst,
who
branch

of

1952

in

me^e

the

since

has

1928.

with

been

He

.The

,new;

-

The

with

i^nonn

p^^i

company'in 195iarid has
assigned to legal duties since
Named
Managers
were
James H. Clifford, of the Queens
Area Operations section; Monroe
E, Kaul'man, of the Bronx area
the

and

Thomas

Brooklyn

A.

Stock / of

the

section.

'

'

;

v

*

Irving Trust Company of New
York' announced

pr0m'6«on
f

of

Nov

on

15

M'
fw o-i '

Charfes

li.iam. A.

-

H.

j

aat®fc?n'^

Lockwood

the

Assistant

?P

i

organization

m

Sloan

on

in

s

the

heads

1923,

Chairman

-of

the

named

four

Assistant

Hutton,

E.

ot Nov. 5.

as

'

*

•

»

-•

«

"

believes

that'.the .most direct and effective
way

to

-.hro^gn

meet

tne

|n

new

economic

public interest is

legislation

directly

signed to broaden tne

twhicn

branch

jcittect,

So

that

area

banking,
it

de-

witnin

is

per-

may*, conform




to

L

In

Doerschuk

and

the

elevat-d

was

the

post
of Assistant
VicePresident.
Previously an Assistant Treasurer he came with the

company

-in

Assistant
Trust

Brock
both

1934;

Vice-President

Department
and

of

promoted
were,

William

the

C.

Operations

in.

to
the

Peter A.

Schubert^

-

Bank

ofr

McKees-"
ef-1

title

-the

First

Pa*

Brad dock

re^ardum

this

lssu^of Juty.

ilT 0lir

the

from

of
new

with

merger

a

item

An

its

the

Natianal

name

Bank

under

National

-

....

anneared

383.-'

26, page:

4

.

'^
:
The Western Pennsylvania

■

.

National

and

fected

the. New York State Banking Department

its

First

no/

83o"

281

Julvl

Pennsvlvania

changed

Rank

(fn

vear

,

The

Canadian

Bank

,.

..

Na--.

'

-

of;. Com- tional Bank with headquarters in

the Head Office in Toronto.

Mr.

made

ah

^

Assistant
ikoeo

Sec

1000
1929.

Following
in
in

ence
euce

earlier

branches
oiauciies

experi-

the
me

ana
and

neaa
Head

are

vari-

*

-

F.

Branch

a

the

Head

Office

«

.♦

Coppedge,

announced

Jr.,

Vice-

by

Nov. 20,
Adrian M.

on

Columbia Law School in
He is a Vice-President and
a

Director of W

A- A

Gilbey,

Ltd., and President and
Director of Metalelectro Corp.
*

Benjamin
joined
the

*

a

Divij.oij announced

_.

lnsnecior

Currency

Investment

s

The

North

Jersey

—

Trust Co.

cf

offering

to

-

-

the

topurchase

TrusC;Company): of,

x—
Acquisition of Wash-:

-ingtorl Trust's ."deposits of*.more.
ington
xrusvs
aeposiis
oij more
/ '
ViAb' /
"1 '
than $30,000 c60/wilh it is an-'
nounced
increase
tYital "deoosits'
il»

ArtA-rtFiA

.

tional to

-JI1

stockholders rights to

sub-

Na-

$140,000,000—mak-

over

it Is claimed, the: fourth

largest

Kiagrewoota,^ is. 3., is onenng to

its

—u
Pittsbiirgh.

Assistant ot^ the 1Western^ pLnsylvanfa

and

banking

institut'on
Pennsylvania.
The

Western

* will.
branch'will be
be

branch

Washington

known

the

as

known

Tru^t

in
new.

the

as

Office

of

the

wasnmgton iru-t UtuceNational
or
Western
Pennsylvania

S.

Haggett,

Jr., has
.Commercial
State
■

Vice-President,

on

it

was

approved by the Fed-

at the rate of two shares for each

at the rate ot two shares loi each
shares

Nov.

held

The

8.

will

of

record

subscription

expire

at

2

on

war-

p.m.,

on

The offer is being under-

3.

Kidder.

by

Peabody

&

Co.-, Adams & Hinckley, and Rip-

npl'/Rr

Thp

Pn

nrnrpfls

from

-

added

be

the

to

which win

nmnnni

<m

+n

a'P0""t ntP

bank's
then

it

q«« nno

capi,al

^qid

j

W

Tntcii
,

Tptal r"

"I ifac
operating,
4sio

,

/1(in

L

income-^ cf

nnn

'

nnd

i

\

the

bank

nmfit

not

7fl

_

,

.

,

—

■

-

.

..

Government involves ^the
purchase mf Washington Trusts

f,£? appr°v,il of tne
!)anks.,131 ^oc^°ld®^7nhe bank
?? capitalized at.$4,900,000 with a
liquidation . value, of approxi-

President

sale of the additional shares will
fund

,

-

eral

mately $6,250,090.

t

Julius

Washington Trust
interest
office

in

as

a

the

win

of

th'3

of

33 ? 1,ember
Executive

dent Louis J.

retain

operation

member

board.

sory

nis

the

advi-

Vice-Presi¬ .

Reizenstein will be-

Executive Vice-President

come an

ington Trust office.
*

wn^T-o

F

h

^

$^'°f

-n

+

1

rto

™ana8e~
Wasninf?n Trust as foorL

Dlvldends on the stock declared as final approval is received fromln 19°6 amount to $1.20 per snare. Washington andl_Harrisbarg, prob
ably

New stock to the amount of 24,-

*

Bank and Trust Company of New
as

^1

*

ing.it

Director of National Petro-Chem-

York

.

Departm.ent.

Dec.

New York Trust Company of 1U0
was

_

Manager

Manager of the bank

rants

President and Director of the Na-

it

J

«

as

three

—

bus branch offices;

Royt-

the

Ross has been with the bank since Washington

Monaghan,

irnl<? Corn

inanagement of the bank

Managers.

'

the

s«''be at $26 per snare for 24,t0D Bank. The proposed transaction
ner'uTC
_and""WiTliam additional shares of capital stock tentatively
«™.uu
rtugen ana William
*

Kenneth

John

feel

might
itself compelled to
take, the

new

Western

H

bank

from
1939.

lim- an-Assistant Counsel

^hase Manhattan Eank

e

capital

of

the

three
Eanking
Department's Foreign Division,

%

Earlier^ th"s

y

the

Office-, he has served successively

it was announced by S. Broadway, New York,

Colt,

ulmt

tl^confolida-

sCTve/o^"^/^ than'^l

.

s

increase

to

the Amalgamated Bank
of New York from $1,4C0,000, in
140,000 shares, par value $10 per
share, to $2,000,000 consisting of
200,000 shares, of the same par
value, have been authorized- by
stock

■

^ U°nal iDifstiller? _Products fc%^
Bankeis was elected a Director of The

fTmnunT
Dust Company of New York

Trust

Pa

531 250

of' the^rsT-named^1 blnk^At

bank's branch office at 21st. Street
and 5th Avenue. At the same time

-

mentt

.

*

*
Plans

written

Vice-Presidents

of~$2

stock

.

246 memberf-

^r'en ^om

1939,, is in charge of the bank

Stanton of the Domestic Division.

j(„Y "li-Jfri'.'? ».>v*

Na-'

McKee«Port

of

Applegate, who ™er5e C. Ross has .on Nov. 17 that McKeesport, Pa.,:, announces that.
M. C. announced been appointed it has received preliminary ap-.
has been with ,the,. Irving sinc^ an Assistant General Manager at/ proval from the/Comptroller of

foioto.

and' John lY

Reeves,

Bank

common

sssvusxvz ss

Apple-

Wiilia-S-?i -Knappi 9®al- ,Estat^ retaries. All of the bank's
these men
associated with
Charles

with

*** «

been

t Cashiers are Joseph'F Cr"an
Geor«e
Y/*- 4 are josepn r. i^r^an, ^eorge u.
Domestic Branch Administration; Zafft were
p

Pennsylvania

Western

tional

h

aZIp S.Sl'd SSSESf

Assist-

the.

-

Unge/began h/careL wTt'h U?e President of the bank. The pres- tion, the consolidated bank, it is
banI< in 1928
HeToined The 39th entatl°ns wer® ^ade at the an~ a-?n2fncJ,(1 r}Z
Ccjmptroller

Assistant Jr.,- Frederic. J. Fuller, Jr./Paul

five

*

At the close of business Oct. 19.

ThfBowe^,

Sding

at "!e

are Charles A. E. Quandt and
S. George G.
Ctlace. Domestic Division; Ward Savory were promoted to Assistwon
nf
•
'. iri
°d+vu'y.
*/UI,;u^u lu ^wibiNeil> 46th street Office, and Wil- ant Vice-President from Assistliam J. Rigney, Domestic Branch ant Secretary while Robert W.
Administration.

/—.,

T

started

xi-e^7rulni/^u are^"

to any eventual action it

^

-

...

latter plans was..

New

etc.

^0^0^ t'Jnt SiSS^h^

-

ment ofi these

referred to in these columns July"
12, page 185/ •
'•'//•/V//V

Water-

Lewis L. Clarke, Senior Trustee the Farmers^nd Merchants Bank
el of Sharpsburg, Pa. with common
Nelv York' on Nov- Li- presented stock of $100 000, were consoli-

tended 0to,nd?/°;nPew/Sohi/^

OS

would

sXo/of Com" °£ nZ Bowery Savings Bank

Farrell

Mr

bank

York

.

T

graduation

uoon

u

Y

New

*'

^'ce-Presidents

William

"In- ;
same-/*

likewise merge :&sxdC-the same;/

to

American

Mr

Association

Avenue

began work with Bankers

Ttust

the

Mr.

..

Park

and five Assj?tant pa?hieJ;s at the Vice-Presidents and four AssistDirectors.

Trust

in our issue of Sept .13,"- page 108»,'
became effective on Nov/13, ac-4

was

with

member of the Ameri-

a

Bar

can

gSev/Sstanf Treasme/" ^ .StreeK Br^cb,°t{ncei *¥rwmgiey-to Assistant ireasuier.
O Brien; who joined the Irving

d a «rfie suburban Nov. 14,
proposal for
forming

Bank

-Ho

-of

Refining

is

bury

1953.

Vice-Presidents'- of

Five

a

=:=

R.

Charles B.

Counties.

recently has been anby a
large New York

❖

❖

'.-v'.'v''promoted

•

has induced The Chase Manhattan
ittan
Bank

bearing on the proposed issuance
of the new stock.
Howard

the. Delaware;
Company of

merger*, of

"

comPany in 1953v Hc York State Bar Association, The
beSan work in hls Present capac- Association of the Bar of the City

pTT?h

13, deal-

department
Sugar

the 39th Street Office. Mr. Jordan

in

issue, page 2086. The
will be
made

15

additional

York, has likewise issued

statement, dated Nov.

a

The

^

Tsrsxsrs tsss mcvs sstx.'st srsaatsMssr
:
As bearing on the above proposat, the Chase Manhattan Bank

-

/Gro u p; joining General Foods in l927,.he"(fate^(Nov;I13)withrthe^'FideHtyf]UiIUM
the Park had been a member of;the law PhSladelphfa.Trust;C#.;^nnoubce-v;

W/ Hurst/ of

Banking

Cur?^cy

of The
the Superintendent ot Banks

of the

bank's

12,000,000

Trust

and

the

14

authorized

stockholders

enlarged, capital having-

legal "and-"'fi/ «ouPdhig^^ the Philadelphia
-'oittrer^ of- that-date:vThe^

matw

re-,

a

of $200,- -

become effective ^Oct. 11.

tn^h^rih? j°ined the

Trust

the*ComptroTter

Nov.

on

a

shares.

and

and

as

stock dividend

a

000, the

of

1954

in

responsibility for
nonrioi

d»eCl°rSf 2f Tlv (/has® Avenue office, James H. Farrell,*

£?aru

New York, the City Bank Farmers

of

Bank

.

Division

with

laws

banking

National

Director

a

$500,000 has accrued

suit of

4

.

^

wj^jll

under

Mr. Sibert1959'..after
1950 after

in
in

on

Wo^Wge N a t i o n ^1 Bank of
to

.

Grace

elected

expire

*
*
*
An increase in the capital of the

of_ the Title Guaran.ee YVoodbridge, N. J., from $300,000

,

eight years wilh the U. S. from the
page--2u»b to tne. Navv
.
/ ;
i_,. 1Qt7
increase 'An* the -capital ;
N;jh * As si s t a pt Treasurers, degree four wears later from
•» — - - - « m
Named
of the Chase Manhattan Ba
.
./\jvrere,' Robert McC. Jordan, of the, Michigan Law School. - Prior
.

price of $47 per share for the
additional 1,000,000 shares of its

a

Tmi

subscribe

to

3.
-

Jservi

Menttonwas
issue,

Manhattan Bank of New York, set

of

,

eral^ Foods^im 1951

com-

-later.

^n/J7heyXnk

ap-

formation

joined the

ik

.t"

.

The

an

be consolidated

national

The

N.

and for four yean was credit

The

^.r'

,

3,
graduate m 1948

.
Nov, 15
proposed

acaulSf theToSfof ^three
nr0ani7PH
naHnna? banks A°f
.organized
national hanks At

wouM

the

Act

v
Y.

w

such

received

for

plication

under

System,

Bank; Holding

the

ot

rights
Dec.
>•

Special
Legislative
Committee, Beginning his career with Bank- New York announced on Nov. 16
which has already. been estab- ers Trusts-Company in 1953, he the election of Lester E. Waterlished to study the structure of'/was; elected an Assistant Treasurer bury, a Vice-President, And
banking in New York State, to. £ 1955. fA s s i s t a n
rector <*3eneral Foods Corp ' as

~

the

Engaged in banking for 20

manager

.

Riding material industries, is
a graduate of Harvard University.

.

press

ferred' to

issued

•

following

the

14,

statement:

the

of

Governors

Reserve

Federal

a

.

Nov. 8 at the

on

of New York and was formerly ject to allotment by the directors,
associated with the Manufactur- to such of the 24,000 shares not
ers Trust Co. as Assistant Treas- subscribed
for
initially.
The

with the dlY1S1.0^ .in ste^ and and Trust Co*

are giving careful consideration
to the desirability of urging the

the

.

New

"In line with this thinking, we

permission

ap-

a„ Assistant Treasurer
1951Mr* Hart, a specialist
-

ln

York
of New York Citv.
City.

application had been made to

that

was

close of business

to

years,

pointed

boundaries

economic

true

issue of Nov. 15, page 2036,

our

on

the

to

flnnparpfl
which appeared

week ago,

a

announce-

which

tiroou

„

ment

the

to

Prior

Mr. Haggett was also previously affiliated with the Sterling National Bank & Trust Co.

In-

since

group

President.

_

joining Commercial State Banx, rate of two new shares for each
Mr.
Haggett ■ served
as
Vica- three shares held, with the addiPresident of the Royal State Bank tional right of subscribing, sub-

urer.

Hall,

vestment

In

Leichtman,

Thursday, November 22, 1956

...

0C0

shares

stockholders
Trust

N.J.

is

being

of

Company

the

cf

offered

to

North- Jersey

Ridgewood,

The stock (par value $12.50)

around

stockholders
meet

to

Nov. ;20.

approve
•

Nov. 15 by Jacob was offered to stockholders at the marily

in

1-

the

to

transaction
11

1907

as a

WPNB's

scheduled

•

Washington
lished

Dec.

were

Trust

was

estab¬

ard is known pri¬

commercial bank. Mr.

*

Number 5588

Volume 184

...

The Com mercial and Financial Chronicle

(2201)
'

Cancelliere

that

said

although ,'it

"

will

be

to

continue

the

of

25

on

the

to relocate

necessary

; Washington
Trust
Office,
the
"f bank as a branch will maintain

the

cents

present

dividend

share

per

quarterly

stock.

common

The

divi¬

dend will be made possible
through
Cancel- ..transfer of $500,000 from retained
Miere,
WPNB, earnings, Mr. Du Vail explained.
said it will be necessary for that Of this amount,
$150,000 will be
/bank to raise additional capital applied to capital,
raising it to

*

its

local

identity. N. A.
President of the

"

to

meet

by

the

requirements established
Comptroller of the Cur¬
rency to cover deposits that will

$1,650,000, and $350,000 will be
applied to surplus which would

be

'

stated that

assumed

as

result

a

of

the

purchase of Washington Trust. To
increase its capital, WPNB will:

*

*

(1)

Declare

50%

a

stock

divi¬

dend

(one share for every two).
WPNB has 265,625 common shares

outstanding with
$10. a share.
4,
~(2)

a

value of

par

•

;

...

'

$2,350,000.

ing

in

additional1'shares

share.

Present

at

$3(L

stockholders

a

will

be permitted to purchase stock a I
the rate of one share for
every

three

held.

The

stock

sale

will

earnings,

capital

account

$4,453,377,

bank's

account

than

more

has

$1.2

or

one-third, since
1950, he stated. :
*

the

,

would

record high. The

a

capital

creased

likewise

$453,377 ramain-

retained

bank's
total

He

with

After the stock dividend is

declared, tfie bank will issue 132,812

total

in¬

million,

the

end

of

National

Bank

olis, Minn., died

of

actual

take

transfer

place

„

the

of

about

business
Jan.

merger

is

in

any

changes in

of

the

not

expected

Santa

The

to

the

Ana

Dur¬

ing

the course of his business
career, Mr. Jaffray served as head

yield almost $4,000,000, enough to of both First National
Bank and
cover
the
requirements
estab-, First
Bank
Stock
Corporation,
lished to protect the bank's de¬
and
also the Soo Line
Railway.
positors, it is stated. When Mr. Although
he
long
since
had
Cancelliere
be c a m e
President
stepped down from these major
four
years
ago
WPNB,
then business
responsibilities, Mr. jaf¬
known as the First National Bank
fray until recently maintained a
of McKeesport, had one office and
rigid
schedule
and
could
be

Bank and Insurance Stocks

wfll

11.

result

By ARTHUR B. WALLACE

personnel

office,

Mr.

This Week

King said.

A. C. Hasenjaeger and
Hasenjaeger, President and

Lee J.

Executive

tively,

Vice-President,

will

become

respec¬

Vice-Presi¬

dents of. California Bank.
Appro¬
priate titles will be provided for
.

the other members

family.

The

composed

of

-

of the

board

of

A.

-

official

directors,

>M.

Leland Finley, A.'C.

Drumm,

Hasenjaeger,

tee to the

California Bank offices
in Santa Ana,
.....c
It

•

.

Minneap¬

Nov. 15.

on

Subject to the
shareholders qf
banks, it is expected that
of

Henry J. Seba, and Roy V. Shafer
an
Advisory Commit¬

Clive T. Jafifray, 91 years of
age
and /termed "grand old man" of
First

$25,000,000.

will become

*

v

ceed

approval
the two

&

...

■

v-

»

Smith, Barney-Merrill
Lynch Underwrite

total

of

resources
if

Arthur P.
elected
Board

Society
1

has

been

of

the

Society for Savings and
Bank

Cleve-

of

Berlin

tario.
the

(now

After

and

took

as

Jan.

1898

11,

Henry

S

away
r". Williamson

j\rmur

pre¬

both

Board

1935,

Mr. Sher¬

give officers of the

time to

devote to

Williamson has been

Savings
-

Com¬

and

Society for
October,
Director of Society

Trustee

and

a

National

-

since

Bank

its

forma¬

His

father, grandfather
and
uncle
were Society Trustees before him.
When Society for Savings was or¬
ganized 107 years ago, his grandfather, Samuel Williamson, was a

the

was

events

these

Mr.

outgrow

Board

completion

that

fice

merging

this

structure,
to

From his
dent

held

the

Later

National

structure

start

a

and

of¬

new

is

work

during

position

First

of

had

with

which

on

First

Bank.

First

saw

even

scheduled

the

1957.

Vice-Presi¬

as

National, which he
1907, Mr. Jaffray

since

was

elected

bank

in

President

1917.

Seven

of

the

later,

years

in

1924,
he
relinquished
the
Presidency of the First National
become

to

Line

he

President

of

the

Soo

Railway.

From 1937 to 1944
Chariman of the railroad's

was

He has continued

through the

as

years.*

a

di¬

*

where there is

rate

Federal Reserve

no

System, the bete noir of
cates

of

cheap credit. It is true
Treasury has just put out

that the

issue of bills at

an

1

Mr.

-

Williamson

-dent
:Oo„:

of
was

-1909.
*

-

*

-

*

who

Dill

the.

its

of

one

is

Presi-

Manufacturing
founders

-v

in

,v'.

4,";

*rf

**

Following an increase in the
capital stock of the American Na¬

the

to

making
crease

ville,

about

'having

the

capital
thereby
increased to $250,-

been

'000 from

$200,000, effective Oct. 5.
*

'

if

of

the

Co.

of

But during World War I most
of the heavy

financing of

quirements

was

on'- a

it

by the

sale

and

brought
$140,000 of

was

of

stock

a

the

$1,000,
The
in¬

dividend

$161,000.

if

'

/Directors
National

of

the

Bank

Merchandise

of

Chicago,

on

*

The

California

Bank

10% increase

tional

Bank

in

for ten stock

have

reached

dividend,

a

according
from

nouncement

Vail, President.
would

one

to

an

Kenneth

an¬

K.

Du

The

proposal
the
bank's
capital
$1,500,000 to $1,650,000

raise

stock from

and increase the number of shares

by
is

15,000

to

subject

165,000.

The

plan

final

to

approval of
Comptroller of the Currency
and voting of stockholders at a
special meeting Dec. 3.
Under
the plan, shareholders would re¬
the

ceive
for

one

each

Du Vail

share
ten

at $10 par value
shares owned, Mr.

stated.

Commercial

Santa
and

will

Ana

operated

fornia

with

merged

offices

of

of

Cali¬

L.

King,
President of California Bank, and
A. C. Hasenjaeger,
President of
The Commercial National Bank of
Santa

Ana,

a

joint

statement

have

announced

that

arrange¬

in
the

for

ments

proposed

merger

have been approved by the boards
of

directors

fornia

of

Bank

in

Los

sources

of
Bank

Counties.

Its

both

banks.

Cali¬

presently has 53 of¬
Angeles and Orange

National




Bank

Frank

He

directors plan

be

as

Bank.

ceed

that the

Sin¬
an¬

of

the

subordinated

amount

which

is

ment

of

SEC

an

now

debentures.

the

issue,

registration

effective,

for

state¬

has

been

as

have

we

total

resources

The

$900,000,000.
The

of

total

ex¬

re¬

Commercial

Santa

Ana

ex¬

even

today

as

ex¬

cept for two major factors, nation¬
prosperity and a slow rate of
savings, both by individuals and

business. Our prosperity breeds an
increased demand for money:
by
business to expand plant and other

facilities; by individuals
homes, buy
increases

banks;

in

it

etc.

cars,

demands that

isn't

build

is

these

It

stimulate
loan

to

the

volume

large

at

the

planned

any

and

rate

Reserve and the Administration to
increase rates and to make loan ac¬

of

4%%,

being
stockholders, at

fered first to

in

and

are

the ratio of $100

for

each

stock
the

held.

right

mailed
at

nine

the

1956,

shares

of

close

of

will

common

evidencing

subscribe

being

are

stockholders

and

par,

in debentures

Warrants

to

to

of¬

of

business

expire

record

Nov.

on

Dec.

14,
3,

1956.

The

subscription offer has been
by
a
nation-wide

underwritten

of 236

group

firms,

headed

&

and

investment

Co.

Fenner

ing

&

group

banking
Smith, Barney
Lynch, Pierce,

by

Merrill

Beane.

The

underwrit¬

includes: The First Bos¬

ton

Corp.; Eastman Dillon, Union
& Co.; Kuhn, Loeb &
Co.;
Lehman Brothers;
Morgan
Stanley & Co.; Glore, Forgan &
Co.; Goldman, Sachs & Co.; Harriman
Ripley & Co., Inc.; Kidder
Peabody & Co.; Lazard Freres &
Co.;
Stone
Webster
Securities
Corp.; White, Weld & Co.; Drexel
& Co., and Dean Witter & Co.
Securities

Mr.

board

Spencer

stated

directors

of

that

the

considered

it

advisable to obtain additional cap¬
ital funds at this time in view of
recent

important

acquisitions
strengthen greatly the
company's position in crudje oil
made

and

to

gas

its

the

production

and reserves,

purpose of maintain¬

company

at

all

times

,

in

strong position financially and

otherwise.

.",

move

commodation

■

m

■%

*

FIG Bank Places Dens.
The Federal Intermediate Credit
Bank

on Nov. 20 offered through
T. Knox, fiscal agent, ap¬
proximately $107,000,000 of 3%%

more

the

by

Federal

difficult to

arrange.

all.

in

the money market at
remember the Recon-.

We all

struction

Finance

Corporation

scandal, when favored individuals
were
given loans for all matter
of

ventures

able,

that,
taken

were

lending via
ernment

others

to

and

to

unbank¬

R.F.C.

is out

crony

now,

fuse to lend
and

being

the

But

of

gov¬

banks

re¬

such risks.

These,
them, have prob¬

like

ably been given short shift at the
banks,
but
legitimate- bankable
proposals have not.

$10,-

of steel,'auto¬

host of other items

a

economy?

-"

•>

.

'may* w^.not akfc; why-

it is that labor costs (the
cost component in most

rise,

may

Some

f

have
in

borrowers

experienced

obtaining

here,

too,

away

on

eration
be

on

princj.jpal
things

some

difficulty
credit, but

those

of

probably

turned

planning to

"shoe string." A gen¬
two ago a property to

a

or

mortgaged

was
first marked
down below its
open market value,
and then a portion of that valua¬
tion was loaned.
In recent

years

veteran
been

borrowers

haven't

required to put

up any

even

equity

money, and a property's full value
could be borrowed; and at low

rates, again historically. Now, be¬
a 2%
equity is required, in

cause

with

some cases

closing

a

modest amount

expenses,' the

heavens
politicians' impreca¬

' tions against the Federal Reserve
and the Administration.
'
.

•'

And

what

If he has

a

of

the

businessman?

automobile p r i c'e s" be
but interest rates 'wnich,

hiked,
after

all

part in
must

play

relatively small
doing business,

a

cost of

our

rise

never

in

even

response

to the

operation of the law of
ply and demand.

the

chances

two

chief

functions

bank

are

commercial

out

as

to

deposit and

on

.

Few persons bother to look' at
the other side of the
coin, and that
is the
stemming of inflation. 'Dur¬

ing the so-called

stringency

money

prices

generally have advanced
little.
During the
soft
money
years
they jumped
drastically. Are we not in a better

comparatively

position
and

with

check

a

sound

a
on

currency

prices

run-away

we

would

be

with the

bust

and

that

soft

money

As

long

will

funds

'

continues

have

will

boom

surely

the demand for loan

as

accommodation
we

firmer

harder

be

strong,

rates
to

and

borrow.

Thus far in 1956 so-called business

loans

have

000,

50% greater jump than was
in the same period in

a

increased

$1,800,000,-

registered

1955. The president of a New fork

pavings and loan association

now

predicts 6% mortgage money; and
some bank officials
predict a nearterm hike in
the
discount rate,
which

influences

practically

all

This

will

naturally

for

make

greater earnings by the banks.

probable

seems

now

It
that the 18%

increase

in earnings of the New
City banks predicted earlier
this year by this writer ought to

York

be raised to at least 20% over 1955
on

average.

Singer, Deane Go.
To Admit Partners
PITTSBURGH, Pa. — Singer
&
Scribner, Union .Trust
Building, members of the New
York-and Pittsburgh Stock Ex¬
changes, on December 1 will ad¬
Deane

Charles

mit

V.

and

Shanahan

Robert E. Ruse to

Shanahan

partnership. Mr.
office manager for

is

the firm.

are

part to get money out An loan.

money

sup¬

reasonably satisfactory
need

the country's banks
certainly indi¬
cate a strong desire on the banks'

The

we

commodity/pfices

increase,

mortgages

desired

most

were

build

ago

money-

borrowing rates.

nine months debentures,

and

year

increase any¬
than Jan in¬

would bring?

to be

son

bankable

maturing Feb. 1, 1957
000,000 March 1, 1957.

the price
or

/And here

good that he will get his loan. The
all-time highs in loan volume at

Sept. 3, 1957. They were priced at
par.
They are also placing pri¬
vately
an
additional
$5,000,000

our

Only some marginal borrowers
who, in any case/ have little rea¬

John

maturing

in

mobiles,

a

"tight"

an

reprehensible

crease

in

say,

But is such

us.

obtains

higher interest

a

of

curse

than

of

'-r

before the

bank

a

have to pay
than, let us

may

hit

that

And, after all, who has been hurt
by this so-called "tight" money?

resound with
i*

this way

buy)
would not have

we

concerted

at
$167,247,600. De¬
bentures will bear interest at the

in

of

determined

agreement

National

riod, will be issued to avoid frac¬
tional shares in the stock split.
added

Los

Ana, Calif.,

an

directors

whereby the three offices of The

fices

for

Santa

of

Scrip certificates,
a
stipulated pe¬

marketable

of

Angeles and The Commercial Na¬

Nov. 13, proposed a

capital and

vertible
The

of

$1,000,000.

the

re¬

war

coupon

4V4%;- and subsequently £ in the
1920's, there were 5% prime rate

high rates

Mo-

lowered

extent

in the capital

stock

new

date

same

capital

Belleville National Bank of Belle¬

III.,

Trust

&

bile, Ala., from $700,000 to $1,001,ooo, effective oc'. 29,ihe bank as.
of

An addition of $50,000 has been
tothe 'capital
of
the

made

Bank

that

yield of about

a

3%.

But

company have finalized arrange¬
ments for an issue of
30-year con¬

ing

tional

Spencer, President of
Corp. on Nov. 15

the advo¬

loans.

Offering

Bank Stocks
the major portion of its
earnings;
and banks, as do all of
us, strive
for profits. The business borrower

wide

Oil

nounced

also for the

'

during the critical years immedi¬
ately following the Civil War.

clair

in
the

was

began laying plans for

rector

first

was

Jaffray

and

the

known

old Security National

later became President of the bank

of

the

name

building's

became

board.

'member
-

it

a

since

tion in January of this year.

*

the

operation of both instisaid Mr. France.
Mr.

tutions,"

at

of

National

mittee meetings as did

practical

His

a

posi¬

a

held

many

among

Before

"Mr. William¬

>

Oa

the present 18-story
First National-Soo Line
Building.

month.

bank added

death.
with

building

.

to

1895.

elected

National,
still

portant

who

as

he

in

was

Minneapolis banking history. Im¬

He succeeds

Sherman

he

director of First

associated

so

of

age

Northwestern

Cashier

of his

man

Canada,

and then joined First

National

both banks.

*

the

which

will

of

at the

B.

tion

son

the

position in Minne¬

a

years,

time

sident

Bank

with

monthly
meetings of

passed

in

eight

lar

last

offices

Kitchener), On¬
apprenticeship in

an

Merchants

apolis

France, Pres¬
ident, follow¬
ing the regu¬

*

his

by

vin

er

in

National Bank. He remained there

made

was

at

22

an-

nouncement

M

daily

National-Soo Line Building.
Jaffray was born July 1, 18t>5

Mr.

he moved westward

Ohio.

This

found
First

Chairman

new

National

d,

a n

$40,000,000.
if

Williamson

the

of

if

Sinclair Oil

-—

Newspapers continue to publi¬
cize "tight"
money, as though it
really were tight. Historically it
isn't; and, further, it is a world¬
wide condition, even: in .areas

.

P. C.

29

risklessly

as

lend

be.

(Special to The Financial Chronicle)

SAN
G.

FRANCISCO, Cal.—James
is

Knox

Walston

&

with

connected

now

Co!; Inc., 265

Mont¬

a

receive

to

may

of

Walston Adds to Staff

it

It is

gomery

members

Street,

New

York

Stock

Exchanges.

of

the

Francisco

San

and

,1

Murphy Heads Fund
NATIONAL

Drive for Vilianova
PHILADELPHIA, Pa. — John
Murphy, partner in Reynolds
Co., has been appointed chair¬
man of the 1957 fund
raising drive
for
Vilianova
University.
The
A.
&

drive is to

secure

funds for

velopment program
versity.

for the

a

de¬

Uni¬

of

Bankers

to

Cecil Barret
Spencer Trask & Co., passed away
November 15 at the age of 82.

the

Government

Kenya Colony and
Head

Office:

London,

Primary Markets in

West

End

26

Bishopsgate,
£. C. 2.

(London)

Uganda,

Protectorate.

Capital

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

Trusteeships and Executorships
also

and

INSURANCE

Brancht

Zanzibar, and Somali-

land

BANK

in

Uganda

13, St. James's Square, S. W. 1.
Branches In India, Pakistan,
Ceylon,
Burma. Aden. Kenya, Tanganyika,

Authorized

Cecil Barret, limited partner in

BANK

INDIA, LIMITED

undertaken

STOCKS
Laird, Bisseli & Meeds
Members New York
Members

American

120 BROADWAY,

Stock Exchange
Stock Exchange

NEW

YORK 5, N. Y.

Telephone: BArclay 7-3500
Teletype—NY 1-1248-49

Bell

(L. A. Gibbs, Manager Trading Dept.)
Cn«/n/i)ief c

D«*tL

Cf A/« Xv*

SO

The Commercial and Financial Chronicle

(2202)

first page

Continued jrom

•'

■

ence
by bribing has not worked very
little evidence that it will in the future.

.

to

I As

We See It

blandishments

in the hope of becoming the

Recent Trends of

real master

Thought

Historically, "backward" peoples have regularly come
under the dominance of more "advanced" nations. When

the fact
"saved
them.
It is arguable, certainly, whether these under¬
developed countries did or did not in the long run benefit
from being subject to others rather than suffering from it.
But, however all that may be, the drift of human thought
for many decades now has been away from condoning
"colonial" systems and in the direction of giving each
country or people its own freedom. A good deal of this
type of thought has been seen even in the countries which

countries

out of two world

At any rate
of human events

matter of course.

as a

and in the

wars

course

nationalism has

developed lustily throughout the world,

and

as

imperialism

it has been known in ages past seems

to be doomed.

Continued

endeavoring to cut
empire together and to weld their diverse parts
into "a commonwealth of nations."
Large success has
attended these efforts, but difficult spots have remained
held their

where

large or vital interests could not, so it was felt, be
rashly jeopardized. Continuation of Britain as a first
class nation has at times seemed dependent upon keeping
too

a

firm hand

upon some of these
Conflict in one form

resources.

another probably

areas or at least their
or
another and in one

and is all but unavoidable.

degree

or

It

and is in these troubled waters that Russia,

was

envious of the

British,

was

came

always

to the conclusion that the

If bland ideological talk would
much the better.

fishing ought to be good.

help the

cause so

We have

recrudescence—if, indeed,
merely submerged for a time
—of an age-old situation which has given trouble since
history began, and probably .before that. It is a trouble¬
some and
dangerous state "of affairs, but on the whole
probably less serious and hazardous than would be the
case
if present day conflicts arose out of a proselyting
crusade by the presumed followers of Marx.
Several
countries with interests which conflict at important points
now
profess to be worshippers of the founder of socialism
and communism in modern times. The very fact that they
have these conflicting interests
may save the rest of the
world from the necessity of
facing a coalition of formi¬
dable strength.
it had

here, of

been

ever

course, a

more

than

The most
is the fact
not

encouraging aspect of recent developments
now clear
beyond dispute that the Kremlin is

the Mecca of communism

throughout the world, and
Yugoslavia, Hungary, Po¬
land, China and perhaps others, that have "gone commu¬
nistic" still want their own national
independence and
intend to have it if and when
they can. This simple truth
far transcends in
significance the success or the failure
that each of several countries,

of any particular effort to throw off the Russian
yoke.
certain in our own minds that it is
today perhaps

are

We
the

chief worry

of the masters in the Kremlin. Fear of it, and
differences among themselves as to how to deal with
it,
may

jrom

well be at the bottom of much that is mysterious in

recent behavior of the Russians.

handling
of
long-distance calls. Here substan¬
and

has

been

55%

rapid
made.

Presently about
long-distance calls are

of

dialed

to

Age of Turmoil

though, that we live in an age of
turmoil, when men's thinking is undergoing further exten¬
sive modification
following almost revolutionary changes
during the past few decades. Substantial changes in the
table, indeed
at

the peoples of the world are inevi¬
even now in
process. All this comes, too,

among
are

time when the world has
"grown smaller," thanks to
modern means of communication
and transportation—to
a

nothing of what has taken place in the field of arma¬
ments.
It is
hardly strange that we, a parvenu in world
politics, should find the going difficult, the more so since
we alone
among all the first rate powers really have no
axe to
grind.
say

It has become

clear, distressingly clear, during our
in world politics that
merely being
friends and
supplying astronomical amounts of material
assistance does not
prevail. Many of these peoples partake
of our
generosity, are quick to complain when for any

relatively brief

reason

tionwide

Finally, the third step is to
long-distance
dialed
the

career

itJ does not

continue

they please regardless of




indefinitely, and then do

our

desires

or

calls.

through to

customer.

tomers

are

now

completion by
addition, cus¬

In

dialing a large ma¬
their short-haul calls.

are

jority
This

13%

of

nationwide

dialing by cus¬
already been intro¬
duced in 226 exchanges enabling
has

tomers

2V2

some

million

their

dial

judgment.

as

Influ¬

of

segment

the

the

Electronic

less

at

reducing

service
office

of

is

the

the

first

electronic

11 y

which

sandths of

a

cus¬

basic

require¬
dialing by
customers: a uniform numbering
plan; a nationwide switching plan;
and
equipment to compile the
data
necessary for
billing pur¬
nationwide

poses.

all-

cables

1,800

times
thou¬

not

of

be required to serve
change of standard size.

an

phone

within

the

and

Canada.

To

first

essential

is

the

effect

States

this,

general

a

well-known

telephone

United

letter

2

use

5

The

number.

the
of

digit

second

element of thfe plan is the division
of the United States and Canada
into

approximately 110 number¬
ing plan areas—to each of which
is

assigned

3

a

digit

numerical

area

code—e.g., 203 for the State
Connecticut, or 212 for the City

of

of

New

York.

There

be

can

no

duplication of 2-5 numbers with¬
in

an

to

A

area.

an

will

first

customer,

other

area

dial

the

digit numbering
call

within

lys

area

on

call

a

his

own,

appropriate 3
code. On a

own

the

area,

will

not

be

—

nationwide
second

our

work

to

switching plan

fundamental

—

re¬

complex

net¬

switching

centers.

The

of

machines

at

make

size,

considerable

so

small

needed

units

of

because

of

these

required

centers

to

do

complete

phone. To

me, their most interest¬
ing feature is their ability to test

Another

feature

of

to

be

introduced

standpoint

faster

electronic

hibitive with

which

would

our

from

be

an

area

ready to meet the communication
requirements resulting from out¬
side
developments. The job of
computers
is
to
process
data

quickly. The job of
is

to

get

data

to

industry

our

the computer

path.

sending

tion

means

and

much

faster

our

of

much

greater utiliza¬

intercity circuits.
Accounting equipment capable
of assembling billing data is our
third
necessity. This equipment
punches all pertinent information
on

a

sent

tape, which is then
the
accounting office

paper

into

where

other

machines

internret

and prepare the

billing slip. These
recording devices already are in
operation in many newer offices
and also

in

older

may

that
tion
the

be
a

in

are

being adapted for

dial

noted

most

all

matter

central

in

use

offices.

this

(It
connection

important considera¬
new

of

developments

is

compatibility with

existing equipment. Furthermore,
the

achievement

of

a

truly

na¬

Transmission

of

to where it is
data

involves

intelligence

merely by
a
series of making and
spacing electrical pulses. These
pulses represent codes, consisting
of "binary digits," the contraction
means

of
to

of

which

is

designate

The

present

"bits"—a
a

term

used

unit of information.

teletypewriter

sys¬

tem, which uses a standard 5-bit
code, is limited by most teletype¬
writers to 60 words per minute or
about 45 bits per

second. The tele¬

typewriter channel is limited to a
speed of about 75 bits per second,
although it is capable of carrying
codes

of

higher order, that is,
having larger numbers of "bits."
The

various

channels

phone,
ble

of

codes

—

and

communication

teletypewriter,
television—are

carrying the 6, 7,
used

in

and

has

economically

to

shortradi¬

a

system

basis

in

pulse form

(simi¬
transmission for
processing). The pulses are

to

the

pulse

original
stored.

the

speech
The

include

of the

amplitudes of the
frequencies

potential

"time"

re¬

advantages

division

of

the

channels, i.e., utilization of peri¬
ods
of momentary idleness
and
successful transmission of cheaper
channels. While this system, is still
in the early stages of develop¬

it

ment,

promises

economical
lem

an

solution

to

important
the .prob¬

of

providing additional voice
paths to meet the rapidly growing

volume of short-haul traffic.

computers

fast,
regardless of distance, and then to
speed the processed information
from

transistor,
devices,

state

decoded at the distant end

.

is

the

circuit and

present systems.

transmission

of

different

data

a

needed.

This

lar

pro¬

which the industry must stand

business, the

circuits. This will be

coded

Integrated Data Processing
Data

these / systems
primary applica¬
longer haul circuits.

which, in
basic principle, will involve sam¬
pling of the speech frequencies at
very frequent intervals and then
transmitting these samples on a

switching systems will be their
large capacity for cheap memory.
Memory is the programming or
logic built into the system. This
capability will allow new services
cost

of

solid

cally

operation, will result in savings in
required building space.

various routes to the distant loca¬
tion—and then link up a clear
service

haul

equipment
the

conversa¬

Heretofore,

wires themselves. The intro¬

applied

sav¬

with

fewer

of

time.

opened the way to development of
carrier equipment which can be

as

space

the

all

the

other

the

as

ings possible. This, coupled

3

large and

a

very small in

are

in

quires

well

same

their

had

duction

other elements which will be used

re¬

quired.
The

as

thousands

has exceeded the cost of the cop¬

area

code

digit

than

transistors,

of

to

per

tor. The

over

is

cost of the equipment required to
provide additional message paths

key part of the all-elec¬
tronic system will be the transis¬

tele¬

carried

For the shorter haul

The

tive

of coaxial

use

tubes.

tion

ex¬

First, we must have a number¬
ing plan which will permit posi¬
each

be

however,

equipment

will

as

recent

the

have

its

of

to

various

In

point where some
simultaneous conversations

dreds

sacrifice

because

units

through the

tions at the

tremendously

does

and,

fewer

the

a pair of co¬
Recently
experi¬
going ahead on a
wave
guide — a hollow tube or
pipe — capable of carrying hun¬

present
or

for

carried.

mental work

second, the elements

operation

industry

of conversations

division

to

axial

electronic system will
operate in the order of a millionth

speed

the

this principle has been ad¬

years

new

reliability,

and

Circuits

frequencies referred

conversations

can

"our

for Local

years,

number

"space"

electri-

operating

fast

many

ferent

mechanical

This

machines

consist basically of
equipment which -employs dif¬

present

seconds

second.

computer

the

systems,

our

Where

a

of

Systems

the

moving

have

of

those

Short-Haul

no

switches.

the

the

after

Thus transmission speeds

vanced

switches

in

by end of 1957.

of

and

carried on a single pair of wires.
These devices, known as "carrier"

switching

employ

operated

and

For

central

employ

electronic devices with

systems,

dialing will be

available to about 5.5 million

identification

constant

not

practical.

ing

about 4,000 customers.
This system
will

in

three

In

has utilized devices for multiply¬

Switching

electronic

measured

are

need.

high computer

very

are

than

-

system is planned for Morris, 111.,
in early 1959 where it will serve

tionwide customer

for

industrial

or

Carrier

switching system. The trial

ca

There

bits per second.

requires

development aimed
costs and improving

telephones in 15 distant
metropolitan areas in addition to
dialing their short-haul calls. Na¬

ments

transmit

can

exception of military

the

process.

A very new

parts, in contrast with

million

tomers

second, and

per

telephone channel prob¬
will satisfy most any com¬

mercial

industry.)

to

about

to

dialing system

20

customers

calls

own

trans¬

nomical

ably

high degree of cooperation and
coordinated planning between the
Bell System and the independent

ar¬

for the customer to dial his

range

bits

channels

million

With

a

completion by the orig¬

the connection to the distant tele¬

The fact remains,

relationships

already

progress

it

furthermore temporary storage of
data will be in general usage both

onerator

tial

it

as

requirements for national defense,
the speed afforded by the eco¬

are

anize

is,

processed

750

50

before

everything
An

about

some

13

page

question
be

television

Outlook for Telephone Utilities

Britain, always a farseeing ruler, has for a long
been

as

practice
speeds

inating operator.

while
formal bonds which had formerly

to

of the world in

or

the

information
fast

the

by the high speed machines?" Ac¬
tually the industry's facilities can
offer transmission speeds to meet
almost
any
data
requirement.
Telephone channels can speed up

us

general. We suspect that the
old order will change
slowly giving place to new, as the
poet expresses it, and that patience will be a virtue, not
to say a necessity.

they have escaped, it has often been by reason of
that rivalries among their would-be masters have

formerly took empire

"Can

mitted

of her intentions and knowing full well
that we did not approve, now has the temerity to come to
us with a
request that we save Europe from an oil famine
its acts have brought on or soon will
bring on!
Experience should by now have taught us also that
"investment" in foreign lands, particularly in backward
countries, affords no automatic cure for the ills of those

peoples before they realize it or foresee it.

of these

informing

But

computers.

well and there is
Britain, according

reports, after having acted in the Middle East without

even

Thursday, November 22, 1956

...

most

or

tele¬

Other

Developments

Other items of note which have
received considerable recent

pub¬
licity
include
the
"Bell
Solar
Battery" and the specially con¬
structed
made

kind of amplifiers which

possible

atlantic

permit

cable.
any

the
My

new

time

trans¬

does

not

detailed discussion of

these.-

Finally, I do not want to
leave this Subject without men¬
tioning the extensive program of
fundamental

research

carried

the

in

on

which

is

industry's labo¬
ratories, in practically all areas
of science. Many of the
important,
and

often

ments
have

in

come

search

spectacular, develop¬
telephone business

the

from

these

broad

re¬

projects.

I

hope that this brief summary,
though
necessarily
a
high-spot
review, will afford some idea of
the shape of things to come in the

capa¬

8 bit

electronic

telephone business. While I have
talked

mostly about financial and

Volume 184

Number 5588 7.

The Commercial and Financial Chronicle

.

(2203)

.

economic "Thatters

and ; physical'
things, I would like to emphasize
people—in research, in man¬
ufacturing as well as in opera¬
tions
are
the really important
that

Public

Utility Securities

—

element

hope

in

that

this

I

business.

left

have

also

of

physical

characteristics

highly

By OWEN ELY

im¬

some

pression

the

I

dynamic
underly¬

ing the telephone industry.

Northern

.

an

Chrisfophel

NASD

on

lation

ST.

LOUIS, Mo..Arthur A.
Christophel, Reinholdt & Gardner,
x

has

been

elected

to

the

the

and

board

of

of

About

86%

rived

of

from

ation of Secu¬

most

rities

consin

Dealers.

George

of

part of

Walker & Co.,
St. Louis, y'i

cation.

Two

/

vestment

than

a

Revenues

The

13 %

mis¬

consists of

as

over-all

for

hydro,

mills.

or

rising

this

by

of

average

the

cost

should

the

7

(Arkansas,- E.
and
A. A.

W.Kentucky).
They are:

Cnristopnel

Stifel Nicolaus

Bunn,

&

Co., Inc., to succeed Albert E.
Gummersbach, Dempsey-Tegeler

& Co., St. Louis; and Vincent C.
Weber, Weber-Mitchell & Co., to
succeed Edwin C. Sanders, Edwin

and

-

200*<^miles north and

1955

First

of

be

4.3

fuel

were

than

more

in

Common

dominant in

area,
NSP

and

life

the

of

the

ttye four states of the
service^rea rank near the-

31.9
100%

States

Power's

earnings have been in

share

slowupyears—from $1.01
a

1952 to $1.20 estimated for

this

calendar

year

for 1957.

The

E.S. Brown Mun. Mgr.

has

For Barret, Fitch

versity of products.
The farm
background is reflected in such

KANSAS

CITY, Mo.

Barret,

top

in

many^'items of farm pro¬
IndustrfaPhctivity originally
centered in the Twin Cities, but
into

expanded

now

most

of

the larger toWns, with a wide di¬

struction

and

$1.25

forecast

gain in share

credit

in

may

proximate only $530,000 or about

Municipal

ator

more

Midwest

Stock

the

announced

Mr.

as Manager of the
Department.

since

and

1952

the

with

been

has

Brown

firm

Exchange, have
appointment of E.

that
time
has been actively engaged
in the underwriting of municipal
securities. In his new position Mr.
Brown will be responsible for the
during

distribution of
municipal securities originating in
underwriting

local

the

both

and

national

and

mar¬

manufacturing, take advan¬
tage of an ample supply of skilled
workers.

control

Prior

this

to

time

Mr.

Brown

devices,
pressure-sensi¬
conditioning units,
computers
and
hearing

digital
The

taconite

northern

kota

resigned.

securities

is conducting

business

from

offices

Exterior Street.

at 2861

that

resistance
dustrial

to

300

of the

this

Talbot.

California

519

decide,

1940-50,

in

and
has

the

become

affiliated

B.

Bateman,
County Road.

243

with

South

Toronto
18

at

passed

the

retirement
A.

age
he

E. Ames &

Coombs

away

of 80.
was

to his

officer

Co., Ltd.




in

1950-55.

greatest in the
in

and

Twin

the

Cities

gained only about 3%
■'*

to

contain

a

use¬

con¬

of

four

The

report

of closelypacked
electric
statistics,
four
pages
of gas statistics and two
applicable

tries.

It includes

to

indus¬

both

tabular

data

on

plant by functional divi¬
construction expenditures

and retirements

income

for

the

with

statement

between

the

source

amounts

electric,
gas,
cost of en¬

and

classification

ergy,

.the

year;

of

energy

and

customers;
detail of generating statistics by
stations; load factor, fuel statis¬
tics and BTU per KWH; gas pro¬
duction and purchases; fuels used
in generating gas; number of de¬
gree
days; and classification of
gas customers,
sales and reven¬
revenues

ues.

set

years

of the

the statistical
EEI

the

on

Even though the new
money raising operation of the Treasury
of the way, and the refunding of ihe Dec. 1
matter of

now a

upward. The demand for credit to finance the business expan¬
sion is giving no evidence yet of
slackening, and the mounting
commercial

from

the

does

etc.,

loans

by banks, coupled with the needs of money
segments of the economy, such as housing and
appear to indicate any change in the immediate

other

not

future in the cost of

obtaining this credit.

Status of Discount Rate Debated
The discount rate is still

andj AGA

abated

somewhat.

increased

before

is

nounced

The
the

being taken to

to

the

evaluate

new

future

trend

of

of

Notrhern

7.2%

annual

States

Power

plants,

generating

mainly

Cities

Minnesota

as

natural

18

area.

hydro and
The

Rivers

for

water

well

a

which should show

steam

17

in¬

dou¬

has

66

in the

are

steam

internal

Mississippi and
provide

ample

generation,

transportation
gas

a

i^ also

for

as

coal;

available for

These

>erations.

prior

to

Marilyn

Dec.

should

10,

Walsh,

1956,
Irving

Company, One Wall
York

City,

the group

Charles

is

Tatham

who

suggestions.

be

to

sent

Miss

was

not

was

an¬

quarters of the

money

of

the

economic

situation

in

the

though

discount

the

market discussions,

demand

for

credit

rate

there

is

the

has been

Danger?
focal

point
than

more

of most

passing

a

increase in the prime bank rate. With the

an

strong as it is, it would not be unexpected
to the commercial bank customers with the
highest credit rating were to be advanced. This would have a
marked effect upon the whole money market, since it would bring
about a complete rearrangement of the whole loaning rate struc¬
as

if the cost of money

ture.

Tax

the

being

are

of

Switching Feature of Market

In spite of the thinness of the Government market, aside from
short-term obligations, there are reports that tax switches

made

in

these exchanges

increasing

make the
out.

much of

an

the

size

The current Gov¬

purposes so easy

that the middle-term

the defensive in these swaps,

on

though

even

order market, which does not

switching of securities for tax

It is indicated

what less

numbers

is rather limited at times.

ernment market is very

to carry

issues have been

since

some

some¬

institutional

demand of not to large proportions has been showing up in these

bonds from time to time.

Thin Market Precludes Bond Sales
The
are

limiting I operations

credit

markets,

period,

This has been true to

the

monetary

authorities

the

present

well

as

limited

it

as

timet
as

has

bid side of corporate

The

been

ever

issues

could

be

sold,

it would

in the bonds which would

is

cannot

not

The

an

be

mean

restrictive

these

policy of

the

non-Government

that losses could

other similar purposes.

be taken

However, since

in size because of the lack

transfer

of the fixed

somewhat the transfer

obligations into the new

If

small and

as

be disposed of, and these funds would

important

thinness

the

since

adopted.

was

municipal

and

Government securities, is about

authorities*

monetary

much lesser extent for quite a

a

it is much more limiting and much more effective

but

bonds,

up

of

being felt rather extensively at this time in all fixed income

of money from

of buyers,

bonds into

income market has also slowed

of funds from the older outstanding

offerings.

Trust

Street, New

Secretary

of analysts

Company)
these

who

or

some

Present Prime Bank Rate in
Even

loans.

basis

rate

year.

tions, for the report covering 1957

growth^in KWH sales is on

in

mean

to have

seems

Bank

of the Treasury

early part of next year. On the other hand, it is now believed
by some specialists in the mon£y market that the Central Bank
borrowing rate will not be moved up until there is more time

10-year period.

jected

result

a

The pro¬

the

evaluate

Central

refunding

the

there

as

up

the

market that there will not be any change in this rate during 1956.
The great pressure on interest rates, nonetheless, does not rule out
the possibility that the discount rate will be upped sometime in

addi¬

customers

population- increases.

and

to its being raised

that

recent

important topic of discussion,

very

as

fact

suggestions for changes

annual 2.5%

a

though the uncertainty

or

in

Steady

*

out

sold

a

markets.

money

maturity is
history, there is no let-up in the tight money
The demand for loanable funds
is as large as ever, with the seasonal needs for
money adding to
the heavy pressure which has kept the trend of interest rates

at

Every five
committees

owners

be

Money Squeeze Continues

pages

pages

utility
sions^

pressure

then be used for loans

is

plants, 31
of

November

Prior
an

the

12%

in

f 8%

cities^—the

combustion.
James

in

reports

which

analysts.

Cash will

The high rate for the refunding issues
attrition, but it also means that there is no let-up

these issues

increase
of

Twin

Frederick J. Coombs
Frederick

Reports,"

3.37%).

machinery to collect
suggestions for fur¬
ther revisions of this form, and
they are now proceeding with
such a review program.
The se¬
curity analysts have been asked
to
study the form and send in

crease

BEACH, Fla.—J. Hubert

has

8%

their

ful

to

very

'

substantial.

amount of talk about

ANALYSTS

to

,

important to some
of the maturing 2%s, but it is not believed

owners

be

will lessen the
in

about

bling of electric load in the next

St.

(Special to The Financial Chronicle)

PALM

by

suburbs

1950-55.

the

Howe

customers,

over

been

Cities

There

With Frank B. Bateman

Frank

tical

sales,

was*-about

smaller

FRANCISCO, Calif.—Mar¬
Cory is now with Hanna¬

&

from

came

the com¬
has enjoyed good but not
growth.' The gain in pop¬

Growth

(Special to The Financial Chronicle)

ford

in¬

1955, 42.8%

rural

served

area

Twin

Inc.,

With Hannaford Talbot

J.

In

or

'*-■*

The

themselves

SAN

panies

yield

other

will

money

great deal of condensed data
sists

revenues

and

ers.

Co.,

Montgomery Street.

ion

as

Si

most utility
com¬
prepare
"Annual Statis¬

etc.;

connected

now

such

area,

TO

addition

In

classifications, and 22.2% from
the large light and power custom¬

1930-40

is

but

industrial

Si

stockholders,

allocated

(Special to The Financial Chronicle)

California

system,

and

"depressions

reverses.

electric

pany

First

operating

combination

ulation

SAN,FRANCISCO, CaliL—Ralph

90c,

MEMO

in
oil

metropolitan
operation,
the
com¬
enjoys a diversity of load
gives it substantial built-in

rapid

First California Adds

Phelps, Jr.,

171/2,
Northern States
Power common stock yields 5.1%
and sells at 14.6 times this year's
estimated earnings.
paying

23.8% from small light and power

SACRAMENTO, Calif.—Paul B.
Caton, Jr., is now affiliated with
Walston & Co., Inc., 1020 J St.

With

the

rural

pany

of

(Special to The Financial Chronicle)

L.

the

the1 NSP

of

residential

Joins Walston Staff

of

commercial

a

and

and

in western North Da¬

outside

activity within the
oil refining. 7
As

Glasser

processing

Minnesota

are

limits

Abraham

At the recent price around

and

aids.

affect

Glasser Opens

The company has not yet adopted
accelerated depreciation.

*

Department. This ap¬
pointment is made to replace Jo¬
seph M. Luby, who has recently

Abraham

produce

tized tapes, air

has been Assistant Manager of the

Municipal

laboratories

industries

discoveries

kets.

a

Research

allied

and

issue

the two maturities

corporations, the principal

(effective

ap¬

half the 1955

flour

as

Also,

1 y2 %

the

of

outside of Federal, will take the 314 % tax
anticipation certificates

even

1957

Stephen Brown

North & Co., 1006 Balti¬
Avenue, Members of the

Fitch,

industries

issue.

one-year

all

1

decided

3.37% Yield to Corporations

earn¬

figure, this account¬
milling, food
ing item is expected to recover to
processing,
rfteat
packing,
soy
the earlier level by
bean processing, and linseed oil
1959-60, which
will be favorable. Earnings on in¬
extraction.
Others, .such as ma¬
vested
capital are expected to
chine shops, ordnance plants, rub¬
continue around the 6.1% letfel.
ber tire production and refriger¬

—

nearly

was

the

It is expected that the Central Banks will go in for the 3%%
10-month certificate, whereas,

ings during 1958-60 "should ac¬
celerate," according to President
King. While the interest on con¬

Louis.

own

what

policy which has been in effect.

duce.

C. Sanders & Co., St.

certificate "

price than the

Banks

This will make
compatible for refunding purposes.

also

Stock Equity

trend in recent

314%

maturing next Oct. 1.

is

20.0

r

Total

in

it is easier to
Reserve

just about

was

*

.

been

Federal

—0.3

Stock

Northern

the

4.8

(13,418,408 shares)

has

because

upon

certificates

that the ten-month

43.0%

Wisconsin.

Traditionally^ agriculture

anticipation

reported

was

-

Bonds

Interest

Preferred

end

follows:

as

Bank Loans

Minority

is

improvement

Mortgage

tax

cost

an

While

3y4%

last

Production

13,136.

average

of

miles east and

400

some

souths with ;sthe Twin Cities ^ at
about the cehter,
The company
provides utility i service to about
one-half of &he people in Minne¬
sota, one-fi£jth of the people in
North Dakota, and one-tenth of
the people
South Dakota and

Com¬

W.

installed,

dropped as
9,819 although the

tending

District

John

are

have

generating efficiency.
Capitalization ratios at the

an

west

Missouri

units

per KWH in 1955 was 4.8 mills
for steam and diesel and 1.6 mills

offest

and -1 %

- gas

generat¬

interconnected electrical grid ex¬

men

No.

low in winter

year was

^

main system

the installa¬

steam

new

KWH

from

86%

declined

ing units. At Black Dog steam
plant, where the three largest and

company's

to' NASD's
mittee

recent years with

tion of large

Wis¬

about

are

in

have

costs

modern

1%

was

The June 24 maturity for

money market was looking for. On the other hand, a ten-month
certificate had been talked about in certain sectors of the finan¬
cial district, but at the same
time, a 3%% one-year certificate
has also been the subject of not a small amount of discussion. It

Production

per

from

less in line with expectations.

more or

quirements.

most

with

refunding of the Dec. 1 maturity of 2%% certificates

the

BTU

/ Six
subsid¬
recently eliminated as
plan of system simplifi¬

electric,

in¬

elected

were

less

cellaneous.

other

r

Louis

balance

Company

de¬

are

The

about half the
company's fuel re¬

company

parent

Minnesota,

the

the

area.

were

Newton, G. H.

St.

in

in

subsidiaries.

iaries

A.

million,

revenues

the

and

small

succeeds

serves

roughly half of which is
Twin
City - metropolitan

operations

e

two

some

governors of the National Associ¬

H

Power

about
40,000 square
Minnesota, - Wisconsin
Dakotas, with a popu¬

in

•

States

of

area

miles

Board of Governors

By JOHN T. CHIPPENDALE, JR.

Northern States Power

(headed

Joins Harris,

of

Upham

(Special to The Financial Chronicle)

by

HILLS, Calif.—Wil¬
of
Bache
&
liam D. Hiestand has joined the
will
evaluate staff of Harris, Upham & Co.,
BEVERLY

9860

Wilshire

Boulevard.

With Lakewood Sees.
(Special to The Financial Chronicle)

LAKEWOOD, Ohio—Jean Stir¬
ling Jenkins has become affiliated
with Lakewood Securities Corpo¬
ration, 14714 Detroit Avenue.

32

The Commercial and Financial Chronicle

(2204)

other economies

as

factor

ciency

of

miles

ton

freight train hour
gain of over 100%.

per

31,829 in 1948 to 62,923 last year, or a

Railroad Securities

this

of mounting costs and

era

is

by one or

these

two

atomic

first

The

more

at

Utah

Ogden,

this

In

sought

had

"Denver"

the

action

joint rates with it which would be
competitive as to traffic interchange between the two roads at
their Ogden, Utah connection. The "Denver" claimed that it was
unable to make competitive rates on traffic moving through the
Ogden interchange from points in northern Utah, Montana, Idaho,
Oregon and Washington. After negotiations between the two roads
broke down, the "Denver" appealed to the ICC which in January,
1953, ordered joint rates on eastbound shipments. The Federal
District Court in October, 1954, sustained the ICC order, but re¬
manded the matter to the Commission for certain adaptations.

,such

and

lots—and
is

"Denver"

lots

carload

Vermont!

ments from Georgia and

the

the

moving from

eggs

to

as

a

victory

has led to the up¬
the 1956 full year's

the present year

of

earlier estimates

$5.40

share

per

as

for

against $5.01

the Union

for

;

10

thus

far in the

in gross revenues of only 3.7% for the
first nine months this year, and which is roughly in line with
the gain of the western roads generally, the "Denver" earned
$3.92 per share for the period as against $3.47 for the correspond¬
ing period of 1955.
under-average

Over

the

"Denver" has shown outstanding

longer term the

growth, the trend both of its revenues and of its traffic having sur¬

central
shown

tabulation of the respective indices, based on-

toy the following

1947-49 averages as

100.

Denver

Central

Denver

Class I

Central
WestDlst.

&RGW

Total

——Revenues

WestDit.

Class I

Total

-Ton Miles

—

Board,

Westinghouse

Boshell

O.

E.

expected
increases in the U S. population,
the number of households and the
sonable

Chairman

the

of

Air

As

railroads

of

officers

for

119

113

118

111

114

112

104

102

101

91

1953

132

126

119

117

109

100

1952

128

124

118

119

110

121

118

116

113

111

railway supply industry.

Potential"

1950

99

106

108

103

100

more

viet

opportunity for
growth and progress and profits
for
the
nation's
railroads," Mr.
Boshell, as the Institute's spokes¬
man, suggested that "serious con¬
sideration be given by the rail¬
road industry as a whole to the
setting up of a National Railroad
Economic Research Center;
and
by individual railroads to the

precedented
One

interesting feature in the upward trend of the traffic of
proportion received frem connections has

the "Denver" is that the
tended

hold

to

well

the

above

pre-Korea level despite the
cumulative effect of the installation of new industries on its line
at the average rate

of 78 annually for the five-year period 1950-54.

This rather phenomenal point is
Major New
Industries

1955—

illustrated by the following:
Est

Cars

per year

32

% Tonnage
from Conn.

53

9,385

1954_

66

11,595

52

1953

84

6,020

54

6,863

55

1952

85

nomic

85

9,379

70

7,855

51

The
of

was

largest

installation

Consolidated

of

Western

1955

Steel

was
at

The

the

$8V2

million

Geneva, Utah.

pipe

Second

the

American

dinner

President

is

gaining much from growth it is also
benefiting from constantly improving efficiency.
The 18 new
diesels acquired in 1955 enable the road to operate 99.6% of its
standard gauge mileage under diesel power which is 98.8% of
ton
mileage.
Progressive dieselization .and the installation of
CTC which now covers over 25% of the road's 2,008 miles as well




of

any

years,

asserted.

•-

income"

national

the

re¬

with

the

of

amount

conservative

goods

national

income

the

T.

1955's

for

1960

briefly.

entitled
shown.

This

decision
uate

of

to

a

film

was

portrayed

he

convinced

was

Institute's

economic

re¬

report that America's rail¬

roads have

real future.

a

Basis for Projection

The

report

on

projected trans¬

portation trends, which
ten under the
"

"

•

-

1

*

'

"

»

was

writ¬

direction of Richard
'J

1

«'

M

f,t

(T

'

*■

P "

I

illustrate

To

this

the

magnitude

of

freight movement the report
the

stressed

by

family

one

amounts

of

freight

locomo¬

for

just to "supply"
household.
It ex¬

or

plained that "in
miles

hold,"

but

1900, only

moved

were

by

1955

this

12,300
house¬

per

in¬

had

creased

to
27,000 ton miles per
houeshold and would reach 33,000
ton miles by 1965.

"The

amount
of
total
freight
being moved per household
yearly is equivalent to a loaded
truck-trailer traveling all the way
across
the
continent;
or
to
a
loaded freight car moving 1,000
now

miles.
establish

To

880

billion

its

ton

prediction

miles

of

of

railroad

freight in 1965, the report pointed
out "In 1900, 9,000 rail ton-miles
moved per United States house¬
In

hold.

1955, the figure

ton-miles.

000

The

13,-

was

indication

is

that possibly 16,400 rail ton-miles
will

per household by 1965,
including Piggyback. This would
put total rail traffic at 880 billion
move

ton-miles

in

1965, compared with

billion in 1955."

625

*

With Pan American

and

:

J>

haul

passenger

—an

the

expected

over

30%

ton

-

Pan

American

Two With Maisel Inv.

from

per

car

SAN

increase
can

be

the number of Class I
freight cars required to
render service will be 1,879,000—

achieved,
railroad

some

with

(Special to The Financial Chronicle) ;

annual

an

miles

now

Securities, 561 Northeast 79th St.

1955 total.

"Provided
in

of

increase

is

son

freight
trafic, some 16,000

the

MIAMI, Fla.—Robert F. Robin¬

Freight Car

'active' locomotives will be needed

film

the
college grad¬
railroading as a

enter

the

and

of

June

because

career

"To

Both

Decision,"

1965.

1,100,000 car miles per loco¬

Locomotives

Faricy,

15-minute

A

"June

as
a
whoie may rise from
billion ton miles in 1955 to
billion and 1,766 billion in

move¬

CSpecial to The Financial Chronicle)

and
HolPresident of the

Parkes,
Railway Progress Institute.

that freight

and

we

motive."

total

Association

find

estimates

1,300,000 car-miles- compared with

Railroads,

combe

spoke

hauled

miles

"Car

Needs

William

were

more

tives should, by-1965, account

relate

to

move

facilities.

(or bureau

help

to

requirements

American

by

Gilsonite.
the "Denver"

team

They

system.

than all their domestic
competitors.
At the same time
they pay enough in taxes to cover
government - built competitive

eco¬

an

by

money

only other speakers at the

search
While

of

road

railways

are

traffic, have more capacity, oper¬
ate more efficiently, make more

industry need."

in
$2.2 million loop of the Salt Lake City Pipe Line to
carry crude from the
Rangely, Colo., field to Salt Lake City.
Since this oil field is almost 100 miles north of the road's line,
this pipe line can scarcely be viewed as taking from the road oil
traffic that it might have otherwise enjoyed. Industrial installa¬
tions begun last year and scheduled to be completed in the cur¬
rent year include the anhydrous ammonia plant of Geneva Steel,
the $2y2 million plant of Fibcrboard Paper Products,
the $2
million shale oil plant of Union Oil and the $10 million plant of
size

each

research

company

55

1950__

on

department)

or

1951

mill

creation

for more Piggy¬

of the United
far the greatest
transportation
system
in the
world, being three times as ex¬
tensive ak the second-ranking So¬
"The

Stat*s

"un¬

the needs of this

meet

There will be tre¬

business.

back

com¬

Research Center Proposed
To

business.

mendous pressure

piled by Transportation Facts Inc.,
a
Chicago research organization,
and the staff of the Institute.

97

truck-trailers on flat cars
inevitably attract more and

way

presented
the
recently
completed economic study on "A
Ten Year Projection of the Rail¬
Growth

rail

must

Mr.

basis for the prediction

As

107

103

10

services produced.

ton

freight to comprise 49.8% of the
total of all freight for that year.
Over the road movement of high¬

supply companies attended this
48th anniversary gathering of the

101

1951

122

—

preclude

to

years

moved each year

significant facts and figures
the
10-year projection,
the

"By 1965 the estimate is for

railway

and

on

report listed the following:

Approximately 1,000

tel, Nov. 16.

ahead"

look

national income.

Brake

Company, at the annual Institute
dinner at the Waldorf-Astoria Ho¬

roads'

1954

1955

household

and

consistent enough over the

45

1,291
1,486

A. Rice

"sound, rea¬

establishes its

Rice,

Institute

Richard

Parkes

Holcomb

the

Boshell

&RGW

income

1965,

Railway Prog¬
ress

and

increase

passed the corresponding trends of both Class I and of the
Western District for a number of years. These trends are

economy

ment

of

man

Despite the

present year.

national

most

report

for

y

Chair-

shell,'

ratio—only 39.4% for 1955 as

for all Class I roads—has helped to minimize the
burden of wage increases and, as a result, the "Denver" is one
of the few roads in the West that have been able to show an

against 49.4%

net income

the

in

"Using

Edward O. Bo-

increase in

The report stated "the key fac¬

and

report

b

mar¬

Income and Household Formation

down

29.3%

intermediate

the

ket, the picture could look, much
brighter."
v
•
V

services produced
by the country. Thus, all inter¬
city freight volume moves up and

predicted
comprehen¬

sive

vigor¬

be

runs

of all goods and

So

presented

low wage

longer

ously supplemented by a new, fast
lightweight
service
that - could

"The

1955.

a

the transportation ratio was 30.1% as against
for the corresponding 1955 period and 29.4% for the full

The road's

toward^ 'cruise' " type

for

port pointed out "is the total value

in

of the current year

1955.

trend

trains

radical shift in the next

total ton miles

low transportation ratio and a
characteristics if this road's operations. For the first nine months

year

ful

the

the

carried

curve

one-third

"
; / V';. '<■ '•*.. //V
5 }•'
"Should, however, the success¬

past

freight,
including Piggyback—a whopping
0ver

leveled

growth

about

formation." The relation of freight
traffic
to
both
of these
factors

ly 880 billion ton miles of

41%

at

market.

national

the nation's
carrying annual¬

mmmmm

have

will

normal

stabilized

closely govern the
development of transportation are

years

figures suggest..
low wage ratio are

a

traffic

the

to

and

seems

Within

large proportion of its terminal expenses, as these

result,

a level of 30 billion
miles can be reached

1965,

which

more

Thus the "Denver" is relieved of a

carriers.

off

<

the total intercity common carrier

Industry's Growth Potential
Projected for Next Ten Years

railroads will be

aver¬

load of all passenger trains in

because

'

Piggyback business, 30% rise in "active" loco¬
motives, and a promising railway passenger situation.

for

a

country.)

"By

y

J

(the present

passengers

passenger

This

1955.

on

age

increase of

livered to connecting

type of

no

compete

can

the

Westinghouse Air Brake Chairman estimates freight ton miles
will increase 41% in 1965, there will be tremendous pressure

Indicating the "bridge" or "overhead" character of a large
part of the traffic of the "Denver," 53% of total 1955 tonnage was
received from connections and 31% was "overhead," or was de¬

a

far in

95

by the Denver & Rio

reported

results

good

some

Pacific.

As

where

promising.
and runs

mean
operating pas¬
trains
that
can
make
with an average load of

money

•

tors

Pacific Northwest in

granite and marble monu¬
This highly restricted gain for

of

actually

regarded

plant for what is expected to be the world s

have had to be faced this year.

as

Railroad

reversed on

butter

beans,

areas

would

senger

dominate

Supreme Court.

carload

many

service

This

particularly in relation to what may be obtained on some of
top-grade rail stocks, it is nevertheless Attractive in the light,
of the long-term growth aspects of the "Denver" and in view of
its ability to show a gain in net under unfavorable conditions

appeal, was finally taken to the U. S.
The latter upheld the January, 1953, order of the
ICC, but only in so for as making the joint rates apply to fresh
fruit and vegetables, frozen poultry and other frozen foods, dried
order,

of

the

order requiring

an

construction

actual

and

the Union Pacific to establish

This

country

the

a

thus

of

about

of

lent

7

V

>

are

in

provides ample coverage for the $2.50 dividend rate which indicates a yield of about 6.2% at the current price around 40 Vk.
While this yield in itself is not outstanding in the present market,

created

Supreme Court decision last June.

inherently

There

Net income for this year is now placed at the equiva¬

earnings.

the occasion for the rather celebrated
"Ogden Gateway" case that had been pending before the ICC
and in court for almost seven years until its settlement,by U. S.
at

revision

ward

The connection with the latter

its western end.

relatively

the

for

powered locomotive.

Grande Western

Burlington, the Rock Island and the Missouri Pacific
at its eastern end and the Western Pacific, Southern Pacific and
Pacific

is

tion

award of a contract to Walter

the joint

made

Laboratories

Nuclear

mobile reactor power

between the

Union

of

large scale, provided railroads go
after
the
business aggressively.

Kidde

connecting roads on one hand and
the delivery of this traffic to a terminal road on the other.
The
Denver & Rio Grande Western is such a road, forming a link
traffic

point

air

segment

their

Situation

economic

view, the railroad passenger situa¬

is its recent move to investigate the possibilities of nuclear
source of rail motive power. The road has been con¬

ever,

successive rounds of wage

of roads which is in a specially fa¬

group

Passenger
an

ducting preliminary examinations of this possibility in conjunction
with Baldwin-Lima-Hamilton for some time. More recently, how¬

position. These are the "bridge" roads, or those which are
in a line haul involving the origination of much of

vored
a

one

Railway

v

energy as a

Denver & Rio Grande Western
In

-

..Thursday, November 22, 1956

"From

Symbolic of the constant exploration for new roads to effi¬
typical of the "Denver" in the past several

years

increases there

■

from

ciency that has been

McKEEVER

By GERALD D.

in the overall effi¬

in the gain

reflected

are

gross

.

FRANCISCO,

Morton Schaffran and
Telford

staff
pany,

of

have

been

Maisel

Calif. —E.

Carlyle O.

added

to

Investment

the

Com¬

564 Market Street.

179,000 units above 1955.

"With

operations ex¬
in the Atomic
Age, some 64,000 of the expected
unit increase' might be gondolas
and
hoppers. The remainder of

pected

to

mining

William F. Howell

:

increase

William F. Howell passed away
November 12th following a heart
attack.

Mr.

Howell

was

manager

the increase in the fleet would in¬

of the municipal bond department

clude 40,000

of

cars,

boxcars, refrigerator

tank cars and others."

Hallgarten

City.

&

Co.,

New

York

Volume 184

The Commercial and Financial Chronicle

Number 5588

!33

(2205)

legwork.
swered

Securities Salesman's Corner

Put

ads, called

quotes

and

holder

lists

the daily

DUTTON

By JOHN

good
and

Some
If

intend

you

Prospecting Ideas

keep

to

the

your

clientele

ter

customer

for

advice

than they do for you. It happens!
New
salesmen
in
the
business

Direct

and

press,

send

offering

specific

often

are

mem¬

asked

by

up

for

them

100.2%

or

Mail:

Don't

idea.

phone,

by

keep at it.

has

been

built

all it takes is

a

and

overlook

plain old-fashioned headwork and

the

means of

expanding

circle of"

your

potential clients-

Clubs,

Lodges

ganizations:

that

are

and

Pick

people in

your

possible.

For

such

cellent.

one

of

Commerce,

organizations

Rotary,

are

or

ex¬

visit,

basis

common

church

570,000 estimated assemblies,

yourself

useful,

active.

You

grade

and

favorable

back

and

to

friendships, and

JUST
TO

FOR

A

MEET

Don't

make

to

the

on

sit

lot

a

DON'T JOIN

SELFISH

MEN

YOU

CONVERT INTO CLIENTS,
BUT BECOME A PART OF THE

month's
t>98

ORGANIZATION AND COOPER¬
ATE.
and

The
you

contacts

follow

develop

some

1.9%

Special

Situation

have

you

and

offer them

you

tion

which

profitable
have

Radiation:

satisfied

some

some

for

is

Industry

time

have

satisfied

done

business

ask

client.

It

is

with

surprising

customer,

a

dividend

and

is

this

you

obtain

can

Good

source.

send

you

to

In

birds

of

feather

a

flock

and

together.

Be alert to those who wish to

co¬

operate—they have friends whom

they also desire to have the bene¬
fits
you
have helped them ac¬
quire.
Insurance Men, Accountants and

Lawyers:

Cooperate

with

a

good

in each of these fields.

man

Send

them

prospects

that

and

leads

you

names

to

some

of

When

a

good

situation

along
show

where

issues,
of

some

and

market turn

give

radiation

them

the

when

also

are

any

worthy

cen¬

you

of

and

your

take

on

vestments
to a

A

layman.

TIVE

people who will

t or

accountant's

where to go to buy in¬
when they won't listen

FRIEND

IF YOU CAN HAVE

OR TWO IN AN AC¬

COMMERCIAL BANK

will

also

this

contact

also

many

lawyer's

a

advice

are

ways

be

able
for

and

to

capitalize

leads.
means

There
of

you
on
are

earning




way

t*

reported

Jan.

week

the

for
1

tenth

rated

ended

consecutive

a

week

reeord.
ran

fraction

a

capacity, this trade magazine reported.

Nov.

18,

steelmaking scrap rose to $61.50 a gross ton, a
record. It jumped $2.33 over the composite of the previous week
and upset the Sept. 19 record of $59.67. A year
ago, it was $45.67.
Continued good business se.ems assured for 1957, the metalworking authority declared. Backlogs of manufacturing industries
at

Last

Stable

on

labor

talks

relations

are

until

come

aren't

scheduled

ahead

and

the

next

One

oil

of

the

major

for steel.

requisites

Demand

for

is brisk

price

and

of the tense international situation.

industries and

New

others

strength

may

even

is

a

strong

strengthen be¬

It will spur

Last

plates

faster

taken

out

are

cars,

deliveries,
of "moth

increased

an

needs.

especially

balls"
one

rate

and

for

readied

of the steel

of

repair

shipment

for

to Navy
service.

ships

car output rose above that of the previous week
while truck output rose by 969 vehicles during
corresponding week last year 179,250 cars and

the

assembled.

were

Last week the agency

in

United

the

week and

States.

27,286

reported there

were

22,159 trucks made
in the previous

This compared with 21,190

a year ago.

Canadian output last week was placed at 7,660 cars and 2,103
In the previous week Dominion plants built 7,245 cars:

trucks.
and

1,609 trucks and for the comparable 1955 week 6,109

823 trucks.

cars

and

;

,

Business
Commercial
week

ended

Failures

Nov.

from

15

Bradstreet, Inc., reports.
similar

the

last

week

All

the

of

under

week

and

35

more

declined

slightly

a

and

failing

Failures

rise

240

to

in

the

preceding

week, Dun &
exceeded the 214 in

the toll
208 in 1954,

it

remained

22%.

in 1939.

occurred

failures

among

involving

climbing to 56 from 25 in the previous
ago.
Casualties with liabilities of $5,000 or

year

184

to

179

Liabilities in

week's

increased

the

$5,000,

the

above

in

Although

year

week's

liabilities

Moderately Higher

failures

219

the prewar level of 308

below

1955.

Point

industrial

and

from

of

excess

concerns

edged

up

as

194 last week, but they continued
this size in the comparable week of
of $100,000 were incurred by 11 of the

against 21 in the preceding week.

during the week in all industry and trade

commercial service which dipped to 15 from 18.
toll increased to 41 from 38, retailing to 116
112, wholesaling to 23 from 15 and construction to 45 from
except

groups

The manufacturing
from

More businesses failed

36.

sale

trades,

in

and

most

ties

among

and

those

than last year in the retail and whole¬

construction.
in

noticeable

was

The

construction.

rise

On

from

the

the other

of service

concerns

level

1955

hand, casual¬

manufacturers declined

moderately from
dipped slightly.

a

year

ago

products in strongest demand
has been unable to fill the

1955.

\

operating rates remained at

Mid-Atlantic,

107.5

in

Buffalo,

95.5

102% of capacity in the

Iron

Reversing

and

Steel

Institute

three-week

a

decline,

wholesale

the

food

price-

index, compiled by Dun & Bradstreet, Inc., advanced to $6.01 or»
Nov. 13, up 6 cents from the seven-month low of $5.95 recorded
a
week earlier.
The index compares with S6.04 a year ago, or a
0.5%.

drop of

Commodities

wheat,
oil

rising in

wholesale cost

last

week

were

flour,

oats, barley, hams, bellies, lard, butter, cottonseed
potatoes. Lower were rye, coffee, eggs, steers, hogs and

corn,

and

lambs.

announced

index represents the sum

The

31

raw

total of the price per pound of

foodstuffs and meats in general use and its chief function

is to show the general trend of food prices at the wholesale

level.

Commodity Price Index Held to Moderate
Uptrend of Preceding Week

The general

commodity price level continued the mild upward
previous week. The daily wholesale commodity
price index, compiled by Dun & Bradstreet, Inc., registered 296.43
on
Nov.
13, as compared with 294.32 a week earlier and with

movement of the

274.69

in

Birmingham, 87 in New
England and 109 in the Far West. They were up 3 points to 104%
in Youngstown, 0.5 point to 101.5 in Wheeling and 2.5
points to
96.5 in Cincinnati. They declined 1 point to 106% in St. Louis and
to 100 in Detroit.
From revised rates of the preceding week, they
rose 4 points to 103% in Cleveland and 0.5
point to 100 in Chicago
but declined 2 points to 99 in Pittsburgh.
American

Higher Following

A Three-Week Decline.

Wholesale

By the end of this month, the mills will have shipped as
of plates this year, despite the steel strike, as they did

District

Wholesale Food Price Index Points

being

many tons

The

In

27,286 trucks

will

among

Plates have been
and

week's

the ship and

feel the impact.
the first products to feel the effects of
the international tension, the publication noted. There is
press ire
Steel

for

132,087

13,522

by

big contract

1958 when the auto pacts expire.
until 1959.

v
While business will be good, pressure continues to build up
for steel price increases. In the week ended Nov. 14, the magazine's
finished steel price composite rose 18 cents to $137.66, reflecting
the Nov. 1 rise in tin mill product
prices.

demand

the

industry assembled an estimated 145,609 cars,
(revised) in the previous week. The past
week's production total of cars and trucks amounted to 167,768
units, or an increase of 14,491 units ahead of the preceding week's
output, states "Ward's."

a

opening doesn't

cause

week

all-time

an

production by

steel

for the latest week ended Nov.

compared with

high and new orders continue to run ahead of
significant amount. To support this higher level
of activity, manufacturers have started adding to inventories.
are

.

16, 1956, accord¬
ing to "Ward's Automotive Reports," was the strongest since midJanuary climbing to a 600,000-unit monthly rate.

^

are continuing to strengthen.
Freight
following a seasonal decline. With the auto indus¬
to solving its production and supply problems, the

plants

their

the

in all of

recommendation.'
There

^

production

a

they produced 2,474,202 net tons of
steel for ingots and castings at 100.5% of capacity and in the pre¬
ceding week, they ran at 101%.
The steel scrap market shows expectations of continuing the
high rate of steel production. In the week ended Nov. 14, "Steel's"

benefits

available.

Help those who will help
who

benefit,
are

little stock for

best

your

ters

comes

attractive

very
a

of

a

can

If there

save

friends,

your

they

it to them.

oversubscribed
new

and

keep them advised
have mentioned their

constantly

are

price composite

can

other* people,

the

above

from

customers

on

Steel

pleased1"

are

loadings

try

the job you have done, then
after some names.
The best

leads

.

setting

' v:

•'

„■

Strength Since Mid-January

Expected to Operate at

increases should overbalance the decrease to set

with
go

of

v ' "

national

car

substantial

some

income

verge

V

k

a

output and auto production

when he

or

the

on

:

Output in Past Week Registered Greatest

Car output

At present, steelmaking is holding steady, while electric power

ing new accounts. People do not
of offering you
names
of
friends, but they will do so if you
remind
them
at the
right time.
When
you
have
made
a
good
received

and

a preliminary figure of 162
(1947-1949 = 100).
previous week it stood at 161 and a month ago it was at 155.

The

think

has

U. S. Car

corporations totaled

week of Nov. 10 with

a

how few investment salesmen use
this practical method of obtain¬

profit for

is

magazine

The

same

to

new

record,
on Monday last.
metalworking weekly said that its industrial
production index which is based on steel output, electric power
output, freight car loadings and auto assemblies is just two points
shy of the all-time high of 164, set last December.
The index reached the high mark for this year
during the
"Steel"

other contacts than after

some

you

better

no

1956,

99.8% of Capacity

opportunity.
There

Motors

a

of their friends who

might also like to have the

of

:

.

the week.

Steel Production This Week

investment, after you
them, ask them if they

sold

know of

American

If

clients

will be

%,

•

at

120,gain of
the 117,955 recorded in the corresponding 1955 period.

over

production

Loadings for the week ended Nov. 10, 1956, totaled 772,761
cars, a decrease of 19,281 cars or 2.4% below the corresponding
1955 week .but an increase of 64,012
cars, or 9% above the corre¬
sponding week in 1954.

than October. The

more

record high for the period

a

good situa¬

a

believe

you

months

10

101.2% and pro¬

weekly

Loadings in Election Day Week Ended Nov. 10,
Dropped 3.4% Below Preceding Period

ports.

9,583, Dun & Bradstreet, Inc., reports. Compared with 10,concerns
listed
in
October
last
year,
there was an

the first

was

the actual

Output Registers Further Gains the Past Week

a

This represented

ago

or

revenue freight for the week ended Nov. 10, 1956,
Day, decreased 27,511 cars or 3.4% below
preceding week, the Association of American Railroads re¬

new

238.

of them into worthwhile accounts.

year

1956

of Jan. 1, 1956.

Loadings of

increase of 7.9%.
In

then

can

will

A

as

in

weeks

the

which included Election
the

building itself is pointing towards

bright 47%

a

'

Car

sharp decline in corporate activity that occurred in Sep¬
tember was entirely erased in October when the number of new
business incorporations rose 20.5% to 11,546, from the previous

CAN

for

power

in -1954.

Industry

The

DESIRE

WHOM

by

rate

distributed by the electric light
industry for the week ended Saturday, Nov. 17, 1956;
was estimated at
11,589,000,000 kwh., an increase above the week
ended Nov. 10, 1956, according to the Edison Electric Institute.
and

work

strike at the bumper supplier in Chicago,
Planning sharp increases over last week were
Buick and Plymouth, each with nearly identical
12,500-unit vol¬
umes, plus Oldsmobile and Mercury.
Ford and Chevrolet, meanwhile, continued their near-tie battle
for 1957 model weekly production honors.

can

with

closed

production

month ago the rate

a

tons.

"Ward s" reported.

top

you

basis.

expect

output,

and

some

whom

work

most

of

meet

too

men

associate

cooperative

will

car

estimate is 76% of the year-ago level.
Setbacks noted last week were centered

nity congregate; become a part of
these
organizations
and
make

for; castings as compared with
(revised)
week ago.

The past week's output rose
67,000,000 kwh. above that of the
previous week; it increased 440,000,000 kwh. or 3.9% above the
comparable 1955 week and 2,272,000,000 kwh. over the like week

"Ward's" said November

groups,
Kiwanis, etc., wherever
successful men in your commu¬

equivalent t»

The amount of electric energy

far.

so

2,491,000

Electric

and

sense

.

The State of Trade and

fashioned

of 99.8%r

average

1956,

100.1%. The operating rate is n©*
comparable because capacity is higher than capacity in 1955. The
percentage figures for 1955 are based on annual capacity of 125,828,310 tons as of Jan. 1, 1955.

.

the

men

an

19,

capacity of 128,363,090 tons

week

placed at 2,416,000 tons

was

5

page

like

the

duction

on
overtime serving to cloud the lack of general strength of the
industry's daily-rate of operations.
"
However, the outlook for immediate weeks ahead, according to
the statistical agency, is one of improvement, with the
industry's
1,000,000th 1957 model car completion being scheduled for the clos¬
ings days of November.
Some 772,000 of the cars have been

if

group

younger

Join

Or¬
two

or

successful

age

own

Junior Chamber of

other

Other

out

composed

from

steel

clientele

a

determination

intelligently.

beginning Nov.

and

ingot

annual

on

For

must also find

ways and means of
meeting people, who are potential
investors, on a favorable basis. Continued
Here are some tried and tested{

industry will be at

week

ingot

industry's

is based

Then follow

this

on

some

entire

the

serv¬

personal

Many

the

for

of capacity, and 2,466,000 tons

The

special

some

investment

and

what to do with invest¬

on

service, from stock¬
available, or from

letter

for

capacity

if

and present an

ments.
Build your contacts care¬
fully and solidly in these areas.

else

someone

and

of

2,458,000 Tons *of

Come to the point. Don't
gen¬
eralize.
Make
your
letter short

good-will of important

friends

capacity

office for

your

ice.

bers of your community who have

healthy you must con¬
stantly add new customers. Peo¬
ple leave your community, .they
die, they sometimes become a bet¬

good list together;

a

of prospects. \yhp, have an¬

names

on

Most
continued
Middle

the

to

and

be

scored
focused

corn

oats

in

the

operating rate of steel companies having 96.1% of the steelmaking

advances

the unsettled

last

week

as

attention

political situation in the

the

cash

grain

markets

were

very

irregular.

and soybeans finished substantially higher while rye

were

up

of wheat and flour

that

further
on

East.

Trends

Wheat,

corresponding date last year.

grains

slightly
as

above the prior week's level. Exports
estimated at 42,-

wheat during October are

Continued

on

page

34

34

The Commercial and

(2206)

Continued from page

Continued

33

from first

financial Chronicle

of great

are

page

Thursday, November 22, 1956

.

their

to

importance not only

holders

but

also

economy at large in that

to

they

the
pro¬

vide a* substantial - share of the
Timds needed to sustain public and
private investment activity.
an

offset to ever

000,000 bushels, as compared with 34,000,000 in September and
11,000,000 in October, 1955. , For the Juiy-Octoner period wheat

nomic progress to new heights has
been
achieved
without
the
re¬

in

the

81,000,000 last season.

troubled
the
economy from time to time in the
past.
The business downturns of

quarter

faction from the fact that this

exports totalled 160,000,000 bushels against

Agriculture estimated this year's corn
largest on record, and compar¬
ing with 3,241,536,000 bushels produced last year and 3,084,389,The

000

Department

of

at 3,412,183,000 bushels, the

crop

for

the

(1945-54))

10-year

the

toward

higher

moved

prices

strength in London, dealer buying and also

and totaled

Warehouse stocks of cocoa continued to drop

of 1957.

developed

325,672 bags against 331,421 a week earlier.
Coffee
easiness in the actual market, reflecting weakness

in Colum¬

some

bia

reach

dock workers mignt

the

and

prospect that the owners and
agreement on a new contract.

an

Business

hard

in

wheat

Winter

that

continued

flour

small

in

volume, with bakers and jobbers inclined to draw upon balances
and to make only limited replacements- for immediate and nearby.
raw

sugar

prices

were

continued to
the improving statistical position.
market

sugar

somewhat

strengthen,

the
by

but

easier,

largely

aided

1949 and 1954 in the United States

in

were

mild, and in Western Europe
fully as good,
or
even
better.
Moreover, our
prosperity today stems from a
broad expansion in the production
of tangible goods rather than a
speculative marking up of com¬
modity prices, as was the case im¬
mediately after World War I, or
of common stock prices, as in the
late 'twenties. So far at least, we
have remained fairly free of the
kind
of speculative fever which
so often in the past has led to the

markets
upon

Lard prices made fairly good gains last week although live
hog values were inclined to sag, under the influence of heavier

Lambs declined, while steers were generally steady

marketings.
to

strong.
Spot cotton prices strengthened last week under buying in¬

fluenced

tensions and uncertainties in
the international situation.
Other supporting factors included
the prospect of a smaller crop next year under the soil-bank
program and the high rate of sales in the disposal of surplus
primarily

stocks under

by

•

this

year's cotton yield

13,153,000 bales of

at

ginnings for .the

season

equivalent

9,709,000 bales,

to

to

Nov.

500

pounds

1

reported

were

of the indicated

75%

about

at

1956

crop.

Trade Volume Stimulated in Latest Week

by Veterans'

Day Sales Promotions.
Responding favorably to Veterans' Day ■ales promotions,
shoppers increased their buying of men's apparel, linens and
..'furniture.
There

was

to expand,
The

slight decrease in purchases of major appliances

a

and television

While volume in

sets.

the call for used

total

dollar

cars

volume

of

automobiles continued

new

was

retail

in

In

the

period ended

Wednesday of last week was from 2% below to 2% higher
than a year ago, according to estimates by Dun & Bradstreet,

the

Inc.

Regional estimates varied from the comparable 1955 levels
by the following percentages: New England 0 to +4; East and
to

'+2; Northwest —3 to
+1 to +5.

+3; Middle West —2 to

Southwest—4 to 0 and Pacific Coast
Haberdashers

reported

noticeable

rise

in

+1;

the

buying of
shirts, sweaters and neckwear, while volume in top¬
coats and suits advanced appreciably.
There was an increased
call for boys' apparel. Women shoppers boosted their purchases
of cloth coats, suits and sportswear, and volume
approached that
a

of last year.

There

in the buying of tablecloths, linens
and blankets the past week with the call for curtains and floor
coverings high and steady. Furniture stores reported increased
volume in upholstered chairs and dining room sets.
was

Sales of

equipment

an

television sets,

fell

similar 1955

somewhat

refrigerators

and

were

and automatic laundry
slightly below those of the

bors

and

volume

gifts,
in

and

housewares continued to sell well,
and
building materials declined

hardware

noticeably.
increased call for fresh meat and
eggs, sales of poultry and cheese remained at the level of the
preceding week. Purchases of butter dipped somewhat. Interest
an

canned

goods and fresh produce decreased, but volume
frozen citrus juices and vegetables climbed
considerably.

in

-

-•

Although attendance at the major wholesale centers rose
last week, the total dollar volume of wholesale orders remained
at

the level

parel

gifts

of the

and

previous week. While, orders for Spring ap¬
furniture expanded somewhat, transactions in

textiles and food products fell moderately. Wholesale trade
moderately exceeded that of the comparable 1955 week.
some

Department store sales
„

on

a

country-wide basis

as

taken from

the Federal Reserve Board's index for the week ended

Nov.

10,

1956, dropped 3% below those of the like period last year. In the
preceding week, Nov. 3, 1956, a decrease of 3% was reported,
for

the

four

recorded.

3%

weeks

ended

Nov.

For the period Jan.

10,

1956,

a

decline

of

1, 1956 to Nov. 10, 1956,
registered above that of 1955.

was

2%
a

was

gain of

Retail trade volume in New York last week advanced
9% to
a year ago, due in large meas¬
ure to Veterans' Day
promotions, which are customarily consid->
ered* an important sales incentive.

11% above the comparable period

According to the Federal Reserve Board's index, department
store sales in New York City for the
weekly period' ended Nov. 10,
1956, decreased 7% under those of the like period last year
In
the preceding week Nov.
3, 1956, a decrease of 6% (revised) 'was
recorded.

5%

was

For the four weeks

registered.

the index recorded

period in

in

and

friends

overseas

are

expanding economy
Furthermore,

an

these

outlays for more, and for
efficient, productive facili¬

more

ties

help provide the basis for a
continuing
improvement in the
physical well-being of our people.
It hardly seems neecssary to stress
we

economic

achieve

can

growth and a rising standard of
living only if business enterprise
is able to improve its efficiency
and
productivity rather steadily
over

the years.

By this, I do not mean to suggest
that outlays by governments on

highways, flood control, schools,
public buildings in general, and
many other purposes make no di¬
contribution

rect

welfare

to

or

to

our

our

national

standards

However, let

us

of

not lose

sight of the fact that the where¬
withal in terms of labor, mate¬
rials and money for these projects

efficient

The

ma¬

of

a

they

ahead

and

their

putting
to

*

them.

serve

War

intent;
States
facilities in
are

-

>

expansive trend lim¬

ited to investment iir factories and

1955.




ending Nov. 10, 1956, a decline of
For the period Jan. 1, 1956 to Nov.
10, 1956
rise of 4% above that of the
corresponding

a

s

not

only output in the ag¬
but output per manhour

gregate

at

Several potent forces seem to be
work to maintain capital in¬

vestment

at

a

high

relatively

level in the years ahead.
Spending on research and devel¬
average

opment continues to increase
after year,

spreading
but

also

year

resulting not only in a
flow of new products

in

a

more

rapid rate of

obsolescence in
ment.

productive equip¬
At the same time, competi¬

tion acts
ful

constant and power¬
inducement to business man¬
as

a

agements to imorove and modern¬
ize

their facilities. Moreover, ris¬

ing wage rates

are

putting

agement under continuous
in

the

present

man¬

—

environment,

and,
per¬

haps excessive—pressure to- seek

Since

dollar

1939
has

the

lost

United

approxi¬

countries, where the currency unit
building, has
depreciated
considerably
high activity,
more. Most of the decline in the
is still fairly strong; construction
value of the dollar was clearly
of public projects of all kinds has
attributable to war; it occurred
been increasing rapidly and the
either
during
and immediately
outlook is for substantially higher
after World War II or at the time
outlays over the years.
This is
of the' Korean War boom. Wars
clearly the trend in the United *:
inevitably breed
inflation,* and
States, and a Vigorous boom in
both World War II and the cop-.
building and construction appears
flict in Korea have reaffirmed this
underway also in Canada, in parts
rule.
/
; :
of Europe, and elsewhere in the
machines.

Residential

.

world.

Peacetime Inflation

Underlying this upward course
individu¬

More recently,
however, after
several years of general stability
business and'governments is
in
the
price level, inflationary
the worldwide upsurge in popula¬
pressures
have again begun to
tion
an
upsdrge that has far
make themselves felt, this tithe in
exceded the expectations of the
association with a rapid expansion
experts.
In
the
United
States
of our peacetime economy. These
alone, it is now estimated that
population over-the* next 10 years < inflationary pressures have obvi¬
will increase by some 28 million— ously been more moderate tnan
about as much as the present pop¬ those generat'd by war; neverthe¬
ulation of Canada, Norway and less, they have been rat.ier per¬
Sweden combined—for whom the sistent, especially since the middle
of last year. Price increases have
economy will havejto provide ad¬
of capital investment by

als,

-

—

been

widespread and significant—
disturbingly so if they are inter¬
preted as part of a continuing
trend. The so-called cost of living
above
the
prewar' level
and,'
index has risen around 2% since
thanks largely
to the achieve¬
ments of medical_science, more mid-1955, with all of the incr» a£e
people are reaching a ripe old age. * taking place during the past few
This tremendous growth in world months, and prices at the wno<«-

^ervices of all
everywhere
the
number of births Is^ substantially
ditional goods and'

kinds.

Almost

population shows, no signs of tap-. saie level show a rise of some 4%.
ering off so far; rather, it is likely, Furthermore, prices of goods other
to provide a dynamic impetus to- than farm products and foods nave
the world economy for years and advanced about 5 }/z %; the price
decades to come.
picture would have
been even

disquieting in recent years
for a large drop

more

The Problem
It

if

would

be

of Inflation

indeed

:

had

comforting

the

prospect of generally high
rising level of capital invest¬
ment over the long-term could be
taken as an unfailing guarantor
of continuing economic progress,
requiring no further effort on the
part of the public at large. Unfor¬
tunately, despite the good record
of
the postwar
decade and the
generally
satisfactory
state
of
and

in many major

business here and

countries

abroad, some trouble¬
some
problems have yet to be
solved. This is hardly surprising,

since

regarding the
functioning of our economy is still
rather limited, and the doctors of
knowledge

sometimes

economics

diagnoses.

conflicting
even

more,

when

the

on

those

economic

arrive

at

portant

practitioners

interest is both
direct. My institution

and

and

in

it not been

prices of agricultural products

—a

drop which has moderated the

price increase but has
problems of its own for

general
created

the farmer and for industries de¬

pendent

prosperity.

farm

upon

Inflationary

pressures

my

holds several billions of dollars

in

not

are

limited to the United States; they

being felt virtually throughout
free world economy, and in
several countries the recent price
rise has been greater than here at

are

the

These

home.

direct

the

pressures

appear as

consequence

the

of

strength of economic activity the
world over. High levels of capital
investment lead to large demands
for

credit, while public pressures

call for large government outlays;

Further¬
shortages of basic materials
occasions tribute to

discussion, but the, subject is im¬
keen

well.

as

II.

after many years of

sector

crease

Inflationary

' mately one-half of its purchasing
power, and yet we have done well
in comparison
with most other

ultimately out of the pri¬ agree, the prescribed treatment
of the economy. That may be distasteful to the patient
is why it is so tremendously im¬ and the medicine bottle may stayportant for business enterprise to unopened in the cabinet.
Perhaps 'the most vexing eco¬
have the incentive, the means and
the
opportunity to develop new nomic problem tbday is that of in¬
products and services, new proc¬ flation. So much bas been said
esses
of
production, new plants about inflation * in recent years
and new machines that will in¬ that I am reluctant., to add to the

vate

origin.

have been gaining ground
throughout the world ever since
iiie beginning of large-scale de¬
fense preparations before World

larger

see

problem of inflation is not

recent

forces

comes

While grocers reported

in

our

enjoy

comfort.

week.

Glassware,
while

upsurge

States,

higher labor costs

more"

unlike conditions

future;

Nor is this

in the years ahead.

that

men's dress

Expansion

foreign countries as well,
the upward push to the economy
is being provided currently by a
sharp expansion in spending by,
business on plant and equipment.
The rapidity of the increase is not
without its problematical side—I
shall come to these problems in
a moment—but the important and
encouraging feature is the wide¬
spread rise in business confidence
evidenced by these ambitious ex¬
pansion
programs.
Such confi¬
dence Is essential if we, our neigh¬

on

South —1

of

United

many

to

unchanged.
trade

boom.

Sinews

weight, or slightly below the previous month's forecast of
13,268,000. It compares with 14,721,000 bales produced last year.
Total

economic

report, the Department of Agriculture esti¬

gross

fantastic

and

heights; reports from abroad, too,
are
reassuring
in
this respect.
Thus, not only has economic
growth in a great many countries
been dynamic but it has resulted
also in a prosperity which, with
all due caution, may be accepted
as being much more "real" today
than in some previous periods of

the government export program.

In its November

mated

continued

exorbitant

to

ues

the

readiness
.

of carrying financial val¬

purpo.se

of

And,

century
ago,
business
managements throughout the free
world are displaying strong faith

have

abuse of short-term credit for the

Domestic
world

use

chines.

the record has been

average.

close, aided by
purchasing for Euro¬
pean
account.
Manufacturers were reported to have bought
moderate quantities for delivery in the first and second quarter
Cocoa

lapses

eco¬

con¬

rising prices; full em¬

ployment makes it fairly easy for
obtain

to

labor

large

and thus the

creases;

wage in¬
wage-cost-

price spiral persists.
world

free

j
members of

the

Consequently,
the

economy

share.a

problem, that is, how to
a reasonably stable price
level in order, to help attain the
common

maintain

goal, which is sound eco¬

common

nomic

For should infla¬

growth.

tionary pressures get out of
I

—and

pension funds, trusts and estates,,
the benef iciariak of which number they

not

am

are

suggesting

hand
that

out of hand as yet—the

thousands. The. prospects for sustained economic
great majority of these benefici¬
progress would be seriously
aries are past working age; they
'dimmed.
Instead,
the economy
depend upon, us to, provide them would undergo heavy stress and
with the funds tliey need to main¬
strain and face grave problems of
tain themselves^ in -their retire-,
correction
and
realignment
at
ment. We are, therefore, directly

in the hundreds jof

operat¬

some

future

ing in the economy that will de¬
the effective purchasing

ment

of

concerned with the'forces

date.

The

inflationary

contain¬

pressures

is

termine

the benefinpayments w^
shall be making in" the future. In

power of

addition, of course* none of us can
afford to ignore the effects of in¬
flation upon such other savings
media as life insurance, savings
bonds and

savings-deposits, which*

assuredly

requires

a

formidable task, and

concerted

least three different

action

ly, by way of credit policy,

policy and wage policy.
like

to

make

a

few

of

at

kinds, name-;

fiscal

I should

observations:

Volume 184

Number 5588 ...The Commercial and Financial
Chronicle

(2207)
the

on

of

use

each

of

these

measures.

capital

investment

and

economic

activity.

*

in

comparison

the

to

'.of the budget or

-

of

size

either

the economy,

United

States

elsewhere

and

is

feeling the effects of the low

now

; Moreover, the Federal Reserve
has not reauced the supply of bank

: '

Moreover, the labor force

35

will be

augmented in the years ahead from

In many countries, deficits include level of births in the'thirties; that the rising births of the '40« and
^
^
loans to business^ or to national- labor unions have an effective this'should
£he.most widely employed anti- reserves, but has merely held them ized industries, and in most cases monopoly over the labor supply of labor inhelp ease the shortage
many parts
of' our
inflationary instrument today is
substantially to their level of early the deficits are being financed in important industries; and that,
economy.
v
indubitably credit policy. In the -1955, before
inflationary pressures without large or growing recourse in a period of full employment, of
United
Crpdit

Pnlirv

.

.

.

States, tne Federal Reserve

for well

lowing

over

a

has been fol-

year

policy of credit restraint
designed to curb the expansion of
a

became active. Had the credit authorities provided the banks with
additional reserves
sufficient
to

enable

bank loans by limiting the volume-

or

of. reserves available

tion

mercial banks.

to

the

com-

Other major coun-

tries in the free world

have

policies,
although the techniques and devices
by which credit restraint is made
effective

vary

Some

from

country

countries

greater

loan

to
di-

use

of

place

ter. In the present period of peak wage increases rather than subliqurda-/production and employment, gov- mit to a work stoppage. Another
securities by ernments should be accumulating complication is that wage patterns

the

government

banks,

interest

rates

fairly

would

discussion

upon

with

bank

would

objective

is

the

limit thp pvnansinn

nf

inflationary

in
in

loans
loans

ennttni
continue

—in
in

na<=t
past

fart
tact,

in
in

the
tne

12
iz

J

ri
rise

tn
to

that

than" iio"

hillinn

sustained^
does not

mean

has

.ion

tf

~"However "this

nan

been had

the Federal Reserve

thbrities

been

their

policy.

offer

less

personal

au-

restrictive

On this

even

point I

testimony:

in
can

I

can

both, have prevented fiscal
from making the contribution

to

moderate

borrowing

plans

customers

pains to

unduly

and

of

of

some

taTen

have

weed

exuberant
our

great

loan

when

at

rpnord

heights^nd'HrJin^/the'con-

tion.
tion,

the
e

of

use
use

This

restrictive

wherever

increasingly selective
lending operations, but

our

have

kept

credit

available*

in
we

for

?°-,u"d...an,d...?roi"cUv!_ P.urP°?fs
" *!
and
have made
i,

,

.

a-

we

complex

expansion
in

that

as

u

an

but

of the

n>y .OTtb.1

United

opinion

mate

requirements of small busi-

wa8es

arid

' *

The

has

creasing—and fortunately
the

result

have
of

drastic

a

financial

imnairr^cnf

the

ever,
u
placed

well

and

banks
-oaims

Reserve

unaer
unucr

has

pressure

tnur

quence,

has prevented

sion

the

thermcre,
credit

How¬

holaings of Govsecurities and, in conse-

ernment

of

Serious

production.

Federal

wits
the

to-reduce

I

has

banaing

suspect

resulted

of

an

expan-

supply.

money

fnot

in

that

available

reduction

funds

infiatmnnru

in

available

the

to

amount

carry

of

common

no

minor contribution:

tainly the situation would be

cer-

more

available

for

mariS

stock

speculation.
Criticism

of

Federal

Federal

theless

been

Reserve has

subjected

erable criticism

to

none-

conoid-

in recent montns.

The Federal Reserve has been
cused

of

sharp

increases

engineering
in

the

ac-

fairly

interest

is

rrpdi't

limit- thA

rLit7iIp!l!pnt

tn

+vf
H
tnat^ can pe iinancea
out >f saving, we may^succeed m
Skimming some 01 the froth Oft
.

+

™

t

cyclical^ mvestment strains,
booms.
relieve peak

Tbis would

•

o

>

—

nt ennditirm*
nf

have

do

generally
<*Ju.y
are

this

has

enncider
tntal

s

been

the

again

case

in the current period. This
means,
in effect
that business and the

general
cash

public

holding lower

are

balances

putting

to

some

of

work
the

more

thereby

effects

of

restraint

s^m

of

uujicBa

uuugci

and

u

nr

ductiyity increases. While the fisin

this

country

has

Federal

1955 would

policy,

the

task

savings
Bctvinga

economic

T

the Treasury

been able to achieve

a

more

com-

fortable budget position,

everywhere
cvci^wncic

.

.

..

surveying

Federal Budget,

un-

seem
scciu

.

ence

world situation, some consolation may be derived from the observation that

a-

•

record

in

economy
J

of1 the

the

past
p

" .*V —~

-

swtsyaB srsc
ductive labor force; the American

people,

despite

the

discourage-

Continue to^ve^nYinvesfhuge
amounts year after year.
he

to

near

£•

the

en

We ap-

thre<?hnlH

of

an

thr®stl0|d
an
promises great poten

u

•

all
ail

anticipate today,
but
I
firmly believe we have the vigor
to

persist-

chronic
2

of

inflation

American
to

gradual
part

as

way

of life.

3%

annual

I

in

' onti^i

k

optimistic

am

to

policy to reduce inflationary pressures arising from
other sources.

The

third

develop

sound

wage

policies.

Of the three devices

aporopriate
policies—
perhaps the most critical, but also the most difficult to
employ. The aspiration of wagewage

everywhere
earnings, which

earners

real

or

for
means

combat

to

the outi0ok,

n(ft

venture

give

to

a

round

of
is

ris-

wage

of

and price

admittedly dif-

ficult to foresee an end to the
sPiral in the immediate tuture.
Nevertheless, this uptrend in business and Prices has a11 the characteristics of a cyclical advance
which is not ljkety to persist in-

ageable proportions.

P

Angeles

Mr. Miller

was
Secu-

Columbia

^'

Mr. Pandzic

was

c

Dempsey-Tegeler

ANGELES, Calif.—Joseph
7

and

Harold

become

U.

Thomas

associated

with

Dempsey-Tegeler & Co., 210 West
Seventh

Mr.

Street.

Kudzia

was

formerly

with Marache, Dofflemyre & Co. and First California
Company. Mr. Thomas was with
First

California

Company,

Eastman Dillon Adds
(Special to The Financial Chronicle)

The tremen—

ANGELES, Calif.-H. E.

Qrapperhaus and Barry
fro

bave

become

W. Ren-

associated

with

Eastman

Dillon, Union Securities
^
3115 wilshire Boulevard.
Mr
Penfro was formerly Covina
representative for First California
?

Company Incorporated.

Cruttenden Adds

definitely.

^

of

wjth

Kudzia

have

LOS

midst

Instead, it is certainly
conceivable that we may succeed
higher in holding these pressures to mana

LOS
J.

fjtl
the

&

Street,

Los

(Special to The Financial Chronicle)

,

in

Spring

cimpany;

rfti

—

are

Pandzic
Fewel

prognosis

t°Qf ~adf™S
we

J.

with

the

Slock Exchange.

patient at home.
Today

Sfc

formerly

eco-

cumulative. In discusshowever, I shall

.

South

Co-' ,453
members

I believe that this

increases and it

important point in
anti-inflationary program is

any

to

Policy

or

Harold

„

2 With

growth

the anment, inflation need not be

chr0nic

and

connected

now

„

believe that it
jeopardizing

determination

ficient

another

Wage

I

applies, to a greater or lesser degree> to many foreign economies
as
wen; and some countries have
indeed
pr0Ven
that, given suf-

L

°f

but

economic

ANGELES, Calif.—Milton

Miller

are

met without

be

either

LOS

-C.

B

real

is

Staff

to

(Special to The Financial Cjisonicle)

and

economy

our

nomic stability.

would°p?obablynbenunr;aliStic

a

Fewel Adds Two

The notion
increase

7m

t

pervasive,

hardly be adjusted

as

the

nigh

irdlation> there is the further comPlicati°n that fiscal policv is curnber?on!e and slow-moving; in
can

the potentialities, to
master the problems,
a better,-*as•well
bigger, America,

an^

but

of

the price level is accepted as well-

can

develop

fnjget

and. to build for

.

tolerance

a

the

of

the

on

to the aimuoi fataltu iuc almost

contributed
uuuuiuuieu

jstic

of

and

which
whlch Dromises great poten-

of rapid wage increases have

Nevertheless,

.

this last is

the

cjeditable

decade justifies the hope for substantial further achievement as
we
look ahead. We have
the
means for continuing sound
ex-

the

practical?' limitations,

ons for the PurP°se of combating bias in

fiscal, credit and

Fiscal Policy
In

at

inevitable by many and is
postulates, however, has
probably endorsed by some.

of

surely have been light-

ened materially had

of

.In, addl^on to the political ob- enough to believe that this notion
stacl,es ^the use of f,lscal }feaP- is too extreme. The inflationary

since* early

Reserve

but

credit policy, the pressures

F"rthermore' since

een

mana?ement or »f continu-

~nirai

end

i

The,*

sui-

,

anv

the

see

Looking Ahead

inflationary

earfiexibl.y J,0 c°Pe with raPid
1(V^ e(f 1 x1changes in the economy. As a
•!
clinnLnj
consequence, I have come to the
£?oni
SniiXoc a
concluslon that Perhaos the best
w?L ud
^
We can expect from fiscal policy
Federal Receive
ntber
1S ? contribution of a negative
fral hp"Hn£? sv<?f£Jn io adnnt^nnlil
sort—that ,1S' ^Ye may hope_ that
pip„ cnffiPi(?ntlv rigorous to roun"
government budgets will not be so
PTJ managfd ,as 4.° aSSravate

the

ShouM
deveiop. we

probablv
nr;rp

large

Mnrpmw

credit

point where business no
the incentive or the

has

aom-onH

,

of

the

practice, it

and

funds

situation

£5 "

-

unles? budget ^

large

controL

current

not

have been brought

Pressures

The

the

Over

The

American

(Special to The Financial Chronicle)

CHICAGO,
is

now

with

111.—Lee

R.

Cruttenden

Miller
Co.,

&

—

However,

ness

and

fiscal

fWphv

cannot

Reserve der

enunWs

n

we

ing.

n.VhiP

<?ur

pffnAs

econo.baic growtn.

present environment

Pluses

rates

have experienced: some
critics
blame the Federal Reserve for the
tightness of mortgage money, for
the decline in bond
prices and the
increased cost
-----

per
takp

not

"

wp

mir

exP®nse of lower business activity, tialities for economic development
a? important mcrease in unem- and' ippr0vement. Doubtless the
Payment, and a slowing down in future will bring problems we

much political appeal

influence

use

The

Hops

"

„

J".£5 *

Tf

oiir

era
era

ate
cttc

nmc

not seriously hamnered the recent

Reserve

this

and

dpmands

modpratP]v in

vx

would

"^Tn'd orivateUSDendingia{lx

monev

cal

esti-

^"^oducUvf fadlitie^

ijuBifiu

and

b]

other

anthnritip„

Lrg^amountTof creditTadbe™ ^isCal
made

the

rheok

pee5

L

rapid expansion of pension pro- moderate rising ^costs, .and make

have

cases

CiiCUO

eljnn]v\nt cannot nrevent
it°
^turn^r When
business /x nl
d
business expands, thP rati of
the rate of

dif

credit

for

many

lnadeQaate to finance the high
levels of caPital investment, any
tax reductions should be so desipned as t0 increase the flow of
£avin8s rather than encourage
more sPendinS- Neither of these

available

credit

ic true
is t.,,n

qame

offsetting

stocks, thereby helping to temper
optimism
in
the
stock
market.
This is

the

spv|ral

hus-

the

id^qnppti "
aI
P^Xi,„,.„1pc

wage-cost-price „piral but at the

deductions

PDoPcvd1?f^ed?tfarestrIint

orous

tight

tnat

JJie

the

nercict Hearkito the

Fur-

productive purposes and has probably contributed, in particular, to
the

the

^

.

w

fundamental questions with
regard to economic incentive and
sustained business growth. Yet, in

*

Credit policy alone, however,
cannot be expected to achieve a
stable price level or iron, out the

since

unsettiement

markets

impairment of

so,

might

otherwise

been

in

cuunocatm»

some

Treasury Complications

in-

outstripping

a^/iu

longer

merit widespread public support, almost confiscatory effects, posing

not

from

loans

hourly earnings

increases in labor costs due to the

x

to

levels which
caaxiivoot

£ the cml

Reserve

bank

homp

hpln

wage rates is the

average

far

years,

Confiscatory Taxes

designed in the public interest and

an
and

:Federal

prevented

rnrh

na*t

'

,

tremendous

"

situatioTThe policfesTf plex"problem ""T^rates^aS
tli" Federal nescrve nave oeen everywhere have
Reserve Lw'been
lIie
reuerai

employed by the Federal

neSa*

fact that

the

"I™JBgft

"

~

that restraint has been no more
vigorous than required by the eco-

strong efforts to meet the legiti¬

hpln

tVm

f

...

economy

in its recent policy,

courage

hv

Illustrative of
upward push in

public works would seem highly period. Giving costs, incidentally,
Actually
however
have increased by only 40%.
dPPropriate.
Actually, However,
good business and full employAs long as we persist in markment seem to generate grater de- ing up wages faster than increases
mands for ambitious public proj- in productivity, unit labor costs
ects throughout the world, and will inevitably advance. In this

v-

s^jkmsss-js a:
played sound judgment and regl

particularly

Tn

^editterms may have about

in8 slowly or not at all.

apnr0Driate

principle

in

"a cl&tral *hank^pndp'a

.

become

*

m

measures

r^tricuve measures.

tO;apply

seems

We have

out

and

®".a

dprnandt,

to

,•
*^ se*
horrnwin^ fprrnt w
h„tPr" and f

,

invest- into account the substantial further our.

capital
is

so/rine
|

™

retraint

exDected

increasing a
e snort sumurns to sales,
relatively last, but soon fan out ^reis.reason to nope tnat me
throughout the economy into in- Progressive 111oeraiization 01 sucn
dustries whefe productivity is ris-

manhnur

business

J?

be

may

rrpdit

^'t

hieh

attention"to public reac- omy's resources of manpower, ma- grams, health insurance, and other it more difficult to raise prices
attention to nublic reacma®
whfrhSv ferials and money, some cutback
'
which may^emper or qualify terials and money, some cutback *™ge benefits during this same generally.
T ivin„ POe;ts
inridpntallv

demands

for speculative purposes.

productivity

Price stability which it otherwise mated 47% advance in output

nomic

to

become established in important
durable goods industries in which

of manufacturing workers have
policy expanded over 80% in the past 10

pay some
pay some

as

re-

in personal and business in-

baSng Clearly,
—'"V.*—ment
bv

"

iSSfc.'WSE

b,„k

and

government

comes, pressures for more government spending, or for tax cuts, or

more

pressure

orstocurb credit
tfat credi? restraint ^particularly true

ineffectiveIhVa*

been

but

meant

though

even

vance

Formulatine an effective credit
uixiiuidixug dii euecuve credit

months
montns

alone they have advanced
by more

using

and

ceipts here and abroad have been
increasing rapidly with the ad-

re-

United
United""states
States

eomme're af hank"
commercial banks

output

have

prpdit

DLpUe r pTcy ofcredU
straint
straint,

greater

to

same;

hank-

in

merely

sharper price increases.

4.U

basic

surpluses

per-

auction costs, shortages in crucial
materials such as

man-^resulted

agements; still others employ such
devices as ceilings on bank loans,
ceilings on bank borrowings from
tne central bank, and the like,

large

the funds to reduce the public
haps very little, but such a policy debt, thereby helping to offset the
would assuredly have been
inap- rise in private debt.
Especially
propriate in the face of rising pro- discouraging is the circumstance
or

steel, and adcredit; vancing commodity prices. A polreliance -icy of credit ease would not have

important

prices and generally good
markets,
business
managements
frequently prefer to grant liberal

expansion

rect controls over consumer

others

Finallv

rising

to reduce tne need for

been-probably have risen less,

following- similar

country:

a

to the central bank. • •
' While the record thus might be
worse, it could and should be bet-

currentlv
o

to belie the

seems

Federal

Reserve

charge that the

has

been

exces-

sively zealousin its policy of credit
restraint.
bond

and

What

has

tightened the
markets

money

forced interest rates

up

and

is not onlv

the Federal Reserve hut the larme

large

pman

pany

s

our

for

credit

present

that

high

accom-

rates




of

tionarv

pressures

attributable
deficits.

country
stantml

-

to

are

large

not directly

government

Admittedly, no
is accumulating
budget

budgets, such

as

major
a

sub-

surplus;
a
few
that of the United

advances

in living standards can ductivity, and perhaps some of
only by raising the output the industries that have been lagof the goods and services needed ging in this respect may now make
to sustain the better life; if mo^ey more rapid progress.
Also, the
wages rise faster than productiv- present high rate of busines# inity, the result is more
dollars vestment heralds a further subcome

States>

without

but

added inflationary

are

are in precarious balance,
most
government treasuries

incurring deficits.

these

deficits

are

However,

generally small

more

goods—that

is,

pressure.

The problem is compounded by
the fact that the labor force in the
-

stantial increase in industrial capacity, which may lead to greater

competition

and

make

it

more

difficult to pass on cost increases.

&

Co.

I0:„c

Harris
*

IJnham
F

(special to the financial chronicle)
SAN

T.

FRANCISCO, Calif.—John

Bullock

is

now

with

Harris,

Upham & Co., 232 Montgomery
Street. He was previously with
John B. Knox & Co.

36 :

The Commercial and

(2208)

their

7

Continued from page

Money
Controls Outmoded?
Consequently,

functions of the fi¬

and

ness

the

lending

but

banks

commercial

with

Tight
them

not

enable

conditions

money
to

high enough rates of

pay

interest to attract funds.

;

of
This is the kind of situation fac*
regulation is particularly obvious
us
today.
A
tight money
in two major areas of finance— ing
residential mortgage lending and policy has tended to drain busi¬
ness away from the banking sys¬
consumer instalment credit.
tem, which is. directly subject to
The Other Side of the Savings
policy decisions of the monetary
authorities, and
has
tended to
v^
Ledger
subbject

the

to

same

degree

.

4

.

i

A

is

movement

seen

side

of the

ings

concerned.
decade, savings

not

difficult and thrusts,
upon banks the major burden of
adjustment, since they must now
both bring their own operations

loan association shares,
and life insurance policies have all
increased ' substantially.
While
time deposits of banks were ris¬
ing by some $16 billion, tho-vol¬
ume
of savings and loan shares
increased $25 billion. Annual pre¬
and

income

mium

companies
reached

more

into

cannot

in

insurance

for

patterns

these

under
Reaction
to
these forces, however, is
by
no
means
uniform,
reliable, or
prompt. It depends mainly upon
the impact on Government secu¬
rity prices and upon the reluctance
institutions,

of

holders

of

sell

changed

them

Now

regulations which

that

you

securities

loss

a

in

it

hear

funds received

new

by

bank
sent

new

that

non-

credit, extended wfyh
is noninflationary.

mercial

banks.

extends

far beyond the question
discrimination—the effective¬

of

This
ever,

of our entire system of mone¬

ness

therefore

such

.

funds

Public interest in these matters

and

is

argument

because some of the money

with
these
institutions
tary
controls is
involved.
The represents funds that are merely
reaso* for this is that our existing
being shifted from existing bank
instruments of
monetary policy deposits and do not represent new
apply directly only to the com¬ savings. In fact, the combination
mercial banking Segment of our of tight money and business pros¬
financial

structure.

that the vast

credit

of-

This
has

institutions to

in¬

1

Therefore,
in * a - tight; money
period, lending by these institu¬
tions greatly exceeds that which
is narrowed relative to the size could be financed
by just the hew
of the
whole structure, the
re¬ savings'.
*
sponse of the economy to Federal
Nor is their expanded lending
Reserve action becomes subject to under these circumstances offset
much greater time lags and the
by a corresponding contraction of
dangers of policy miscalculations bank credit. The reason this is so,
much

greater.

is that when

In

periods of booming pros¬
perity, traditional monetary policy
would call for the absorption of
excess
bank reserves by Federal
Reserve

sales

Government

of

be

Federal

discouraged

by

count rates. These

have

the

Reserve

other forms of financial assets, the

banking system
not suffer

se¬

higher

intended

no

redis¬

tions

outside

-

market

may

even

.

...

.

Limits

?»«'}

'•

be

•

Anti-Inflationary

on

Again
inability

it

is

of

existing

that

evident

the

instruments

do not

directly reduce the total re¬
sources of such institutions, as
they

of

do those of commercial banks. This

directly, coupled with the under¬

if because the Government securi¬

standable

ties

eral

are

sold

by the Federal Reserve
paid for with funds withdrawn

from -banks—mot

from

other

of nonbanks and

open-market

operations

subject their

resources to

do

not

attrition.

reluctance

Reserve

vestments,

Thus, higher reserve
requirements fail to immobilize
reserves

financial

to

limits

on

places
the

non-

institutions

the

of

require

contraction of bank

in¬

stitutions.
the cash

monetary policy to reach

bank

an

Fed¬

actual

loans and in¬

rather

narrow

effectiveness

of

an

have

a

with

a

financial system that would
effective

more

the

The

second

coordinated,

in

its

service

pfubliq.

to

but

at

least

the

concerns

effectiveness'

the

national

policy

monetary

of

to

The
the

our

national

life

held

third

The
and

William

review

of

ume

such

credit

would

re¬

make

and

of

The

com¬

broader

much

the

that

Federal

Reserve

not acted wisely in the dis¬
charge of its responsibilities —
quite to the contrary, the Board
has performed in
a
most satis¬

factory
tools
better

manner, working with the
have given it. But with
tools, the Federal Reserve

could

do

few

on

this character.

The

fate

World

of

rests

the

Western

whole

squarely

upon

the

shoulders of the United States, so
must make and

we

keep ourselves

—
not only militarily, but
economically. There is no

strong
also

better

to
strength

way

nomic

than

such eco¬
through a

financial system. Let us

sound

be

nothing is left' uridofie"
help bring this about.

that

sure

ensure

that will

Joins H. L. Jamieson

Linn is

Co.,

now

Inc.,

Calif.—Jack C.
Jamieson

with H. JU

6399

Wilshire

Boule¬

x

vard.

"At

us

over

look

of*

with

of

K.

Michelsen is

Lynch,

Pierce,

now

.

LOS

of

con¬

trols,

increasing

public interest. If nonbank finan¬

rather

what

'

v

-

~

.

Women of Chicago

Stouffer's

&

X.
P.

NdrdquisL
'

-

-

-•

"

Investment
will hold their
group
meeting
at
Restaurant,
26 West
—

Monday, Nov¬

26, at 6:00 P. M.'Mrs.. Doris
Crawford, Investment Analyst at
A. G. Becker & Co., will describe
investment analysis work as ap¬

ember

proached by brokerage houses and
discuss opportunities for wpmen
this type Of work. Miss Doris
Kempes, Investment
Analyst at
Harris Trust and-Savings Bank,
will do the same for banks and
other institutional investors. Mrs.
Ruth Miller, Registered Represen¬
tative at Hornblower & Weeks,
will discuss her work in selling
stocks
and bonds
and assisting
"customers with their investment
in

........

'*■;

'
.

r;-;.

T,

*<-*-i.1

_

Upham Adas

Harris

(Special to The Financial

Chronicle)

Calif.
—
is now con¬
nected with Harris, Upham & Co.,
9860 Wilshire Boulevard. He was
HILLS,

BEVERLY

Daniel

beane,

F.

Gallivan

formerly with Quincy Cass

Asso¬

ciates.

ANGELES, Calif.—Fred S.
is now with Paine, Web¬

Marvin Brown Opens
Marvin *L. Brown is
a

at

conducting

securities business from offices
207

West

106th

Street,

New

York City.

John R. Coffin

our

The decision we
therefore,
is
not

controls are :most effective in the

but

.

Madison Street, on

seems

be such

,

discussion

ber, Jackson & Ciirtis, 626 South
Spring Street.

John

financial system.

there shall

'

.

CHICAGO,
III.
Women of Chicago

Paine, Webber Adds

inevitable in the long run, in view

make,

M.

(Special to The Financial Chronicle)

Durow

the changing character

*'*

<

*

with Merrill

Fenner

*

James

..

Rouse; Secretary, Clara

523 West Sixth Street.

governmental

control

"

Shea; Vice-President, William
Wehrheim;
Treasurer, Jbhn,

Merrill Lynch Go.

job.

the need for them

monetary

President,

elected:

ANGELES, Calif.—Roland

the private economy,

must accept

'.

dinner, - the
following - slate of
oifiCers fofthe coming year-was

(Special to The Financial Chronicle)

LOS

*

meeting held prior to. the

a

problems..

With

favor

effective

more

of

extensions

controls
we

a

KnowleS,

R.

associated with, the
firm's office in Portland, Maine,

we

While

Chester

Discussion Meeting

LOS ANGELES,

Board

rather

a

who has been

tainly the m a g n i t u d e of the
subject and the importance of the
task justify a major approach of

a

Better Tools

years,

In vv

base.

Need

40

broadest terms of reference. Cer¬

(Special to The Financial Chronicle)

FRB

than

Mr.

guest,

,

"

V

more

mission should operate under the

monetary policy much more effec¬

tive, because it would apply to

50 years,

unique record in the financial
community. The Club had as its

analysis of ,our entire

mechanism.

financial

Mr.
have

and several members with service

for more than 50 years.

some

reserve

45

of

who

Harrington,

been with the firm pver

Review

establishing

of

means

Restaurant.

composed

bers, Mr. Herbert G. Bell and

Commission Needed

ways

itf tS

is

members and includes two mem¬

well.

consider

Banks?

Reserve

Non-Political

November 20,

Tuesday,

Club

The

it.
A

on

1956 at the Antlers

lenders
as

of

Dinner

Annual

Tenth

Hayden, Stone & Co. 25-Year

Club of the New York Office was

Accordingly, as others have al¬
ready suggested, it would be both
appropriate and timely for the
President to appoint a nonpolitical
commission to make a thorough

suc]b institutions
—-:py

Hayden,Stone & Co.

Our economy is developing and
changing rapidly. Our financial
system
must
adjust
to
these
changes. Adjustment will be easier

re¬

quire
such
borrowings
to
be
governed
by
the
same
ground
rules and policies as commercial
bank borrowings from the Federal

would not contravene it. However,

.perversely

to

institutional

all

'

.

25-Year Club Dinner

bor¬

to the extent that
react

All This Planning."

.a/id more effective if it is founded
upon the concerted judgment and
loan associations from the Federal experience of the entire financial
Home Loan Banks. Would it not community—not just a portion of

whether

policy,

"Investments
for;, the;
Future"; and on December 10, by ;
Percy Weeks of Harris, Upham's
research department, concerning
"The Value of Research Behind

effective. Clearly, this is a matter
of
fundamental importance
not

to

>

treating

we

rowing operations of savings and

of




that

but

the
a.

doubt

delineation of functions, we could

must

monetary

be

and

only

itself would limit the effectiveness

with respect to credit institutions
other
than -commercial
banks.

tion

somewhat different alignment and

In short, two of the most power¬
ful instruments at the disposal of

monetary authorities are to
very
large extent inoperative

easily

expect monetary policy to be fully

little

is

of

merely failed to react
such decisions, this in

may

various types of financial in¬
stitutions, both public and private.
the

There

form

to

circumstances, savings

-

by Thomas Meek, manager
Harris,
Upham's
99
Park
Avenue
office on December 3,
of*

within the orbit of national mone¬

decisions
all

•

sion

tary policy, we cannot reasonably

the

to

functions

of

rial institutions not subject to the
Reserve System's policy

at

these

among

relates

in certain instances. Some broader

Federal

-

the methods and mechanics of in¬

In

proper

first

The

distribution

anti-inflationary policy. If finan-

less normal state of affairs.

or

has

Policy

operations

Institutional

sacrificed to consump¬
rhay find ourselves
trying to consume and invest more
than we produce. The possibility
of inflation may thus be a con¬
also
be
made.
Although
much
tinuing rather than an infrequent
further thought and research must
and sporadic threat to economic
be given them, there are at least
stability.
three which come to mind that
It seems quite evident, there¬
are
worthy of careful considera¬
fore, that unless the lending and
tion.
investing operations of more fi¬
Three Needed Adjustments
nancial
institutions are brought

may

-Ayit-u

...

Harris, Upham Extends *

represent an important move in
the right direction.
Yet
other
adjustments
must

There can be little question that
build up their own our
instruments
of
monetary
time deposits enough to offset the-"policy
need
to
be
adapted
to
transfer of funds by other people present
day conditions. By this
to the nonbanking, institutions.
statement I do not wish to imply

the

open

There

brought

not

results.

ultimate

in total time deposits

those

circulates,

banking system
are not subject to deposit reserve
requirements. Moreover, Federal
Reserve

whole does

people who subse¬
quently receive the money, as it

of

However, thoser institu¬

decrease

because

reatHcting commercial bank lend¬
ing, thereby limiting further inflatipnary/ pressure;
from',, this
direction.

a

loss in total deposits;

a

investments.

would

effect

as

there is merely a shift in owner¬
ship. A Hence; there / neie'd be no
actual reduction in bank loans and

would

measures

depositor transfers
bank
to
deposits

a

from

money

curities, and possibly by increased
deposit reserve ratios. At the same
time,
member
bank
borrowing
from the

policies and practices. But the ad¬
justment of tax policies would

quirement for non-bank financial
institutions,
similar
in
effect,
though riot' necessarily in precise
form, to the reserve requirements
which
banks
have
long
been
obliged to reserve? Such a re¬
quirement could be varied by the
authorities in the light of existing
conditions, just as the present
reserve requirements against bank
deposits may be varied. Since the
credit operations of nonbank fi¬
nancial institutions are assuming
so
important a role in our econ¬
omy, the establishment of reserve
requirements to control the voL

financial

duce a shift of funds from banks.

of monetary control
brought to bear. As this base

become

financial laws,

our

form of variable cash

the pressures
are

in

other

nar¬

which

on.

ties and gaps

perity makes it relatively easy for

growth of other types

institutions.r

the control base

rowed

placed

means

coordinated set

a

the various inconsistencies, inequi¬

enhance

how¬

weak,

are

withiri

-

and

institutions repre¬

savings

take the form of

be better oriented and

argued

financial institutions than to

financial

to

making loans.

may

have been more favorable to other
com¬

to

order

institutions

cial

of

even

such

at

obtain funds for

may
in
considerable
be ascribed to the impact

measure

of taxation and

other

affect

the present arrangement.

though, in absolute terms,
time deposits continue to show an
upward trend.
reason

powerful

motion
that

forces

lending

funneling

even

The

System

Reserve

in

set

market

nels
to

those institutions

directly.
it is true that changes
Reserve
policy fre¬

Federal

quently

than doubled and

increased

The

reach

Of course,

savings into these other chan¬
has caused the portion going
commercial banks to decline,

of

also compensate for

line and

the operations of
the Federal

that

level of over $12 billion

a

1955.

in

life

of

that'are

institutions

to

increasingly

During the
in the form

of commercial bank deposits, sav¬

ings

it

directly subject to such deci¬
policy execution

port¬

in times of

faster rate

a

lenders, therefore, should have an
vesting." " * -~; V"
O: •' f.
principles, policies, regulations, interest in
improving the effec¬
The program
and standards of competition gov¬
is comprised of
tiveness of general controls.
talks by Mrs. Rose O'Neill and
erning the various components of
The threat of inflation is not
Mrs. Kathleen HojUnes, both reg¬
our
financial system, in order to
restricted to the emergencies of,
make it more
istered
responsive to the
representatives
of
the
sudden mobilization and war. As
actions of the Federal Reserve, as
firm, on November T9, based oh
we succeed in maintaining maxi¬
well as to reduce the present in¬
"The Stock- Market ancf How It
mum employment and output, and '
iquities.*
on
"Individual In¬
in fostering economic growth and Operates";
;
Mrs.
'■{ Now certainly it would be a prosperity, we Will be pressing the * vestment ' Planning"' by
monumental task to remove all of
O'Neill on November 26; a discuslimits of our resources as a more

sions. This makes

ledger insofar as sav¬

are

last

deflect

more
striking
on
the other

and

parallel

at

,

ing but do little to restrain other
lenders so long as they can at¬
tract funds in sufficient volume.

private sector, evidence
growing
importance
of
institutions
competitive

the

In

of

of credit

policy

a

restrain bank lend¬

restraint may

system and the effective¬
of general monetary controls.

nancial

investment

and

thq orbit of. general mone¬
Fall Lecture Series
credit restraint —- they actively tary policy, we can almost cer¬
undermine policy.
tainly
predict that inflationary
Harris, Upham & Co., 99 Park
Clearly, we must seek solutions pressures will ultimately lead to Avenue, New York City, has an¬
the imposition of selective credit nounced that its Fall lecture seto these problems that limit the
effectiveness of monetary policy controls, such as those which were ries on the investment brokerage
in today's environment—solutions imposed pn instalment credit and
business will be extended. With
which are
fully consistent with mortgage credit during the war discussion periods scheduled for
the public interest. Thus we come and part of the postwar period. November 26,
December 3 and
has taught
us
that December 10 at 7:30 P. M. "in
to
our
third
question: In what Experience
directions may we fruitfully seek selective regulation of lending is kepirig
with
public acceptance
harsh in its impact, difficult to
accorded these informal meetings
improvement?
administer, and uncertain in its
designed to clarify and simplify
Basically,
the
solutions
must
folios

Are Our

structure

loan

Financial Chronicler.. Thursday, November 22,195€

kind

of

away
of

75

Roberts

Coffin

passed

15th at the age
following a long illness.

With Harry Pon

November

Prior to his retirement in

1929 he

^Special to The Financial Chronicle)
:

AZUSA,

Calif:

—

Edgar

W\

Sawyer is now with -Harry Pon,
ment firm Of W. E: Coffin & Co.* 711 NorthVAzusa Avenue,
y; - had' been a

mepnber, of the invest¬

Volume: 184

Number 5588 it* The Commercial and Financial Chronicle

i

(2209) 1 3?

The

Indications of Current

latest week

Business Activity

week
Latest

AMERICAN

IRON

Indicated

steel

Equivalent
Steel ingots

STEEL

AND

INSTITUTE:

42

and castings (net

gallons

tons).

.Nov. 25

Gasoline

100.1

2,416,000

7,050,000

6,981,100

6,992,650
7,498,000

117,964,000

7,853,000

Nov.

I

26,714,000

26,620,000

26,405,000

domestic

2,278,000

output

(bbls.)

Nov.

2,704,000

fuel

2,507,000

output (bbls.)

2,323,000

Nov.

12,289,000

Residual fuel oil output (bbls.)_

12,477,000

12,402,000

Nov.

8,275,000

7,835,000

7,692,000

Stocks at refineries, bulk terminals, in transit, In pipe lines—
Finished and unfinished gasoline (bbls.) at_
Nov.
(bbls.) at

Refined

171,843,000

Nov.

172,626,000

174,062,000

36,105,000

35,235,000

33,564,000

35,762,000

158,685,000

153,199,000

150,606,000

48,071,000

47,349,000

45,761,000

161,656,000

Nov.

47,425,000

j

.

152,084,000

freight loaded (number of cars)
Nov.
Reverwe freight received from connections
(no. of cars)—Nov.
CIVIL

ENGINEERING

CONSTRUCTION

Private

Orders
New

and

$281,014,000

$446,621,000

DEPARTMENT

168,082,000

307,848,000

Nov. 15

167,036,000

112,932,000

265,393,000
181,228,000

116,652,000

*

97,772,000

157,790,000

50,384,000

.

15,160,000

23,438,000

31,518,000

"10,590,000

10,230,000

9,874,000

686,000

598,000

STORE

SALES

ELECTRIC

100

672,000

93,847,000
,,

Oven

INDUSTRIAL)

-r

DUN

498,000

137

.

124

134

*

.Straits

11,333,000

11,149,000

240

219

254

214

-*

(New York)

Lead (New York)

(St.

.Lead

.

5.622c

.$63.04

;

-Nov. 13

-Zinc

5.174c

$63.04

$59.09

$59.83

$61.17

Nov. 14

$56.17

$45.17

35.700c

35.700c

at—,

39.600c

34.700c

36.075c
105.250c

—

Nov. 14

—~—

-Nov. 14

16.000c

16.000c

Nov. 20

I

15,800c

Public

I—I

13.500c

13.500c

Industrials

MOODY'S
U. S.

Group

90.45
_

90.73

91.86

——

98.09

98.88

102.80

100.49

100.98

109.60

.

93.67
97.94

106.21

Nov. 20

98.09

98.41

98.88

108.16

100.00

109.24

.—Nov. 20

—

£8.57

98.25

98.73

,

99.52
*•; r

Nov. 20

3.28

Nov. 20

3.26

.

Jifj

-

—

Nov. 20

3.82

3.58

3.72

3.69

NATIONAL PAPERBOARD

Pears

Grapes

3.88

3.38

Cherries

(12

3.82

3.27

Apricots

(3

3.84

3.78

3.75

3.21

Cranberries

Orders received

Nov. 20

424.6

422.3

419.1

J*ov. JO
^ov- JO

372,488

257,075

Production

249,427

253,400

282,327

279,692

295,930

Nov. 10

95

96

qa

102

-Nov. 10

477,587

(tons)

Percentage

of

Unfilled

activity

orders

at end

(tons)

of period

490,515

470,412

All

680,461

DEALERS

EXCHANGE

Odd-lot

sales

SPECIALISTS

dealers

by

ON

EXCHANGE

109.53

109.48

109.15

(customers' sales)—
total sales—

Customers'

•

Oct. 27

~

Oct. 27

short sales—,

Customers' other sales

1,044,342

991,607

$57,470,360

$68,975,372

755,729

885,230

784,328

5,457

,

6,587

7,554

749,142

877,676

$37,294,134

$45,351,808

$38,548,591

184,060

205,460

224,770

27

134,060

205,480

3£4,770

484,510

481,950

589,080

.

—

.

zl

xct°cl- 27

——?

344,670

379,100

397,440

407,330

7,875.980

8,201,770

10,118,520

9,217,160

8,220,650

8,580,870

10,515,960

1,340.320

1,181,490

185.960

223,860

209,440

840,750

900.990

1,129,520

986,770

1,029,790

1,086,950

1,353,380

1,196,210

.

I

i

i'

—• ---J

•

•

,

PRICES,

—

(1947-49

NEW
=

SERIE8

—

U.

Farm

79,090

54,140

54,650

504,230

530,072

435,947

470,176

583,320

584,212

490,597

Oct. 27

1.546,011

1,718.960

2,131,756

278.600

287.650

298,600

284,390

1,489.256

1,685,130

1,992,662

1,679,157

406.350

514,136

442,334

members—

Jan.

1,

figure.
1956.

as

1,767,856

1,972,780

2,291,262

1,963,547




219.100

225,000

(units)

248,100

237,100

43,600

GOV¬

OF

RESERVE

—

145

•

-"145

143

"146

142

82.4

._.

80.5

86.0

COMMISSION—

at

(BUREAU
•

OF

middle

of

MINES)—
:

.

,

1

-

m

operating
operating

"115.4

87.6

Nov. 13

102.8

115.0

111.1

"87.9

88.1

84.3

102.6

103.3

98.8

80.6

80.8

84.8

74.5

Nov. 13

123.9

"123.6

123.0

119.2

109

$907,294,469

$876,681,976

74.92

74.31

$102,301,829

$101,654,208

97,428,271

103,590,536

103,691.861

79,000,000

87,000,000

81,000,000

$56,176,500

$8,437,350

$274,345,882

4,704,070

6,445,432

$267,900,450

31,580.000

12,731.000

RRs.)—Month

.'

revenues

expenses

railway

operating income

Net

income

after

TREASURY

AND

U.

charges

MARKET

RECT

S.

before

(estimated)

TRANSACTIONS

GUARANTEED

A.—Month

of

charges

IN

679,722,658

DI¬

October:

$30,687,000'

purchases

UNITED

651,446,453

SECURITIES

Net sales
Net

27,861.000
t.

(AS¬

—

Net

________

STATES

GROSS

DEBT

DIRECT

AND

omitted):

of Oct. 31

As

115.6

109

75.20

AMERICAN

20,598,000

J

ROAD^

I

31,333,000

'

*

CLASS

29,490,000

17,046,000

$874,850,374
657,880,452

cent)

30,055,000
33,324,000

—

(barrels)--—

GUARANTEED— (000's

8. DEPT. OF

^Includes 1,060.000 barrels of foreign crude runs. JBased on new annual capacity of 128,363.000 tons
tNumber of orders not reported since Introduction of
against Jan. 1, 1955 basis of 125,828,319 tons.

Menthly Investment Plan.

193,400

September:

OF

1,872,724

Nov. 13

"Revised

14.200

190,800

(units)—.

Taxes

foods—|~

10,900

$270,668,102

63,630
406,546

of

General

and

101,800

28,500

16,200

(units)

FEDERAL

mills

OF

342,271

248,900

1(H)):

All commodities other than farm

of

shipments

THE

Operating ratio

—

98,400

32,300

(units)

(units)

shipments

EARNINGS

RAILROAD

276,740

Nov. 13

foods

87,200

September:

shipments

(per

353,670

Nov. 13

2.04
-1.68

$275,372,172

used

302,510

Meats

.as

Capacity

267,890

products

Processed

of

2.13

"1.76

ASSOCI¬

of month—barrels)

Total

commodities—

$1.91

1.78

shipments

from

(at end

Total

277,300

Commodity Group—
All

41.3

$2.00

69.32

$100,410,934

Shipments
Stocks

20,300

Total sales

LABOR

41.7

"40.4

$2.02

August:;
(barrels)

256,440

sales

WHOLESALE

41.1

"41.4

85.07
-

2.15

CEMENT
of

20,600

sales

Other

October

333,070

—

—

"40.7

40.8

Employment
(1947-49=100)

—————————O'ct« 21

<~••

72.25

40.6

COMMERCE

Oct. 27
Oct. 27
-Oct. 27

I-

$78.50

"88.18

72.47

Railway

Oct. 27
Oct. 27
n

purchases

Short

of

22.600

254,190

floor—

Total round-lot transactions for account of
Total

Index

279,910

sales
■.

"$81.40

October:

150

Oct. 27

—..i

146,860

OF

Unadjusted

25,930

—

sstlcs

DEPT.

41.4

OF

175,090

sales

Other

159,800

263

SYSTEM—1947-49=1 (H)—Month of October:

241,960

purchases

Short
Tot'fll

1,026

$82.01

range

"7
Oct. 27

.

Vr

off the

281

925

160,700

S.

burner shipments

X
zl
Oct. 25

sales

initiated

3,237,

171
192

89.01

heater

SOCIATION

purchases

transactions

51,827
29,622

3,006

HOURS—WEEKLY

MANUFACTURERS

gas

water

Production

1,058,420

the floor—

sales

Total

68,285
32.422

958

(barrels)

AND

of

furnace

Month

Oct. 27
0ct- 27

sales

Total sales

Other

106;234

.171

goods

conversion

PORTLAND

'ISO.040

Total sales

94,938

9,624,490

1,028.650

Other

.44

'*■*36:874.

36,961

192

Seasonally adjusted
-

TRANSACTIONS
FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—

Short

(tons)

(tons)

goods

ERNORS

409,290

ROUND-LOT

Total

7,2514
12,228

16
'

2,994

goods

Domestic

:

-X

on

6,286

13,191

.2273)46

68,285

manufacturing

INTERSTATE

sales

Other transactions initiated

2,195,788

148,383-,
..

32,307

:

208~600

Total round-lot sales—

Other

2,067,029

96,145

;

INDUSTRIAL PRODUCTION—BOARD

'

20,946

36,961

(bushels)___

goods

boiler

Gas

.Oct. 27

sales

■

,

crop

ESTIMATE —U.

APPLIANCE

Gas

208,600

VQTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES):

'

:

—

goods

Gas-fired

Oct. 27

"-Oct.

Total sales

16,277

6,396

*

ATION—Month

779,535

$35,997,678

.Oct. 27
_

sales

Other

*'

..

States)

Gas-fired

of shares—

Short

16,634

12,962
*

_

T

Nondurable
GAS

4,793

738,351

Oct. 27

Round-lot purchases by dealers

Number

(tons)

goods

Durable

$51,206,914

743,808

Oct. 27

"

_

Short sales

31,682

33,481
165,283
242.167

!'
—

manufacturing

All

1,272,859

$57,051,834

—

Dollar value
Round-lot sales by dealers—
Number of shares—Total sales.
Other

i,070,761

.

u

-

■
•

33,481

3,800

11,058

Hourly Earnings—
_.

of orders—Customers'

Number

0,389'

5,l75t
26,948).

Earnings—

Durable

on

Dollar value

•

/

'

—

States)

Nondurable

.Oct. 27

Qdd-lot purchases by dealers

:

.

3,923
24,069

.

167,266

manufacturing

All

purchases)—t

(customers'

6,022

3,923 -

Hours—

107.06

STOCK

Y.

N.

.

EARNINGS

Durable

COMMISSION:

shares

of

Number

AND

SECURITIES

—

6,022

24,069

-

.Nov. 16

371,106'"

2,124,767

.
_i

balances

fund

__1

$279,865,604
5,313,658
?-■•■»■{;—'

Net

debt

Computed
ZINC
of

annual

OXIDE

2.630%

rate

(BUREAU

OF

2.614%

$274,551,946
2.416%

MINES)—Month

September:

Production

(short

Shipments
Stocks

at

(short
end

"Revised

of

15,067

tons)

tons)
month

figures.

-

1,564,530:

244.150

——,
■

LABOR—Month

Weekly

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

———'

States)

Nondurable

OIL, PAINT AND DRUG REPORTER PRICE INDEX1949 AVERAGE = 190

'

.

(hundredweight)

AVERAGE

276,848

470,064

..

2,525'

;
-

i

24,174

,

9,389

(pounds)

FACTORY

'

1,491,350

_

398.6

(tons)

457,394

V

'

(5

59,195

■

..

(tons)

3.97

'

16,968

4,885

■

•

V

(bushels)
(bushels)

3.28

3.5b

3.85

[

17,033

4,885

...

•—u.-—_j_''

u'_—

Peaches

3.83

4.16

3.87

1

4,'708

.'

'

(tons)—

4.03

ASSOCIATION:

4,670

16,977

1_—

(pounds)
Apples, commercial

Pecans

MOODY'S COMMODITY INDEX

61,031
21,316

4,670

bags)__

'

9,097 *

21,316

'i-~—

Hops

3.86

'

8,789

"

4.22

:

18,789

.

112,782

1,488,575

tons)
('tons)

-Nov. 20

Group

14,721

110,383

61,031

(pounds)

Nov. 20

Group

13,268

•

^

(bushels)—

Sugarcane for sugar and seed

3.19

53,532

'

"

,v—i

beets

41,258

24,1,100

__'

J

Nov. 20

Utilities

*

■

(100-lb.

'

"

Broomcorn

51,948

45,215

165,031

_

——

summer

29,678 '

110,383

—

•

3.91

Group

spring
spring

Tobacco

3.09

3.78

„

summer

4.25

Industrials

51,948

21,961

169,815
13,153

Sweetpotatoes

3.29

3.66

'

__

2.87

3.87

'

400,295

■

46,225

.

''Sugar

3.91

1,499,282

370,254

______

'

Total

^

3.16

1,154,595

—

(bushels)

Fall

,

20,070

213,644

bags)

Late

107.98

-

39,114
214,457

'21,961

"(hundredweight)—,

Early

• >

233,714

214,457

»

370,254

(pounds)

Late

102.80

96.54

■\

3.71

Public

:

______

(tons)—

Early

,

92.79

95.62

Aa

Railroad

703,047

(bale)

Peanuts

111.44

97.47

Government Bonds

Average corporate

936,761

721,946
253,571

39,114

(bushels)——

Soybeans for beans

107.80

/101.47

AVERAGES:

DAILY

3,241,536

975,517

253,571

Beans, dry edible (cleaned)
Peas, dry field (bags)

95.01

'97.47

?

92.35

.—

YIELD

!

,

—1:
;

Winter

Nov. 20

Group

BOND

3,369,102

AGRICULTURE—

Hay, plover, and timothy ,(tons)!__:.
Hay, lesppdeza (tons)-!

13.000c

—Nov.-20

,

Utilities

3,412,183

162,000-;.

thousands):

wild (tons)—_____L—t—
alfalfa (tonsl
i

15.300c

Nov. 20

.

OF

(in

6,407,100'
6,245,100 V

1,154,595

spring

grain

'Potatoes

——w-__Nov.20

—

DEPT.

tons)

(net

all

; 15.500c

15.800c

13.500c

NOV. 14

16.000c

15.800c

<

99.52

Group

1,975,131

85

REPORTING

(bushels)

Cotton

96.750c

100.65

—II!-

2,962,937

975,517

month

CROP

Hay,

44.150c

109.750c

.

'

Railroad

"118,629

(bushels)_!
(bushels) _____:

(100-lb.

Sorghum

42.950c

34.900c
108.750c

(East St. Lpuis)-at—

A*

5,496,368

167,319
2,810,118

_•

(bushels)

Rice
5.622c

$63.04

,

-Nov. 14

___

"5,614,997

6,291,970

721,946

of

—

(bushels)

Flaxseed

f

5.622c
,

,Nov. 14

at

Average corporate

end

Hay,
Hay,

MOODY'S BOND PRICES DAILY AVERAGES:
Dv S. Government Bonds
___;
■>

S.

rr'

127

Sept.:

:

tons)

(bushels)
(bushels)

Rye

-

Louis). at___—.

(net
at

)

93

6,459,289

of

tons)_____

Barley

.Nov. 13

<•>!''

U.

spring

Oats

•"

Nov. 13

(net

stock

Other

11,522,000

*'

(per gross ton)

tin

service——

(net tons)

PRODUCTION

All

141

11,589,000

.Nov. 15

.

,

in

MINES)—Month

Crop as of Nov. 1
Corn, all (bushels)
Wheat, all (bushels)

-

3,772aT
'

installed

OF

coke

Durum

"

k

i

Electrolytic copper—
Domestic refinery at___
>
Export refinery at

12,843

3,444

September:

coke

coke

CROP

IflETAL PRICES (E. A M. J. QUOTATIONS):
-

3,949

RAILROADS—

62,329,000

*

INC—

627,000

cars_

AMERICAN

units

Beehive

Winter

.Nov. 17

Pig iron (per gross ton).

$crap steel

10,165,000

Nov. 10

INSTITUTE:

(COMMERCIAL AND

263,500,000

33,057,000

INSTITUTE—

delivered-——,

OF

(BUREAU

Oven

INDEX—FEDERAL RESERVE

IRON AGE COMPOSITE PRICES:
Finished steel (per lb.)
.

,

Nov. 10

—

freight

cars

of

BOARD

.Nov. 10

output (in 000 kwh.)

BRADSTREET,
*

-

OF MINES):

(tons)

(tons)

SYSTEM—1947-49 AVERAGE

new

freight

Locomotive

$401,695,000

202,816,000

—Nov. 15

lignite

anthracite

for

"255,501.000

export

'

October:

Production

$369,852,000

—

(U. S. BUREAU

coal

Pennsylvania

of

CAR

23,406,000
12,414,000

5,666

and

40,000

33,593,000
"12,025,000

6,532

domestic

206,604,000
21,663,000

42,000

21,682,000

(barrels)

(barrels)

RAILWAY

Month

672,708

.Nov. 15

Bituminous

% FAILURES

792,042

675,622

Nov. 15

—

municipal!..

and

COAL OUTPUT

Electric

823,207

;

Nov. 15

construction

Federal

EDISON

663,919

Imports

228,307,000

219,805,000
23,093,000

23,000
31,029,000
12,339,000

.

242,940,000

223,046,000
24,120,000

(barrels)______

(barrels)

stocks

ASSOCIATION

800,272

657,639

gal¬

268,875,000

output

consumption
all

Month

COKE

construction

State

772,761

10

Ago

ENGINEERING

NEWS-RECORD:
Total U. S. construction

Public

10

42

(barrels)

(barrels)

products

AMERICAN

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

(barrels of

output

(barrels)

-

-

7,825,000

oil

imports

Indicated

11,091,000

*

Year

Month

247,189,000

output

oil

Increase

Nov.

Distillate fuel oil (bbls.) at
Residual fuel oil (bbls.) at

Crude

production

crude

gasoline

Benzol

7,553,000

Previous

INSTITUTE—Month

each)

Natural

25,806,000

Kerosene

of that date:;

August:

Total

6,808,050

Nov.

Distillate

Kerosene

PETROLEUM

Domestic
Nov.

(bbls.)

oil

AMERICAN
of

2,491,000

either for the

are as

Month

Ago

101.2

'2,466,000

of quotations,

cases

are

Latest

of

stills—daily average (bbls.)

output

§2,458,000

in

or,

Year

Ago

"100.2

production and other figures for the

cover

Dates shown in first column

that date,

on

lons

(bbls.

average

each)
to

runs

Month

Week

§99.8

ixidnth available.

to—

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate
output—daily
Crude

.Nov. 25

or

month ended

or

Previous

Week

operations (percent of capacity).

following statistical tabulations

—

(short

tons)-J

tNo estimate made.

15.639

17.624

16.550

16,069

17.059

18,070

19,553

17.966

'

The Commercial and Financial Chronicle.

(2210)

38

.

Thursday, November 22,1956

.

* INDICATES

Oct.

stock (par
$5) and 400,000 shares of preferred stock (par $5) to be
shares and one common
Proceeds—To purchase used
paper and to extend the company's operations into
field of new car financing. Underwriter—None. J. J.

offered in units of 10 preferred

car

the

to

Price—$55 per unit.

6hare.

Life Insurance Co.
shares of common stock (par $1).
of which 575,000 shares are to be offered to the public;
435,000 shares to agents and employees of company from
Nov. 15 to Dec. 16; and 189,375 shares to employees
pursuant to certain stock purchase options to be granted
by the company. Price—To public, $2 per share; and to
employees, $1.81 per share. Proceeds—For working cap¬
ital.
Office
Jacksonville, Fla. Underwriter — Pierce,
Carrison, Wulburn, Inc., of Jacksonville, Fla. Offering
—Expected this week.
American

Heritage

100

"A"

units

"Unit-Inch"

convector heaters.

electric

Water Street, Toms

River, N. J.

Office—7

deceased. Underwriter—
Corp., New York.

^Arkansas Louisiana Gas Co. (12/10-13)
Nov. 16 filed 840,000 shares of common stock (par $5).
Price
To be supplied by amendment.
Proceeds — To
W. R. Stephens Investment Co., Inc., the selling stock¬
holder.
Underwriter—Eastman Dillon, Union Securities
York.

Oct. 29

Credit Corp., Philadelphia, Pa.
June 11 filed $600,000 of 6% convertible subordinated
debentures due June 15, 1968. Price—100% of principal

the

indebtedness of

Brown

com¬

to

Audubon

Inc.
July 13 (letter of notification) 600,000 shares of common
stock being offered for subscription by common stock¬
holders at rate of 0.46875 of a share for each share held,
as of "Nov. 5, 1956; rights to empire on Nov. 25.
Price—
at par (10 cehts~jper share).
Proceeds—For general cor¬
porate purposes.
Underwriters—Berwyn T. Moore &
Co., Louisville, Ky.; Gearhart & Otis, Inc., New York,
and Crerie & Co., Houston, Texas.
Automation Development Mutual

Aug. 24 filed 300,000 shares of
market.

Proceeds—For

investment.

writer—To

Industries

•

named

debentures

Office—Washing¬

each

for

16

Treasurer.

Super Markets, Inc.
(letter of notification) 21,721 shares of common
stock (par $10) being offered to stockholders on a basis

of

one

new

Oct. 15,

as

of record

1956; rights to expire

on Dec. 1. Price—$11 per
working capital. Address—P. O.
515, Albuquerque, N. Mex. Underwriter—None.

share.
Box

share for each two shares held

Proceeds—For

'

held

of

^Beauty Counselors Inc., Grosse Point, Md.
(12/10-14)
Nov.

15

filed

22,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—To
selling stockholders. Underwriters
Spencer Trask &
—

Co., Lee Higginson Corp., and Homer O'Connell & Co.,
all of New York; Laird, Bissell &
Meeds, Wilmington,
Del.; and Chas. A. Parcells & Co., Detroit, Mich.

Co.

&

(12/3)

Light Co.

•

25,000 shares of class A
offered

be

to

in

stock.

of

units

common stock (par 50 cents)
of one $500 debenture and 50

Price—$525

unit. Proceeds—For
Whitney & Co., Inc.,

per

working capital. Underwriter
Washington, D. C.

—

-A: Delaware Power & Light Co. (12/11)
80,000 shares of cumulative preferred stock
(par $100).
Proceeds—To repay bank loans and for

x

Nov. 14 filed

record

construction.

new

Underwriter

—

To

be

determined

Probable bidders: White, Weld
Shields & Co. (jointly); Kidder, Peabody &

by competitive bidding.
&

Co.

and

Co., and Harriman Ripley & Co., Inc. (jointly); Kuhn,
& Co. and Ladenburg, Thalmann & Co. (jointly);

Loeb

Pierce,
Fenner
&
Beane;
Lehman
Langley & Co. and Eastman Dillon,
Union Securities & Co. (jointly); Blyth & Co., Inc., ancj
The First Boston Corp. (jointly). Bids—Expected to be
received up to 11:30 a.m. (EST)
on Dec. 11 at 630 Mar¬
Merrill

Brothers;

Lynch,
W. C.

Street, Wilmington 99, Del.

ket

Devall

& Marine Construction

Land

Co., Inc.

(letter of notification) l50,000 shares of common stock (par $1).
Priee—$2 per share. Proceeds—For
payments of notes, to purchase and equip three boats
and working capital. Office—1111 No. First Ave., Lake
Charles, La.
Underwriter—Vickers Brothers, Houston,

May

Incorporated, Philadelphia

agreed to purchase an addi¬
tional 300,000 common shares and reoffer them to npr.
sons
selected by it at $1.10 per share.
Offering—Date
indefinite.
'
4
•'

Rouge Water Works Co. ►
Sept. 11 (letter of notification) 6,946 shares of common
capital stock (no par). Price-r$43 per share. Proceeds
—For extensions and betterments to water system. Office
—131 Lafayette St., Baton
Rouge, La. Underwriter—
-

&

Power

Finance, Inc., Mt. Rainier, Md.
(letter of notification) $250,000 of 6% 10-year
subordinated debentures (With warrants attached) .and

and New York. Latter has

Baton

None.

Blair

for each

Sept. 28

be

—

share

Dec. 3.

Dalton

r

Nov.

Underwriter

new

new

Price—$185
construction and working
on

—

—

Oct. 15

one

$10,000,000 of first mortgage bonds due 1986.
Proceeds
To repay bank loans and for construction
program.
Underwriter—To be determined by competi- I
tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
The First Boston Corp.; Salomon Bros. & Hutzler; Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Beane (jointly); Eastman Dillon, Union Securities &
Co.; Kuhn, Loeb & Co.; Equitable Securities Corp.; Blair
& Co. Incorporated and Baxter, Williams & Co. (jointly);
Lehman Brothers. Bids—Expected to be received up to
noon (EST) on Dec. 3.

—

Barber's

basis of

Office—1506 Commerce Street, Dallas, Texas.

Dallas

Centers Corp., Philadelphia, Pa.
July 30 filed $8,000,000 of 5V2% sinking fund debentures
due Aug. 1, 1971, and 1,600,000 shares of common stock
(par one cent); subsequently amended to $4,500,000 of
debentures.
Price
To
be supplied by amendment.
Proceeds
About $4,100,000 will be used to acquire
seven
shopping center sites and a Penn Fruit super¬
market adjacent to one of them; the balance will be used
to develop shopping centers at the seven sites and to
acquire and develop additional sites for related real
estate activities,
and for general corporate: purposes.

May 11 filed 179,000 shares of common stock (par $1).
Price—$5.25 per share. Proceeds—For working capital
and other corporate purposes.
Underwriter — None.
Harry Kahn, Jr., of Washington, D. C., is President and

the

rights to expire

Nov. 7 filed

Lehman Brothers, New York.

Corp., Washington, D. C.

on

Proceeds—For

share.

shares

stock

8

Underwriter—None.

30, 1956; rights to expire on Dec. 17, 1956. Price
supplied by amendment. Proceeds—To reduce
bank loans and for expansion program.
Underwriter—

on

—To

Nov.

shares held;

capital.

common

of

v'\,

Dallas Power &

per

Ltd.,

shares

Finance

filed

30

record

later.

20

accept¬
(255,000 shares) of National stock
Dealer-Managers—William

Light Co.
Oct. 23 (letter of notification) 431 shares of common
stock (no par) being offered to minority stockholders of

Whittier, Calif.

Burroughs Corp., Detroit, Mich. (12/3)
Nov.
9
filed
$30,154,700 of convertible subordinated
debentures due Dec. 1, 1981, to be offered for subscrip¬
tion by common stockholders on the basis of $100 of

ton, D. C. Distributor—Automation Development Secu¬
rities Co., Inc., Washington, D. C.
Automation

be

offer is conditional upon the

51%

New^g^rk.

—

Fund, Inc.
stock. Price—At

common

Co.;

Burma Shore Mines, Ltd., Toronto, Canada
July 26 filed 600,00$ shares of capital stock, of which
500,000 shares are to be offered publicly, and 100,000
shares to promoters. Price—At par ($1 per share). Pro¬
ceeds
For equipment, exploration, drilling, working
capital and other general corporate purposes. Under¬

Park Raceway,

of

Na¬

one
§h£re of stock. Price—$60 per unit. Proceeds—To
redu#Q$outstanding short-term bank loans and to repay
subordinated note for $50,000.' Office—Wilmington, Dei.
Underwriter—Merrill Lynch, Pierce, Fenner & Beane,

Honolulu, T. H.
stock (par $1).
Price—At net asset value, plus a selling commission of
7V2% of the offering price. Proceeds—For investment.
Business—A diversified; open-pnd investment company
of the management type. Underwriter—Brown Manage¬
ment Co., 833 Alaska St., Honolulu, Hawaii.

its affiliates for money borrowed for working
capital. Underwriters—Hallowell, Sulzberger & Co. and
Charles A. Taggart & Co., Inc., both of Philadelphia, Pa.,
and Weill, Blauner & Co., Inc. of New York.
•

Investment Co.,

of

Service, Inc. (11/26)
$1,200,000 of subordinate debentures due
1968 and 24,000 shares of class B common Stock
(par $1) to be offered in units of $50 of debentures and

(letter of notification) 300,000 shares of common
($1 per share). Proceeds—For work¬

July* 11 filed 60,075 shares of

rate

Nov. 1,

ing capital. Office—67-12 62nd St., Ridgewood, Queens,
N. Y. Underwriter—Wagner
&.«£0 > New York *\ ,

by amendment.

retire

&

at

share

one

Co.

Credit

Oct.

stock. Price—At par

Atlas

Proceeds—To

•

Development Corp.

Brookridge

April 30 filed 2,000,000 shares of common stock (par $1).
Price—$1.50 per share. Proceeds—For working capital
and general corporate purposes. Underwriter — To be

pany

loans.

Creger & Co., 124 NoTth Bright Avenue,

Atlantic Oil Corp., Tulsa, Okla.

amount.

bank

Hartford

for

Blair & Co.; The First Boston Corp.; and Lazard Freres

Bridgford Packing Co., Anaheim, Calif.
Aug. 13 (letter of notification) 222,222 shares of common
stock (par $1).
Price—$1.35 per share.
Proceeds—To
pay obligations, purchase equipment, etc.
Office—1308
No. Patt Street,
Anaheim, Calif.
Underwriter—J. D.

—

named

reduce

The

least

of

stock

will expire on Nov. 30.

and

Underwriters—Salomon Bros.

Hutzler; Eastman Dillon, Union Securities
and Wood, Struthers & Co., all of New York.
&

stock.

Co.

Insurance

of Continental

of at

ance

&

—To

shares

tional

Blackstone

Lee

& Co., New

1%

West

Fire

National

of

Underwriter—Berry &

Estate of Edmee B. Greenough,

ISSUE

Casualty Co., Chicago, III.
shares of capital stock (par $5)
being offered in exchange for outstanding capital stock

Valley Gas & Electric Co.
Aug. 15 filed 25,000 shares of 5.60% cumulative pre¬
ferred stock (par $106), of which 1,430 shares are being
offered to common stockholders of record Nov. 20 (other
than
Eastern
Utilities Associates,
the parent)
on
a
share-for-share basis; rights to expire on Nov. 30. Price
—$101.82 per share, plus accrued dividends. Proceeds

(11/29)

REVISED

Continental

Co., Newark, N. J.
•

ITEMS

Sept. 28 filed 625,000

each; and of series "C" units, $100 each.
acquire or lease plant; for dies and ma¬
chinery; production equipment and materials; inven¬
tory; and working capital.
Business — Manufactures

Aug. 30 filed 328,723 shares of common stock (par $4).
Price—To be supplied by amendment. Proceeds — To

Higginson

(each

Proceeds—To

—

Anheuser-Busch, Inc.

follows:

a

$500

units,

Oct. 26 filed 1,199,375

•

as

$500 "A" bond and 50 shares of stock);
100 "B" units (each consisting of a $500 "B" bond and 50
shares of stock); and 1,975 "C" units (each consisting
of 100 shares of stock).
Price: Of series "A" and "B"

Fain is President.
;

in units

offered

be

consisting of

PREVIOUS

Consolidated Oil Management
Aug. 16 (letter of notification) $250,000 of 10-year 5Vz%
collateral trust bonds due Sept. 9, 1966.
Office—7352
Central Ave., St. Petersburg, Fla.
Predecessor—Lynch
Oil Co.
Underwriter—Security & Bond Co., Lexington,
Kentucky.

Beckjord Manufacturing Corp.
12 (letter of notification) $50,000 of series A 6%
debenture
bonds, $50,000 of series B 6% debenture
bonds and 207,500 shares of common stock (par 10 cents)

Killeen, Texas

American Federal Finance Corp.,

SINCE

•

Securities Now in Registration
Sept. 5 filed 40,000 shares of class B common

ADDITIONS

V

16

Texas. Statement

Diversified

.

effective.

Oil & Mining Corp., Denver,

Colo.

.

•

filed 2,500,000 shares of 6% convertible, noncumulative preferred stock, first series (par $1), and
warrants to purchase 500,000 shares of common stock
Aug.

Century Controls Corp., Farmnigdale, N. Y.
Aug. 27 filed $600,000 of 10-year 6% debentures. Price—
90% of principal amount.
Proceeds—For research and
development; expansion; equipment; and other cor¬
porate purposes.
Underwriter — None. Offering — Ex¬
pected in November.
~

•

(par 10 cents) t6 be offered for subscription initially by
stockholders in units of 25 preferred shares and

common

purchase five common shares. Price—$25.50
(each warrant will entitle the holder to pur¬
chase one common share at any tima prior to Dec. 31,
1957 at $2 per share). Proceedsr—To repay mortgages, to
$1,312,500 of five-year 6% sinking fund debentures, and
for further acquisitions and working capital. Under¬
writer—To be named by amendment.

a

Century Controls Corp.
(letter of notification) $150,000 of 6% subordinate

Oct. 4

Price—90% of principal amount
(in denominations of $100 each). Proceeds — To:pay
payable, reduce accounts payable and to pay
other current liabilities; also for working capital. Office
notes

—None.

Boulevard, Farmingdale, L. I., N. Y. Underwriter
I

Chinook- Plywood, Inc.* Rainier, Ore.Sept. 4 filed 200 shares of common capital stock. Price—
At par ($3,000 per share). Proceeds—For acquisition of
a
plant site, construction of a mill building, purchase
and installation of machinery and equipment, and as
operating capital. Underwriter — Industry Developers,

Inc.
Consumers Cooperative
Kansas City, Mo.

Association,

warrant to

per

convertible debentures.

—Allen

29

..

•

unit

Douglas Corp., Fort Collins, Colo.
July 27 filed 4,000,000 shares of common stock, (paron#
cent). Price — -lO-cents per share. Proceeds.— For ex¬
ploration, development and acquisition of properties and,
for working capital. Underwriter—Columbia Securities
Co^. Denver, Colo.
•

Eastern Industries,

Inc.

(12/5)

filed

125,000 shares of cumulative convertible
preferred stock (par $10). Priee—At par. Proceeds—For
Nov.

13

expansion program. Underwriter—Blair & Co. Incorpor¬
ated, and Winslow Cohu & Stetson, Inc., both of New
York.

Oct.

New York

Boston

Philadelphia

San Francisco

Private Wires




Pittsburgh

to

all

offices

Chicago

Cleveland

25 filed 180,000 shares of 5Vz%
preferred stock
(cumulative to extent earned before patronage refunds)
and 20,000 shares of 4% second preferred stock (cumula¬
tive to extent earned before patronage refunds) to be
sold directly to members and'others by the Association's
employees. Price—At par ($25 per share). Proceeds—
For general corporate purposes.
Underwriter—None.

^ Eastern Life &• Casualty Co., Inc.
(letter of notification) an undetermined number
of shares of common stock (par one cent) to be offered
to stockholders.
Price
$1 per share. Proceeds — For
Nov. 12

—

working capital.
Va.

Office—105 West Grace St., Richmond,

Underwriter—None.

Volume 184

^Number 5588.

The Commercial and^Financial Chronicle

.u

(2211)
Eastern-Northern Explorations, Ltd.
June 4
eral

Price—To be supplied by amendment.

(regulation'!)") 500,000 shares of

(par $1).

common

stock

sale of

Price—60 cents per share.

corporate

Proceeds—For gen¬
Office—Toronto, Canada. Un¬

purposes.

tries
to

★ Estates, Inc.
8 (letter of notification) 15,000 shares of
common
stock (par $10). Price—$20 per share.
Proceeds—Tlo se¬
cure
capital and surplus to comply with permit issued
by Nevada insurance department. Office
Room 319,
15 E. 1st
St., Reno, Nev. Underwriter—None. James E.
Caine is President.'*'"
77 7.'. .7/. 7

held; rights to expire 30 days "after date
Price—At par ($1 per share). Proceeds—
general corporate purposes.
Office—10557Stewart

offering.

For

Corp., San Francisco, Calif,
{•;
Nov.| 14 filed 100,000 shares of common stock^Prifee—
-

At: par ($10 per share). Proceeds—For
constrdjqtiojh of
manufacturing plant and to provide working* capital.

Underwriter—None. Robert E. Evju is President.
Florida Power &

Light Co. (12/11)
•
*
Nov. 13 filed $15,000,000 of first mortgage b<fcds due
1986. Proceeds—To repay bank loans and for
instruc¬
Underwriter—To be

determinedly Com¬

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch, Pierce, Fenner & Beane antf^ldder,
Peabody & Co. (jointly); The First Boston Corp.; Blyth
&

Co., Inc.; White, Weld & Co.; Lehman Brothers. Bids
—Tentatively expected to be received up to 11/30 a.m.

; (EST) on Dec. 11.
.
Freiberg Mahogany Co*
Oct.

11

1971

and

lof

which.

$1,500,000 of debentures and all of the stock
are to be offered
publicly in units of $500 of debentures
and 150 shares of stock; the remaining
$500,000 of deben¬
tures to be sold to Texas Industries,
Inc., which owns
"about 75%
of Freiberg's
outstanding common stock.

Business—
Underwriter—None.

hotel.

.»•

notification) $250,000 of 6% convertible
1, 1966. Price—At par (indenominations of $100 each). Proceeds
For working capitaL
Office—38-15 30th St., Long Island
City 1, N. Y. Under¬
debentures due Dec.

—

writer—None.
•

Harrisonville Telephone Co.

Oct.

26

(letter of notification) 1,850 shares of common
(par $100 being offered to stockholders of record

stock

Nov.

on

one

6, 1956 for
share for

new

subscription

period of 30 days

a

eacn

two shares held

privilege).

Price—To

'

stock, to be offered in units of

Louis, Mo.

for

and

for

filed

Nov. 9
stock.
ate

additional

stock

of

Oct.

•

and

Colorado in units of 50

shares

class

of

B

shares of class A

stock

and

one

$7,000

on

on

plant

facilities

and

St., Greeley, Colo.

Home Telephone

improvements.
Office—
Underwriter—None.

& Telegraph Co. of Virginia
offered

Oct. 25 filed 46,080 shares of capital stock
being
for subscription by stockholders of record Nov.

in

the

ratio

of

one

new

share

for

each

14, 1956

seven

shares

held; rights to expire on Nov. 30. Price—At par ($5 per
share). Proceeds—To pay outstanding short-term bank

1975, to be offered for sale in the States

2,950

1956,

810 Ninth

Lodge, Inc., Durango, Colop
5,000 shares of class A voting common
stock
(par $1), 295,000 shares of class B non-voting
•common stock
(par $1), and $700,000 of 4% debenture*

stock,

Underwriter—Charles M. Holland, same
; ; /, *77-7/./ 77..'.

(letter of notification) 6,695 shares of common
(par $25) being offered to stockholders of record

24,

ditional

Gold Mountain

^of Texas

common

the basis of one share for each eight
Oct. 24, 1956, and also to employees at a
rate not to exceed 10% of annual
pay; warrants expire
Nov. 17, 1956. Price—$40 per share. Proceeds—For ad¬

Corp., both of New York; and Mitchum, Jones & Tem¬
pleton, Los Angeles, Calif.

31,

8

shares held

general corporate purposes. Underwriters—Paine, Web¬
ber, Jackson & Curtis and Stone & Webster Securities

Dec.

Corp.

Home Light & Power Co.

subsidiaries and for temporary advances to subsidiaries
for reduction of their bank loans and for use in connec¬
tion with the 1957 construction
program; also for other

due

Finance

(letter of notification) 300,000 shares of

St., Reno, Nev.

Oct.

equities

Office—Waterloo, III.
&
Co., ,7 St.

Price—At par ($1 per share). Proceeds—To
oper¬
general finance business. Office—139 N. Virginia

a

Nov. 20 filed 800,000 shares of common stock
(par $10).
Price—To be supplied by amendment.
Proceeds—For
stock

plants.

Stores, Inc.
240,000 shares of common stock (par $1).
share. Proceeds—To certain selling stock¬

address.

^ General Telephone Corp.

common

other

per

ir Holland

construc¬

Underwriters—Paine, Webber, Jackson & Curtis,
New
York, and Mitchum, Jones & Templeton, Los
'Angeles, Calif.

in

of

Underwriter—Van Alstyne, Noel & Co., New
York; and Johnston, Lemon & Co., Washington, D. C. *

tion.

investments

$102

holders.

(1/10)

new

2

Price—$9

Nov. 13 filed 500,000 shares of 5% cumulative
preferred
stock (par $20). Price—To be
supplied by amendment.

and

over¬

an

stockholders,

- Breckenridge
77,/;." 7; '7./7 //.'.■

Hartfield
Oct.

—

,/• General Telephone Co. of California

construction

Underwriter—McCourtney

Price—$500 per
working captal. Underwriter
None named.
Offering to be made through selected dealers.

sion

the basis of

(with

ceeds—To

$500 of debentures and 40
unit. Proceeds—For expan¬

warrants.

on

share; to residents of Illinois, $106 per share. Pro¬
retire bank loans, pay installation cost and

; General Credit, Inc., Washington, D. C.
Aug. 17 filed $2,000,000 of 6% subordinated sinking fund
debentures, due Sept. 1, 1971, with detachable warrants
to purchase 160,000 shares of
participating preference

per

*

$2,000,000 of subordinated debentures due
450,000 shares of common stock (par 10 cents),

working capital.

Oct. 29 (letter of

Aug. 23 filed

filed

and

year-round resort

Guardian Chemical Corp.

payable
Under¬

Co., Inc., San Antonio, Texas.

Proceeds—To repay bank loans

Underwriter—None;'%pjV'J

Flakewocd

tion program.

subordinated promissory note
Office—New Orleans, La.

a

;100 shares

every

of class A stock

Ave., Garden City, N. Y.

to Texas Indus¬

firm.

construction

new

Operates

Genco Oil Co., Inc.
Aug. 24 (letter of notification) 55,000 shares of common
stock (par $1).
Price—$5 per share. Proceeds—For oil
development expenses. Office — 1907 Broadway Ave.,
Scottsbluff, Neb. Underwriter — Edward C. Colling,
Scottsbluff, Neb. -/ ^<7 ... 7 : - /. .-7",
,/.7v

•

of

retire
latter

and Russ &

—

Federal Manufacturing &
Engineering Corp.1 (letter of notification) 198,900 shares of blass B
capital stock to be offered for subscription by stock¬
holders on the basis of 85 shares "for

to

the

for

for working

writers—Howard, Weil, Labouisse, Friedrichs & Co., New
Orleans, La.; Rauscher, Pierce & Co., Inc., Dallas, Texas;

Nov.

Oct,

and

capital, etc., and from sale of debentures

derwriter—Foster-Mann, Inc., New York.

Etarnalite, Inc., New Orleans, La. (12/10-14)
Sept. 24 filed 200,000 shares of class A common stock
(par 50 cents).
Price—$4.50 per share.- Proceeds—To
repay loan; for maintenance of and increase of inven¬
tory; for development of branch offices; and for research,
laboratory tests, and testing equipment. Underwriter—
Vickers Brothers, New York.

Proceeds—From

unfts. to retire short-term loans

3j»

,

loans.

Office—107

Valley Street, Emporia, Va.

Under¬

writer—None.

debenture.

Price—$10,000 per unit. Proceeds—For pur¬
property, remodeling of present main building,

chase of

•

Imperial Oil, Ltd., Toronto, Canada
18 filed 1,504,271 shares of no par value
capital
being offered for subscription by stockholders of

Oct.

stock

record

NEW
November

26

ISSUE

CALENDAR.
(Offering

$1,200,000
of" stock

shares

24.000

and

Peerless Life Insurance Co
(Newborg

&

Spar-Mica Corp., Ltd._
7*

(Hamlin

Lunt;

&

8traus,

&

&

Cowen
about

&

Co.;

Co.)

and

December

6

(Bids

(Tuesday)

(Offering to stockholders—to be
Kidder

M.

A.

■

Arkansas

to

&

Co.)

underwritten

by

invited)

November

'

(Lee

10

Gas

Union

$448,000

(Spencer

Trask

&

Co.;

Co.;

Common
840,000

Higginson

Bissell

&

Corp.;

Meeds;

and

Homer
Chas.

(Thursday)

V

;

Common

Higginson Corp.)

328,723

shares

Parcells

..

&

Co.)

22,000

Class A Common
(Vickers

r.-y>"

Brothers)

Northeast Airlines

Pennsylvania R. R.

$900,000

People's Finance Corp

(Bids

Equip. Trust Ctfs.
EST)

noon

$9,300,000

M.

Brothers)

by

Read

&

Light

(Bids

Co

EST)

noon

Bonds
.7

$10,000,000

Libbv, McNeill & Libby
(Offering

7

to

Glore,

Forgan

Libby, McNeill &
(Offering to
Glore,

Debentures

stockholders—underwritten

common

&

Co.)

Florida Power

$10,468,500

Libby

Common

stockholders—underwritten byForgan & Co.) 610,664 shares
* -vo."

&

(Bids

Stores, Inc

.

noon

EST)

11

Eastern Industries,

Debentures
,<$'

&

Co.,

Inc.)

Preferred

Inc—.
&

Co.,

Debentures
Inc.)

$1,000,000

received)

18

$9,000,000

M

Equip. Trust Ctfs.

invited)

$5,340,000

1957

be

&

Co.,

Inc.)

be

underwritten

183,333

(Tuesday)

a.m.

be

EST)

Bank




31

1957

to

Leftwich

to

be

&

Ross)

January
General

10,

Common
be

underwritten

stock

each

Webber,

Jackson

&

&

January 15, 1957
(Bids

to

be

invited)

and

Preferred
Mitchum,

$10,000,000

Mountain States Tel.
(Bias

to

be

Bonds
$20,000,000

(Tuesday)

& Tel. Co
Invited)

be

offered to purchasers of preferred
share at rate of ten shares for

per

share

bought.1* Proceeds—For

Lauderdale,

Fla.

working

Underwriter—

filed

Planning Corp. of America
(by amendment) $20,000,000

$35,000,000

Proceeds—For investment.

Office

York, N. Y.

Oct. 4 filed

(F. L.)

Co.

$3,000,000 of 6% convertible debentures due

derwriters—McLaughlin, Cryan & Co. and Gearhart &
Otis, Inc., both of New York.
Joa Co.

(Tuesday)

about

1957

to

cents

Office—Fort

14

—New

July 27 (letter cf notification) 110,000 shares of common
stock (par 20 cents).
Price—$2.50 per share. Proceeds
—For
411

29,

10

Nov. 1, 1966. Price—100% of
principal amount. Proceeds
—To pay short-term loans and for
working capital. Un¬

(Thursday)

Curtis

Templeton)

stock

Jacobs

$7,700,000

Telephone Co. of California

(Paine,

at

preferred

by

$1,000,000

about

1957

share for each five shares

Investment Corp. of Florida
Aug. 24 filed $515,000 of $60 cumulative preferred stock
to be offered in units of $1,000 each and
5,150 shares of

Plans with Insurance.

___Equip. Trust Ctfs.

invited)

new

additional
Systematic Investment Plans and Systematic Investment

(Wednesday)

stockholders—to

one

Price—$17 per share. Proceeds — For expansion,
research and development of new
products, and to pur¬
chase equipment. Office—634 Prospect
Place, Brooklyn,
N. Y. Underwriter—None.

• Investors

$35,000,000

Commerce,
Memphis, Tenn.
(Offering

(letter of notification) 4,256.6 shares of capital
(no par) to be offered for subscription by stock¬

stock

Debentures

invited)

of

January
Bonds

$20,000,000

International Postal Supply Co. of New York

capital.
None.

by

shares

Long Island Lighting Co
11

to

International Bank of Washington, D. C.
Sept. 28 filed $1,000,000 of time certificates, series B, C
and D. Price—At 100% of principal amount. Proceeds—
For working capital.
Underwriter—Johnston, Lemon &
Co., Washington, D. C.

common

(Tuesday)

Louisiana Power & Light Co

Common

stockholders—to

(Bids

to

January 9,

Jones

$499,596

Ling Electronics Inc
Perkins

Bonds
$20,000,000

.Preferred

Inc

...

to

Preferred

Equip. Trust Ctfs.

be

—

held.

$8,000,000

EST)

Proceeds—For

For mining expenses.
Office — 3226
Lane, Las Vegas, Nev. Underwriter—None.

holders at the rate of

(Tuesday)

Northern Pacific Ry.__^

(Wednesday)

Holman

(Perkins

(Offering

..debentures

$40,000,000

New England Tel. & Tel. Co

National

Incorporated, and Winslow, Cohu & Stetson)*Tnc.)
$1,250,000
7

Electronics

a.m.

Proceeds

Cinder

Oct.

Light Co

to

share.

Nov.

$30,000,000

K D I Corn

Ling

Inc.)

invited)

January 8,

(Eids

(McDonald,

Co.

<

$2,805,000

EST)

a.m.

December 5

(Blair & Co.,

$500,000

Atlantic Coast Line RR
•

(Bids

Michigan Bell Telephone Co
(Eids

Co.)

11

December

-

Equip. Trust Ctfs.
(Bids

-.

be

(Tuesday)

Erie R. R.
..

$7,000,000

Common

December 4

.

&

Price—At market.

^ Insulating Products, Inc.
(letter of notification) 199,206 shares of common
(par $1), of which 174,936 shares are to be offered
to the public at $1 per share and
24,270 shares of common
stock are subject to offer of rescision at 49 cents
per

Preferred

&

11:30

(Bids

(Offering to stockholders of Foremost Dairies, Inc.—under¬
written by Allen & Co. and Dean, Witter & Co.) 630,000 shares

/

over

Illinois Central RR.-_

bjr

common

to

(Bids

Lucky

Co.)

Delaware Power & Light Co

$30,154,700

(Bids

Power

&

Kimball

December

_________Debentures

Lehman

Dallas

Common

Rhoades

(Paul C.

(Dillon,

stockholders—underwritten

common

Loeb,

■'

(Monday)

Burroughs Corp.
to

,

(Carl

Inc...

Texas Eastern Transmission Corp

December 3

(Offering

O'Connell

shares

Eternalite, Inc

ir Institutional Shares, Ltd., New York
19 filed
(by amendment) 1,000,000 Institutional

Nov.

A.

'

29

Inc.

Electricity Commission of New South Wales Bonds
7 ''
(Kidder, Peabody & Co.) $7,650,000
•

shares

Common

Lee

Laird,

Price—$44 (Canadian) per share. Proceeds—For work¬
ing capital and expansion. Underwriter—None.

Nov. 9

(Monday)
Co.)

ol

stock

Co
&

69.64%

offering;

Growth Fund shares.

$8,055,000

Securities

owns

thS Outstanding Imperial "stock is said to have indicated
that it intends to subscribe to its portion of the

investment.

(Thursday)

Beauty Counselors Inc
&

Anheuser-Busch,

Dillon,

1,000,000 shares

„_Equip. Trust Ctfs.

be

Louisiana

(Eastman

—-Common

Common

$6,000,000

Central RR

December
November 27

Co

.....Debentures
Brothers)

$1,250,000

Long Island Trust Co

underwritten

Fenner & Beane)

$2,400,000.

New York
&

Electric & Gas

(Lehman

—Common

Fuller

D.

Service

(Merrill Lynch, Pierce,

Preferred

Co.;

McDowell)

be

U. S. Industries Inc

United Cuban Oil, Inc.
(S.

Public

\

$287,500

—

Allen

Blosser

stockholders—to

•

Common

Co.)

to

Nov. 13, 1956 on the basis of one new share for
shares held; rights to expire on Dec.
4, 1956,

20

Standard Oil Co. (New Jersey), which
Debentures

by Dillon, Read & Co. Inc.) $28,285,600

.

Lynch, Pierce, Fenner & Beane)

debentures

,

National Cash Register Co.__

(Monday)

Credit Finance Service, Inc.—Debs. & Class B Com.
(Merrill

each

sales

No.

promotions and operating capital. Office—
Scenic Highway, Lake Wales, Fla. Underwrite*

—Anderson

Cook

Co., Inc., Palm Beach, Fla.

Debentures

Continued

on

page

40

.

The Commercial and Financial Chronicle
<0

corporate purposes.

City Pier Corp., Berlin, Md.
Oct. 4 filed $2,000,000 of 6% debenture bonds due July 1,
1976, and 4,000,000 shares of common stock (par one
cent) to be offered in units of one $100 bond and 20Q
shares of stock.
Price—$300 per unit. Proceeds — For

Michigan Bell Telephone Co. (12/4)
13 filed $30,000,000 of debentures due Dec. 1, 1991.

Proceeds—To

from

advances

repay

American

parent,

Telephone & Telegraph Co; Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co. Bids—Expected
to be received up to 11 a.m. (EbT) on Dec. 4.

;

Fund,

.fuly 30 filed 100,000

Michigan Seamless Tube Co.
Oct. 26 filed 59,386 shares of common stock (par $5) to
be offered for subscription by common stockholders on
the basis of one new share for each four shares held.

which

Kinney Loan & Finance

.

Co.

Price—To

.

11 (letter of notification) $150,000 of 6% sinking
jftind capital debentures, series A, due Sept. 1, 1971. Price
—At par in denominations of $1,000 each.
Proceeds
For working capital. Office — 911 Tenth St., Greeley,

Underwriter—Wachob-Bender

Corp., of

Omaha

competitive bidding. Probable bidders:
Co. Inc.; The First Boston Corp.;
Blyth
Bids—Three bids were received on
Aug. 1, all for 4%s, but were turned down. No new date

determined

Chicago, III. (12/3)
convertible sinking fund
debentures due Dec. 15, 1976, to be offered for subscrip¬
tion by common stockholders at the rate of $100 of
debentures for each 35 shares held as of Nov. 29, 1956;
rights to expire on Dec. 17. Price—To be supplied by
amendment.
Proceeds—To reduce bantc loans.
Under¬
writer—Glore Forgan & Co., Chicago, 111.

for bids has been set.

Price—$1.25 per share. Proceeds—
To go to selling stockholders.
Underwriter — Standard
Securities Corp., Spokane, Wash.

McNeill & Libby, Chicago, III. (12/3)
610,664 shares of common stock (par $7)
be offered for subscription by common stockholders
the rate of one new share for each six shares held

to

at

of Nov. 29; rights to

as

expire

Dec. 17.

on

supplied by amendment. Proceeds — To
loans.
Underwrier—Glore, Forgan & Co.,

Minerals*

Inc., New York
2,500,000 shares of common stock (par
one cent).
Price—$1.50 per share. Proceeds—To acquire
for $2,400,000 the Chavin lead-zinc-copper-silver mine
located in South Central Peru, and for general corporate
purposes.
Underwriter — Gearhart & Otis, Inc., New
York. Offering—Postponed.

Price—To be
reduce bank
Chicago, III.

Carolina

Life Insurance Co. of South

to

filed 339,600

15

convertible notes.
Proceeds

Price

1966.

—Perkins &

Underwriter

•—For

-

general corporate purposes.

Underwriter—Perkins

National Cash

(12/5)

on

1

Dec. 5.
of notification)

(letter
(no

basis of

par)

being

offered

to

Ohio

and

West Ninth
Los

Oct.

for

other

corporate purposes.

St., Lorain, Ohio.

to

11

filed

Underwriter—None,

of 6% convertible subordinated
1, 1971. Price—At par (indenomi-

of

630,000 shares of common stock (par $1.25)
for subscription by common stockholders
Dairies, Iiic., in the ratio of one Lucky
12Vz

shares of Foremost

common

(with a 21-day standby). Price—To be sup¬
plied by amendment. Proceeds — To Foremost Dairies,
Inc., the selling stockholder. Office
San
Leandro,
—

Witter

Underwriters—Allen & Co., New York, and Dean
& Co., San Francisco, Calif.

Macinar, Inc.
July 23 (letter of notification) 400,000 shares of common
*tock (par 50 cents). Price—75 cents p?r share. Proceeds
—For general corporate purposes. Business
Manufac¬
—

tures

steel

writer—C.
3fork 17,

and
J.

N. Y.

aluminum

Montague,
.




specialty

Inc.,

15

products.

William
:

>

Under¬

Street,

New
•

$2)

50,000

and

postponed.

held

sCalif.

it Old Dominion Investors Trust, Inc., Suffolk, Va.
19 filed (by amendment) 2,000 shares of capital

Nov.

stock

Proceeds—For in¬

Price—At market.

$75).

(par

vestment.

Orefield

Montreal, Canada

Mining Corp.,

shares of capital stock (par $1), of
outstanding. Price—To be

15 filed 900,000

supplied

Proceeds

amendment.

by

Underwriter—To

costs.

be

For exploration

—

later.

named

Michael Tzo-

panakis, of Miami, Fla., and Denis Colivas, of Montreal,
Canada, ar(e large stockholders.
£ Ouachita Mining Co., Inc.
Nov.

13

(letter of notification) 50,000 shares of common

stock (par $1), to be offered in units of 100 shares.

Proceeds—For mining

—$100 per unit.

Price
Under¬

expenses.

writer—None.
Pari-Mutuel

Equipment Corp.
of notification) 60,000 shares of com¬
(par $1). Price—$5 per share. Proceeds—For
construction of 250 race ticket machines; for purchase

Aug.
mon

(letter

24

stock

for issuance of semi-blank race tickets;
working capital and general corporate purposes.
Office—527 Madison Avenue, New York 17, N. Y. Un¬
derwriter—Wistor R. Smith & Co., 40 East 54th Street,
machines

of 40

and for

New

York

"

22, N. Y.

Peerless Life Insurance Co.

8

(letter of notification)

,

(11/26-30)

11,500 shares of common

(no par). Price—$25 per share. Proceeds — For
general corporate purposes. Office — 1310 Gulf States

Underwriter—

Bldg., 109 North Akard St., Dallas, Tex.
Newborg & Co., New York.
Nov.

13

stock

~

k

(letter of notifcation) 4,605 shares of common
$10)., Price—$14 per share. Proceeds—For

(par

working capital, changing of equipment and manufacture
of

welding

special

Seattle 8,

Wash.

glass., Office

—

4301 —6th

South,

Underwriter—None.

(11/19)

Oct. 29 filed 300,000 shares of class A common stock (par
25

cents).
Price—To be supplied by amendment (pro¬
posed maximum offering price is $3.25 per share). Pro¬
ceeds
To
construct
and
operate
two multi-level
—

automobile

parking

mechanical device.

utilizing

structures,

★ Peopte's Finance
(12/10-14)
Nov.

filed

16

vertible

patented

a

Underwriters—A. G. Edwards & Sons

and Dempsey-Tegeler & Co., both of St.

Corp.,

shares

50,000

Louis, Mo.

Denver,

of

60-cent

preferred stock (par $5).

Colo.
cumulative

Price—$10

con¬

share.

per

Proceeds—To reduce bank loans and for working capital.
Underwriter—Paul C. Kimball & Co., Chicago.

Pittsburgh Consolidation Coal Co.
Oct.

3 filed 2,678,697 shares of common stock (par
$1)
being offered in exchange for common stock of Pocahon¬
tas Fuel Co. on the basis of 2% shares of Pittsburgh for

each

Pocahontas

Insurance Co.

shares

common

share.

The

offer

will

be

de¬

Public

.

New South

Wales, Australia
(Electricity Commission of)
(11/29)
Oct. 26 filed $7,500,000 sinking fund bonds. Price—To be
supplied by amendment. Proceeds—To redeem $6,976,000
3Y2% sinking fund bonds, of The Sydney County Council
due Jan. 1, 1957, the holders of which may exchange
same
for the new bonds; and for construction work.
Underwriter—Kidder, Peabody & Co., New York. Of¬
fering—Not later than Nov. 29.

(12/10-13)
20 filed

repay

bank loans and for

—Merrill

value

number of

shares

of $1

stock

(for an aggregate of approxi¬
mately $7,500,000), of which approximately 44% of the
shares are to be offered for subscription by common
par

common

stockholders
of

the

share

shares,

or

public.
—r

or

other than

Atlas

to

50%

Corp., approximately 6%
Corp. and the balance of the

Price—To be supplied by amendment. Proceeds

aircraft

and

oi

related

(12/5)

new construction.

Underwriter

filed

Alai, Inc.

$1,500,000

of

12-year

6%

first

mortgage

bonds due 1968, and 300,000 shares of common stock
(pai
$1) to be offered in units of a $500 bond and 100 shares
of stock.
Price—May be $675 per unit. Proceeds — Foi
construction
San

Juan,

of

fronton

Puerto

Rico.

and

related

activities.

Office-

Underwriters—Crerie

&

Co.

Houston, Texas; Dixon Bretscher Noonan, Inc., Spring¬
field, 111.; and Aetna Securities Corp., New York. Offer¬
ing—Date indefinite.

(par 10

cents), of which 25,000 shares

are

to

be

for issuance upon exercise of

reserved

options. Price—
Proceeds—To purchase real property anc
mortgage notes. Underwriter—Coombs & Co. of Wash¬
$1 per share.

ington, D. C.

Atlas

of the offering, will be offered to the

expansion

Gas Co.

Lynch, Pierce, Fenner & Beane, New York. '

Puerto Rican iai

stock

undetermined

an

&

Pyramid Development Corp., Washington, D. C.
July 27 (letter of notification) 300,000 shares of commor

it Northeast Airlines, Inc., Boston, Mass.
Nov.

Electric

—

July 27

•

Service

Nov. 14 filed 1,000,000 shares of common stock (no par).
Price
To be supplied by amendment. Proceeds—To

—

offered

Stores share for each
.stock

Line

of class A common stock
of class B common stock
(par $2). Price—To be supplied by amendment. PiOceeds
—To
selling stockholders. Office — Little Rock, Ark.
Underwriter
Equitable Securities Corp., Nashville,
Tenn., and New York, N. Y. Offering — Indefinitely

Luckyy Stores, Inc. (12/3-7)

Foremost

Co., Inc. and Stone & Webster Securities Corp. (joint¬
ly); Lehman Brothers. Bids—Those received up to 11
a.m.
(EST) on Oct. 30 were rejected.
"

fective Oct. 23.

(par

three shares held

be

Co.; Eastman Dillon, Union Securities & Co,
and Salomon Bros. & Hutzler (jointly); Harriman Ripley

Kuhn Loeb &

clared effective if at least 85%, of the latter shares have
been deposited for exchange by Nov. 30. Statement ef¬

capital and other coiporate pur¬
Underwriter—None.

Nov. 15, 1955 filed 50,000 shares

(with an oversubscription privi¬
lege). Price—To be supplied by amendment. Proceeds
—To increase capital and surplus.
Underwriters—J. H.
Goddard & Co., Inc., Boston, Mass., and
Thornton, Mohr
£c Farish, Montgomery, Ala.

to

of July 31, 1956 at the rate
the balance of the shares

exchangeable for Founders certificates and cou¬
issued ^by National Life as a part or feature of
life insurance policies.
Price—$7.56 per share.

National Old

Loyal American Life Insurance Co.* Inc.
<< •;•■Sept. 28 filed 230,000 shares of common stock (par $1)
to be offered for subscription by common stockholders
of record Oct. 15, 1956 at the rate of one new share for

il filed

Blyth & Co., Inc.;

able bidders: The First Boston Corp.;

poses.

$500,000

Proceeds—For equip¬
inventory and working capital.
Underwriter—
Quincy Cass Associates, Los Angeles, Calif.

Oct.

writer—To be determined by

Proceeds—For working

ment,

0

as

certain

nations of $500 and $1,000 each).

each

be

pons

Angeles Drug Co.

debentures due Aug.

and

on

of iy2 shares of such stock and

Office—203

preferred stock
Proceeds—For construction program. Under¬
competitive bidding. Prob¬

(par $100).

Pigeon Hole Parking of St. Louis, Inc.

(12/5)

common

23,279 policyholders

Price—$25 per share. Pro¬
ceeds—To reimburse company for additions to property
rights to expire Jan. 2, 1957.
in

Register Co.

National Life of America, Mitchell, S. Dak.
Sept. 21 filed 86,784.7 shares of common stocK (par $5)
to be offered for subscription by each of the company's

shares of common
stockholders on the

4,994

share for each 20 shares of record Sept. 24;

one

Bldg.,

stockholders of record Dec. 4, 1956 at the
rate of $100 of debentures for each 25 shares of stock
held; rights to expire on Dec. 19, 1956^ Price—At par.
Proceeds—For working capital to finance company's ex¬
panding volume of sales and the consequent increase in
customers' accounts receivable, and to carry increased
inventories; also for improvement and replacement of
plant and other production facilities.
Underwriter—
Dillon, Read & Co. Inc., New York.
by

Lorain Telephone Co.
Oct.

stock

Irust

$28,285,600 convertible subordinated deben¬
due Dec. 15, 1981, to be offered for subscription

tures

bonds, series I,
due Dec. 1, 1996.
Proceeds—To repay bank loans and
for construction program. Underwriter — To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; W. C. Langley & Co.; Blyth & Co., Inc.
•and The First Boston Corp. (jointly); Blair & Co. Incor¬
porated and Baxter, Williams & ($fc>. (jointly); Smith,
Barney & Co. Bids—Expected to be received up to 11
(EST)

Office—800 Bankers

taxes.

estate

Nov. 9 filed

Long Island Lighting Co.

Power Co.

Ohio

Sept. 20 filed 60,000 shares of cumulative

it Penberthy Instrument Co., Inc.

Moines, Iowa. Underwriter—T. C. Henderson & Co.,
Inc., Des Moines, Iowa.

Proceeds

Korns,

stock

of

$22,481,000

By-Products, Inc.
June 19 (letter of notification) 2,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—To pay
Federal

Nov. 7 filed $20,000,000 of first mortgage

u.m.

filed

16

Paul

—

City, Md., is Chairman of the Board.

•

Des

Co., Inc., Dallas, Tex.
-

Lt.

>

National

amendment.

by

Under¬

To be named later.

Ling Electronics, Inc., Los Angeles, Calif. (12/5)
5 filed 1183,333 shares of common stock
(par 50
jcents) to be offered for subscription by common stock¬
holders at the rate of one new share for each six shares
supplied

operation of amusement pier. Under¬
a
director, of Johnstown, Pa.
Col. James A. Grazier of Whaleysville and Ocean

writer

Oct.

®

be

purposes.

1956 U. S. currency issues
debentures.
Price—To be supplied by amendment. Pro¬
ceeds—To finance local improvements.
Underwriter—

Nov.

Price—To

corporate

Investing Co.; Allen & Co., ana

(City of)

it Montreal
Nov.

Co., Inc., Dallas, Tex.

held.

general

Gregory & Sons.

To be supplied by amendment.

—

For

—

writers—Mohawk Valley

Ling Electronics, Inc., Los Angeles, Calif. (12/5)
Nov. 5 filed $1,000,000 of 6% convertible debentures due
1,

6%
Price—To be supplied by amendment.

will be offered in exchange for outstanding

amount

0

Dec.

Aug. 1, 1966, of which $100,000 principal

debentures due

rate of two shares of new stock
Price—To stockholders, $10 per
share; and to public, $15 per share. Proceeds—For ex¬
pansion and working capital. Underwriter—None. Pub¬
lic offering will be made by employees of the company
»nd qualified licensed dealers,

Proceeds—For general corporate purposes.

Airlines, Inc., Ithaca, N. Y.
$794,000 of 5V2% convertible subordinated

Oct. 26 filed

1956 at the
share held.

Sept. 12,
JLor each

filed

22

Mohawk

shares of common stock (no par)
be offered for subscription by stockholders of record

/Oct.

(par 10 cents).

June

filed

9

-

which 200,000 shares are now

(letter of notification) 223,980 shares of common

6

to

them.

and

construction

Oct.

it Midnite Mines, Inc., Wellpinit, Wash.
Nov.

stock

Libby,
Nov.

by

Stuart &
& Co., Inc.

Halsey,

Libby, McNeill & Libby,
Nov.
9 filed $10,468,500 of

by

&

Michigan Wisconsin Pipe Line Co.
July 2 filed $25,000,000 of first mortgage pipe line bonds
due 1976.
Proceeds—To pay off short term bank loans
and for construction program.
Underwriter — To be

Neb.

and Lincoln,

Proceeds—For

amendment.

by

supplied

general corporate purposes. Office—South Lyon, Mich.
Underwriter—William C. Roney & Co., Detroit, Mich.

.Sept.

Colo.

be

unsubscribed
Ocean

Nov.

Inc., Los Angeles, Calif.
shares of capital stock (par $1), o!
St,300 shares will be initially sold at $10.98 per
.dhare. Additional shares will be offered at a price equal
to the net asset value of the Fund, plus a sales load ox
3%% of such price. Proceeds—For investment. Invest¬
ment Manager — California Fund Investment Co., of
which John Kerr is also President.
Income

Kerr

offered

Proceeds—For investment.

Underwriter—McDonald, Holman &

York.

Co., Inc., New

Atlas Corp. may purchase a portion
other stockholders which remain

New York.

shares

of

Nov. 14 filed (by

I Corp.,

D

& Co.,

.

amendment) 3,500,000 additional shares
of beneficial interest in the fund.
Price — At market.

■

Rochester, N. Y. (12 5-6)
Nov. 16 filed 81,428 shares of 7% participating cumula¬
tive preferred stock (par $5), of which 71,428 shares aie
to be offered to public.
Price—$7 per share Proceeds—
For machinery and equipment, working capital and other
V K

Investors Trust, Boston, Mass.

it Massachusetts

39

Continued from page

.

Thursday, November 22, 1956

.,.

(2212)

operations;
equipment;

toward
and

porate purposes. - Underwriter—Carl

payment

for

M.

general

Loeb,

of

10

cor¬

Rhoades

Pyramid Productions, Inc., New York
Sept. 27 filed 220,000 shares of common stock (par $1)
200,000 shares are to be offered to public anc

of which

20,000 shares issued to underwriter.
Proceeds—To
tures

as

well

Price—$5 per share
$125,000 of outstanding 15% deben¬
$173,180 debt to Trans-Union Produc-

retire
as

a

Volume 184

lions,

Number 5588

Inc.;

and

for

vision releases.

...

The Commercial and Financial Chronicle

working

capital.

Underwriter—E.

L.

Business—Tele¬

Aaron

&

Co., New

York.

Redi-Food Co., Inc.
Oct.

8

(letter of notification)

150,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
To purchase plant and equipment.
Office—2505 Butler
Place, New York City. Underwriter—Hopp & Co., Pas¬

saic, N. J.

(2213)

Southwide Corp.,
Anniston, Ala.
Sept. 12 filed 450,635 shares of common stock (par
$1),
of which 211,681 shares are to be offered
publicly 238,954
shares are to be offered in
exchange for the class A
stock of Capital F|re &
Casualty Co. and common stock
of Allied Investment
Corp. Price—$2 per share. Pro¬
ceeds—For purchase of stock of
Capital and Allied firms
and for purchase of U. S.
Government bonds. Under- '
writer—None, but a selling commission will be allowed
to

dealers for sales effected

Regis Paper Co.
Oct. 26 filed 750,000 shares of common stock
(par $5) to
be offered in exchange for
outstanding common stock

by them.
of Anniston, Ala., is President.

(par $10) of J. Neils Lumber Co. at rate of 2% St. Regis

Oct. 29 filed 400,000 shares of 5%
stock (par $5). Price — To be

St.

shares for each Neils

pire

common

share.

The offer will

Dec. 31, 1956, unless extended.

on

—The First National

Portland,

Bank of

Ore.

ex¬

Exchange Agent

Portland, P. O. Box 3457,

.

Samson Uranium, Inc., Denver, Colo.
Aug-. 21 (letter of notification) 25,000,000 shares of capi¬
tal stock.
Price—At par (10 cents per share). Proceeds
—For core drilling, including
geological research and
core

assays; for mining shaft; to exercise purchase of
option agreement on additional properties; ior working
capital and other corporate purposes. Underwriter

—

Indiana State Securities Corp. of

Indianapolis, Ind., for

offering to residents of Indiana.
•

Sandura

Co.,

Inc.r Philadelphia,

Pa.

Oct. 8 filed 150,000 shares of preferred stock
and 50,000 shares of common stock (par five
offered

in/connection* with

the

(par $7.50)

cents) being
Paulsboro

of

merger

Manufacturing Co. into Sandura Co., Inc.
Price—$10
per share.
Proceeds — For expansion, equipment and
working capital.' Underwriter — Butcher & Sherrerd,
Philadelphia,' Pa. Statement effective Nov. 13.
•

Schuster

(Ed.) & Co., Inc.
(letter of notification) 2,400 shares of common
(par $10) ,to be offered only to residents of Wis¬
consin.
Price—*$18.50 per share. Proceeds—To Ralph
T. Friedmann, President. Office—2152 North Third
St.,
Nov.

6

stock

Milwaukee.

Wis.

Underwriter—Robert W.

Milwaukee, Wis.
Sierra

Baird

&

Co.,

Oct. 11 filed

$3,000,000 of first mortgage bonds due Nov.
Proceeds—To repay bank loans and for new

1986.

1,

construction.

Underwriter—To

be

determined

by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Stone & Webster Secu¬
rities Corp. and Dean Witter & Co.
(jointly); Blair & Co.,
Incorporated. Bids—Halsey, Stuart & Co. Inc., on Nov.
14, submitted a bid of 100.02% for 5%s, the only one
received.
•

It

Sinclair

Corp.
25 Tiled $167,247,600 .of 4%%

Oct.

debentures

nated

due

Dec.

1,

convertible

1986V being

subordi¬

offered

for

subscription by
1956,

common stockholders of record Nov. 14,
the basis of $100 of debentures for each nine

on

shares

common

—100%

held; rights to expire

of principal amount.

penditures.

on Dec. 3. Price
Proceeds—For capital ex¬

Underwriters—Smith, Barney & Co. and
Pierce, Fenner & Beane, both of New

Merrill

Lynch,
City.

York

Southern

Insurance Co., Atlanta, Ga.
Sept. 24 filed 95,714 shares of common stock (par $5), of
which 50,000 shares are to be offered
publicly; 20,714
shares are to be offered in exchange for

10,357 shares of
stock of Progressive Fire Insurance Co.;,
and 25,000 shares are to be offered to certain other
per¬
$10

par common

Price—To

sons.

$13

persons,

Underwriter

lanta, Ga.

public, $14.50 per share; and to oertain
share. Proceeds—To pay bank loan.

per
—

The

Southern New

Sept.

Robinson-Humphrey Co.,

Inc.,

At¬

England Telephone Co.

shares of capital stock (par $25)
subscription by stockholders of record
Oct. 1, 1956 at the rate of one new share for each
eight
offered for

shares

held; right to

share.

Proceeds—To pay advances from American Tele¬

expire

on

Nov.

2.

Price—$30

per

phone & Telegraph Co. (approximately $15,800,000) and
property additions and improvements. Underwriter

for

—None.
Oct.

4.

Offering—Delayed indefinitely by company on
(See also next paragraph.)

Southern New England Telephone Co.
Sept. 19 filed 1,173,696 rights to purchase 146,712 shares
of new capital stock (par $25) to be issued to American
Telephone & Telegraph Co., which owns 21.61% of the

outstanding stock of Southern New England Telephone
Co. Proceeds—To American Telephone &
Telegraph Co.
Underwriter—To be determined

by competitive bidding.
Blyth & Co., Inc.; White, Weld & Co.;
Putnam & Co.; Chas. W. Scranton & Co., and
Cooley &
Co. (jointly); The First Boston Corp.; Salomon Bros. &
Probable bidders:

Hutzler.

Bids—Had

11

(EDT)

a.m.

been

Oct.

on

expected to

10.

be received up to

(See also

preceding

para¬

Underwriter—None.

* Texas

Eastern

Transmission

Corp.

(12/10-24)

filed $40,000,000 of debentures due
Dec.

21

be

1, 1976. '

supplied by amendment. Proceeds—To
$28,000,000 of revolving credit notes and for

prepay

company's

—220 W. Waterman

St., Wichita 2, Kan.

Underwriters—

Small-Milburn
Herrick

&

Co., Inc., Brooks & Co. and
Clinger, Inc., all of Wichita, Kan.

Southwestern
June

8

cents).

tions,

filed

Price—$5

rities Co.,

per

stock

share. Proceeds—To

additional

purposes.

common

properties

and

(par

exercise

for




op¬

general

Underwriter—Southwestern

Dallas, Texas.

25

Secu¬

Mines,

Inc.,

Miami,

lumbia Securities

Venture

common

Fla.

stock.

Co., Inc., of Florida, Miami, Fla.

•

*

Securities

Fund, Inc., Boston, Mass. '
Sept. 4 filed 200,000 shares of capital stock (par $1).
Price—Initially at $25 per share. Proceeds—For invest¬
ment.
Underwriter—Venture Securities Corp., 26 Fed¬
eral St., Boston, Mass.

gas

expansion

and

reconversion

programs.

investment

Business—A

in

theatrical

ment investment company.

(par 10 cents).

j*

75

Proceeds

—

To retire short-term bank

loans andL

working

cise

For every share subscribed for through exer¬
primary and secondary rights, the stockholders
a further right to purchase until Oct. 3I„

of

would receive

1957, one additional share
became effective Nov. 9,

at $22.
1956.

Amended

Western States Natural Gas Co.

statement

v-

Salt Lake

City, Utah. Underwriter—Us-Can Securities^.
Inc., Jersey City, N. J.** :
•;
"•

com¬

cents

per share.
Proceeds—For inventory, working
capital, etc. Business
Office—26 Avenue B, Newark, N. J.
Underwriter—Eaton & Co., Inc., New York.
—

share.

Aug. 24 (letter of notification) 500,000 shares of common/,
stock (par 10 cents). Price—50 cents per share.: Proceeds,
—For development of oil and gas.
Office—Felt Bldg^.

manage¬

380,000 shares of

Price

Disney Productions, Burbank, Calif.
j
Aug. 24 filed $7,500,000 of convertible subordinated!
debentures due Sept. 1, 1976.
This was later amended
to cover 186,526 shares of common stock
(par $2.50 >
being offered for subscription by common stockholders
of record Nov. 9, 1956 on the basis of one new share
for each seven shares held
(with an oversubscription,
privilege); rights to expire on Nov. 29. Price—$20 per

entertainment

Underwriter—None.

Thermoray Corp.
*
June 29 (letter of notification)
stock

and

non-diversified closecl-end

Walt

others.

Interests Plan,
Inc., New York City"
52,000 shares of class A stock (par five
cents) and 28,000 shares of class B stock (par five
cents).
Price—Of class A. expected at
$10 per share in lots of
not less than 25
shares; of class B, expected at par. Pro- '
filed

30

•

capital. Underwriter — None. However,,
Atlas Corp., which owns about 17% of the common stock
outstanding, will subscribe for any stock not taken by

Theatrical

—Electrical heating.

Wheland Co., Chattanooga, Tenn.
May 23 filed $2,000,000 of convertible subordinated de¬

★ Title Guarantee

bentures due June 1, 1976, and 136,000 shares of common*
the company's account and 61,000 shares for a selling:

21

filed

which

& Trust Co., New York
shares of capital stock (par $8) of
shares are to be offered for subscription

Price — To be supplied by amendment.
Proceeds—Together with proceeds from private sale ©P
$1,500,000 4%% first mortgage bonds and $900,000 ©1!
3-year unsecured 4%% notes to a group of banks, witt
stockholder.

61,902

35,750
by stockholders on the basis of one new share for each
eight shares held; and the remaining 26,152 shares are
to be offered, together with
cash, in exchange for stock
of Abstract & Title Insurance
Corp. of Buffalo, N. Y.,
on
the basis of $15.25 in cash and 4/10ths of a share
of

Title

of

Abstract.

Guarantee
The

stock

supplied

stract

by

stock.

in

exchange

subscription

stockholders will be

offer

to

for

each

Title

of the

amendment.

Abstract

stock.

Proceeds—To

Price—To

acquire

Nov.

13

stock

Ab¬

Underwriter—None.

(letter of notification) 44,400 shares of

(par

one

50 cents per

ment.

cent).

market

common

(estimated

at
Proceeds—For oil and gas develop¬

share).

Office—149

Price—At

Broadway, New York, N. Y.

Corp.
150,000 shares of class A
stock (par one cent).
Price—$2 per share. Proceeds—
For equipment, raw
materials, working capital and other
corporate

purposes.
Office—42 Newark St.,
Underwriter—Dennis Securities Corp.,

Hoboken,
Hoboken,

N.J.

1c United

.

Wildcat Mountain Corp.,

Mass.
subordinated cumulativeshares of common*
of a $400 deben¬
ture and three shares of stock.
Price — $500 per unit.
Proceeds—For construction and working capital. Busi¬
ness—Mountain recreation center.
Underwriter—None;,
offering to be made by officers and agents of company.
Aug.

1t United

Boston,

of 6%

Wilson & Co., Inc.

20-year sinking fund de¬
be supplied by amend¬
ment.
Proceeds — To
redeem
presently outstanding
first mortgage bonds, to repay bank loans and ior ex¬
pansion program.
Business—Meat packing firm.
Un¬
derwriters—Smith, Barney & Co.; Glore Forgan & Co.
and Hallgarten & Co., all of New York City. Offering—
Indefinitely postponed.
filed

28

due

bentures

$20,000,000

1976.

of

Price—To

Aircraft

Credit Corp.,

Sioux

Falls,

S.

Dak.

(letter of notification) 124,982 shares of common
(par $1). Price—$2 per share. Proceeds—For loans,
working capital and other corporate purposes.
Under¬

United

Derr, Sioux Falls, S. D.

Cuban

Oil,

Inc.

(11/26)
(par

offered

of

which

2,000,000

shares

are

to

be

S. A. (amendment filed Oct. 16 reducing proposed of¬
fering to 1,000,000 shares). Price—$1.25 per share. Pro¬
ceeds—For development and exploration costs.
Office—
Los Angeles, Calif.
Underwriter—S. D. Fuller & Co.,
York.

United

Prospective Offerings
Appalachian Electric Power Co.
May 31 it was announced company plans to issue and
sell in December $24,000,000 of first mortgage bonds.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Union Secu¬
rities Corp. and Kuhn, Loeb & Co. (jointly); The First
Boston Corp.; Harriman Ripley & Co., Inc.

10

publicly and 573,625 shares will be issued in exchange
for stock of Compania de Formento Petrolero Ted
Jones,

•

$800,000

20 filed

Nov. 13

•

filed

13

debentures due Dec. 1, 1976, and 6,000
stock (no par) to be offered in units

* Corp.
46,000 shares of common stock (par $5) to
be offered to eligible employees of corporation and its
domestic subsidiaries pursuant to Stock
Option Plan.

Nov.

retire outstanding

series A and series B 5%
expansion program. Under¬
writers—Hemphill, Noyes & Co., New York; Courts
Co., Atlanta, Ga.; and Equitable Securities Corp., Nash¬
ville, Tenn.
Offering — Temporarily postponed.

Aug.

Tyrex Drug & Chemical
Nov. 5 (letter of notification)

J.

used to

first mortgage bonds, and for

Under¬

writer—None.

N.

be

share

Guarantee

made in event that Title Guarantee

1c Translates Petroleum, Inc.

New

Resources, Inc., Santa Fe, N. M.

1,000,000 shares of

purchase

corporate

Lathrop,

Diamond

Price—
At par (20 cents per share). Proceeds—For exploration
and mining operations in Venezuela. Underwriter—Co¬

for

Underwriter—Dillon, Read & Co. Inc., New York.

Aug. 29 filed 2,573,625 shares of common stock

Sept. 27 (letter of notification) 40,000 shares of common
stock.
Price—At par ($7.50 per share).
Proceeds—For
purchase of new equipment and working capital. Office

Venezuela

Aug. 31 filed 1,500,000 shares of

.

cents),

Co.

*

•

writer—Paul

Oil

cents

—

Texas Calgary Co.,
Abilene, Texas
Sept. 25 filed 3,700,000 shares of capital stock
(par 25
cents).
Price—At market from time to ;time on the
American Stock Exchange or the
Toronto Stock Ex- ~
change or by private sale.
Proceeds—To A. P. Scott, "
the selling stockholder.

Southern Union Oils Ltd.. Toronto, Canada
Aug. 24 filed 750,000 shares of capital stock (par $1).
Price—64% cents per share. Proceeds—To selling stock¬

Underwriter—None.

shares of class A voting stock audi
shares of class B non-voting stock. Price—
per share.
Proceeds — For drilling program,
and for plant and equipment for rendering ore market¬
able.
Underwriter
William O'Connor, Secretary of
company, of Arlington, Va.
Malcolm W. Ater, of Falls
Church, Va., is President, and Robert G. Baumann, of
Ritchie, Md., is Treasurer.

—None.

stock

Southwest Grease &

Industries, Inc. (12/5)
filed $6,000,000 convertible subordinated
de¬
due Dec. 1, 1971.
Price—To be supplied by
amendment.
Proceeds
For expansion and working'
capital. Underwriter—Lehman Brothers, New York.
14

1,587,500

.

graph.)

holders.

U. S.

Six

property in Broward County, Fla,* Underwriter—
None. Ernest C. Cassill is President and
Treasurer.
Teachers Mutual Fund of
California, Inc.
Nov. 8 filed 700,000 shares of
capital stock (par $l) to
be offered only to members and
employees of the Cali- :•
fornia Teachers Association
(Southern section) and their
families. Price—Initially at
$7.14 per share. Proceeds— "
For investment. Office—Los
Angeles, Calif. Underwriter :

be

19 filed 679,012

be

to

•

• Universal Lithium Corp., Washington, D. C.

upon

mon

B.

indefinite.

Nov. 15 filed 1,320,000

ceeds—To construct and operate a resort
motel and club

acquires at least 85%

Offering—Date indefinite.

convertible preferred

Castle, Inc., Pompano Beach, Fla.
Oct. 15 filed 1,598 shares of common stock
(par $5) and
800 registered 6%
mortgage bonds due March 15, 1972
(of $1,000 principal amount each). Price—At
par. Pro¬

Nov.

General

(11/26-29)

Sun

fields.

poses.

bentures

Office—Montreal, Canada.
Underwriters—Hamlin & Lunt,
Buffalo, N. Y.; Allen &
Co. and Cowen & Co., both of New
York, N. Y.; and
Straus, Blosser & McDowell, Chicago, 111.

ceeds—For

rejected.

was

Oil

McCary,

supplied by amendment
(proposed maximum offering price is $6 per
share). Pro¬

Oct.

public. Price—At market prices. Pro¬
working capital and general corporate pur¬
Office—Philadelphia, Pa. Underwriter—Mortimer
Burnside
&
Co., Inc., New York. Offering—Date,

ceeds—For

Nov.

ceeds—For construction costs.

Price—To

Power Co.

C.

public; and the underwriter will he*

granted options to acquire the remaining 500,000 shares
for reoffer to the

—

Spar-Mica Corp., Ltd.

Nov.

* v

Pacific

Elvin

to b©. offered to the

41

Associated Truck Lines,
Oct.

11

Air

Conditioning Corp.
Sept. 27 filed 600,000 shares of common stock (par 10
cents), of which 50,000 shares are to be offered to em¬
ployees, distributors and dealers; 50,000 shares, plus
any of the unsold portion of the first 50,000 shares, are

was

Inc.

announced corporation plans to

issue and

sell $1,000,000 of 6% convertible subordinated debentures
due Oct. 1, 1971 at par and 75,000 shares of common

stock

$3) at $11 per share (the latter for the account
selling stockholders). Proceeds—From sale of deben¬

(par
of

tures, for
short

haul

expansion and working capital. Business—A
motor common carrier operating over 3,300

in Illinois, Indiana, Michigan and Ohio.
Rapids, Mich. Underwriter—Paine, Web¬
ber, Jackson & Curtis, Boston, Mass., and New York,
N. Y.
Offering—Indefinitely postponed. Probably not
until January.
miles

States

it

or

routes

Office—Grand

.

Continued

on

page

42

•V

The Commercial and Financial Chronicle
42

Illinois Central

41

Continued from page

Coast Line RR. (12/18)
Bids are to be received by the company on Dec. 18 for
the purchase from it of $5,340,000 equipment trust cer¬
tificates, series K, to be due annually from Jan. 1, 1958
to Jan. 1, 1972, inclusive. Probable bidders: Halsey, Stu¬
art & Co., Inc.; Salomon Bros. & Hutzler.
Boulder

announced company plans to offer and
shares of its common stock. Price—At par
($6 per share). Proceeds—To construct hotel; set up in¬
stalment loan company; and for working capital and

July 16 it

general corporate purposes. Underwriter—Allen Invest¬
ment Co., Boulder, Colo. Stock to be sold in Colorado.

it

was

(Texas)

Co.

River Gas

Brazos

12

that early registration

reported

is ex¬

shares of common stock
of this company, formerly Upham Gas Co. Price—Ex¬
pected to be about $5 per share. Proceeds—To selling
stockholders.
Underwriters—Shields & Co. and Shearson, Hammill & Co., both of New York.
pected of approximately 200,000

Carolina
Oct. 15 it
between

sell
$15,000,000 and $20,000,000 of first mortgage
reported company plans to issue and
be determined

by competitive

Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly);
W. C. Langley & Co. and The First Boston Corp. (joint¬
ly); Equitable Securities Corp.; Blyth & Co., Inc.; Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Beane (jointly). Offering—Expected in 1957.
bidding.

Chase Manhattan
Nov.

stockholders

13

Thursday, November 22, 1956

increase

to

authorized

the

(par $12.50) from 12,000,000 shares to 13,-

capital stock

being of¬

000,000 shares, the additional 1,000,000 shares

subscription by stockholders of record Nov. 15,
the basis of one new share for each 12 shares

fered for
1956

on

held; rights to expire on Dec. 5. Price—$47 per share.
Underwriter—The First Boston Corp., New York.

if Cleveland Electric Illuminating Co.
Nov. 12 it was reported company plans to issue and sell
of first mortgage bonds in the Summer of
Proceeds—To repay bank loans and for construc¬

$25,000,000
1957.

Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Blyth & Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co. Inc., and Baxter, Wil¬
liams
& Co.
(jointly); Glore, Forgan & Co.; White,
& Co.

Sept. 26 it

on

Co.,

Feb. 5 to

authorized issue of $125,000,000

approve an

Proceeds—For construction pro¬

convertible debentures.

gram. Underwriter—May be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; The First Boston Corp.

expansion

in order

to place the DC-8 jet airliner into
Underwriters—Merrill Lynch, Pierce, Fen¬
ner & Beane and
Kuhn, Loeb & Co., both of New York.
Offering—Not expected until after Jan. 1, 1957.

production.

Erie RR.

(par $10)

Power &

to

mature

in

annual

installments

years.

Stuart &

in

Co.

Eversweet, Inc.
reported that this company (a consolida¬
tion of Vita-Fresh Corp. and John H.
King & Co.) plans
early registration of 100,000 shares of common stock.
Price—$5 per share. Business—Producers of fresh orange
was

Underwriter-—Burton J. Vincent & Co., Chicago,

Nov.

15,

Public

A.

stockholders

F.

Utilities Corp.

for

each

President,

going

15

be

to

announced

offered

that

the

approximately

shares

Fenner & Beane acted

as

held.

Merrill

Lynch,

Pierce,

clearing agent in previous of¬

fering to stockholders.
Hawaiian Telephone Co.

July 30 it was announced that company plans to acquire
a 15%
participation with American Telephone & Tele¬
graph Co. in a proposed $36,700,000 California-to-Hawaii
cable and, if approved by the directors on
Aug. 16, will
be

probably be financed by a debenture issue. Hawaiian
Telephone Co.'s investment will be approximately $5 500,000. Underwriter—Probably Kidder, Peabody & Co
New York.

High Authority of the European Coal and Steel
Community, Luxembourg
v
July 9 this Authority announced that an American bank¬
ing group consisting of Kuhn, Loeb & Co., The First
^

Boston

Corp.

and

Lazard

Freres

&

pointed to study the possibility of
the American

will

depend

on

market.

market

The

Co.

a

has

loan

to

been

be

ap¬

issued

time, amount and terms

conditions.

Proceeds

—

To

be

loaned to firms in the Community for expansion of coal
mines,

1957.

Company presently plans to issue and sell $22,000,000 of

/North Jersey Trust Co.,

bonds in the next 16 months.

Telephone

N$v:
& Telegraph

the

20

Co.

directors

a proposal to issue and
Proceeds — To repay bank
program.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Morgan Stanley & Co.; Drexel & Co/ and Dean Witter
&
Co.
(jointly).
Bids—Expected to be received on

approved

$35,000,000 debentures.

construction

for

and

29.

coking plants,




power

plants and iron

ore

mines.

Commerce,

Memphis,

it

Tenn.

announced

it

5

Northern

Bid^

was

of Cleveland, 0**io
Bank
is
offering

announced

to

its

$40,000,000)

funds In
Underwriter—Probably Blyth & Co.,
treasurv

are

Pacific

(1/9)

Ry.

expected to be

received by this company on

^Offshore Gathering Corn. Houston. Texa«
\>; 18, 1955, David C. Bintliff, Pres., announced com¬
pany has filed an application with the Federal Power
Commission for a certificate of necessity to build a
364-mile submarine gas pipeline off-shore the coast of

before Dec. 3 for 100,000 additional shares of capi¬

or

about

Ja|L 9, 1956, for the purchase from it of about $7,700,000
equipment trust certificates. Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler..

stockholders of record Oct. 24, 1956 the right to subscribe
on

year.

finance its

plans to

(costing

stockholders will vote Jan. 8

Ross, Memphis, Tenn.

National City Bank
Nov.

of

company

program

of debentures and

issuance

Inc.
was

approving a proposal to offer 25,000 additional shares
of capital stock on the basis' of one share for each five
shares held.
Price—$40 per share. Underwriter—Left&

it was

reported

19

construction

latter part

on

wich

R'dyewood. N. J.

Northern Natural Gas Co.
1956

(1/9)
13

,'

15 company

July

-

Rank of

.

offered to its stockholders of record
Np.v. 8, 1956 the right to subscribe on or before Dec. 3
for;24,000 additional shares of capital stock (par $12.50)
at/the rate of two new shares for each three shares held.
Price—$26 per share. Proceeds—To increase capital and
surplus accounts. Underwriters—Kidder, Peabody & Co.;
Adams & Hinckley; and Rippel & Co.

(1/29)
sell

(jointly).

Mohawk Power Corp.
Oct. 17, Earle J. Machold, President, announced that the
cdm'pany plans to sell in the near future $50,000,000 of
colrivertible debentures. The stockholders on Dec. 4 will
vote on approving this issue. Proceeds—For construction
program. Underwriter—May be determined by competi¬
tive" bidding. Probable bidders: Halsey, Stuart & Co.
The First Boston Corp.; Morgan
Stanley & Co.;
Ktihn, Loeb & Co. and Eastman Dillon, Union Securities
(jointly).

Co.: Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexel
Co. (jointly); The First Boston Corp. Bids—Not ex¬

States

program.

Niagara

&

if Mountain

.

f,

$10,000,000 first mortgage bonds due 1986. Under¬

(par $16) on the basis of one new share for each
Price—$50 per share. Proceeds—To in¬

shares held.

crease

647,000 additional shares of common stock (par $5) dur¬
ing the first quarter of 1957 on the basis of one new
share

Hutzler

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &

early in

*-

sell in the

Underwriter—To be determined
Probable bidders: Halsey, StuarL& Co. Inc.; Kuhn, Loeb & Co.; Blyth & Co. Inc. and
Smith, Barney & Co. (jointly); The First Boston Corp.
and Glore, Forgan & Co. (jointly); Harriman Ripley &
Co.*: Inc.; Kidder, Peabody & Co. and Salomon Bros. &

V

or

Halsey,

by competitive bidding.

reported that company is considering the

until December

Dec. 6 for the

1957, $25,000,000 of debt securities and an
$20,000,000 in 1958. Proceeds — To finance

of

construction

—

10

Tegen,

are

Spring

gional shopping centers.
Underwriters—Goldman, Sachs
& Co. and Lehman Brothers, New York.

pected to be received

company on

announced company plans to

was

additional

May Department Stores Co.

Edison Co.-

the

New York State Electric & Gas Corp.

Ocfef 24 it

July 19 it was announced that this company may under¬
take financing for one or more real estate companies.
Proceeds
For development of branch stores and re¬

was

'

(12/6)

RR.

Janri, 1958 to 1972, inclusive. Probable bidders:
Stuart & Co. Inc.; Salomon Bros. & Hutzler.

—Expected to be received about Jan. 15, 1957.

July 2 it

-

purchase from it of $8,055,000 equipment trust certifi¬
cates dated Jan. 1, 1957 and to mature annually from

1987.

due

Central

York

New

Bids will be received by

$20,000,000 first

Proceeds—For reduction of
bank loans and construction program. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Equitable Securities Corp. and
Eastman Dillon, Union Securities & Co. (jointly); Kuhn,1
Loeb & Co.; Blyth & Co., Inc.; Merrill Lynch, Pierce, *
Fenner & Beane, Kidder, Peabody & Co. and Harriman
Ripley & Co. Inc. (jointly); Salomon Bros. & Hutzler;
The First Boston Corp., and Glore, Forgan & Co. (joint¬
ly);; White, Weld & Co. and Shields & Co. (jointly). Bids
mortgage bonds

tal stock

General

(1/15)

Light Co.

reported that the company plans the issu¬

was

and sale of between $18,000,000 and

Nov.

•

the basis of one new share for each
Price—$32 per share. Proceeds—-To

approving proposed financing.
Louisiana

sale of

Service, Inc..

13, Edgar H. Dixon,

through

Probable bidders: Halsey,
Inc.; Salomon Bros. & Hutzler.

juice.

Nov. 16,

capital and surplus. Underwriter—A. M. Kid¬
der & Co., New York.
Stockholders will vote Nov. 27

Oct. 4 it

and

Brothers

President, announced that this
company pians to issue and sell $6,000,000 of first mort¬
gage bonds. Proceeds—For construction program. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &
Co.; Blair & Co. Incorporated; The First Boston Corp.;
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); Kuhn, Loeb & Co. and A. C.
Allyn & Co. Inc. (jointly); Kidder, Peabody & Co; and
Stone
& Webster Securities Corp.
(jointly) ;- Lehman
Brothers. Offering—Expected in March, 1957.
/
Nov.

increase

trust

Oct. 15 it

on

eight shares held.

if National

certificates

Stuart & Co.; Kuhn, Loeb &. Co., Leh¬
Salomon Bros. & Hutzler (jointly);
Eastman Dillon, Union Securities & Co. and White, Weld
& Go. (jointly); Equitable Securities Corp.; The First
Boston Corp.; Merrill Lynch, Pierce, Fenner & Beane.

Co., Garden City, N. Y.

announced stockholders of record

was

..

bidders: Halsey,

man

1956, are to be offered the right to subscribe on or be¬
fore Dec. 14, 1956, for 14,000 additional shares of capital

on

Power & Light Co.

12 it was announced company plans to issue and
$5,000,000 of first mortgage bonds. Underwriter—
be determined
by competitive bidding.- Prooahle

New Orleans Public

Bids will be received by company up to noon (EST) onDec. 4 for the purchase from it of $2,805,000 equipment
l-to-15

To,

(jointly).

Jan.

(12/4)

and

Co;; The First Boston Corp.; White, Weld & Co.; East¬
man
Dillon, Union Securities & Co., Salomon Bros. &
Hutzler and Merrill Lynch, Pierce, Fenner & Beane

loans

of facilities

sell.

determined

if Long Island Trust
(11/27)

Proceeds—
Underwriter — To be

debentures.

by

New Jersey

of first mortgage bonds. Underwriter—
by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody &

stock

of 29-year

temporary borrowings.

Sept.

$8,000,000

be

Nov.

Proceeds—For

sell
Underwriter
Chicago and

Sept. 12, it was announced company plans to issue
sell

ible

debentures.

—

j

competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Mor¬
gan Stanley & Co.
Bids — Expected to be received on
Jan. 8, 1957.
*
>

Jersey Central Power & Light Co.

To

$35,000,000

repay

determined

Offices

Mo.

sell

and

Bloomington, 111.

if Douglas Aircraft Co.
Nov. 19, Donald W. Douglas, President, announced that
the company plans to issue and sell $25,000,000 convert¬
subordinated

Inc.;.

To

St. Louis,

Metropolitan

Charles B. Delafield, Vice-President, announced
company is planning an issue of approximately $55,000,000 of convertible debentures early in 1957, probably the
latter part of February. They will be offered to common
stockholders for subscription. Stockholders will be asked

Co.

reported company plans to issue and

was

&

—White

if Consolidated Edison Co. of New York, Inc.
Nov. 20,

&

v

.

England Telephone & Telegraph Co. (1/8)
Oct. 16 it was announced that the cowepany plans to. issue

Fire & Casualty Co.

Interstate

tion program.

Weld

Stuart

Halsey,

& Co. and White,

Kidder, Peabody
(jointly).
'

Beane,

New

Salomon Bros. & Hutzler.

ance

Bank, New York
voted

bidders:

Probable

ments.

Nov. 19 it

Power & Light Co.

was

Underwriter—To

bonds.

trust

was

sell 3,000,000

Nov.

Dec.

& Co.

Weld

be

to

75,000 additional shares of common stock.

Boulder, Colo.

Corp.,

Acceptance

expected

are

&

Fenner

(12/11)

RR.

received by the company on
11 for the purchase from it of $9,000,000 equipment
certificates to mature in 15 equal annual instal¬

Bids

if Atlantic

on

...

(2214)

-

capital and surplus accounts. Underwriter-—Mer¬

Louisiana from

rill, Turben & Co., Inc., Cleveland, O.

the

Sabine

River to the Gulf Coast

of

It is estimated that this gather¬

the .State of Mississippi.

ing,

system will cost approximately $150,000,000. Type
at-financing has not yet been determined, but tentative
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities (probably
abteS, convertible into preferred stock at maturity, and

New

England Electric System
; V
Jan. 3, 1956, it was announced company plans to merge
its subsidiaries, Essex County Electric Co., Lowell Elec¬
tric Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one company
during 1956. This would be followed by a $20,000,000
first mortgage bond issue by the resultant company, the
name of which has not as yet been determined.
Under¬
writer
May be determined by competitive bidding.

-

common

stock).

Underwriter—Salomon Bros. & Hutzler,

New York.

...

*

»

■

Oklahoma

Corp.,

Oklahoma City, Okla.

—

Drobable bidders: Halsey. Stuart & Co. Inc.- Kuhn. Loeb
&

jbly 26 it was announced company has been authorized
by'..the Oklahoma Securities Commission to issue and
sell in the State of Oklahoma $20,000,000 of its capital

,

Co., Salomon Bros. & Hutzler, Eastman Dillon, Union

Securities
Lehman

&

Co.

and

Brothers;

Wood, Struthers & Co. (jointly);
The First Boston Corp.; Equitable

stock ($10,000,000 within organization, and $10,000,000
publicly)...Proceeds—To organize or acquire seven sub¬
Business—A holding company.
Underwriter

Securities Corp.; Merrill Lynch, Pie.ce, Fenner & Beane,

sidiaries.

Kidder, Peabody & Co. and White, Weld & Co. (jointly).
Offering—Expected in first half of 1957.
New
Jan.

3

-rNione.

//pacific

England Power Co.
it

announced

company

now

—

up
■

Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, East¬
Dillon, Union Securities & Co. and Wood, Struthers
& Co.
(jointly); Lehman Brothers; The First Boston
Corp.; Equitable Securities Corp.; Merrill Lynch, Pierce,

man

Northwest Power Co.

Aug, 13 it was reported company plans to sell about $32,000,000 of common stock to the organizing companies and
that/arrangements are expected to be made to borrow

plans to issue
and sell $10,000,000 of first mortgage bonds early in
1957.
Underwriters
To be determined by competi¬
tive bidding.
Probable bidders:
Halsey, Stuart & Co
was

id $60,000,000

reduced

through

on a

revolving bank loan which will be

the sale of bonds to institutional in¬

vestors as well aa the general public. Proceeds—To pav,
in* part, for cost of new power project lo cost an esti¬
mated $217,400,000.

Volume 184

Number 5588

The Commercial and Financial Chronicle

...

ic Pacific Petroleums, Ltd.
19 it was reported company plans to offer
$12,000,000 to $13,000,000 of debentures.
Underwriter—Eastman,
Dillon, Union Securities & Co. Offering — Expected in
January.

ders:

Nov.

Hutzler

Cuba

9,

Oil

Walter

company will

&

E.

soon

IVietats

Corp.

(jointly).
•

it

12

was

Broadway, New

plans to

issue

and

of first mortgage bonds. Underwriter—
by competitive bidding. ' Probable
bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch,
Pierce,
Fenner & Beane, Eastman Dillon, Union Securities &
be

determined

C6. and

White, Weld & Co. (jointly); Equitable Securi¬
ties Corp.; The First Boston Corp.;' Harriman Ripley &
Co.
•

Inc.;

Kuhn, Loeb

Pennsylvania

&

Co.

'

bidders:

Halsey, Stuart

Co.

&

term

bank
most

ing,

whether

offer to

debentures

it

straight

or

was

shares

—

Public

that

the

company plans
of additional

redeem

etc.

preferred

Underwriter

and

Probably

an

order

of

new

to

aircraft

$5,000,000. Proceeds—
and
working capital.

York, handled

& Parker and Allen

stock rights offering

Counties

was

Fenner &

Beane

May 18, it

mortgage

bonds.

Proceeds

To

—

Co., New York.
Texam Oil

•

Oct.

Generating Co.

was announced

that this company, 50% owned

Halsey, Stuart & Co. Inc.; Eastman, Dillon, Union Secu¬
rities & Co.; Equitable
Securities Corp. and Drexel & Co.
(jointly); Lehman Brothers; Harriman
Ripley & Co.
Inc. and
Goldman, Sachs & Co. (jointly); Blyth & Co.,
Inc.
and
Kidder, Peabody & Co. (jointly); Morgan

retire

it

1

plans to issue and

Underwriter—Dillon, Read &

|

Corp., San Antonio, Texas

that the 1,000,000 additional
stock, recently authorized by the di¬
rectors, will provide the company with the additional
working capital it will require for further expansion.
announced

was

shares of

common

Trans-Canada Pipe Line, Ltd.
Nov. 1 it
in

announced public
of $60,000,000 of

was

December

$30,000,000 of

common

offering is expected late
30-year debentures and

stock in units. Proceeds—For

United States National Bank of San
Nov.

it

9

Stanley & Co.

announced

was

stockholders

(par $10)

on

shares held.

Bank

plans

7,

June

States

Rubber

FRANCISCO, Calif.—Leona

Wilson, Johnson & Higgins, 300
Montgomery Street, members of
the San Francisco Stock
Exchange.

H.

E.

of

29«,

issuance

convertible

1956.

Humphreys, Jr.,

Chairman, stated that

debentures

is

of progress,
enlarge markets for con¬
goods, and promote expansion of the economy.
We might as well
recognize at the outset, however,
that there are
practical limits on what can be accom¬
plished. We will always have part of the population

convertible debentures

rata

to

&

common

Co., New York.

Underwriter—Kuhn,

Washington Gas Light Co.
June

7

it

proposed

announced

was

company

construction

new

of

proposes

pipeline

living

incomes that look low because they are
under the
general average. There will always be a
■:problem of low incomes as long as people are free
on

America

connected

&

Co.,

ir Western
Nov. 13 it

Pennsylvania

National

—

was

132,812

•poABS oq p{noo Aurui sv domj
•

• •

qiaap ssa[poau a si qieop Jdo
*uvd

pjiqi

Xi3Aa

jeqi si'sn jpj

Siopop jno 'iovj oiSeii aqj,

of

Ralph M.

with J. D. Creger &

are

Co., 124

North Bright Avenue.

might add, rewarded with largesse for
be fully productive.

we

failure to

Two With Norman Dacey
(Special to The Financial Chronicle)

But

we

must

hope that politicians who are
fond of screaming about
poverty will sometime
other take these

Freedom

we

homely facts

so

BRIDGEPORT,
M.

or

are

to heart.

want, of course, but

Brummer
now

must

Conn.

—

Arthur

Harold
I.

Moll

114

State Street.

Many thousands of Ameri¬

not

cans

subsidize unwise choices.

Smith, Ramsay Adds
Prout With First Sees.

.

CHICAGO,

111.—Harold

f

of

Chicago,
134
South
La
Salle
Street, members of, the Midwest
Stock Exchange.
Mr. Prout jvho
in

the investment busi¬

for many years was
recently

Reynolds & Co.




Lincoln McRae, Inc.

ROCKLAND, Me.

—

Kele
are

and

now

Conn.—Alan

Benedict
with

A.

McRae, Inc. has been formed with

people
E.

Marciano

Smith,

Ramsay
Co., Inc., 207 State Street.

Lincoln E.

B.

Prout has been added to the staff
of
First Securities

Company

.

BRIDGEPORT,

&

offices at 292 Main Street, as suc¬
cessor

to

the

of Lincoln

McRae,

i

Treasurer.
a

director

tion.

E.

Jr.

McRae.

is
the

Lincoln E.

President

Lincoln
of

Cooley Adds Two

E.

new

'

and

McRae

is

organiza¬

;

.

cured of

are

cancer

More and

more

going to their

doctors in time...To learn
how to head off
cancer, call
the American Cancer

Society

or

investment business

are

every year.

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

LET'S LOOK AT THE BRIGHTER SIDE

with Norman F. Dacey &

Associates,
we

and

of

write to "Cancer" in

your

care

local Post Office.

(Special to The Financial Chronicle)

HARTFORD, Conn.—Donald Y.
Goss and Charles Simon have be¬
come

affiliated with

100 Pearl Street.

Cooley & Co.,

Bank

reported Bank plans to offer to its stock¬
additional shares of capital stock on a
l-for-3 basis.
Price—$30 per share. Proceeds—To in¬
crease capital and surplus.
Office—McKeesport, Pa.
holders

Creger

WHITHER, Calif.
now

to

—

(Special to The Financial Chronicle)

Vecchi and Richard V. McLane

finance

$3,380,000 from funds generated by operations,
common stock and temporary bank
borrowings.
Underwriter
The First Boston Corp., New York; and
Johnston, Lemon & Co., Washington, D. C.

with

Bank

to

Virginia

of

Building.

Two With

to choose what

they want to do regardless of their
qualifications for such work, where they want to
live regardless of
employment opportunities, and,
finally, whether they want to work hard or take
it easy."—First National
City Bank.
•
And,

become

in

cost about

sale

JOSE, Calif.—Frederick C.

has

Schwabacher

several

Offering—Expected by 1958.

(Special to The Financial Chronicle)

Dorr

of

issued, they will be offered

are

stockholders.

With Schwabacher & Co.
SAN

one

possible methods the company has been considering for
raising $50,000,000 to $60,000,000 which may be needed
for plant expansion and working capital. He added
that, If

stream

sumer

to

Co.

(Special to The Financial
Chronicle)

M. Midgiey is now associated with

Diego, Calif.

offer to its
65,000 additional shares of capital stock
the basis of one new share for each 2%
Price—$27.50 per share. Proceeds—To pur¬

With Wilson, Johnson
San

con¬

chase Pasadena-First National Bank and its two branches
in Pasadena, effective Dec.

Loeb

by Alabama Power Co. and 50%
by Georgia Power Co.,
subsidiaries of Southern
Co., plans to issue debt securi¬
ties. Proceeds—Together with other
funds, to construct
and operate a
$150,000,000 steam electric generating plant
on the Coosa River in
Alabama.
Underwriter—May be
determined by competitive
bidding.
Probable bidders:

Indiana, Inc.
reported company may issue and sell about

first

Electric

Co.

company

For construction program.

pro

Southern

Service

gage bonds and to offer to stockholders 292,000 additional
shares of common stock on a l-for-14 basis. Proceeds—■

United

Gas Co. off California
reported company may in the Fall offer
$15,000,000 of first mortgage bonds. Underwriter—-To be
determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co.,
Inc.; The First
Boston Corp.; White, Weld &
Co.; Merrill Lynch, Pierce.

"'f':'

Public

announced

was

program.
Underwriters—Lehman Brothers (in
U. S.) and Nesbitt, Thomson & Co.,(in Canada).

increase in the author¬

raise

it

struction

year.

responsible citizens share the feeling that
elimination
of
remaining poverty in America
would not only bring
greater happiness and oppor¬
tunity to these people but it would draw them into

with

stocks

—

Inc.

in

purchase

"All

ness

com¬

7

sell in February or March, 1957, $5,000,000 of first mort¬

long-

stock

Southern

Service Co. of
was

Southwestern

Aug.

payable in

Incorporated, New York.

Poverty and Us Causes

been

held;
share.

Bank, New York.

program,

stock

Jan. 30 it

bank leans and for construction
program. Underwriter—
To be determined by competitive
bidding. Prohablp bid¬

has

per

the

was

$30,000,000

r

on

Ry.

declared

reported

Airways,

early this

be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); The First Boston Corp.;
Blyth & Co., Inc. and Smith, Barney & Co. (jointly);
Lehman Brothers; Harriman
Ripley & Co. Inc. Bids—
Expected to be received early in 1957.

;

been

& Co., both of New

reported company plans the issue and sale
of $30,000,000 first mortgage bonds. Proceeds—To
repay
bank loans and for new construction.
Underwriter—To

the

$10)

$30
surplus.

Underwriters—Auchincloss, Redpath

deben¬

'

Price

capital and

Proceeds—To

common

For

Corp., New York.

■

(par
three

financing and/or issuance

Co.

common

its stockholders rights to subscribe for

share.

July 30 it

14.

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp.; Kuhn, Loeb & Co. and Salo¬
mon Bros. & Hutzler
(jointly); Blair & Co. Incorporated;
Kidder, Peabody & Co.; Eastman, Dillon, Union Securi¬
ties & Co.; The First Boston Corp.; White, Weld & Co.
and Shields & Co. (jointly).
Registration — Expected
early in 1957.

offering of 25,000 addi¬

stock

repay bank loans and for construction pro¬
Underwriter—To be determined by competitive

gram.

from
1,000,000 110 par shares to
2,000,000 $5 par shares. It was stated that the
company
may issue and sell a convertible debenture issue or
some

Public Service Co. of Colorado
Oct. 8 it

has

expansion

ized

540,651.75 shares of Pittsburgh Rys. Co. Price—About $6
per

Dec.

on

increase

an

each

Nov. 15 stockholders approved

Underwriter—The First Boston

will

10

debt

* Slick

•Pittsburgh Rys. Co.
May 4 it was announced that Standard Gas & Electric
Co.

which

Blair &

Inc.;

loans. After review, the company will
appropriate type of long-term borrow¬
be insurance loans, long-term bank

convertible

borrowing,
tures.

it

expire

stock.

mon

for

Phillips Petroleum Co.
Sept. 24 it was indicated that the company next year
will give consideration to refunding its $75,000,000 of
decide the

ceeds—To

for

Loui$-San Francisco

Sept.

Salomon Bros. & Hutzler.

short-term

S. Com¬
and sell
$5,000,000 30-year first mortgage bonds due 1987. Pro¬

Co.

Seiberling Rubber Co.

RR.

Probable

share

new

—The Chase Manhattan

(11/29)
Bids are expected to be received by the company up
to
noon
(EST) on Nov. 29 at Room 1811, Suburban
Bldg., Philadelphia 4, Pa., for the purchase from it ol
about $9,300,000 equipment trust certificates, series GG,
due semi-annually from July 1, 1957 to Jan.
1, 1972,
inclusive.

&

ferred

$6,000,000

To

Securities

1956, in ex¬
change for its 616,000 shares of $100 par value 5%
pre¬
stock, series A, on the basis of $100 of deben¬
tures, one-quarter share of common stock and
unpaid
dividends of $2.50 per preferred share in
exchange for
each 5% preferred share. The oJiei
will expire on Dec.
31,
1956, unless extended. Dealer-Manager — Eastman Dil¬
lon, Union Securities & Co., New York. Exchange
Agent

Co.
company

to

St.

dend

Electric

announceu

Union

Sept. 5 company offered not exceeding $61,600,000 of
50-year income 5% debentures, series A, due Jan. 1,
2006,
154,000 shares • of common stock
(no par), and cash
equivalent to the unpaid portion of the preferred divi¬

York, N. Y.

Pennsylvania

one

Proceeds—To

preparatory to an equity offering planned to taKe"
place later this year. Business—To explore, drill and
operate oil, gas and mineral properties in the United

sell

Dillon,

Offering postponed.

of

rights

SEC

Sept.

^ Southern Indiana Gas & Electric Co.

Puget Sound National Bank of Tacoma

basis

(Del.)

Office—120

Eastman

Nov. 14 stockholders approved
tional shares of new
capital

Seibert, President, announced that
file a registration statement with the

States, Cuba and Canada.

and

43

Nov. 16 the company filed with the Indiana P.
mission an application for authority to issue

Forgan

Park, Fort Lee, N. J.
Aug. 21, Irving Rosenthal, President, announced that
company plans to purchase another amusement park and
merge the two and then sell stock to public.
Pan

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The
Corp.; Harriman Ripley & Co. Inc.; Glore,
& Co.; Kuhn, Loeb & Co., Salomon Bros. &

First Boston

Palisades Amusement

April

(2215)

American Cancer

Society

t

41

The Commercial and Financial Chronicle

(2216)

Vance, Sanders
Are YOU

Interested In

Approximately

Investing In
; National Growth Stocks
i

SEC May

National Growth Stocks Series is

j

if the

meat fund providing a supervised

of

Policy is

a common

I

i
*

stock mutual invest-

as

investment in securities selected

| -

newer

Basically,

scientific develop-

mutual funds'

X merits and technologies. Prospec-

other information

{

tus and

j

may

be

or:

known

National Securities &
Research

I;

Broadwoy,

New York

SEC

based

are

the fact

on

fund

all

5, New York

money

purposes,

James

M.

wants to
the well-

Harvard Law School and

investing

tual fund
mutual f

Board

Governors

of

estkemt

Association

National

of

Securities

this

deal¬

among

been minor.

in some in¬

this

houses.

not

time,

assist

To

the

those

wants

explanation with

I®

further

vyyyyyy

the

every

on

funds

reference

Commission

yield, not based

avestois

mutual

to

include

to capital

and

is

program

planned

charges

on

to

to

shares,

fund

ful

seminars

ginning

in

original cost, but by relating the annual divi¬
price.

Guest

and income-

income

from

return

mutual funds.
The industry,
rationality, has recognized that
capital and should be treated so.

and the SEC
capital gains

of

moment

on

is

also

.

mean

the

John

was

P.

whose incomes

June

all

the

meetings

Ridhard Piatt, of Boston, a partner
'

■

r

,

■

''

'

-

,,,,

-

*

A

on

from■

is

your

investment

Investors

opened in October a
of 15,986 new ac¬
plans for the regular
purchase of open-end investment

dealer.

cumulation

The Parker Corporation

■

Other

who

in

a

sions

were:

a

David

T.

Shaw

Herbert I.

and

Sanders, of New York;

L.

Osgood,

Baxter

and

Arthur

of
Valentine,

mann,

Thomas
H.

A.

Hausser-

Boston; and Kimball
of Washington, D. C.

Berkeley Street

*

Edward

Boston, Mass.

tor

B.

the

of

National

of Investment

This

plans
9,430
year

opened
a

Investor

Association

in

September and
year earlier.
So far this

125

as

new plans have been
against 93,957 for the

Reporting
ciation's

today

134

companies,

on

the

open-end

Mr.

Burr

Asso¬

member

noted

that

nine mutual funds with combined
assets of

$35,319,000 became

mem¬

bers of the Association in October.
As of Oct.

companies

31, net assets of the 134
amounted

to

of

the 125 com¬
Association

purchases
the

134

of

member

new

open-

bnmnflraWp

member

fi~"rps

companies

were

$8,663,-

Share redemptions amounted to
$31,398,000 in October, as against
$30,737,000 the month before and
$32,346,000 in October last year.
Cash, U. S. Government securities
and short term obligations held
by the 134 mutual funds totaled

$496,183,000 at the end of October,
compared with $504,932,000 at the
end of September.

Affiliated
—A U. S.

incorporated mutual fund

Fund

pro¬

viding diversified, managed investment in
Canada. For free prospectus mail this ad to

A

-fnr

$101,051,000
in
September
and
$91,528,000 in October of 1955.

first 10 months of 1955.

of last year, and

1956, hourly earnings - in

manufacturing industries rpse.
it necessary for

Using the, autorpohile Industry
exarnp 1 e ,

an

counts

1956

rises

recent

model

season,

margins reached the
minimum."

,

dealer

y:j

r "The
price increases on; thp 19.57
models," Managed Funds cautions
shareholders, , "will X.haye to be
borne by the buyer.
Thus, they
are definitely inflationary in na¬

ture."..

Offshore

to

Cost Less Than

•

I

Onshore

Oil, Bullock Reports

In

spite of larger initial outlays,
it is now felt that the production
of

oil

from

offshore wells

this

in

resulted in a 41% success ratio
for wildcats offshore compared
"'ith an average of 11% on thfe

United States mainland.
To a
than on- great extent, this factor reflects
operations, with the higher the physical characteristics of the
costs of drilling more than offset offshore oil.
by other factors.
Salt domes, which are among
According
to
the
November the easiest formation to detect by
"Perspective," just published by geophysical
methods, form the
Calvin Bullock, Ltd., managers of basis for the principal producing
mutual funds with assets totaling restructures, the report says,
more
than
$400,000,000,
lower
"Domes of the magnitude and
overall costs are anticipated numbers encountered in the tidechiefly because of ' the greater lands area are not commonly unmagnitude of the offshore deposits covered. As a result, the costs of
as well as the extremely favorable
locating prospective offshore oil
discovery rate, which to date has formations to be tested by the

country
r>^irai

will

in

the

prove

long

eco-

more

run

shore

EATON & HOWARD

EATON & HOWARD

BALANCED FUND

STOCK FUND

Common Stock Investment Fund

Managed by

Investment

CALVIN

objectives of this Fund
possible long-term capital and
income growth for its shareholders.

BULLOCK

EATON

are

Prospectus

upon

request

ONE WALL STREET, NEW YORK 5

Lord, Abbett & Co.

Address




■

.

—

Chicago

—

Atlanta

—

Los Angeles

HOWARD

24 Federal Street

ESTABLISHED 1924

Rusb

BOSTON

BOSTON

4

New York

&

INCORPORATED

Established 1894

Name

profit

"irreducible

were

companies amounted to $114,-

P°fi.000.

new

142,394

opened

in

shares
end

with 13,835

Dec.

on

13-14.

on
Sept. 30 were $8,505,960,000 and $7,216,241,000 on
Oct. 31, 1955.

Companies.

compares

seminars in New Orleans

members

shares,
according
to
Burr, executive direc¬

company

200

290,000.
Assets
panies
which

number

record

purse

15,986 in Plans

each

available

prospectus

fund

of

likely

their

V

v

.*•

are

on

the analysis, disin retail cpr
prices as "trade-in inducements,"
but notes that, by 4he close of the
as

.

New York meet¬
ings, it is planned to hold the next

A Record

,

pull

But those

fixed

many

was

of Vance, Sanders & Company.

Opened

the

are

companies either to increase
request increases An their pric¬
ing structures.' J
?ȣ'?;-

Co., of New York.

of

Following the

Investors in October

faster than

or

Chairman

.

or

bad.

so

about 5 %, making

Marine

*

sup¬

-

strings."

Sullivan,

are

a

feel

to

opening

the

of

Trust

fast

as

Between June

the

at

con¬

prices of the things he buys,

this will not be

a

buffer

..

rises

come

success¬

business
a

and

wage-earner

"For the wage-earner whose in¬

-

Vance, Sanders partners
participated in the discus¬

.

all-time

an

to appear that
longer stand as

no

sumer.

years."

Robert

It was also pointed out that the revisions would
pression of legitimate information.
'»•

reached

between

of interest

have been

speaker

Midland

reinvested, but instead a separate "bar" in the chart were to show
net
assets, capital gains, and investment income, shareholders
would be misled into believing that there were two sources of

.

it

Vice-President

of

<

that

selling mutual funds for

session

*°XhUt

can

relatively inexperienced

number of

The opposition based its case on the concept that the Statement
folicy should be a Statement of Principles. The test should be,
it said, whether, for any one rule, the SEC would risk litigation
by issuipg a stop-order if ?the rule were violated. 4'. '-f; *.
x
The SEC was warned that if capital gains were not shown as

.

them

pass

public.

February,

the

on

others who

dend to the average offering

^Wished 1925
tual fund wtli a
t?" of eecuritiea

the

to

stability began edging upward last

for

year.

salesmen, comments from dealers

emphasize
and to show

gains,

consuming public has
Producing industries

index, which after three

York

New

held, Henry T. Vance,
partner of Vance, Sanders
&
Company,
said:
"While
this
sales training
program
was
de¬
signed in many respects for newer

two-paragraph

a

resulted from
date, the effect of

"Nevertheless, the cost of living
years of

accommodated

be

another

in.

(over:

have done their best to absorb the

senior

indicate
SEC

Product

billion
To

the

on

," '

high in September. Now it is be¬

pounding" results of reinvested capital gains; it does not want, in
periodic payment plans, to have results show reinvested income
dividends or capital gains, and it wants to extend the ten-year
time limit in past performance charts and tables.
The

National

1955), $12
price rise.

is

Due to the

reductions in

to make

Commenting

depicting investment experience, the SEC does not want the
$8 billion mutual fund industry or its dealers to show the "com¬

WM

X-'

billion increase

$20

on

Burr

In

orpoiuted

•ul

interest

early next

..JWW!

led

Gross

already

193-2

__r^_—

"Of the

higher costs rather than

Broderick.

Vincent

solutions

necessary

wbo could

recognized investment

Robert Clark, Edward B.

including

.

dividual

authority, and spokesman of the National Association of

Companies,

history

the business '

; you can't con¬
prices very long if you can't

trol

na¬

.

' V"

Federal Reserve's

credit,"

number of places requested by in¬

seminar

and

compahv

Building •

480 Rust

the

of

stances

Committee of the NASD; Lucille Tomlinson,
Investment

Estab lished

widespread
ers, it was

Investment

of

business

*;

report states,

seminars, participation

case

at

company

INV

the

of

the

last, year's

control wages.

round-table

limited to 120 persons.

Dealers; William Shelley, Chairman of the Investment Companies

Booklet-prospectus
-

Free

in

dean

Island Securities Administrator
Companies Committee of the
National Association of Securities Administrators; Jerry Thomas,
Florida Securities Administrator; Frank Hunter, Chairman of the
Chairman

and

price levels today as
significant difference" be¬

restraint

Sanders and the

Because of\ the
ture of the

formerly

a coop¬
costs are

which

in

registrants.

Commission; Louis Barry, Rhode

a

in

effort

shared by Vance,

was

general in¬

in

"Despite the

training program is

erative

of
Chairman of the Sdcurities and Exchange
who

wage-

consumer."

and

activity and
upswing.

sales

three of the revisions will deflate

lawyer

a

"no longer

can

between

try's leading underwriter of mu¬

in mutual fund shares

Landis,

"one

Vance,

by

buffer

a

The report sees the

shares sold through in¬
dependent investment dealers, the

Among those appearing at the hearings to oppose the changes
were

as

earner

tual fund

performance in the last ten years has been too good.

practical

stand

tween the current rise in business

performance, and three will tend to discourage investors from

putting their

initiated

that business

warns

crease

Although

a

Sanders & Company, as the coun¬

the

that

this

followed

seminars

St. Louis.

funds, their dealer network, and
general public.

changes

Statler

Hotel

The

repre¬

were

similar meetings earlier this year
in Boston, Chicago, Cleveland and

ten-year past performance charts.

For

Corporation

Established 1930
120

the

the

at

month.

the

The SEC, in its six revisions to the Statement of Policy,
deflate this mutual fund performance as it is shown in

obtained from your investment
dealer

mutual

Managed

sented

do considerable back-tracking. The Statement
oral, visual and written

between

recurring fears of
November report by
Funds
just
released,

inflation,

area

'

Analyzing

independent

90

metropolitan

set of rules which controls

fund shareholders and

mutual

given to corporations actively engaged in

a

communication

for possible long-term growth of
capital with special consideration

.

SEC may

O

investment firms in the New York

Change Its Mind

As a
result of the strong opposition which was expressed
Thursday and Monday to the Securities and Exchange Commission
over its proposed changes to the Statement of Policy, it now looks

Series?

1

Renewed Inflation

R. RICH

ROBERT

By

Warns Holders of

Well-Attended

Mutual Funds

> »—< ;.r-

,*«.»»

Managed Funds

Seminars Here

r

''

Thursday, November 22, 1958

.

Prospectuses from your Investment

Building

SAN FRANCISCO

Dealer

or

the above.

Number 5588V.. The Commercial and. Financial Chronicle

Volume 184

(2217)

drill

the

^

tfie

on

mainland
of

nature

when

because

of

the

"deposits but,
with deposits of

compared

like nature

less

generally less

not only

are.

than

nearby, are also often

because

of

tne

accessibility

factor."

ir Another

•;.

'/■

cited

favor of offshore oil from a
standpoint, the publication
points out." concerns certain bene-

1

•

fits

the

in

shorev

;

»;

;

VjV

producing
nual

and

manner,

The

basic

type

unit

for

leasing.' generally

/

of

off-

consists

the

as

Gulf

Coast

prominent

very

in its 1955

company

indicated

report

tionship
with

of

Another

the

an¬

rela¬

than four times

more

of $478,900 for
32 offshore wells compared with
an average cost of $114,000 for 825
an

average

wells drilled offshore
"The

lack

keting

of

facilities

production

cording

to

during 1955.

economical

has

back

held

extent,"

some

to; the

mar¬

Bullock

ac¬

survey.

"Crude oil produced in fields not
served by pipeline is transported

block of approximately 5,090
or/more jacres;
great deal - mdre by barges which are subject to
than .theVuhits i.usuallyavailable interruption by adverse weathfcr
ob
^'Thus^ itiore'eto- conditions. Pipeline facilities on
of

.

region.

;

leasing.

•

•4

often

in

cost

j,

advantage

mainland

the

a

£ nornical

'-

spacing -js > possible,
'%v<l necessitating the drilling of fewer
j-Vvwells,fand,:'since only one land-

with

\

wells

>

is concerned, there is less

owner

4..^^xpense^pnd-ieVijef' problems |n-;.
-^vyolved^ -kV
kk/ Vi •
il \ ?In addition, fhere is more genallowable treatment, in

erous

y

this

And

these

appears

stantial

that

;

holds

in

per

high.

/.

//

One of the most active major
oil companies: in offshore .drilling.

overall basis, including
the many auxiliary facilities're¬
quired, an offshore well will cost
approximately * three
times
as
on an

much

as

similar well-drilled

a

be expected

can

Calvin

on

Bullock

-

fhat,

reports

"there is little doubt that offshore
oil

represents

pay

are

sub¬

very

realizing the potentials of off¬
petroleum deposits, efficient
transportation must be provided.

the

well

the Bullock report says, has stated

that,

progress

major

a

conventional

addition

domestic

that

and

sources

costs

before

shore

than

that

in

off the,
to
greater costs of offshore drilling.

v

•

ratio

available *to

be

It

per¬

higher*, income

will

in

is available only for
relatively close to shore and
the vicinity of tne Delia area.

the mainland.! If

on

favorable

future,

;

inadequate, and,
exceptions, such trans¬

few

more

produce 50%

counterparts

;
.

.

to

are

portation

are

V wells offshore currently
mitted

the" whole

in

on

One

oil

of

the

companies

'the

offshore

tic oil

tion

one-quarter

billion dol-

y • •'/.:
would

appear," the survey
"that the full realiza¬

of

this potential lies some
ahead inasmuch as emphasis

years

Barring any change in this policy
therefore, profits from offshore
„

will

generally not be of
significance in the

ticular
near

future."

th

J

.

,

^

from

realized

record

cents

share

a

share distribution

securities

profits,
stock

to

November

30, 1956.

L.

MORGAN

are

The

profits. Both dividends
payable
Dec.; 27J
1956, - to

shareholders

ising,"

W.

Linton

Delaware

uted

Nov.

it will

fund's;

the. larg¬
shareholders in the

dend

declaration will
of

investment

income

from

and

of

190 000

shareholders,

number

the

in

fund.

More

the

history,

than

largest

located

state of the union and

every

than 30 foreign

ticipate

in

more

countries, will

the

in

par-

dividend

current

distribution.

dividend

declarations,

463,000

from

and

$72,270,000

profits

in

special

the

se-

last

27

President

prom¬

Television-Electronics Fund
thof
that

nn,mpoc

nounces

paid

out to the

shareholders
U.

S.

the

and

form

of

the

of

be

than 70,000

more

abroad

i

will

fund

in

Nov.

on

the
in

30

dividends' from

in-

realized
securities
profits.
amount, 45% higher than the

in

the

writes

report

latter

as

"rather

disappointing," but ob¬
they "serve a good purpose

since

they

will

tend

to

bring

reality out of romance."

MUTUAL FUNDS?

.

/We wilLbe glad to send
you a free prospectus-

The mutual fund

55.7

cents

share from

per

the

on

million shares

than

more

11

outstanding.

now

has

total of $18,213,560
paid
to shareholders
number
has grown from

been

whose

more

diversified

of

total

opposite

group

movements of
could

create

would

give

and

common

stocks selected with the

preservation of

"Hence," he

the

which

impres¬

erroneous

actually happening

as

a

whole."

Mr. Nelson then cites

in

general

distortion

a

an

in the market

the

to

other stock groups

sion of what is

objectives of reasonable
return,

August

issue

the

of

nancial

appreciation possibilities

scribing the steel industry

an

For

investment basis.

your

prospectus-

booklet, just write:

of

Analysts

the

country's

comparing

most

fined

ings

major

its

outstanding

panies.

SERVICES, INC.

The

"one

dynamic

"growth"
per

mental

on

.

.

.

The

fund

ware's

president

present

the

which

com¬

de¬

says,

" 'actual

as

share'

basis

participants

article, he

term valuations must




de¬

as

chemical

907 Investors Building

Minneapolis 2, Minn.

Fi¬

magazine

growth industries" and favorably

with

DIVERSIFIED

article

an

capital, and long-term
on

The initial

offering price

of'the fund when
first offered to the public in September 1948 was $4.91
adjusted
for
a
two-for-one
split in the
stock effected in January 1954.
•

Group Securities

•

J-

distributions

profits in

earn¬

funda¬

all

long-

finally rest."
lists

holdings

of

Dela¬

steel

equities at approximately 11%
total net
than

assets;

3V2%.

Atherton

the

last

area

total

The

is

Hobler,

Chairman

of

chemicals at less

from

net

investment

from

net

realized

nrofits

and

income

distributions

in

$3,800,000

during

the year.. These figures bring total
dividends
from
income
since

Groups

inception

to

than

more

$47,000,000 and total distributions
of profits to
over
$21,000,000.
The

committee

of
Inc., advertisjng agency, and one of the bestknown advertising and marketing
authorities
in
the
country, has
and Bowles

elected ;a member

of

the

•

^

^

f

•

Corp.,

ning

^

mutual investment

a

,

organization

luna sales organization.
Lawrence
elected

A.

Sykes

...

.

has

been

president and director

Massachusetts

Hospital Life
Company, trustee of

surance

Massachusetts
anced

Life

mutual

Fund,'

fund,

it

a

of

In¬

the

bal-

was

an-

succeeds the
'-j

arbitrage type - transactions';
"You would say," he comment¬

ed,

"that

Insurance

investment

Company

department.

in

the * price of the stock

tying
from

increase
increase

the

number

in

in

have had grati
their income

dividends
of

shares

On

tne

owned.

Id

J,

^.OOO

told the

On

Massachusetts Hospital Life In-

Company is

surance

oldest

corporate,

considered
modern

the

the

brokerage houses have
giving Tri-Continental ap¬
proving
write - ups
in
recent

year in 14 cases,
and the same for the

preceding

lower in two,

remaining five.
acceptance of
distributions

trustee

in

were,

three,

two were

shares,

higher

/"v

Mr. Randolph gave as a
general
for splitting off the public

reason

underwriting activities formerly
'.by
Tri-Continental's
subsidiary, then known" as Union

conducted

Securities

Corporation, the fact
of the operation

that this portion

and the investment
company manr

agement portion had. both
"too

big

for joint

and

all

originator

mutual

vested

in

fund

•

the

of

concept,

a

which

fund

common

in 1949

was reorganized as Massachuselts
Life
Fund, a balanced
mutual

fund

agement, he said, the public un¬
derwriting activities were sepa¬

V"';-'•■■■:;

rated.^;-

^^

=3=

Business
y

(Doc) Kasbeer

as a

of

John

H.

vice-president

Kasbeer

has

been

in

the

investment business since 1919. He

^as

keen

with

the

Continental

ininojs

National Bank, the Chase
National Bank, Kidder, Peabody

-

Action

Charles

East

60th

'

(cloth) $5.

Booklet

Public

—

1313

-

Chicago,
y~.

111.

••

Power

Compact

Thole and

Service,

Street,

*.

Changing

a

C.

Gibbons

G.

Administration
...

in

Henry

—

Yardney

by

—

giving complete set of

technical

physical

data

and

sheets

available

of

on

latest

specifi¬

electrical

cells

and

Electric
Corp.,* 40-50
Leonard
Street,
New York 13, N. Y.—On re¬
quest.
:
v
—

Yardney

Supervision

of

for

Guide

Leader's

Conference

Scientific

and

Lloyd and Robert D. Gray —
Supplement to "Supervision of
Scientific and Engineering Per¬
sonnel"

Relations

Industrial

—

California Institute of
Techonology, Pasadena, Calif.—
Both volumes as a set—$8.75.
Section,

and In¬

Overseas^—Press

France

formation Division,

972

bassy,

French Em¬

Fifth Avenue, New

.

distribution
ghares

World

Engineering Personnel—JohnT.

of that firm.
]vrr.

^

Business

batteries

the election

nounced

Bookshelf

cations

\
Harry L. Sebel, president of Se-

«f §elec^ Andean

jnc

servicing

Chicag/ ce^tral
TVTinbi

dealers

in

niinlis Indiana"
an/1

ffon

HL1

York

Glossary

Holders of Tri-Continental Cor-

received by the end of 1956
$2"

on

their

Electric

and

Electric

Closed-End News

selling

of

nancial

Terms,

Fi¬

Techincal—Edison

a

total

shares,

around

$27,

Francis F. Randolph, chairman of

Institute,

Lexing¬

420

Avenue, New York 17, N.

ton

but of "around

21, N. Y. (paper).

/-v

Michigan and Ohio.

of those currently

bond funds."

grown

management."

As the basic undertaking of TriContinental is investment ijiffh-

is

and

Adjusted for the poration common stock will have

last year's optional

three

.

months.

nation's

Since 1823 all trusts have been in-

eastern

a

share basis, dividends paid in
1956 were higher than those of

the

analysts that London in¬

to

uate of Dartmouth
College and
Harvard
Business
School,
Mr.
Sykes has been in the financial
field for more than 20 years,

onc+prn

per

badly."'

It is believed that some
of these shares were purchased
by
investors in England and Scotland,
the chairman disclosed. 4 He ex¬

Naval Service in. World War II he
associated with a New York
investment banking firm. A grad-

„

elected

impossible

market and not break

o^en

was

to

out that shareholders who

be

the

Prior

shares, with cash optional, on 14
of Group's 21 funds. The company

to do so last year

it would

to pour that many new shares on
the

fore ^hat he was
an
assistant
treasurer of John Hancock Mutual

profits

enough

now

:

distributions were & Co., and, for the last six years,
be declared in the
Wellington Company as
a
wholesaler of
Wellington Fund
shares.
He is a member of the
recommended that these distribu- Bond Club of Chicago,
tions be taken in shares, pointing
...
whr>ip«aia

large

;

28%

.

executive

Benton

than $1,200,000 in

over

and
-was

been

W.

shareholders, lected Investments Company, namade up of tional
distributor
of
Selected
dividends American Shares, Inc., has an-

35,000

figure

to

24%
year,

the

vestment

-

.

securities'

of

of $5,000,000

excess

than

more

dm-

is paying

more

quality bonds, and both

j

value.

than

more

"any movements in this

holdings of investment
preferred

realized capital gains.

and

Average, chemical stocks

reasons,

500

were
equivalent -to an
eight-year total of $2.31 from investment income and $2.33 from

trial

22%

than

the current figure,

_

tors

balanced fund has

per

dends from net invesment income

booklet

describing Inves¬
Mutual, Inc. This

a

executive

account for

Phiiaaeipnia

Spring'

Life

Since the fund's inception in the

fall of 1948, a

points out that under the present
makeup of the Dow-Jones Indus¬

currently

between

fund's

butions

outlook for this industry
light of recent earnings re¬

ports."

Interested in

Randolph brought out that
stock, which opened the year
a market
price of $25 % and

tion> was formed by Mr. Fox-Martin and other leading sales and pressed the belief they were the
promotion
executives
in
the "long term" type of
investor, and

in 1955> is the largest •aimtral^late KennarcFW-oOdworth.

ers

share basis, these distri-

serves

of Delaware Valley,
latter
organization,

disbursement made to sharehold- nounced recently. He

50 to

the

of

serves as the Philadelphia
Chapter of the national associa-

an-

_lV111

t7Kft99nn

$7,582,200

On

describes

also

beard of directors of Future Plan-

less than

He

is

which

bejen

directors, "many investors are
no\V soberly reappraising the im¬

to

in the

He

.

years.

^

latest

in

in-

distributions from net realized
curities1

Association
Inc*
The

sharehold-

investment

in

:

Sales' promotion .'Executives

? l°lal °* $89,- of

net

com¬

with

traded

t

greater

Including the 108th consecutive

;

.

President
,

$19,-

283,000 from net realized securities
profits

SPEA.
pox_Martin

involve tne

$5,316,000

investment

.Mr.

the

throughout

Member of the

'

history/The current divi-.i MHlo~

disbursement

closed-end

; lion Welling-; the market in 1956 from exer¬
..ton Fund and cise of warrants and subsequent
; is '. a
Charter sale of the coihmon stock received

be distributed to

est number of

fied

he

selling at about $27 despite some
the $500 "mil-; 800,000 new '* shares
eoming; into ;

by Wellington Fund. Second,,

capital gain

Nelson

Fund's

Welling-'

tort Company,
".sponsor,
a nd
distributor of

record

of
a
subsidiary's
explained,
adding
that the nation's largest diversi¬

-

o r

30,

of

terly dividend declared today set
two new
records,VFirst, it is the
largest total amount ever distrib¬

net

f

The 108th consecutive quar¬

1956.

mediate

WALTER

man¬

ager of dealer

realized

net

relations

and

Bright

try are unquestionably still

Ma r;in is

45

basis

earnings,

pany expects to pay another extra
dividend next year, although less
than the amount paid in 1956.'
'

M r..Fox-

spe-

of

dividend/ paid in February

the

on

eight-•
Prior to his
election, he rtas
year history, and is equivalent to
vice-president and direri or of re12.6 cents per share from income
search 0f Fidelity Fund, Inc. Be-

"Although the long-term growth
prospects for the chemical indus¬

in

from

a

securities

distribution

December 27

payable
of

a

income and

distribution

year-end

vestment income and distributions

;

1

Called

income, and 45c

net investment

Associa-.

tion.

from

from

iJiemieal Out look

investment

share

a,

cial

This

quarterly dividend
net

cents

par¬

Cloudeil; Steels'

share from

12

very

r

consecutive

a

of

and

one

is currently on exploration rather
than development of production.

12c

sists

",7Veceived

"It

108

the national board of directors cl'

The dividend con-t h e

terly dividend.

come

lars.

oil

clared its 108th consecutive quar-

industry,' and the industry
already invested more than

has

concludes,

FOUNDED 1928

Nov. 15 de-

on

president, told; the
of Security

Society

This amount includes &*50-cent
extra

Association, Inc. announced ;be
election of Milton Fox-Martin to

Wellington Fund

and

York*

Analysts.

The Sales Promotion Executives

*

oil

brightest spot for the domes¬

New

By Sales Executives

largest major

terms

the board

Fox-Martin Elected

Tyi TYivirloTirlc
A
xvlv/inio

re¬

the

coming
years increasing quantities of oil
and gas will be obtained from this
source.

Wellington Sets
Record
Payment

45

Y„

(paper) 50c (quantity prices on.
request).
Handbook
cial

and

of Commercial,

Information

Finan¬

Services

—Special Libraries Association.
31

East

10th

3, N. Y.—$5.

Street, New York

46

The Commercial and Financial Chronicle;..

(2218)

railroads. Indeed, Mr.

6

Continued from page

—Government
down out of Europe

world's

and

and Asia, the
greatest land mass. The
lading of ships, however, in those
dise
half

rails

mostly light merchan¬
and it was not until the last
of the past century when the
enabled us to tap our coal,
was

heavy indus¬

cement and ore that

Fortunately, our form
of government, so wisely founded,
was
yet too young to hamstring
try evolved.

foreign fashion.
native enterprise,
stimulated by the prospect of un¬
limited and untaxed gain, took
advantage of that cheap transpor¬
business after the

Hence,

our

and

tation

natural

our

resources

eling abroad.
We

this

that

combination of circumstances took

ton ibile

Sea. Our

Black

the

not

the Great Lakes ?nd

about

form

by rail is only a fraction of
what is in bther countries, ade¬

rate

quate explanation in itself of the
vast disparities in our standards of

Those
Americans who
Capitalism should be con¬
fined, say for 10 years, to some
of these o v e r-g o v e r n e d and
under-railroaded foreign coun¬

living.
loathe

they prod us into emulating.
Only in Germany is our indus¬
trialization closely approached. So
tries

great is the contrast in poverty as
get nearer the Iron Curtain,
easily see why Russia with the

we

we

the rest of the

most of

of

help

world failed twice to defeat Ger¬

until

many

allied

we

ourselves,

first, with the Imperial Czar, and
then with his Communist mur¬

Today, if it were not for
bomb, which we gave

derers.

the

atom

could foi:ce her back into

her,

we

her

own

with

borders

than

cost

more

no

ultimatum,

an

in¬

so

ternally rotten she is.
West
Germany,
miraculously
demolition

encouraged to re¬

we

treacherously

then

and

her

our

gangs,

Poland

sist

postwar
could redeem

despite

restored,
the

betrayed.
Yes,
Germany
could
completely neutralize and contain
Russia if we would only let her,
thus

relieving us of our occupa¬
tion costs, the deadly peril in the
Mid-East to say nothing of the
Far East, and all that we spend
on

allies.

mercurial

our

has

duPont, General
British or French

with

socialized

rail

and their wonder
wither

into

products would

fraction

a

of

their

present
volume, conceding that
they could have been achieved in
the first place.
It would take

to

the

move

450 truck drivers

that

coal

be

can

car

truck

the

nor

compete With
paid for their
nor

could

bus

the

could

the

possibly
rails if they

own

rights-of-way;

subsidized

our

airports

have

been

brought into

being

their

steel

and

had

concrete

reached them by rail.
It is only because our
and

waterways

if

not

harbors

served

by the
railways, built and dredged by
the taxpayer and protected by our
rate makers, that even water can
are

survive rail competition. The boat
not

only consumes more fuel but
it requires 34 men to move the ore
that five

the rail
You

being

men

would
a

freight

of

passenger

its

25
35 and 40;

the

advance.

rot

and

rust

over

are

cars

of age. Many are

years

and

and two-thirds

cars

national
emer¬
and where would we be?

Superimpose
gency,

a

relief requests are

If current rate

in full your two largest
railways may be foroed to
stop buying passenger equipment
for all time. We have just faced
a
shortage
or
at
least 100,000
freight cars, one billion dollars'
worth, from which nearly every
business suffers. To replace every
car
over
20 years of age Would
require $12 billion and it would
pay for itself out of savings. Large
immediate expenditures would be
no
less self-amortizing in many
other areas of railroad physical
not granted

would

then, reward
of service, the

be

rich.

Instead,

since 1929 their rate of return
investment has

3.4%

and

in

since

1930

has

Because
sures

of

Cabinet

no

it

cheap

from
and

on

averaged only

peacetime

year

loadings and most of us would

car

be at the brink of bankruptcy, so

small

are our

and narrow

reserves

margin of profit. And in the

our

face of these well-known needs of

railroads there

our

threaten

main

by

be

in

the

And

the

at

and

to

movie

them

on

theatres

continued

to

passenger

and

Imagine,
cise

tax

rich

see

that

goes

to
so

then

troubles

business

unless

ourselves

we

for

are

having

failed to give the lie to the cooly
calculated
mis-education
of
an
otherwise

conservative

that

if

the

more
come

for

in

the

they

finished

raw

get

intel¬

and

tion

abuse

and

government,

of

not

America

are

a

materials

standard

of

by
business,
rising
to strike

living

and

the

far

so

degenerative

forces

checked

of

pro¬

gressively burgeoning government
but
the
beginnings
of
capital
shortage indicate that the string
has about
We

can

out.

run

ing abroad

essential

our

tions

the

pense

of

railways in

hundred

times

are

five nations blaze
each other with muni¬
and

you

and

me

Members

we

of

always

seem

policies,

good

a

one

For, our Cabinet
Congressmen :are

one.

and

diverted,
are

which

onec

because

peculiarly vulnerable. If the
Republicans had critically debated
these issues they could have made
a clean sweep of the Congress ana
held
it continuously since
1940

election

the

Democrats

were

so

of

busy
as
they
with the next election
insane

our

forces

system of-

them

be.

to

re¬

Most

statesmen,

our

broadcasters

educators,
publishers,

and

equally
plagued ' by
this
fifth
column, would welcome the help
strange if
not of business in restoring our coun¬
sinister reason, our two political
try to its once high standards.
Our President has already urged
platforms, for five Presidentra
elections, now, have been so con¬ upon Congress the only construc¬
trolled
as
to
tive
scotch,
whatevei
transportation
legislation
happens, any debate of those poli-^ ever to originate t in the White
for

Yet,

cies

some-

the

which

most

and condemn.

,

In

It

of

Foreign

feai

us

)

'

.

Economic Truth

Sell

and

Sanity

Policy

truth

sell
as

and

national

of

more

it

For,

soap.

eco¬

foreign policy
than it is tc
is as alarming

a

sanity

it is incredible that 61%

of

our

high school seniors, for example,
do

believe

not

in

profits;

82% do
competition
only reflect
at home. Yet, we
ing budgets are
of

need

foi

not believe we
in business. This

have

means

the

the

encouraging
from the
policy line of
involvement. Enjoying

a

com¬

munications system

in this coun¬
try, some of whose writers and
commentators, taking their lead
from
Washington,
distort
the
statements
and
policies of big

and

away

devotion

of'our

he does, he can achieve
complete reorientation of gov¬
as

ernment policies

to the wishes of
undue shock to

the

90%

our

immensely vital

believe

without

he

will

We

economy.

seize

this

oppor¬

tunity. If he does not, a champion
of the majority will surely arise,
as some day one will in Russia.

ignorance
in our advertis¬
the only visible
of

shows'

respect

people

equal

support

He

universal
the

becomes, therefore, far

nomic

House.

signs of breaking
left wing foreign

>

important to business to sell

DIVIDEND

With Lester, Ryons
(Special to The Financial Chronicle)

SAN

DIEGO, Calif.

Doris S.
Lester,
Ryons & Co., San Diego Trust &
Savings Bank. Mrs. Cole was for¬
merly Vista, Calif., Manager for
—

Cole has joined the staff of

Fewel

Co.

&

DIVIDEND NOTICES

NOTICES

Allegheny Ludlum Steel Corporation
Pittsburgh,

Penna.

At a meeting of the Board of Directors of
Steel Corporation held
Allegheny Ludlum
today, November 15, 1956, a
dividend,
of
fifty
cents
($0.50)
per
share was de¬

clared

on

Stockholders

Common

December

Common

the

at

7,

close

of

of

busi¬

A

1956.

S.

A.

co^nt. INC.

manufacturing

the
Corporation,
December 20, 1956

of

payable
to

the

on

Stock

Dividend No.

.payable

Cent.

McCASK™.

.to

Stock has

Secretary

.
.

bee

LOEB,

•

M; B.

DIVIDEND NOTICES

stockholders

to

57

JaOUatyrA December 14, 1956. ;
of teC°
Brooklyn,

President

N. Y.

Atlas Corporation
33 Pine Street, New York 5,

AnacondA

N. Y.

Dividends declared

November

21,

at

the

and

on

DETROIT

5% Cum. Preferred Stock

STEEL

and Common Stock

CORPORATION

The Board of Directors of
ANACONDA

THE

has today

of

share

its

on

,

COMPANY

declared

a

•

dividend

($2.00)

Dollars

Two

value of $50

payable

December

stockholders

share,
21, 1956,

the

close

of

November 30,
C.

EARLE

business

0

STOCK

:

-v

-

'

^ |

DIVIDEND NO. 107

Record date November 28,1956
•

On October 26,1956,the Board
of Directors voted a cash dividend

Common Dividend No. 60

payable December 12, 1956, lo holders of

r

record at the close of business

•

.

<

Regular quarterly of 15£
per share

at
on

of

$.25 a
Common
Stock
■

-

share

November 28, 1956.

Payable December 20,1956

1956.

\
;

*

the

on

•

.

R. A. Yoder

Record date November 28,1956

Vice

MORAN

President—Finance

Walter A. Peterson,

Secretary and Treasurer
25

COMMON

Payable December 15, 1956

per

of record

t

Preferred Dividend No. 2

Regular quarterly of 25^
per share

per

capital stock of

the par

;1

1956.

Treasurer

Broadway, New York 4, N. Y.

November 14,1956

.

ALUMINIUM LIMITED
139TH

dividend
A

per

ex¬

these

of

the

C.

I.

Financial

payable Janu¬

1, 1957, to stockholders of

record
ness

NOTICE

1
<

Common

T.

on

Corporation,
ary

DIVIDEND

share in cash has been

declared

CfT

.-

quarterly dividend of $0.60

Stock

freely furnished

and the real

resources

while for Suez solemn treaties

the

vita

the

on

are

two

easily

duce taxes, we can stop squander¬

CORPORATION

at

one

can re¬

FINANCIAL

away

fact that

have

always

ness

stop inflation, we

and

up,

to

ten

people

our

record

to

important

France

Yet,

most

key spots in Washington, ir¬
respective of party; reason enough

to

Congress.

hold

mentors

us.

and

the

for the

the first time in 108 years
President has failed to carry his

neglected

our

to us, even to
England, than the
Suez Canal. Yet, the rails are left
to
the
mercy
of cheap politics

more

underpaid

day purge

one

their

now

gress,

credit

by

which threatens to stall

product

by rail?
sound

them, they will
Even

self-

into

go

midnight oil to aid the world
both parties in sup¬
pressing our majority views. If we
do not organize to out persuade

ligent people. For, it is the infla¬

out by truck they must pay

torn




blame

richer and the rails poorer. Cannot
those responsible for such follies

pres¬

on

ex¬

passenger

transportation

4.3%.

of

a' special

only

our

industries

political

Congress

on

and

inflationary

not of

to

to

business to its discredit and burn
the

meddlers of

a

can

are

rebuke

because even with hik
help it lost the Con¬

party,

enormous

war.

all-weather
service,
essential
to
troop
and
civilian
movement, which already
loses
$700 million a year on its pas¬
senger trains. The tax on freight
is an added inducement to already

freight

If

Abuse by Government

to

freight in the last

imposing

attack.

follow.

Our

well-merited

a

DIVIDEND NO. 194

admissions

but

admissions

our

to

<

on

of

were

his

can

we

regula¬

level,
sup¬
posedly,
of
national
enlighten¬
ment,
Congress
recently
threw
out the excise taxes

line

they go, the rest will not be slow

Taxation

top

first

Can

interest?

public

Destructive

them their

con¬

stretch of the imagi¬

any

nation

the

line trains.

discrimination

being the very core of our
capitalistic system, it is not hard
to see why its enemies have made

and business have

ex¬

they themselves have long
since abandoned, scores of trains
that
average only
a
handful of
passengers
a
day. At the same
time other public servants grant
subsidies to the airways and high¬
of

rails

relief

which

which |j

it may, the

at the heart of private enterprise.
The miracles of transportation

penditures just as a means of
keeping our people employed.
Local public servants force us
to continue marginal rapid transit
services
of
a
trolley
car
type

ways

loathe

as

youth. In¬

our

return peace to the
world, but only by seeing that
real issues, and not personalities,
decide our presidential elections.
The results of this last, while a
high
tribute to' our
President,
deed,

questions of
war,
taxes, * labor
monopoly, and foreign relief, tc

exempted.

foundation. Be that

of

the flower

and

divided

'

Butt

a

those who

are

and

defense

advocate

exceeded

members

railroads.

our

• underestimated the sappers at our

plant; but how can you borrow
at 51/2% to renew a plant which
earns
3%? A 10% decline in our

This I know:

think

function

railroads

by rail, and

move

it faster.

moves

to our

eyes

There are those
capitalism
because
they feel frustrated in it; but, we
have other more dangerous in¬
ternal
foes
who
are
fully
as
energetic and ingenious as tycoons.
Most men
are
builders;-a few,
are wreckers.
Indeed, I fear that
if we of the right fall it will be
because,
busy
at
the • top,
we

na¬

90% of

Neither

heel,

Defense

of

Yes, this great rail service that

who

the

than one-third of

feather

bedded.

Otherwise,

Office

Rail Service

higher rates

by only five men in a 150
train, and two of these five

are

the

can

Achilles

freight trains, the one.forced
to carry more than 95%
of our
troops and the other more than

moved

hypothe¬
Yalta,
Korea, and

explain.

to

sop

tax

service

and

rates

would

Mobilization close its

Plight

Roads'

The

More

tion

Penalize Ford,

Electric,

foreign
wonder

poorer

tinuance

Discrimination

into
one

service. This Repub¬ does so much for our defense at
lican
year,
supposedly favoring no cost to the taxpayer has been
big business, was ironically not pauperized and made the butt of
nearly so good for us as our last politicians,
newspapers,
taxing
ambulance
chasers,
years under the New Deal. Could authorities,
there be a greater warning against college
professors, and govern¬
encroaching government than this ment agencies for a full genera¬
sorry
record
of our first
big tion, while its rapidly growing
competitors
are
subsidized
and
regulated industry?
and

such
Anti-Rail

It

Berlin, China,
other riddles.

how

which in the

groups
meant only

pressure

end

tion's

grateful

be

can

Hiss,

bear its fair share

to

transportation costs—a

the

only be appreciated by trav¬

can

made

been

of

our

poured

makes

were

which

many

railroad

of

peace¬

straw man? Here is an

sis

men,
the
traffic of this rich country has not

standard of living that

to create a

a

Commission
the
resulting

of

because

their

doesn't it? Could Russia have been

Commerce

timidity

we

tasks, while millions of

dollars

railways.

Business?

or

Interstate

days

time

Responsible for Inflation

Whose

Malenkov is
sit, our

smiling.
Yes,, here
railways unequal to

Thursday, November 22, 1956

at

close

the

December

of

busi¬

10, 1956. The

On

October

17,

1956

quarterly

a

dividend of Sixty Cents per share in
U.S. currency was
par

declared

on

the

no

value shares of this Company,

transfer books will not close.

payable December 5, 1956 to share¬

Checks will be mailed,

holders of record at the dose of busi¬

C.

John Kuhn,
*

November 21, 1956.?

Treasurer

ness

November 2, 1956.

Montreal
October

JAMES

17, 1956

A.

DULLEA

Secretary

Volume 184

Number 5588

The Commercial and Financial Chronicle

...

(2219)

Ihliled Gisban Gil, lltCa^ With Coburn, Middlebrook
(Special to The Financial Chronicle)

Stock at $1.25
S.

D.

Fuller

City, -and

&

Share

a

publicly 1,000,000 shares of

SAN FRANCISCO, Calif.—Max
Bissinger and James M. Coleman

Street.

offering

are

uel

Cuban Oil Inc. at $1.25
These

securities

offered

are

as

1

,r

■

WATERBURY/ Conn.

a

United Cuban intends to
net

proceeds

these

from

shares

for further

including

use

;

the

the

$677,000

M.. O'Neill is

burn

&

drilling

Middlebrook,

Cuban

v

-

concessions,
of

certain

Goodbody &

and

supplies;

.to

City.

ELECTRIC BOND AN!) SHARE

New

oil

Republic

of

and

Inc.

was

Notice ot Dividend

«

set

The

Board of Directors has de¬
a quarterly dividend of 25c,.
share on the outstanding

tfVS' Common

production,
of

payable

Stock Of the

December

on

holders of record

24.

1956,

to

business

stock--,

at the close of business on

certain

concession
of

coast

Cuba.

Its

I

'

Vi-

1856,

KENNECOTT

the

and

meeting

$2.50

of' the Board of

held today,

share,

per

payable

Copper Cor¬

Common

Stock

per share on the
Company, payable

on

quarterly

a

December

21,

1956,

to

record

the

close

of

business

at

The

John Corcoran,
Vice-President &
November

Secretary

19, 1956.

Board

declared

men

of the
ary

*

,

of

Directors

Johns-Man ville

of record

Company, payable Janu¬

2, 1957 to stockholders of
the close of business

at

S.
t

CAItMICHAEL,
; v.: ;

of

share

m
no on

•

The

Board

of

2%%

thereto,

end

on

the

stock

dividend

dividend of 25c

'•!-'Common
■

pavable

Stock,

both

December

1956, to holders of

COMPANY

December

ord
V.

14,

the

on

a

Common

regular quarlerly dividend

forty cents

($.40)

$1.60 Cumulative

share

per

Convertible

on

Both dividends

are

HACKNEY, Treasurer

Southern

10, 1956.
M.

C VAJVA

14,

•

DIVIDEND NOTICE

•

FLORIDA

>

CYAN AMID

Board

The

regular

terly dividend of 35

cents

payable

28,

December

a

quar¬

share,

1956

I

2% SUPPLEMENTARY STOCK DIVIDEND

—

supplementary stock dividend of
on the common stock, payable

2%

December 28, 1956 to shareholders

December 7,

POWER & LIGHT

cents

CUMULATIVE

Company

33/4%

Cumulative Preferred

Series C,

and a

Stock,

quarterly dividend

eighty-seven and one-half cents
(87V2<) per share on the outstand¬

ing shares of the Company s
Cumulative Preferred Stock,
D.

3 V,z%
Series

the

payable January 2, 1957, to the
of such stock of record at
close of business December J,

share has been declared
Common Stock of the

on

holders of record

at

close

of

business

1955.

on

able

December

the close of

R.

S.

KYLE,

.

the close

of

business

at

31,

are

pay¬

1956,

to

November

In

dividend

was

a

3% stock

declared pay¬

able

Angeles, December 31.
hale,

November 16, 1956

Dividends"
(or early-winter
visitors: extra

|

January

10,

Secretary

bargains
enjoy—increased

industrial oppor-

not

be

paid

November 20, 1956.
P.O.

•

>01

3100

•

MIAMI

to

explore.

30, flORIDA

•••••••••••

1
1

on

issued pursuant to

the shares
the stock

dividend.

i

.

to

the

The above cash dividends

s

to

at

29, 1956.

Treasurer

vacation

*

1957,

close of business November

will
"Double

29,

DIVIDEND

addition,

stockholders of record

Checks will be mailed

p. c.

stock¬

1956.

of Amer¬
today de¬

tunities

New York,

payable

to

stockholders of record Decem¬

Los

"

declared

STOCK

November 30, 1956.

December 3,
-

was

ber 5.

business

the

the

39

from the Company's office in

St., Boston 16, Mass.




of

cents per

holders of record

The above dividends

payable December 21, to stock¬

oustanding shares of the Com¬
mon
Stock of the Comoany,
able
December
21,
1956,
to
the
holders of such stock of record at

November 15, 1956

DIVIDEND

dividend

January 10, 1957,

STOCK,

the

Company,

DIVIDEND

A quarterly dividend of $lA2}/2 a

250 Stuart

CASH

extra

twenty-five (25^)

27 cents per share.

quarterly dividend of 32c per

1956.

share, payable January

BIRD, President

An

PREFERRED

Dividend No.

A

holders

The Board of Directors

E. H.

of

STOCK

190

4.32% SERIES

clared a'quarterly dividend of sev¬
enty-five cents (75c) per share on

1956.

stockholders

the close of busi¬

November 29,1956.

share

ican Cyanamid Company

shareholders of record December 7,

PREFERRED

No.

60 cents per share;

Arner-

(93%C) per share on the out¬
shares of the Co™P^Ls

COMMON

to

to
at

ness

DIVIDENDS

Directors of

4V2% CUMULATIVE PREFERRED STOCK—
1957

1956,
record

of the

following quarterly dividends:
ORIGINAL

declared
a
quarterly dividend of
ninety-three
and
three-quarter

1956.

1,

of Directors has

cents per

EXTRA

COMPANY

of

1956.

Board

Dividend

standing

to

shareholders of record December 7,

of record

of

Cyanamid

ican

COMMON STOCK—A

of fifty-five
share was declared payable December 20,

(55 ff)

authorized the payment

DIVIDEND

dividend

.

PREFERRED

DIVIDENDS

• "

COMPANY

-

A

••••••••••••

AND FUEL

products

Company

1956

The

industry

GASH

DIVIDENDS

1VT J P

AMERICAN

ASSOCIATES

basic

Edison

November 14, 1956

California

HEILBRON

Secretary

GAS

homes and

CORPORATION

1956 to stockholders of record December

EASTERN

serving

TENNESSEE

payable December 31,

SEYMOUR

f

tCNNf S9IC COftPOKATIOM

the

Preferred

"

Stock.

November

with essential

J

rec¬

1956.

y

ROGER

CS-tumlctiJU'yom, (AM 4t|

3,

of
«

declared

has

Directors

Slock and the

-

.vear

EMERY N. LEONARD

Secretary and Treasurer
Boston, Mass., November 19,1956

per

Stock, and, in addition
a

Jan. 15, 1957, to share¬
holders of record Dec. 7, 1956.

v] Preferred Siock

.

en

Secretary

Cleveland, Ohio, Nov. 15, 1956

DIAMOND ALKALI

»•

the Common

on

capital stock of
this Company has been declared

Common S ock

quarterly
59c

per share on the

NOTI3E

i DIV1DZND

The Board of Directors
a

Quarterly Dividend
A dividend of
seventy-five cents

payable

November 16, 1956.

DIVIDEND

declared

Consecutive

Secretary

regular

dividend

230th

the Common Stock

on

Co rporation

#OHM MAWVUtl

UNITED FRUIT

today

D. W. JACK

.

DONALD

•< '

Treasurer

COMPANY

December 3, 1 956.

a-

share, payable Dec.

"

DAVID S. SHATTUCK

NOTICE

on

to "holders of ComStock of record Nov. 26,

1956.."

the

close
business November 30, 1956.

dividend of 36 cents

a

share

record

-10, 1956,

"

A

DIVIDEND

on

30, 1956.

quarterly dividend of 45
"cents per

stock¬

to

at

will be mailed.

Secretary

November

on

PAUL B. JESSUP,

Dec. 24, 1956, to holders of

•

payable

are

1956

shareholders

of

December 11, 1956, Checks

declared,

were

December 17, 1956 to

on

of the

3% stock dividend payable

•,

of

18,

of record

COMPANY

terly dividend of 30 cents

of business

Common Stock

a

dividends

December

UTILITIES

quar¬

a

per

The Directors of Diamond

Nov. 26, 1956; and

on

Par

Treasurer

CQ|kL COMPANY
meeting held today, declared

a

stockholders of record at the close

Regular Quarterly

Stock

(no

42dStr£et*New York, N.Y.

special cash distribution of

a

on

Common Stock

Common

share

per

Stock

CONSOLIDATION

poration

v

twen¬

PITTSBURGH

CORPORATION

cash distribution of $1.50 per share,

Company have

Com¬

of

The Board of Directors of

COPPER

Directors of Kennecott

Nov. 15, 1956, declared

the

yet

t

at

3% Dividend

per

Stock

November 13, 1956.

November 16, 1956

,

-

not

holders

Christian de Dampierre

1956.

15,

at 9100 Sun¬

are

At

Alkali

1,1956 and a stock dividend of 2% pay¬
able Dec. 14, 1956 on the common stock
to stockholders of reeord as of Nov.
15,

principal

1 61 East

on

;

of

(25tf)

Common

These

NOTICE

The Board of Directors has declared a
dividend of 45* per share payable Dec.

Secretary and Treasure}November

the

DIVIDEND NOTICES

Dividend

December 7, 1956.

' B. M. Betsch,

Vice Pres. & Treasurer

-

v

on

.

(12V&tf)

dividend

a

cents

has

twelve

exchanged un¬
der the
Company's Exchange
Instructions dated May 19, 1953.

COMPANY
DIVIDEND

of

Common

Value)

and

Value)

Directors

cents

the

Par

the

STAUFFER CHEMICAL

of

dividend

a

on

ty-five

December 28, 1956, to share¬
holders of record at the close of

Company,

December 6, 1956. Checks will be mailed.
}
',
'';
CHARLES C. M0SK0W1TZ

Boulevard, Los Angeles, Calif.

f

Board

one-half

($1

clared

9,

exploration

^

LOEW'S INCORPORATED

or¬

Jan.

on

NOTICES

November 21, 1956.

;5

north

executive offices

The

declared

York, N. Y.

pany,

Delaware

the

TECHNICOLOR, Inc.

Treasurer

.

;The Board of Directors has

consolidate

on

V;;v

'

.^declared a quarterly dividend
of thirty-one and one-quarter
cent? (31V4O
per share
on
7 the Common Stock, payable

per

and gas on

"■* •'vJ-v!- • ■
J. F. FORCYTH,

•

;•

y;; : "

DIVIDEND

:

rights

•

CORRECTION

stockholders
of
record
at
the
business on November 3G, 1956

v--,* •'«"•. i
i'v

COMPAN r

of

V,

on

Oil

and

Co.

Secretary.

leases; and for

purposes.

development

&

quarterly.

1956
to
close of

VANDERSTUCKEN, JTL,

to

share

working capital and other general

in

Brothers

"

E. F.

of

voted

They also declared the- regular quar¬
terly dividend of 30c per share on the
common
stock,
payable, December 10,

*.v.

formerly

November 26, 1956.

held

Boord

to receive

dividelnhk.
payable December
15, 1956, to stockfolders of record at the close of
business

YORK, N. Y.

meeting

the

payable

NOTICES

,

North La

was

a

1956

corporation

on the
10,020,000
Company's capital stock out¬

standing and entitled

on
November 16,
Directors
of
this
increase, the regit-,
lar annual dividend rate ch
the common
stock
frqm $1.00
to
$1.20
per
share,

Calif.—

divi-

a

end of 50 cents per share

shares of the

ENGINEERING

CORPORATION

James M. Pidgeon is now with Hill

r

the

for

exploratory drilling

its New Mexico oil

1956

Kansas

He

1

ROSS

*

approximately," $80,000

United Cuban

Street.

Co.,

0.

NEW

CHICAGO, m.—Thomas L. Wilof

with• Stern

drilling equipment

1 he Board of Directors has
declared
c

At

FRANCISCO,

DIVIDEND NOTICES

TEXASGULF SULPHUR COMPANY

Crocker

(Special to The Financial Chronicle)

SAN

kerson has been added to the staff

000 for the

purchase of additional

Co.,

J.

DIVIDEND
=

(Special to The Financial Chronicle)

Salle

ganized

35

Goodbody Adds 7

i

drilling commitments; about $144,-

corporate

Inc.,,

Leavenworth Street.

and devel¬

on

completion

purpose of

Fred¬

—

with Co-

now

sale ..of

follows:

as

opment of its

:

>

&

With Hill Richards

(Special to The Financial Chronicle)

erick

speculation.

Franklin

Co., 120 Montgomery

DIVIDEND NOTICES

have become affiliated with Sam¬

B.

&

Mr.

Pidgeon was previous¬
ly with Kaiser & Co.

Joins Coburn Staff

share.

per

Richards
Street.

Building.

com¬

stock (par 10 cents) of United

mon

(Special to The Financial Chronicle)

;
HARTFORD, Conn. — Emil J.
Shalling is now with Coburn &
Middlebrook, Inc., 100 Trumbull

Co., New York

associates,

Two With S. B. Franklin

47

61

-*v

John G. Greenburgh
Broadway
Treasurer.

New York 6,

N. Y.

The Commercial and Financial Chronicle

43''(2220)

531

Thursday, November 22, 1956

...

however, who believe that

cans,

BUSINESS BUZZ

from

nston.

the

Democrats,

-

if

even

superficially less socially level¬

•

•

„

Republicans should offer a dif¬
ferent
brand
of
merchandise

ing

o

superficially

and

less

ex¬

pensive.

A

Behind-the-Scene Interpretation*

J

^

JLjL *

Capital

from the Nation's

These

.

will

Republicans

hereafter

Eisenhower

little and

fear

each month

as

drags along, his

influence will abate.

C —Just

if impa¬
tiently by the rantin' and rarin'

D.

will

the

is

sad

the

seeming

"liberal"

brought to a state bordering on
The

chaos.

far

concerned, they are fresh out of
leaders
who
at
the - moment

the

both in I and

publicans,

spokesman for the whole party.
With the light vote Adlai Stev¬
enson
got, no pilgrims will be
beating a path to his door, and
bis crown as titular leader of

nied

as

..

t

is too

Democrat to whom the

avowed

^salaam

may

There-is

ence.

;~

grass.

V"'v;"

far

As

Congress

as

,

Con-'

in

following

Democratic

i

shaky

and

■ >'

/

•

to use the modern
monolithic.
They each

'

term strategy now and

then, but

gress'of the same party is rarer
than cases of their two hearts

Then, too,
Lyndon Johnson will have Her¬
man
Talmadge
on
his hands
like

beating

one.

Lausche who, hav¬

plus Frank

ing been made the target of the
walking delegates, but having
won
notwithstanding, is sitting
a

100-lb.

of

sack

;

a

peanuts.

•

i

-

,

Johnson is under

pers,

Republicans
1

conference.
government
take the lead" in seeing

-

that

tributed)

deal of criticism because Eisen¬

It will

own.

be the Su¬

not

will adju¬

which

preme

Court

"fault,"

but

the

voters,

city
election
statistics. * The
rantin', and
rarin'
boys like
Humphrey think that
Lyndon was all wrong for being

Hubert

there

was

when

that great big trough

White

of

southerners

to

House

patronage

at

stake.
wears

on,

dilemmas

cratic

look

not

will

probably

formidable.

so

Lausche is

the Demo¬

expected

Frank

vote to

to

give the Democrats the organi¬
zation of the Senate, which they
will retain barring bad luck on
whose heart skips beating first.
Time will probably soften the

perspective

figured he

on

®oy,

and
else.

never

Hydrogen
he

sired

so

that the
,

dtjd
?

a

was

Republicans" must also
in the free enterprise

"New

believe

pt
%

tem

mechanism

central

the

is

be taken,

wealth, that might

of
as

of the

support

a

free

President

qualified

price

before the

But the day

system.

that, in ac¬

cepting the resignation of one of
officials.

his

"If

when

comes

by

man

i

was

terms, the President can be

two

anticipated to plan for his large

plan,

been

for

even

White

House

entirely

suffers

the

sound

President

can

when

the

on

fig-

he

losing

anyway

issue,

won't

on

look

bad when it is realized
<

d

nds whom Eisenhower

votedly

himself

and

to,

and

publicly

fouled

Hungary

up

the

di<v rolled for Adlai.




in

way

ran

ahead the day

see

slave

to

expected

to

day

ever

economic

people

the

party in. his

Building
It

is

Falls

own

image.

Down

lineating

problems

the

Republican

party,

the

in

the

of the
ideolog¬

ish

time

Republican ticket had the

program.

will foe in grave jeopardy,"

tion.

Supports Hoffman

a

mutual

Political

capable than

is

no

other

the

to

that

the

reward
his

run

out.

the

Congress

is that they didn't believe in the
program
or

upper

teen

less

one

point

middle

still many Republi-

are

conclusion

that

In

tion

asserted
came

few

so

him

to;

4 1 i

is likely

to give,
the when
know the

.

can

why and how.

/

:

[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.]

Cronin With

J

Reynolds

PHILADELPHIA,
Stock

York

Pa.

—

Rey¬

members of the New
Exchange and other

nolds & Co.,

leading exchanges, announce that
Edward
J.
Cronin
has become
associated with their Philadelphia

Before

joining Reynolds & Co,,

Cronin

Mr.

He

Weeks.

&

St.

from

with

associated

was

of Horn-

Philadelphia office

the

as

representative.

registered

a

Street,

Chestnut

1526

office,

graduated

Joseph's College, Phila¬

delphia in

entered the

1941 and

United States Navy, leaving serv¬

February, 1946.

He joined

sales staff'of Felt

& Tarrant,.

ice in
the

Chicago

office equipment manu¬
in

facturer

in

firm
&

1949

leaving

1946,
to

Weeks,

that

join Hornblower
/

'■

TRADING MARKETS

United States Envelope

Morgan Engineering
National Co.

Carl Marks

be¬

with

the

exasperated

FOREIGN-SECURITIES
50 BROAD STREET

right
wing"
(i.e.,
Republican conservatives) that
he
at
one
time
contemplated

TEL:

HANOVER 2-0050

•

&

Co. Inc.

SPECIALISTS

NEW YORK 4. N. Y.

TELETYPE NY 1 971

Riverside Cement
■/

Sightmaster Corp.

Investment

Telephone
;
I

ttHW

i iril l Iiiijjrit.ilni

4*'.

"\?1.
A.nl.r

-n -.m-rr. -

«i,

,

LERNER & GO.
Securities

10 Post Office Square,

political party.

Then shortly before the elec-

Campbell Co. Com.
Fashion Park

Administra¬

the President

a new

j

Indian Head Mills

"extreme

building

to

Botany Mills

out

that

some

.

predict
where if they do

A. S.

last spring with
White House inspiration, it was
put

Nixon.; / // -

Something
but

"campaign biography"

Eisenhower

can

mantle,

and adopt

one

some

replace

of

the

the

in

the

the President is to
complete the re-making of the
Republican party.
of

the

over

possible!.Eisenhower to take?

if

personal and public ob¬

jective

Nixon

Dickey

of

.

the

avoid

of

class Paul to buy six¬

view of
objective •, hews " analysis, ' it
seems
almost
to
impossible
the

From

pursuit

The

techniques'"threaten/

Peters.

There

of

of robbing

why.

_

doesn't

but

ardent

reason

in

fact
"new

pun¬

and

most

Republicans failed

are

man

with

sincerity,

accommoda¬

man

any

beginning

is

to

or

failed

he

take

blower

shown

is

power

Republicans,"

course,

things upon which there can be
reached

the President said.

theories

be¬

The "liberal" crowd believes, of

However/'with

economic

the

Republicans

old

"New

gravest objections personally to
the enhanced income socializa¬
tion

without

left

ical conflict. Many men who ran
on

most

.

Eisenhower

Now

de¬

-

covertly under way to persuade,

waver.

pelled.

.

possible to skip,

the

Republicans

It looked like
suicide to oppose Eisenhower, a
Lloyd's policy to join up en
toto.
That myth has been dis¬
to

gan

/
>

Meanwhile the drive is already;

even

behind Eisen¬

election

the

conservative

to

re-building of the Republi¬

can

180,000 votes

Before

serve

mission

that

in

and

hower.

when he will step down, he can
be

Kentucky

ply riding the coattails, and he

of the ego. Now that the

cancer

sonal

ety

#

have

would

the 200 percenters sim¬

among

disease,

non-partisan

were

Happy

Morton

in
a

bring chaos among Republicans.

Prescott

that

from

how

Cooper might have failed. Only
Bush made the grade

the

in

If

fn

won

has

who

man

any

few months

a

Wagner nor Car¬

Sapio

doubtful

| niche" in history. All Presidents
so

de

rope.

{

■/

,

electing

in

same

unless

or

here that

pulling on
Chandler
had not been fighting the older
Democratic
organization it is
the

to

social justice, our form of soci¬

Stevenson, hav¬

reckless bet

was

no

mine

consti-

amendment limited

200

percenters.

neither Mayor

most, desire for office and per¬

many

the

really

bomb

"peace"

ouite
has

there
Then

ing made

the

is

One

outstanding

all

Colorado,

There is a suspicion

which he has dedicated himself,

energetic.

fondest

Adlai, for

to go up against Big Personality

one

cor¬

policies fail to serve the ends of
time

As

Number

as

i tutional

.

which arbitrates the distribution

kind

•

President

the

Pennsylvania, and Thornton in
,

objective.

and

may

proportion, if not a majority of
the colored vote, judging by the

too

the
this

the

there

make the grade,

to

/

Eisenhower,' had

recognize

"

press

Now that the President's time

'

his

system. Since the free price sys¬

a

conference

week's

last

at

roborated

re-dis¬
shall suf¬

large

obviously got

hower very

Finally,

e.,

one

no

failed

ism"

namely McKay in Oregon, Langlie
in
Washington,
Duff in

political life Senators Joe
McCarthy, George W. -Malone,
and William Jenner.

privation through no fault of

fer

good

a

(i.

distributed

so

'

of

production

to it that wealth and
is

•

re-makirtg the party just
plain isn't working. Four of the
stalwarts of "new Republican-

disputed that he could rub out

!

Federal

"must

However, the President's plan
of

thesis in the. least; he only

! man

the last week's press

The

'j

unquestioned Eis-V
intimate. The Presi-*

dent did not repudiate the Hoff-

;

on

He defined

vation.

Annual

time have been invincible. ;/

a

'j reconciling personal conviction
with
seeming external neces¬
sity.

up

in the form of
article by Paul

be more of the
indolent than of the aggressive

evident in the newspa¬

is

which would put
the road to sal¬
the term in

publicanism"

greened

was

was

that "new Re-

in defining

tive

stocks away and forget them—
forget where you put them'." ;*

say

an

I enhower

'

and

Criticize Johnson
As

to

idea

"Collier's"

the

victorious disciples.,

as

dicate

with

monkey

prettier than

I'

the

Hoffman,

,

Houses of Con¬

both

*> "

tion

Mr. Eisenhower was construc¬

top

two

any

between

accord

■leaders in

j forth

tactics and long-

short-term

on

didn't

I

again. This

anism," and presto, they will go:

differences

serious

their

liiave

/

Republicans need

the

of the

framing

Instead

,

altogether,
cliche,

All

.

but

-

do is lavishly and earnestly to
bring their votive offerings to
the manger of. "New Republic¬

;

.

as

Republican" patty he would for

"I know I said put your
t

"modern

be

/;:////.'/,/

J vote.;

the f

goes,

Speaker Sam
J&ayburn and Senate Majority
Leader Lyndon Johnson is not

"Texas oligarchy of

If

Republicans." It is apparent to i
Mr. Eisenhower, on the other
hand, that the people do trust
Mr. Eisenhower to be a Repub- t
lican moderne, therefore, his big '

;•

to tie to-r

no one

slender

the

aether

even

t

in the case

that,

free lunch.-

Congress

for

to

Governor

and

in
courteous, if not sincere defer¬

faithful

the

succeeded

Trust Repub-

j States just don't
lican
candidates

and
then
down to Con-

Message, the President will call
Republicans iri to read it to
them, - will 'smile .-kindly upon
them, and may even give them
a

sipiple. In his last wek's
press conference he explained
;that it was all due to the fact
that the people of the United

and hav¬

there

r

of the

is very

ing failed, rates currently as
something less than an elder
statesman. So outside the Con-!

ranks

Big Brother" sees the
Republicans, it

As "Mr.

•

situation

White

the

his

,

,

gressional

of

is simply awful.
r •••/;/'/ ■
r/;/-'//"•,
!Situation "Simple"

<

in

framed

politbureau,'

gress, except

cans

-

four

will be passed on

professional politicos

As most

/see it, the plight of the Republi¬

the
party
will
wear
very
■tightly, indeed.
' Harry Truman, of course, put
bis all
on
the shake that he

would stop Stevenson,

"

•

their

be de¬

that policies will

means

House

will

no

if they deviate
major pol¬

of

out

first

be

important

-

Congress,

patronage

one

It

poor.

Republicans,

how

icies. It

of

out

remain

will

that

in

posts
in

that

day-to-day relations with

matter

will

Congress..

unchallenged

stand

„

what

the

politics

means

of high-priced
Eisenhower's per¬

men,

means

silver lining ■ in the
Democratic Congressional pic¬
ture
is the blackness of the
clouds that overhang the Re¬

Democrats are

the

sonal

however,

Finally,

put

as

so

are

that

army

an

liaison

Republicans Worse Off

publicans.
As

despite

House

politics. It

Congress

troubles, too, but they are
<iot rated as comparable in dif¬
ficulty
with those of the Re¬
their

l

otherwise,

or

White

means

not party

heavily in the saddle.

have

Democrats

>

It

whether

southerners,

where

has been

Number One, the party

is clear

is

going to travel
the old groove. This means en- "
hancing the man over the party.

through the Senate,

legislation

of

intentions

Eisenhower

inescapable if they want to get

the

Despite

party.
good

publican

it

Nevertheless,

—

of the Democratic North
something which is just

as

—

the Re¬

of

state

recognized

be

boys

in this Capital sinco Nov.

areas

7,

behind

discussion

of

ject

Liaison Lacking

Johnson's moderation in time

flourishing sub¬

WASHINGTON,
about the most

HUbbard 2-1990

Bost'in 9, Mass,
lektypa
BS C9

•